MNC effects? A cross-national comparison of the role of aerospace multinationals in the UK and Australian professional engineering skill formation systems

Abstract

This article undertakes a cross-national comparison of the aerospace sectors in two ‘liberal’ countries, the UK and Australia, examining how several multinational firms engage with engineering skill institutions: regulation of entry to profession, entry-level and ongoing training. The paper empirically demonstrates and theoretically argues that the social partners and employment protection institutions can in certain contexts play an important role in professional skill development. Institutional legacy matters, shaping multinational responses and providing distinct resources for various actors including unions. Tension between existing skill institutions (‘country’ or ‘sector’ effects) and the capacity of multinationals (MNCs) to shape practices are addressed. Both country cases demonstrate how MNCs may be able to shape practices in such a way that they create ‘MNC’ effects, defined as a combination of large firm/subsidiary, and ‘corporate’ effects, that affect engineering skill development for other firms.