Labor Relations and Global market
Abstract
The purpose of this paper the critical exploration, discussion, and examination of the controversies, developments in the labor relations sector, it highlights and explores vital issues about labor relations. The paper explains some of the emerging and trending issues touching that transpires in the faculty of labor relations about globalization. Expansion in the global market goes hand in hand with globalization as well as liberalization, and the whole process is exacerbated by the growth of international trade as well as technological advancement due to the rapid transaction of funds and resources. Nonetheless, technological progress has brought a lot of controversial and disruptions in some of the key areas of production and ruining the perfect relationship between the management and the workers and erosion of standardizing and stable production. Furthermore, the erosion of stable and segmented production is brought about by the sequent attempts to improve quality of the product using technology and innovation
Introduction
Primarily, labor relation or industrial relation is the study of giving management to unionized employment condition especially under an agreement such as collective bargaining. Moreover, in academic terms, the term labor relations stands for a sub-class found within industrial relations and a subclass within the faculty of human resource management in practice (Chaisson, 2006). Furthermore, the courses concerned with this program of labor relations always cover labor organization, bargaining, labor history, contract administration, labor law and other relevant but contemporary topics. On the other hand, the global market directly implies the process of conveying product or service to the international community or worldwide after a conceptualization with the aim of reaching the international marketing community. Notably, an efficient global market can raise the company to the next level of commercialization especially if the company deals with goods and services of international demand (Colling & Terry, 2010). Global marketing is important to those businesses that provide product or services with international demand such as food and automobile as well as human resource service. Therefore, this paper seeks to underscore as though discussion of the various elements involved in labor rations and global market.
The concept of labor relations
The word labor relation is a two-word term labor and relations. It is also referred to as an industrial relation. The two terms stand for any productive activity a group of people, employees or a person, employee, engage themselves or himself into respectively. Therefore, it means that the word labor relation is a collective word that elaborates the kind or the relationship existing between management, which emanates directly from the union-employer relationship and the workforce, the employees (Oakley, 2002). Precisely, in the olden days, the concept meant the relationship between the employers and the employees working in an organizational environment, but with the contemporary society, the meaning advanced to even involve other official documents and deliberations such as collective bargaining agreements. Furthermore, the concept nowadays has a broader outlook incorporates other interactions and professions such as human resource management and employees relations.
Importance or the need for labor relations in the global market
Labor relation is an essential tool in management and decision making in both an organization and global market at large. Organizations, which are serious in commercializing their products and build their reputation has no choice but to engage in labor relations affairs. Therefore, some of the main advantages or advantage the process has to the organization and the global market typically includes the following. Labor relations improve employee productivity as well as lowering the turnover cost in the organization, which always reflect even in the world market. Moreover, the labor relations also increase the service and product quality.
Employee productivity
Over the past decades, evidence from reliable sources of information asserts that the unionized organization has high rates of productivity than nonunionized organizations (Colling & Terry, 2010). The productivity among some of the key unionized organizations as well as manufacturing business is ten times greater than those nonunionized firms and properties with that in education sector being 7% percent higher among the unionized employees this is according to a research study done in 2003. Hence, the lobar relation is necessary for the organization and even in the international marketing to increase the rate of productivity.
Lower turnover cost
Notably, as a result of the many factors such as the demise of employees, search for higher salaries, reshuffling and resignations, many employees leave organizations. In such a scenario, the organizations usually incur costs replacement and separation of employees. For the unionized, the unions chip in to help reduce the turnover because of the detrimental effects this process brings to the organization always cater for the cost incurred. Some of the consequences of this cost include the greater cost of communication between the employee and the management and job loss. Thus, the labor relations are supportive and critical to the organization in solving organizational problems such as high-cost settlement (Chaisson, 2006).
Workplace health and safety
Over the years, the primary mandate of labor unions has been the good working conditions for their members. Most labor unions across the world ensure safer working condition to the workers and are responsible and seriously involved in reducing worker fatalities in organizations such as the manufacturing industries. In addition, the unions are determined to ensuring a safer workplace because of the benefits the condition has to the members. Some of these benefits entail the reduction of compensation cost, health insurance cost, abstinence, and productivity (Oakley, 2002). Moreover, the unions demand greater safety and health training and that the unions themselves have significant effect and influence to the organizations. A good modern example is the scenario of International Brotherhood of Electrical workers and their safety program of Alabama power 2013 called the target zero that reduced the accident in the organization by 9 percent annually.
