Globalisation and Industrial Relations If industrial relations systems do not adjust to globalisation, the danger arises that companies will relocate their production to countries with fewer restrictions on business activities, such as countries with less regulated labour markets and lower labour costs. ELEMENTS IMPACTS INDUSTRIAL RELATIONS Internationalisation of Increasing integration of global ACTORS markets economic activities -Trade Unions, Increase in competition Rising competitiveness Government Free movement of Relocation of economic ACTIONS/PROCESSES capital and labour activities Collective Bargaining, across borders due to Structural changes in the Industrial Actions, less stringent economy CONTEXT regulations. As a result, Rapid technological -Political, Economic, markets are advancements and Technological internationalising, innovation OUTCOMES competition is Knowledge society, -Scope of regulation increasing, global networking, social capital wages, working time, markets are integrating Labour market flexibility IMPACTS and ICT promote Increasing labour -Productivity, job and networking. migration industrial peace and Informational globalisation Rise of atypical and non through rapid development standard employment of ICT forms Changes in working conditions and work content Job-skills mismatches, need for lifelong learning Some of the impacts of Globalisation Increasing international economic interdependence has affected traditional IR arrangements viz: Structurally changed & expanded marketplace, making possible information flows through tech. Tearing down traditional boundaries of the organisation. Foreign Direct Investment (FDI) allows MNCs to influence country, regional bodies trade policies and labour laws as they control assets in more than one country. MNCs have created complex international production processes.
Globalisation and Industrial Relations If industrial relations systems do not adjust to globalisation, the danger arises that companies will relocate their production to countries with fewer restrictions on business activities, such as countries with less regulated labour markets and lower labour costs. ELEMENTS Internationalisation of markets Increase in competition Free movement of capital and labour across borders due to less stringent regulations. As a result, markets are internationalising, competition is increasing, global markets are integrating and ICT promote networking. Informational globalisation through rapid development of ICT IMPACTS Increasing integration of global economic activities Rising competitiveness Relocation of economic activities Structural changes in the economy Rapid technological advancements and innovation Knowledge society, networking, social capital Labour market flexibility Increasing labour migration Rise of atypical and non standard employment forms Changes in working conditions and work content Job-skills mismatches, need for lifelong learning INDUSTRIAL RELATIONS ACTORS -Trade Unions, Government ACTIONS/PROCESSES Collective Bargaining, Industrial Actions, CONTEXT -Political, Economic, Technological OUTCOMES -Scope of regulation wages, working time, IMPACTS -Productivity, job and industrial peace and Some of the impacts of Globalisation Increasing international economic interdependence has affected traditional IR arrangements viz: Structurally changed & expanded marketplace, making possible information flows through tech. Tearing down traditional boundaries of the organisation. Foreign Direct Investment (FDI) allows MNCs to influence country, regional bodies trade policies and labour laws as they control assets in more than one country. MNCs have created complex international production processes.
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