Arthurs — Volume 57, Issue 3

Arthurs examines the progressive decline of Canadian corporate independence and influence within integrated North American economies, documenting how corporations have abandoned autonomous decision-making and executive authority. The author identifies six long-term trends driving this phenomenon: American dominance as investment capital source, sales of major Canadian enterprises to American transnational corporations, American willingness to expand into sectors previously restricted to foreign ownership, movement of Canadian management functions to American operations, hiring of American managers for Canadian subsidiaries, and recent changes in corporate strategy reducing Canadian autonomy. Arthurs describes how Canadian subsidiaries no longer function as miniature replicas of parent firms but instead serve specialized functions for global operations. The author examines consequences of these changes for Canadian executives, labor relations, and employment practices. Arthurs argues that this hollowing-out process has profound implications for transnational labor regulation and corporate governance. The piece demonstrates how economic integration and corporate restructuring undermine national capacity to regulate corporate behavior and protect workers, raising fundamental questions about jurisdiction and authority over multinational enterprises.

Topics: International Law · Labor & Employment

Keywords: corporate Canada · transnational corporations · labor law · corporate governance · economic integration