A location outside a city that has been developed specifically for existing businesses to relocate, or for new businesses to start up. A greenfield site might be attractive to a business for a number of reasons: lower business rates, more space, opportunity for expansion, a customized building, the opportunity to acquire a new workforce, logistics (e.g. location near to a motorway), etc. Some commentators have noted that a particular feature of firms in greenfield sites in the UK is that they are less likely to recognize trade unions (see recognition). This has led some critics to suggest that the move to a greenfield site is therefore driven by management's desire to establish new terms and conditions of employment without trade union involvement. Others reject this and claim that whilst labour relations and union derecognition might be one of the factors in deciding to locate on a greenfield site, operational and financial considerations are far more influential.
Subjects: Human Resource Management.