International bussiness the challenge of global competition 11e chapter 12

chapter twelve Labor Forces McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc All rights reserved Learning Objectives  Identify forces beyond management control that affect the availability of labor  Explain the reasons that cause people to leave their home countries  Discuss the reasons that some countries have guest workers  Explain factors associated with employment policies, including social roles, gender, race, and minorities 12-3 Learning Objectives  Discuss differences in labor unions among countries 12-4 Labor Quality and Quantity  Quality, quantity, and composition of labor force are of great importance to an employer  Labor Quality  The skills, education, and attitudes of available employees  Labor Quantity  The number of available employees with the skills required to meet an employer’s business needs 12-5 Worldwide Labor Conditions and Trends Overall Size and Sector of the Work Force International Labor Trends Aging of Populations Rural to Urban Shift Unemployment Immigrant Labor Child Labor Forced Labor Brain Drain Guest Workers 12-6 Primary Occupation of National Labor Force Source: https://www.cia.gov/cia/publications/factbook/fields/2048.html (July 25, 2006) 12-7 Aging Of Population Source: U.S Census Bureau, International, “Midyear Population, by Age and Sex,” http://www.census.gov/ (July 27, 2006) 12-8 Rural to urban Shift Source: World Urbanization Prospects: The 2003 Revision (New York: United nations, 2003), pp 3-4 12-9 Unemployment • 192 million overall unemployed – Middle East and North Africa (13.2%) – Sub-Saharan Africa (9.7%) – Central and Eastern Europe (9.7) – Latin America and Caribbean (7.7) – Developed economies (6.7%) – Southeast Asia and the Pacific (6.1%) – South Asia (4.7%) – East Asia (3.8%) 12-10 Brain Drain: Countries with the Highest Percentage of Their College-Educated Citizens Living in Other Countries 12-15 Guest Workers • People who go to a foreign country legally to perform certain types of jobs • Guest workers provide the labor host countries need – Guest workers are desirable as long as the economies are growing – When economies slow, fewer workers are needed and problems appear 12-16 Considerations in Employment Policies • Social Status – Important with respect to labor force, especially in some cultures – Caste: the group to which people belong in a system under which people’s place or level in a multilevel society is established at birth as being the same level as that of their parents • Sexism – Acceptability of women as full and equal participants in the work force ranges widely 12-17 Women’s Education • Studies show a direct correlation between women’s education and – Birthrates – Child survival rates – Family health – A nation’s overall prosperity 12-18 Female Illiteracy 12-19 Ratio of Wages, Woman versus Men, Selected OECD Countries 12-20 Racism • Black and White conflict – U.S., South Africa, Great Britain and elsewhere • Arab-, Indian-, or Pakistani and Black conflict – Africa • Tamils and Sinhalese Conflict – Sri Lanka 12-21 Minorities  Traditional Societies  Tribal peoples before they turn to organized agriculture or industry; traditional customs may linger after the economy changes  Minorities  A relatively smaller number of people identified by race, religion, or national origin who live among a larger majority 12-22 Employer-Employee Relationships  Labor Market  The pool of available potential employees with the necessary skills within commuting distance from an employer  A company must study the labor market when considering whether to invest in a country  Sources include  Foreign Labor Trends  Handbook of Labor Statistics  Yearbook of Labor Statistics 12-23 Country Strike Rates, Selected OECD Nations Source:  Rachel Beardsmore, "International Comparisons of Labour Disputes in 2004," in Office for National Statistics (U.K.), Labor Market Trends, April 2006, p 119, http://www.statistics.gov.uk c Crown Copyright.  Reproduced under the terms of the Click-Use License 12-24 Labor Unions • Organizations of workers • European labor – Identified with political parties and socialist ideology • United States labor – Laborers already have many civil rights – Collective bargaining • The process in which a union represents the interests of a bargaining unit (which sometimes includes both union members and nonmembers) in negotiations with management 12-25 Labor Unions • Japanese unions are enterprisebased rather than industry wide – As a result, unions tend to identify strongly with company interests – However, Japanese workers are reported least satisfied with jobs in developed world 12-26 Labor Union Membership Trends • Employers have made efforts to keep their businesses union-free • More woman and teenagers have joined the work force, low loyalty to unions • The unions have been successful in raising wages, which leads to offshoring • In the knowledge economy, industrial jobs that have formed the core of union membership are declining 12-27 Multinational Labor Activities • Internationalization of companies creates opportunities for them to escape the reach of unions • In response, unions have begun to – Collect and disseminate information about companies – Consult with unions in other countries – Coordinate with those unions’ policies and tactics – Encourage international companies’ codes of conduct • Multinational unionism is developing 12-28 Multinational Labor Activities  International Labor Organization (ILO)  Purpose is to promote social justice and internationally recognize human and labor rights worldwide  Trade Union Advisory Committee to the OECD  Consults on trade union issues in global markets 12-29 ... have formed the core of union membership are declining 12- 27 Multinational Labor Activities • Internationalization of companies creates opportunities for them to escape the reach of unions •... employees and research scientists to other countries 12- 14 Brain Drain: Countries with the Highest Percentage of Their College-Educated Citizens Living in Other Countries 12- 15 Guest Workers • People... migrate from developing countries they so for professional opportunities and economic reasons • Reverse Brain Drain – The growth of outsourcing and the movement of highly educated, technologically