The internationalization of industrial relations? Japanese and US multinational companies in Vietnam

Abstract

This study examines the interaction between ‘home’ and ‘host’ country in influencing the industrial relations (IR) of multinational company (MNC) subsidiaries. Using US and Japanese MNCs in Vietnam, we investigate the transfer of their IR into a developing host country where the environment is centralized, highly regulated, but weak. Investigating the IR reform, trade union structure, leadership, resources, expected roles and responsibilities and the constraints trade unions meet, we point out that the roles of Vietnamese trade unions are limited to administrative functions and the provision of welfare-type services for employees. Given this, MNCs drop their home practices and cooperate with unions and paternalistic strategies towards employees.

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