From Bargaining to Dancing: Social Interaction between the Multinational, Local Workers and Trade Unions

Abstract

The influence of social interaction between the MNC and local actors in constructing employment practices is most obvious in the MNC’s interaction with three groups of local actors: the subsidiary work­force, local trade unions and subsidiary works councils. These actors in diverse host countries may have different work habits, needs and interests, and may be influenced differently by external social, institutional and cultural conditions. The MNC’s encounters with these actors shape their trust and reinforce particular social interaction forms in given local conditions. Interaction concerning the construction of subsidiary employment practices may range from competition between the involved actors to meet each actor’s interests, to cooperation built on shared values and interests. It is thus justified to ask the following question: How, then, does Electra interact with subsidiary employees, trade unions and works councils across diverse host countries, and what effects does interaction have on the construction of employment practices in each subsidiary?