Globalization Has Created a Significant Impact on the Previous Labour Policy in the UK - Essay Example

Managing Partnerships Table of Contents I. Introduction ……………………………………………………………….. 3 II. Advantages of Building Partnership between the Government and the Public, Private and Voluntary Sector ………………………………….. 4 III. Significant Changes in UK Employment Law …………………………. 4 IV. The Works of Anthony Giddens in Relation to the Labour Pension Policy in UK ……………………………………………. 5 IV. Conclusion ………………………………………………………………… 7 References ………………………………………………………………………… 8 - 9 Introduction Globalization has created a significant impact over the previous labour policy in UK. In order to keep the local businesses competitive in the domestic and global market, a lot of firms have considered organizational downsizing1 as a strategic way of keeping the companies financially stable. (Koretz, 1997; McKinley et al., 1995) As a result of a massive lay-offs, many people were unprotected in terms of losing their job. In relation to the fiscal policies, the UK government is responsible in keeping the unemployment rate as low as possible in order to maintain a smooth overall economy in the country. Aside from the impact of globalization over the fiscal policies on labour protection, another significant impact of globalization is the creation of a tight competition and imbalances in the labour market in the sense that only the most educated and skilled labours will have a better opportunity of being employed aside from the fact that the number of ageing population in UK is expected to increase significantly over time. As a long-term effect, the inequality in the employment opportunity could result to the strengthening of labour unions in the country. (Jose, 2000) For this study, the researcher will analyze and discuss the advantages and of building a partnership between the government and the public, private and voluntary sector as a strategic way of improving the delivery of employment public services. Prior to the conclusion, the researcher will critically examine the works of Giddens in relation to the Labour pension policy as well as the entire new governance under the New Labour which was elected back in 1997 to govern the enormous changes in UK employment law. Advantages of Building Partnership between the Government and the Public, Private and Voluntary Sector Conflict of interest between the official public duty as well as the private interest of the public officials is unavoidable. (OECD, 2003) As a result, government officials and public servants are often tempted to corruption and bribery. (Bertok, 2006) In line with the increasing loss of confidence over the government’s public policies, specifically building partnership between the government and the public, private and voluntary sectors could improve the quality of UK’s labour policies in terms of making the government operations more transparent and accountable. (OECD, 2003) Significant Changes in UK Employment Law Based on the New Labour government, employment law in UK was significantly changed to promote a more ‘flexible and efficient labour market.’2 In line with changes in the employment law is to require a fair treatment to employees regardless of their sexual orientation3 or religion and beliefs4; new policies that enhance the family life or balance between work and social life; as well as some new procedures for collective representation at work. To address the problems related to huge number of massive lay-offs caused to globalization, the ‘Fairness at Work’ White paper strictly prohibit unfair dismissal by removing the possibilities that workers employed on fixed term contracts could waive their rights to claim for unfair dismissal and eventually increase the ceiling price of compensatory award from £12,000 to £50,000 per employee. In line with enhancing the Employment Right Act 1998, the government introduces the Employment Act 2002 as a statutory grievance and disciplinary procedures wherein employers and employees are required to comply. Aside from the national minimum wage, the Part-time Work Directive, and the Working Time Directive; the National Childcare Strategy is encouraging each company to provide their employees access to good quality childcare as well as the Working families tax Credit also provides financial support to working families as part of its family friendly policies. The new policy also provides each employee the benefit of an improved maternity right wherein women could apply for six months ordinary maternity leave (OML) and additional six months unpaid maternity leave (AML);5 two weeks paternal paid leave;6 flexible working policy;7 and unpaid parental leave for thirteen weeks but only four weeks per annum in case the child is five years old and above.8 The Works of Anthony Giddens in Relation to the Labour Pension Policy in UK Many people have realized the socialism approach is no longer applicable in today’s society because of the fact that the high ‘dependency ratio’ on older workers could result to a create imbalance between the population of paid workers and those who are already retired. (Giddens, 1999) Based on the OECD (2006) report, the number of older people who are no longer working is expected to double from 38% in 2000 to 70% in 2050. For this reason, the ‘Third Way’ policy which has been based on the works Anthony Giddens acknowledges the importance of encouraging the older people to remain in the work force as the 21st century approach to new policy development. According to Giddens (1998: 120), “we should abolish the fixed age of retirement and consider them as a resource instead of a problem.” Among the many factors in the past that were considered in the development of the retirement benefits includes the idea that each citizen of UK should be provided with unconditional welfare in terms of being paid by the government after his/her working life. (Macnicol, 1998; Sass, 1997; Esping-Andersen, 1990) Since the number of ageing population could increase the pressure on the public expenditures (OECD, 2006), the UK government adopted the model of activating the older people back into the labour market as a way of balancing the supply and demand for labour. (Daguerre & Taylor-Gooby, 2004; Gidden, 1998) For this reason, the Labour government in UK is determined to convince the local citizens of more than 65 years of age to remin the paid work. (DWP, 2006; PIU, 2000) Today, UK’s reform on its occupational pension enables retirees to receive their pension as well as continuously work for their former employer on a part-time basis. In fact, a lot of individuals who are approaching the retirement age are making their own strategy on how to survive after retiring from work instead of seeking for the financial support from the local governemnt. (Mann, 2001; 1998) Conclusion The works of Giddens is widely used in the development of the 21st century’s new public policy design because it acknowledges the specific needs of today’s society. The problem with most of the government officials and public servants is related to the risk of conflict of interest between their duty as a public servant and their personal interests. For this reason, building partnership between the government and the public, private and voluntary sectors could improve the quality of UK’s labour policies in terms of making the government operations more transparent and accountable. (OECD, 2003) With regards to employment protection, a new employment policy known as ‘Fairness at Work’ was implemented to promote a fair treatment to employees; enhance the family life or balance between work and social life; and a collective representation at work. Similar to the new employment policy, the works of Giddens was also used as a template in designing the new labour pension policy in UK. *** End *** References: Bertok, J. (2006). SIGMA - A Joint Initiative of the OECD and the European Union, Principally Financed by the EU. Conflict-of-Interest Policies and Practices in Nine EU Member States: A Comparative Review. Public Governance and Territorial Development Directorate. GOV/SIGMA(2006)1. Budros, A. (1999). 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Performance and Innovation Unit Report. Winning the Generation Game Cabinet Office. HMSO. Sass, S. (1997). The Promise of Private Pensions; The first Hundred Years. Cambridge Mass: Harvard University Press. Read More