Low Road Convergence: Diversity or the Beginning of the End for National Industrial Relations Systems

Abstract

This paper examines the labor relations practices of American, British, and German companies in the German quick food service sectors. This includes multinational corporations (MNCs) such as Burger King and McDonald’s, Whitbread subsidiaries Maredo and Churrasco, and German competitors such as Nordsee, Dinea, and Blockhaus. Focusing on unionization and employee representation, the findings suggest that MNCs in this sector are increasingly promoting anti-union employment practices across national borders and that national competitors are increasingly emulating this approach. This trend is arguably leading to a convergence of employment practices around a five-lane low road” of increased standardization, union exclusion, low trust, low skills, and low pay.While some might argue this “lowroad” signals the beginning of the end for national industrial relations systems, we argue that it merely confirms the continuing variation within national industrial relations systems and highlights the importance of sectoral characteristics and organizational contingencies in understanding cross-border MNC behavior.