ABSTRACT

The operation of MNEs in the labour markets of different countries has aroused considerable interest in the comparison of wage payments made by parent companies and non-MNEs within the former’s home economy, and between foreign affiliates, compared both with the parent company and with other firms in the host countries in which they operate. This interest has been increased by recent trade union activity in respect of MNEs, which has centred on demands for uniformity of wage and fringe benefits for similar jobs as well as the harmonisation of working conditions. 1 The demands have so far been voiced most strongly with respect to plants of the same firm within a particular country, but, with the emergence of an international trade union movement, pressure for parity wages and conditions of work is increasingly being felt at an international level. In addition, fears that the operation of MNEs in the labour market of particular countries may contribute to inflation have stimulated further concern about the movements of comparative earnings.