Do workplace unions and collective bargaining matter for labour standards compliance? The role of local industrial relations in global supply chains

Abstract

This article examines the role of local industrial relations, specifically workplace unions and collective bargaining, in improving the working conditions of apparel factories exporting to multinational brands and retailers. Drawing on a unique data set collected in Bangladesh, Cambodia, Haiti, Indonesia, Jordan, Nicaragua and Viet Nam by the Better Work programme, we show that local industrial relations play a positive role under certain conditions, even when freedom of association and bargaining are restricted, providing partial support for the argument that labour standards at the production end of global supply chains can be improved significantly by engaging with local actors and institutions.