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Wage Negotiations in the Asia Pacific: Does Globalization Increase the Wage Gap?

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  • Ron Edwards
  • Daniel Evans
  • Aaron Smith

Abstract

This article uses research from the fields of international business, economics and industrial relations to investigate how the context of multinational corporations affects the bargaining power of shop-floor workers and senior management. It is set in the context of the Asia Pacific region. Senior executives negotiate their salaries from positions of strength, especially when their subsidiaries fulfil important strategic roles. In contrast, shop-floor workers can face threats to ‘move the plant to Asia’ when negotiating wages. These dissimilar negotiating positions provide the context in which wages are negotiated in the region. It is anticipated that the study will assist managers of multinational corporations and their employees’ representatives as they approach wage negotiations.

Suggested Citation

  • Ron Edwards & Daniel Evans & Aaron Smith, 2006. "Wage Negotiations in the Asia Pacific: Does Globalization Increase the Wage Gap?," Asia Pacific Business Review, Taylor & Francis Journals, vol. 12(1), pages 95-108, January.
    • Handle: RePEc:taf:apbizr:v:12:y:2006:i:1:p:95-108
    DOI: 10.1080/13602380500391314
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    References listed on IDEAS

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    1. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    2. Françoise Lemoine, 2000. "FDI and the Opening Up of China's Economy," Working Papers 2000-11, CEPII research center.
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