Globalization effect on employee relations is among many important matters that requires attention if or when your organization has global business operations.
It can also happen that business entities, namely, multinationals, from other countries come knocking at your country's door.
Many industrial relations issues need careful attention.
Globalization's Effects on Employee Relations: What they are
According to Lansbury, Kitay and Wailes of the University of Sydney, there are three views:
In the book "Labour and the Challenges of Globalization: What Prospects for Transnational Solidarity?" Devan Pillay (Editor), Ingemar Lindberg (Editor) and Andreas Bieler (Editor):
If you are interested in a detailed explanation of "neoliberalism", you can read the article by Dag Einar Thorsen and Amund Lie "What is Liberalism?"http://folk.uio.no/daget/What%20is%20Neo-Liberalism%20FINAL.pdf
Challenges to International Workers
International business organizations need to understand the globalization effect on employee relations in terms of the challenges posed by globalization to world's workers.
Who are these workers?
Many of them are formalized or legally-documented workers.
Others include street-traders and homeworkers called by some as "informal workers" at the peripherals.
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 house maids.
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.
The presence of illegal or undocumented workers poses various challenges to organizations and national governments worldwide.
Anyone of them can end up at the wrong side of the law if and when he or she gets involved in undesirable activities.
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..."
An International Labor Organization's (ILO) book "examines some of the crucial issues facing the trade union movement."
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, Logics of Action, International Labor Standards and National Government Roles" by Sarosh Kuruvilla of Cornell University (USA) and Anil Verma of University of Toronto (Canada).
It is said that globalization results in employment challenges that are often difficult to resolve.
Among other things, J. J. Rodwell and S. T. T. Teo of Deakin University, Australia (29 April 1999) mention that:
In the face of all the complexities and challenges posed by globalization, organizations intending to globalize need to fully equip themselves to compete successfully in the world arena.