How do local unions strategize against multinational corporations’ restructuring threats? Some insights from France

Abstract

This article explores local trade union strategies in the context of multinational corporations’ (MNCs) restructuring in French auto suppliers. From a theoretical standpoint, this study proposes a multidimensional analytic framework confronting three different, yet complementary, approaches: (1) the relative power of unions and how this power manifests itself in the social relations between actors; (2) the national institutions and opportunity structures that constrain actor choices; and (3) the contingencies relating to the structures of multinational firms and their production sites. From a methodological standpoint, the article compares two different local cases (France-1, France-2) that have experienced restructuring threats from their parent MNCs. The core data of this research are based on semi-structured interviews with elected union representatives from both sites, as well as expert witnesses at various levels within the sector. This article argues that unions’ strategies are best understood as a function of power resources and capabilities, social relationships at different levels, and types of MNC governance. In particular, the article argues that local trade unions should develop ‘cognitive’ power, a strategic capability, in order to impact decision-making in multinational corporations.