38 LAWYER MONTHLY DECEMBER 2024 Multinational companies face unique challenges in managing labor relations across various jurisdictions, balancing local laws with global standards. Janet Saura, a recognized expert in labor and employment law, shares key strategies for navigating these complexities, offering practical insights on maintaining compliance, mitigating risks, and fostering positive employee relations worldwide. What are key challenges multinational companies face when managing labor relations across multiple jurisdictions? Global labor relations leaders face numerous challenges: differing economic conditions, balancing global standards with local adaptations, and addressing various cultural norms. Leaders must bridge these differences while maintaining consistency in corporate values and ensuring compliance with local laws, many of which may clash with home-country practices. A good example of the compliance challenges facing multinational companies is a Fortune 500 manufacturer that faced significant issues when rolling out a global performance management system across 23 countries. The system, managed from the U.S., included peer feedback and performance ratings impacting compensation. While effective in North America and parts of Asia, it exposed legal vulnerabilities in the EU, particularly in Germany, where the company failed to involve works councils and overlooked General Data Protection Regulation (GDPR) compliance. The result: an injunction, legal fees, a sixmonth delay in compensation reviews, costly system modifications, and adverse media coverage, leading to EU-wide compliance audits. Janet Saura An Interview with... Global Labor Relations: Key Strategies for Multinational Companies
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