Multinational corporations and industrial relations in Australia: Boeing

The article reflects upon the recent experience of one multinational in the aerospace sector: Boeing, a global manufacturer based in the USA. For the past decade the level of industrial disputation in Australia has been relatively low, so it is noticeable when there are major IR disputes at separate workplaces of the one MNC. Given the considerable shifts in the industrial relations environment in Australia, there is the opportunity to examine how MNCs adapt to the new environment. In the two case study organisations we can observe that both organisations have developed an aggressive stance towards employees and unions and both organisations are prepared to utilise the new IR legislation. Boeing, as an MNC has a range of options available to improve its IR conditions (eg outsourcing, relocating production), however there are limits imposed by servicing and contractual agreements, particularly procurement arrangements with governments. Boeing’s plants in Australia have quite different IR traditions, reflecting whether there is a Greenfield or an existing site. In both cases there is a pragmatic and reactive strategy implemented that in part is governed by the prevailing economic environment and by the choices offered by the national industrial relations system. The article is organised as follows. There is a discussion of multinationals and industrial relations. Then there follows a brief review of previous studies of MNCs and IR in Australia. Following this the changes to the industrial relations system are outlined. The two case studies within Boeing are then discussed. Finally, the article concludes with a discussion regarding the choices and decisions made by MNCs in the context of a shifting national IR landscape.