HR plays critical role in joint ventures, profit-sharing plans

By Gordon Sova
|Canadian HR Reporter|Last Updated: 03/15/2001

In joint ventures, described as a relationship with all the same pitfalls as matrimony, HR professionals have the crucial responsibility of “getting to know” the other organization.

At the recent Automotive Parts Manufacturers’ Association (APMA) Human Resources Conference in Toronto, Raymond T. Finnie, president and CEO of Wescast Industries, described his firm’s experience with Linamar Corporation in setting up a joint venture to produce automobile parts in Hungary. (The APMA represents 400 auto parts manufacturers who account for 90 per cent of the independent parts production in Canada.)

As the auto industry globalizes, parts suppliers are being forced to think globally in order to supply parts when and where they are required. This often involves forming a partnership with another firm that has a needed competency or a geographical presence.