Local Autonomy in Employment Relations at Plant Level within a Global Corporation

This paper investigates the tensions which can arise between a multinational company=s global strategies and local pressures for autonomy, particularly in the area of employment relations. The paper is based upon research undertaken in an Australian plant which was acquired by an overseas-owned multinational corporation in 1989. We examine the relevance of both global and local factors, as well as the interdependence between the whole (corporation) and parts (subsidiaries or plants) in shaping employment relations policies and practices. The theoretical framework adopted begins with questions of strategic choice in employment relations but goes beyond this to explore the impact of globalisation on employment relations. In the case of the Australian plant, local management was not convinced that the new strategies espoused by the multinational were likely to be effective. Consequently, they sought greater autonomy to pursue an alternative approach. The paper explores the tensions which arose between the multinational=s global strategies and local management.