An example of support from a headquarters human resources department to its
subsidiary can be seen with the way in which the JS1 subsidiary in the Philippines
introduced a new wage system for local employees. The headquarters human
resources department of the J1 firm first offered the J1 firm’s wage system to the
subsidiary. After reviewing with the JS1 subsidiary, the wage system was
modified to local contexts, creating a new wage system. When strikes occurred in
the subsidiaries, the headquarters human resources departments of the J2 and J4
firms sent their experts to the subsidiaries to support the local management.
Because the J4 firm had many Japanese employees back at headquarters who used
to work at the subsidiaries overseas, it had a fairly good understanding of the issue
and how to respond to the problem. At the J3 firm, human resources managers
and union executives periodically visited the subsidiaries and received requests on
housing, family, and other benefits from the Japanese expatriates.