U.S. Multinational Companies and Unionization Determinants in Ireland

Abstract

This paper uses empirical techniques to measure the determinants of unionization among multinational companies (MNCs) operating in Ireland. The literature suggests that MNCs from economically dominant countries may be more easily able to implement their home-country managerial practices within host countries. Whether this notion is manifested in MNCs’ industrial relations behaviors, particularly in terms of unionization levels, has been debated by those studying the subject. U.S. firms operating facilities in Ireland garner particular interest, given their substantial influence on Irish industrial relations (IR) policy and business practices. Employing the first representative survey of MNCs operating in Ireland, we use empirical methods to ascertain the determinants of both overall unionization levels and also rates of “double-breasting,” where firms simultaneously operate union and nonunion sites. The results indicate a strong country-of-origin effect, with U.S. companies far less likely to be unionized and more likely to engage in double-breasting. The findings suggest that U.S. MNCs carry their own IR cultures and attitudes into Irish sites, rather than complying with host-country traditions, thus generally supporting the literature on economic dominance.