Assess The Impact Of One Transnational Corporation

Part C

Assess the impact of one transnational corporation on the UK using one of the following criteria: labour (Word-guidance 1500). you are advised to build answers around some of the following points in respect of one of the following criteria:

Labour: direct and indirect employment effects; wages/rewards; employee welfare; longevity of employment; strategic behaviour (in the case of eNIDL).

Nissan Introduction

Established in 1933, Nissan Motor Co., Ltd. was a pioneer in the manufacturing of automobiles. Nearly 70 years later, Nissan has become one of the world's leading automakers, with annual production of 2.4 million units, which represented 4.9 percent of the global market. Domestically, the company sells 774,000 vehicles on an annual

Nissan Motor Manufacturing UK (NMUK) Ltd established. In the following years, this £250 million investment would lead to the creation of 280 jobs at its Sunderland maker's British plant.

A number of factors played a role in deciding on the destination of the new plant, including; skilled labour, with manufacturing having a long tradition in the area, the decline of local manufacturing, meant that skilled labour was available. Communications, with Sunderland having good road and rail links to all major UK regions, which makes the transportation of supplies from 105 separate UK component and sub-assembly suppliers relatively easy, and also the distribution of completed vehicles. The nearby port (Port of Tyne) gives ready access to export markets and aids the import of vehicles to the UK.

Although, Nissan's Sunderland plant is technically highly advanced, using sophisticated robotics and computer integrated manufacturing techniques to create a carefully monitored production process which means that errors are reduced to an absolute minimum, the human element of the company remains vital. With the organisation of an effective flow of production, Nissan has been able to develop a way of doing things and an attitude towards work based on giving employees responsibility at every step. This approach not only raises the morale of employees, but also reduces absenteeism which could have a severe negative

The Sunderland plant applies a philosophy that seeks continuous improvement, with the first link in the chain the employee, meaning that where more people are concerned, the quality is high. The salaries that Nissan offers are classed as high for the region, with an average employee earning £23,000 per year. This focus on the employee accounts for low rates of absenteeism and extremely low turnover: 1.3% and 2.3%.

Since the establishment of the factory in the middle of the 80s, the government closely monitors the activities and investments of the plant. "We support the industry through regional funds, but also tax credits for research and development of new models," explains Michael Fallon, Minister of Industry. "The government wants to help the industry with the lowest level of developed countries taxes" insisted the Prime Minister David Cameron during his visit last week.

In recent years, the Government is also access to the subcontractors. Sourcing the Qashqai is thus 90% European, but only 34% of the parts come from Britain. "With the crisis of 2008, the automotive industry had collapsed. We have put in place a program of incentives and support for OEMs, including Western Europe, settled close to our factories "continues Michael