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