Overview

Multinationals increasingly launch international workforce initiatives, like global restructurings and divestitures, that affect employees overseas. But these can hit a rigid barrier: information/consultation and bargaining requirements with local employee representatives.

Inflexible foreign labor agreements and cumbersome consultation procedures impede globalization and, ultimately, profits. No one can eliminate these barriers, but a proactive multinational can lower them by aligning collective bargaining from headquarters down to the overseas local office/shop floor. Doing this is a big project. But doing nothing perpetuates rigidity and delays in global restructurings, divestitures, and other international initiatives.

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