New approaches to the study of multinational companies (MNCs) that are sensitive to the issues of power and politics have made considerable progress towards developing a more realistic understanding of MNCs' behaviour. To achieve a full understanding of this issue, however, it is necessary to incorporate the issue of labour. This paper offers a framework for conceptualizing the nexus of power, politics, and labour in MNCs. It suggests that the units in MNC as a result of fragmentation of production compete for control over the labour processes. This leads to the introduction of controlling mechanisms, norms, and standards across the MNC that add to the fragmentation of labour processes and renders them more codifiable and less complex, and thus makes it easier to externalize them. The proposition is supported by a case study of a firm's relocation of services to a shared services centre and its impacts on labour processes on both the sending and the receiving units in the MNC. It is necessary to understand the presence of power relations, politics, and competition in MNCs not only as a consequence but also as a factor of organizational restructuring connected with the fragmentation of production.