Globalization

Globalization is the word used to describe the growing interdependence of the world’s economies, cultures, and populations brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

According to WHO, globalization can be defined as “the increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two interrelated elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”

Globalization Effects

Various views are:

• Pressures on countries to converge on employment relations
• National institutions act to maintain divergence in employment relations,
• The interaction between global and national forces shapes the outcomes in employment relations.

Note the following examples.

• Some countries export their expertise such as New Zealand.
• The French tourist industry exports tourism expertise to other countries.
• It is estimated that there are eleven million Filipinos overseas, most of them working as Filipino Overseas Workers. A lot of them work as housemaids.
• Industrial parks in China and India are opening for developed countries to export their expertise.
• There are large groups of workers who can move freely within a common market such as in the European Union.
• There are millions of migrant workers most of them working as maids.

Trade Union Strategy

What can trade union do in response to globalization effect on employee relations? It has been accepted that globalization has proved a complex and multi-faceted process for workers around the world.

Regulation of Labor Standards

Another globalization effect on employee relations is on labor standards. It is stated that because of globalization, countries and corporations are under increasing pressure to adopt and follow international labor standards.

Globalization and Indian Employee Relations

• Before globalization, the practice like recruitment, training, promotions, and lay off is not generalized. A formal method of recruitment and selection was not followed before globalization.
• After the liberalization of the Indian economy, the law has been proposing that all the new jobs should be advertised properly and the process of recruitment should be formal.
• The rules as been passed that the new employees should be taken initially as an apprentice this shows that there is a formal and structured approach in the recruitment of people in India for the organization.
• Globalization is due to the investment of multinational companies in developing countries. According to the World Bank forecast in 2020 India will become the fourth-largest economy in the orbit.
• After the liberalization of economic policies in 1991, the economy has increased positively. Due to these developments, more foreign firms in advanced countries show an interest in doing business in India.
• From 1970 collective bargaining has moved from enterprise-level to the plant level in the country. Due to globalization and an increase in multinational companies in India, the unions have lost their strengths and reforms.
• After liberalized economic policies in India. Many global companies started their plants in India due to globalization the productivity got increased and the employees got higher pay and their basic pay was increased. And the working hours in India is reduced now people in India are working only 48 hours per week.
• Child labour is reduced in India now people who are above the age of 18 can only work in workplaces.
• Due to globalization exploitation of women is more but they are still been paid low.
• Currently, in India, there are 150 acts of labour legislation but they are not fully achieved.

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