HRM and Industrial Relations Assignment 2022

RUNNING HEAD: HRM AND INDUSTRIAL RELATIONS
0
HRM and Industrial Relation
System 0032
[Pick the date]

HRM and Industrial Relations
1
Recommendations
From the analysis of wage rates and unemployment rates in the countries and by knowing
all the rules related to labor unions and working conditions of various countries it is
recommended to management that the company should plan to set up factories in china and
India. In both of these countries the average manufacturing wage is 15% and 12% respectively in
comparison to US average wage (Malesky and Mosley, 2018). In other countries also average
manufacturing wages are lower than the US but these countries have the lowest (Trading
economics, 2018). Further from knowing the minimum wages of the countries it is known that
China has the lowest wage rate as compare to other countries so this factor help the company to
save variable cost and to maximize profits (Paul and Mas, 2016). Unemployment rate in these
countries are also high as compare to Mexico, Germany and Japan. So that also indicate that in
these countries labor or workers are available and at an economical price.
From the quantitative analysis that is from average manufacturing wage, country’s
minimum wage and country’s unemployment rate is it recommended that on the basis of all these
parameters setting up factories in India and China is beneficial and an alternative can be Mexico
also as this country also have low minimum wages and low manufacturing wages. From
analyzing the qualitative parameters that are work rules of unions and union impact on
company’s result is understood that China and India has proper rules and guidelines for the
working environment and to ensure good employee and employer relation (Felipe, Mehta and
Rhee, 2018). Due to trade unions in these countries this impacted on companies in a positive
way as because of unions workers participation increased, productivity increased and the relation
of employer and employee enhanced (Roychowdhury, 2018). So from analyzing all the
parameters it is recommended that the company should set up their factories or units in China
and India.

HRM and Industrial Relations
2
Germany Japan Mexico India China Italy
Average
manufactur
ing wage
75% 93% 35% 12% 15% 62%
Country’s
minimum
wage
140% 113% 70% 100% 45% 106%
Rules of
union
There are
various acts
for
protection of
employers
and
employees
in German
such as Civil
code,
minimum
wage, part
time act and
vacation
entitlement
act. 8 to 10
hours of
working in a
day with 45
minutes
break.
Further, 20
days of
minimum
In Japan,
according
to labor
laws the
workers
working
hours
should not
exceed 40
hours in a
week and
overtime
for not
more than
45 hours in
a month.
For
overtime,
wages
should be
paid to
125% of
the normal
wages.
In Mexico
unions have
right to
intervene in
the decision
of
management
and for
collective
bargaining
unions can
do strikes.
Further
unions have
right to make
their
regulations.
There is no
notice period
for the
employees
they can
level when
they
According
to factories
act in India
workers
can work
only for 8
hours a day
and 48
hours in a
week.
Overtime
wages will
be doubled
the basic
wage and
age should
be more
than 18
years.
Trade
union act
formulated
to protect
the rights
The
independe
nt union is
illegal in
China. As
to
safeguard
the
interest of
workers
governme
nt
formulate
d one
union for
all named
as “All-
China
Federation
of Trade
Union”.
So there is
no such
role of
The trade
unions in
Italy have
rights to
participate,
right to do
strike and
right to get
informed
about
manageme
nt decision.
Trade
unions
follow
Italian law
and have
limited
right as per
the act
formulated
by the
governmen
t. The