Trade union recognition by MNCs: Evidence of an underlying rationale in UK petrochemicals

Abstract

Recently, there has been a move to use a ‘fine-grained’ approach to the study of the multinational companies (MNCs). In this paper, we examine in depth a significant part of the maintenance activities in the process plants of petrochemical MNCs in the UK. While the MNCs have de-recognized their internal trade unions, and out-sourced maintenance to on-site contractors, we find that such work is still linked to trade union recognition. In this sector, the MNCs have in general adopted a national agreement for their on-site contractors. This paper discusses and evaluates the changing situation and provides a unique contribution to theory regarding the rationale behind trade union recognition in that isomorphism underlies the national recognition for trade unions in the sector and, given the changing political situation in the UK, we argue this is ultimately based on legitimacy-seeking.