Consequences of Globalization of Labour - Essay Example

Consequences of Globalization of Labour Introduction Today, there is massive worldwide movement in pursuit of an integrated approach to trade, economic, communication, and financial issues. The essence of globalization is to open new frontiers both in the local and international domain such that a broader new look can be put into place. This is characterized with independency and interdependency in the entire world to facilitate efficient transfer of goods, services, capital, and labour across the national frontiers. In this regard, this paper looks at the consequences of globalization in this case and discusses some of the positives and negatives that come with such moves. Within the globalization of labour, we understand there is movement from developing to develop and vice versa, it is thus interesting to note the effect this will bring to the economic facets. Consequences of Globalization As indicated in the introductory part, there are several consequences that come with the globalization of labour both positive and negatives. a) Positive Consequences I. Reduction of unemployment It is possible to find some countries with higher degrees of unemployment, without free movement of labour as enshrined in the globalization of labour, this group of people might remain unemployed, and this affects the economy of a country. This phenomenon has been vividly observed in the EU countries where there has been a huge migration workers from east to the West of Europe. Consequently, this move has also enabled those countries without sufficient workers to acquire labour with ease. An example in this case is in the UK where there was acute shortages of nurse and had to source for nurses in the Far East to fill the shortages (Bary 2010, p.76); therefore, globalization of labour has been beneficial both to the country exporting and to the one importing labour. II. Rationalization of Wages Due to the globalization of labour, there is rationalization of wages for the employees so that there can be a universal standard in which remuneration can be looked into. For instance, without globalization of labour considered appropriately, there will be difference on how a nurse is paid in the developing countries and how the same nurse will be paid in the developed countries. Essentially, there will be a greater disparity level in terms of remuneration. This disparity level is only checked under globalization of labour. With the globalization in place, there is likely to be a standard gauge for the workers internationally because there will be comparison of wages across the nation for the sole reason of coming into standardized pay (Berberoglu 2002, p.88). III. Technological Movement and Advancement Different parts of the world are endowed with different technologies; these technologies can be regarded as static if they cannot be transferred to other parts of the world. With the movement of the human labour, it is also possible that the technology from the different parts of the world can also be transferred from one place the other. Considering a person from developing countries in Africa who has crossed to worked in one of the countries in the East as an engineer, he will acquire useful skills for the period that he/ she will be working there that can be transferred to his home country or to any other country they might opt to work into. In this sense, it is in order to perceive movement of labour across the international boundaries as a way of bringing innovation through blending of technology from different parts of the world (Dadush and Shaw, 2012). It is through the interaction of different technological advancement has been realized in the history of innovation, courtesy of free labour movement in the name of globalization. IV. Working Conditions, Safety, and Health Issues Just like in the local trade unions, when there is international labour movement, the International Labour Organization will assume the roles or supplement those roles played by the local trade unions. In most of the times, the condition of work for the workers has remained a contentious issue fought by the local trade union in vain. Some of these issues revolves around the safety of workers in the work place and do insist that due to the nature of some work, workers needs to be insured by the insurance firms to cushion them against any accident or harm that may befall them during work. In the case of globalization, there is the enforcement of uniform law and requirement to be practice by all employers in relation to the working condition of the workers as well as health related issues (Brown, Barry, and Reich 2010, p.68). V. New Practices in Human Resource Management Human resource practice is so dynamic and highly varied from one place to the next. Most of the employers today are craving for some of the best human resource practices that can improve not only the image of their organization. They also look for those that will also improve on the ability of the business to remain successful in terms of profit making, being sensitive to the welfare of the workers, and making their workers feel comfortable, and encouraged at the work place to improve their performance in the company. These HR practices can only be realized in a situation where labour flow is guaranteed. Human resource practices do change regularly and multinational firms are out to practice the most contemporary ones that will guarantee success to their businesses. Globalization is therefore helping in achieving these standards through the transit of workers from one country to the other. A clear example in the Managing Director of Multinational companies listed in the global fortune 500 like Heineken, McDonald, and Toyota, the CEO of these companies is different countries are not indigenous citizens, they therefore carry with them unique human resource management that is unique to the country and that will be eventually adopted (Bhagwati 2004, p.94). Above all, globalization labour can also lead to the development of the global union of workers that will be agitating for the rights of the workers assuming the role of the local trade unions. This is because the challenges facing workers will be now heterogeneous unlike when they are just within the confines of a country (Silver 2003, p.45). b) Negative Consequences Whereas there are several, positive consequences of globalization of labour both to the country that is exporting and receiving labour, there are also substantial negative influences that comes with the trend. They are discussed are enumerated below; I. Transfer of Low paid and Unskilled Jobs In the cases of international transfer of labour, there is the possibility of low income earning jobs being given to the foreigners who have come to seek employment in other countries. The low incoming earning jobs are also not skilled jobs therefore there is no economic relevance that the labour transfer in doing to the mother country. A perfect example of such labour movement is experienced in the United Arab Emirates (UAE) who are recruiting worker