Week 4: Assignment - Introduction to International Labor Memo
One of the fundamental elements to international
labor is being able to acquire the necessary staff. The labor
quantity, or the availability of employees with the skill sets we
require, can drastically affect the corporation. If there are too
few employees available this drastically increases the cost of labor as
competition goes up for these jobs. Even more so it may not be
possible to staff key positions. On the opposite side of the
spectrum is an excessive employable workforce. While labor costs
will be significantly less this may be a sign of significant economic
problems. Furthermore, significant unemployment may also result
in civil unrest and significant changes in labor and business
legislation. (Ball, McCulloch, Frantz, Geringer, Minor, 2006, p.
352)
A closely related issue to labor quantity is labor
mobility. Labor mobility is the phenomenon where people will
relocate to a different area, or country, for career
opportunities. This is most apparent in areas where there is a
significant labor shortage and people relocate to take advantage of the
inflated salaries. Secondarily, this can also affect area where
there is an oversupply of labor and salaries are heavily depressed
resulting in people leaving for more prosperous areas. On a
tertiary level this also impacts successful countries where there will
be an influx of immigrants from poorer countries to take advantage of
the enhanced opportunities. While the latter does not impact
upper level positions, it can have a significant impact on lower-level
positions. (Ball, et al., 2006, p. 352)
Another key aspect to labor quantity if labor
quality. In areas where there is a significant labor shortage if
it is possible to fill the position it may be someone with far less
skills than are desired. Furthermore, in less developed
countries, even where unemployment is high, it may not be possible to
fill senior, or technical, positions due to the lack of skilled
employees. (Ball, et al., 2006, p. 352)
There is also a significant cultural, and legal,
aspect to international labor. It is critical to be aware of any
social issues that are inherent within a country and could become a
labor issue. An example of this would be the caste system within
India. Secondarily, especially withing Western and more
industrialized nations, is the issue of discrimination and legal
issues. It is important to understand the existing laws within
the country and what needs to be done to ensure compliance with this
type of legislation. (Ball, et al., 2006, p. 362-363)
A final issue with the labor market is labor
unions. It is important to consider the impact the presence of
labor unions will have on business operations. There are a number
of sources for relevant information, such as the Bureau of
International Labor Affairs, that publish statics on countries and
labor strikes, work stoppages, lost days, etc. Labor issues
anywhere in the country can have a significant impact on the business
when involving areas such as transportation, shipping, parts, etc. that
must be taken into consideration. Secondarily, it is important to
be aware of the labor unions and their effect on the cost of labor as
well as its availability. (Ball, et al., 2006, p. 370-371)
© Erik Smith 2005
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