Globalisation has connected the world and have closed the gaps between the countries and the cultures. The internationalisation is the modern-day demand and companies are becoming smart and so as the workers and trade unions.
The aim of this essay is to understand and analyse the problems and opportunities arising from globalisation for Trade Unions. But first we will try to understand why and how globalisation have such an importance in business world and why it is important for trade unions.
Globalisation is the future and it has been making progress in economic, social, political aspects of the society and bringing cultures together, making a positive impact and creating new opportunities for everyone but on the other hand the market demand and the unethical working policies of the companies is giving hard time to labours and workers.
In modern day business world, the workers are linked to a more global environment by working in a Multinational firm as they work for the companies in many different parts or a company situated in many different parts.
In the 1970s, a ‘new’ international division of labour emerged as the ex-colonial countries began to industrialise and the multinational corporations became central players in the neo-colonial global system. This period saw a major flourishing of transnational labour activity and the hope, soon dashed, that union internationalism could act as a ‘countervailing power’ to that of the multinationals.
Problems/Challenges arising due to globalisation
Surely globalisation creates jobs and opportunities by merger and acquisition abroad but the competition in the market and to maximize the profit motive of the companies have resulted in cutting down in jobs of the workers.
Companies are also not providing job guarantees to the workers who are already in the company for a very time because they want to be more flexible and market oriented. Also, the workers are hired on part-time basis and are forced to work on temporary basis which does not allow them to join and support the union.
The recent statistics show that the unemployment rate in EU28 went down from 11.1 % in June 2015 to 10.9% in July 2015, with the lowest unemployment rates indicated in Germany (4.7%) and the highest rate indicated in Greece (25.0%)
Companies are becoming smart, they are outsourcing relocating to cheaper places and exploiting the labour to reap more benefits and not caring about the workers. The companies are threatening the present/local workers to not join the unions or they will outsource or relocate to lesser unionised labour market. Also, due to globalisation now companies have more labour options and they choose the cheapest.
Many unions across the world agreed and pushed the government to introduce the regulations which will lead to hindered hiring practices and policies for immigrant workers.
Cross border workers entering the market not only affects the...