all over the world especially in the developing countries in Africa. The workers required by in these countries are not skilled and are only required to be home guards, house cleaners, and drivers. Usually, because of no proper international labour regulation, the workers end up being frustrated and there has been several cases of torture and rape reported (Choi 2001, p.54); in some instances, the home governments of the workers in the UAE countries have ordered deportation. It should thus be noted that whereas international labour movement is a way of achieving unique integration in terms of regional and international development, there is need for instituting stronger international labour movement to fight and regulate the relation of the employees and the employers of different countries. The formation of an international labour movement is a vital organ that will help in cushioning the workers from certain challenges they face in foreign countries (McMichael 2007, p.92). These are salient challenges that are facing this noble international relation in terms of labour movement between countries for the betterment of economic status. II. Exploitation of Weak Labour In countries with many citizens like China and India, there is always a surplus source of labour and in this case, people are scampering for employment both inside and outside the country. When this is the case, the potential workers becomes vulnerable to the demand of the employees since they outnumber the available job opportunities- the law of supply and demand now comes into play. There is more pressure for the little positions available, the bargaining power of the employees is crippled and thus succumb to any offer availed by the employees (Ferleger and Mandle 2000, p.89). Given the globalization of labour and more particularly without a strong international labour organization, these workers stand a perfect chance of being exploited by the prospective employers (Mitchell 2009, p.66). The exploitation of the workers take place when their more supply in one nation than the available positions in the country to absorb them, countries that need more workers will be keen in such countries where they can source for cheap labour that they will pay much lower that the prescribed standards. In accepting the globalization of labour then, countries are suppose to institute a strong culture that agitates for the rights of workers to avert such exploitative nature of some employers. III. Weakened Trade Unions In every country, there are the trade unions that are charged with the responsibility of ensuring that the employees are given their rightful dues and by extension, they ensure that the employers implement all that comes with safe, healthy, and hygienic work place. Trade Unions cushion the workers form possible exploitation by the employers; they do much of their duties engaged in the overlaps that might have been overlooked by the employer when engaging with the employees (Mazumdar and Sarkar 2008, p. 32). The trade unions also fight for the remuneration for the employees with the view of the economic realities, they do bargain for them and agitate for pay rise and opposing unnecessary deductions from their pay slip. With the globalization of labour into place, it is now impossible to allow the trade unions to play their roles effectively and in essence, they will have to play a second fiddle for the international body that will be instituted to look into the affairs of the employees. Trade unions will therefore be weakened and will not have the ability to play its role in relevance, this is particularly because most of the trade unions are locally based and just have the jurisdiction within countries boundaries (Marshall 2001, p.53). The decline of the trade Unions will particularly be experienced in the weak states, which do not have a stronger workers unions or trade unions. The decline in the veracity of the trade unions will mean that some of the peculiar local issues will not be highlighted in the agitation of the workers’ rights in this case. It will be realized that most of the international labour organization are only interested on the issues that are binding to every country and this includes equal pay and the nature of the work environment. They deal mostly with the glaring issues in the workers union and avoid some of the smaller details that are unique to every country (Vaidya 2006, p.112). In this case, notorious employers will have to get away with this and exploit their employees in these avenues without being noticed. Examples of these anomalies may include unnecessary irregular local deduction from the pay slip. In conclusion, globalization of labour is one way of realizing the potential that every country harbours in the human resource capacity; it also enables us to realize the centrality of every nation in spinning the wheels of economic status within and outside one’s country. In this sense, there will equal spread of ideas in discriminatory to all parts of the world courtesy of the globalization. In this respect then, there should be a stronger international labour organization that will focus on the need to ensure that employee’s rights are not infringed but are accorded their rightful position in the employment sectors. Without the formation of a formidable unit, they will check on this, there are likely to be many issues associated with globalization of labour and the much-anticipated good may not be realized. References Bary, B.D. 2010. Universities in translation the mental labor of globalization. Hong Kong: Hong Kong University Press. Berberoglu, B. 2002. Labor and capital in the age of globalization: the labor process and the changing nature of work in the global economy. Lanham, MD: Rowman & Littlefield. Bhagwati, J.N. 2004. In defense of globalization. New York: Oxford University Press. Brown, C., Barry J. E and Michael R. 2010. Labor in the era of globalization. New York: Cambridge University Press. Choi, E.K. 2001. Globalization and labor markets. Oxford, England: Blackwell. Dadush, U and Shaw, W. Globalization, Labor Markets, and Inequality. Carnegie Endowment. [Online] Available at: http://carnegieendowment.org/ieb/2012/02/02/globalization-labor-markets-and-inequality/9d5d Accessed April 5 2013. Ferleger, L., and Jay R. M. 2000. Dimensions of globalization. Thousand Oaks, CA: Sage Publications. Marshall, H. 2001. "Globalization, Labor Rates and Conscience.” CircuiTree 1 Apr: 36. Mazumdar, D., and Sandip S. 2008. Globalization, labor markets and inequality in India. London: Routledge. McMichael, W. 2007. "Globalization and labor. (Globalization and Labor Conditions) (Book review)." Monthly Labor Review 1 Dec: 42. Mitchell, R.B. 2009. "Flagging Standards: Globalization and Environmental, Safety, and Labor Regulations at Sea. (Book review)." The Review of Policy Research 1 Jan: 56. Silver, B.J. 2003. Forces of labor: workers movements and globalization since 1870. Cambridge: Cambridge University Press. Vaidya, A.K. 2006. Globalization: encyclopedia of trade, labor, and politics. Santa Barbara, Calif.: ABC-CLIO, Print. Read More