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Unionims, labor relations and the financial earnings.
Submitted by Arnulfo Arteaga-Garcia, Universidad Autónoma Metropolitana-Iztapalapa on 1 avr. 2016 - 05:13
Type de publication:Conference Paper
Source:Gerpisa colloquium, Puebla (2016)
Research question: Which factors located in the financial sector affect in the rapid growth of installed capacity and in the impact of this growth on the dynamics of employment and labor relations settings, associated with the role of corporate unionism in the automotive industry?
Methodology: We assume the change of capital reproduction pattern observed in Mexico since the early eighties and one of its main features: its specialization as "exporter secondary." This condition is derived from the role as export platforms that transnational companies assigned to their subsidiaries in Mexico as part of their competition strategies at the global level. Assurance that role was founded on building competitive advantages which would ensure profits in the medium and long term. A strategic advantage has been the industrial relations system built within the auto industry. This system is characterized by securing labor pax based on a corporate union control scheme, which guarantees low wages and high productivity and quality. Ensuring high profitability of production, derived from its orientation to the world market and from marketing practices and financing schemes set in Mexico, allows us to infer that the operation of the financial subsidiaries of transnational corporations contribute to the channeling of resources to the parent automotive companies to meet their debt obligations in their home countries.
We conducted an empirical analysis of the financial variables of parent transnational corporations with production and marketing activities in the automotive industry in Mexico; five case studies were taken: Chrysler, Ford, Volkswagen, Nissan and General Motors. Based on this empirical analysis, we propose an approximation of the financial factors affecting the determination of the installed capacity rapid growth and its impact on the dynamics of employment and on the labor relations settings, all this associated with the role of corporate unionism; for this, it was also necessary to analyze the hiring variables of the considered corporations.
Result. The competitive advantage generated from the strength of abundant and skilled labor existing under a corporate union system, is a key feature that allows conditions in the productive sector of the subsidiaries are guaranteed to cover needs and contribute to the achievement of goals located in the financial sector of the parent TNC; that is, for the generation and appropriation of financial income that will contribute to debt repayment (financing Ponzi schemes).
The analysis of these financial variables of TNCs allows us to propose that the expected gains affect the determination of the characteristics of productive structures and their impact on the dynamics of employment, labor relations and on the establishment of corporate unionism in subsidiaries of automotive industry TNCs. The execution of financial activities (auto financing, mortgage and banking, among others), the existence or not of an own financial institution, the conditions required for the generation and appropriation of financial income in capital markets, and the use of these resources to repay financial debt , are identified as major factors that shape the global operation strategies of automotive TNCs.