ABSTRACT
The main issue is whether multinational corporations import elements of industrial relations into the host countries which are alien to the social and cultural patterns that have historically developed. The evidence on this question is inconclusive. Generally speaking one can distinguish two basic positions. The first position argues that the very fact of subsidiary dependence on central headquarters introduces a new power structure into the labour relations arena. The second position argues, more in line with publicly pronounced management statements, that multinational companies have to adjust to the respective national industrial relations context. The life cycle thesis argues that multinational companies will initially be set up on a central control and dependency basis. Participation and Job protection can be regarded as the price to be paid to the union for accepting job flexibility. The most important innovation consists in the avoidance of the traditional elaborate job classification system.
