Thistle Electronics

Paper Summary:

This paper looks at the economies of South Korea and France as options for Thistle Electronics, a UK-based company, to move some of its operations. It begins by presenting a general overview of the country's economy and then discusses its tax policies. It then reviews its international treaties and regulatory mandates and analyzes the potential political risks involved. It finally discusses the labor laws and work weeks which would affect the labor practices of the company.

From the Paper:

"Thistle Electronics is a UK-owned company whose core business is manufacturing micro-electronic components and circuitry for such electronic consumer goods as mobile phones and computer peripherals. From its original plant in Glenrothes, Scotland it has expanded rapidly and is planning a vigorous policy of overseas direct investment in its manufacturing capacity in a number of potential locations. The company enthusiastically adopted a number of HRM practices in the late 1980s including performance related pay, team working, and a strategy of total flexibility with a heavy use of temporary workers and flexible working time (including overtime on demand). It has always refused to recognize a trade union, relying instead on a variety of employee involvement practices. The current Chief Executive, Ed McGregor, is aware that Thistle's domestic non-union approach may not be sustainable in many of the target locations overseas but remains unsure about the precise labor market and employment relations environments which Thistle can expect to encounter."

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