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Analysing the Evolving Texture of Transnational Industrial Relations: Opening the Black Box of Interfirm and Firm-Union Relationships in the Global Garment Industry

Faced with limits of the dominant forms of private regulation, leading firms in global production networks (GPNs) are moving towards new approaches involving more collective and labour-inclusive approaches to tackle substandard labour conditions. Two notable examples of such new governance initiatives in the global garment industry are the Accord on Fire and Building Safety in Bangladesh (the Bangladesh Accord) developed in the aftermath of the Rana Plaza disaster, and Action Collaboration Transformation (ACT), a living wage initiative spearheaded by a group of garment brands and retailers. What is unique about these agreements is that they are inclusive of trade union (local and/or global) and transnational in nature, covering supply chains of multiple multinational corporations. These initiatives, which we term transnational collective industrial relations, stood in stark contrast to firm-specific, unilateral corporate codes of conduct, which have been the dominant model of private governance since the 1990s.

This paper explores evolving relationships among leading firms and other stakeholders in the emerging field of transnational industrial relations. Considering the experiences of major German and UK garment retailers and brands, we examine how involvement in transnational collective industrial relations has led firms’ relationships to other stakeholders, particularly rival firms and Union. Data considered is mainly based on interviews with German and UK garment leading firms and members of global union federations (GUFs). Initial findings indicate that lead firms second view GUFs as important and legitimate partners for managing labour challenges in GPNs. Lead firms also positively describe intensified collaboration with rival firms. We discuss whether evolving interfirm and firm-union relations in the global garment industry can be seen as promising steps towards institutionalizing collective forms of transnational labour regulation with better outcomes for labour standards. Through this research, we seek to contribute to the literature on global labour governance by shedding light on the foundation of new governance solutions, especially the dynamically evolving relationships among leading firms and other stakeholders as collective actors.

Scope: 21 pages
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