Global IR – Ford Company

Submitted By:
Ashuthosh Kumar Singh
Ayan Tanweer
Gokula Krishnan
AGENDA

▪ Intro to Case Study

▪ Questions
▪ Key Takeaways
Intro to the Case Study

Ford Motor Company

▪ First Model car at 1896

▪ Ford Motor company at 1903
▪ 1908 successful Model T
▪ 56 unions
▪ 190000 employees ▪ Challenge: Variety of Unions i.e. Australia-
subcommittees at a local level versus
▪ Located in 30 countries Germany centralized negotiations via
national employers’ association
Question - 1

What is the nature and role of bargaining? What is the role of government in bargaining?
To negotiate mutually agreeable terms of employment
▪ Regulates employment conditions
including:
▪ Provide benefits i.e. health care, gov’t pensions
▪ Hours
▪ Setting bargaining and striking rules
▪ Health and safety policies

▪ Salary and benefits ▪ Resolve conflicts via legal system

▪ Leave ▪ Government as an employer

▪ Conflict resolution in the workplace ▪ Negotiates with employees

▪ Large number of public sector unions

▪ Sets precedent nationwide

Question - 2

What problems do you see for MNEs (multi-national How do you advise that these be resolved?
enterprises) that must bargain with unions in multiple
countries? ▪ Research! (i.e. U.S. Dept of Labor, Int’l Labor Org, etc
▪ Economic conditions ▪ Communicate!
▪ Culturally-bound values

▪ Level and logistics of communication

▪ Varying definitions and understanding of contracts

▪ Country-specific legislation and regulations

Language barriers.
Question - 3

What do you predict for the future of unions and

union relations in the global economy and why?

▪ Changing workforce
– Possible trend: decline of unions due to greater job mobility

▪ Growth of private versus public sector unions

– More private sector employment - more private unions

▪ Global economic growth=international union

expansion
– Possible trend: unions may begin to play a larger role in
historically poorer countries as economies improve and
exploitation is tolerated less
Key Takeaways

▪ Union structures and relations vary by

country
▪ Communication between all involved
parties (employee, employer and
government) is essential
▪ Conditions change continually.
▪ Future field of unions is unknown, much
debate in the