The transformation of global labour relations in the Trump era: some expected and unexpected effects

Purpose Against the background that Labour Relations around the world is affected by politics and in particular by the trade policy of the Trump administration, this viewpoint paper aims to discuss the implications for international business. This paper will explain how labour relations are affected by the policies of the Trump administration, highlighting both the expected and potentially unexpected consequences at the national and international arenas. It outlines the nature and causes of impact on labour relations while also identifying the potential short- and long-term consequences for global labour relations. Design/methodology/approach The paper is conceptual in nature as it derives four theoretical levels of analysis from the literature and supports its arguments on a wide range of sources, including academic literature, policy reports from (predominantly) international organisations, as well as recent newspaper articles. It aims to integrate these different categories of sources to develop a compelling and informed viewpoint. Findings It is shown that an important consequence of the Trump administration is that it will change the nature and characteristics of labour relations worldwide, and not just within the United States. How these changes will materialise in the short- and long term depends upon numerous contextual factors, including the existing labour relations system, i.e. upon the existing labour relations institutions, organisations and practices. Research limitations/implications Future research should look into the role and impact of different systems of labour relations–for instance, with regard to existing institutional structures (e.g. different forms of collective bargaining), different actor involved in labour relations (e.g. different trade unions in different countries) and different practices (e.g. varying traditions concerning the role of labour relations in the economy and society). Practical implications The Trump administration’s policies will change the environment and “atmosphere” of labour relations, thereby changing the environment for international business. This means that multinational companies must adapt their labour relations strategies and practices to the new context. At the global level, there is no one size fits all solution, as the relationship between workers and employers could become more conflict-prone in the short term in some countries and sectors, while in others – potentially even making labour relations more harmonious and a key element of economic and societal governance. Social implications The effects of the Trump administration on labour relations will alter the balance of power between workers and employers; depending on how these power relations are governed, different social consequences can be expected. Regarding the latter, the changes in labour relations induced by Trump are by no means limited to economic effects but also encompass societal changes-including social peace within a country or even on a broader scale. Originality/value The originality and value of this viewpoint paper is threefold. Given that the effects of the Trump administration on labour relations have so far concentrated on the United States, the first novel aspect of this viewpoint paper is that it extends the debate regarding these effects to the global level. In this context, the paper also emphasises the importance of labour relations as an important element of international business. Secondly, the paper is novel as it organises the discussion of the effects of the politics of the Trump administration by distinguishing four distinct theoretical levels, each associated with distinct effects. Thirdly, it distinguishes between short- and long-term effects and identifies several potentially unexpected impacts that could run counter to the Trump administration’s policy intentions.