Product and service quality
In a case when employees are committed to giving, a greater input in the process of production of services and good the quality of those goods and services increases. The increase of quality of the products and services is articulated to the greater commitment of the manufacturer and delivers of the products. Active labor relation in the global market facilitates the interaction and communication between the management and the workforce which is very instrumental in detecting organizational problems before they happen as well as improving ideas to for better and quality production.
In totality, labor relations are a paramount organ in both local and intentional markets. Labor relations mainly defend worker’s interests in various issues such as the salary and wages increments, as well as seeking the perfect working condition to maximize the output production. Different employees in the various regions of the world in different organizations are concerned with social security measures as well as the employees’ democratic right to participate in management.
Labor relations, globalization, and liberalization
Liberalization being the reduction or the removal of barriers or impediments that affect the exchange of goods and services among the nations freely, in is very efficient for effective international working relation since it not only stop the restriction in labor but also removals constraints such as nontariff obstacles (Oakley, 2002). Nowadays, liberalization and globalization are the marketing activities that manage employment relationships in both industrializing and already industrialize nations.
Following the significant advancement of information technology in various countries of the world, globalization, and extensive development in the international trade, liberalization has been inculcated into the more significant interactions in the global marketplace which intern has exacerbated what is referred to as the universal economic interdependency. In this case, the great propagator and perpetrator of liberalization and relations between employees and employers in the international market are the direct investment carried out in various countries, and the significant growth in international trade (Colling & Terry, 2010). Furthermore, the information technological advancement has also contributed to the promotion of liberalization and labor relations in the global market by facilitating changes in production and service location across h globe and facilitating faster financial transactions.
Concerning globalization and the increase in international economic interdependency, the traditional labor relations have been significantly disturbed in various ways. The national governments have confined the relations activities and arrangements, however, in the case of the global market, has considerably expanded the demarcations or the binderies of the marketplace. The extent or the rate at which the information technological advancement has contributed in creating inter-enterprise networks and strengthening relationships with workers and employees across the globe eradicates the first labor relations (Blanpain et al., 2008)
On the hand, another driver in the change in the manner in which labor relations operates in the global market is the funders or the driving force for change are the multinational corporations. These multinational corporations also called the MCNs not only engage in foreign direct investment. These businesses from simpler initial business integrations they grow the global market and enhance complex business relations and interactions as well as production networks. Therefore, because multinational corporations control the world economic productivity and are also centers of mass communications they have a high impact global market beyond the jurisdictions f the countries they are located.
As one could expect, the expansion of this multinational corporation all across the world is a assure reason for increased interaction between different individual groups and companies across the world. It is also the center of the interaction between the various employers and employees due to t mass communication processes undergoing in such corporations. The activities of the MAC’s both in their local countries and the different branches abroad has influenced change and transformation in the sector of labor relations and with a subsequent erosion of the traditional labor relations (Blanpain et al., 2008).
In addition, it is important to highlight that the aspect of globalization, which is the expansion of markets and workplaces, have altered the two factor of production and that is capital and labor in all the countries. Due to the different in the characteristic of the two factors of production’s expansion of global market has brought some hitches in the operations labor relationships. Meaning that capital is readily more mobile, that is easier transferability in an open market environment, whereas labor is relatively immobile. This disparity in mobility of the factor of production implies that one factor which is capital is moving and getting roots in the international market with labor getting more disadvantaged in the sense that capital can employ labor in certain countries at very low cost. Moreover, this, in turn, compromises the welfare and the unionization of workers in the progress of employment in the country in question.
Another thing that makes the globalization about the labor relations controversial issue is the competitive markets caused by the increase in economic interdependence among the countries both by inter and intra-regional interactions. This issue is contentious in the sense that the competitive interaction may lead to building up of sufficient labor relation and unions between the countries due to the generation of new ideas and desire to be more productive. Nonetheless, the intense competition can also result in resistance towards convergence about various regional and national circumstance. The above statement then implies that instead of strengthening strong labor relations among the countries the globalization that is the widening of the market scope can lead enmity and bad relations between the countries involved as in the case of Asia and Europe.
Information technology and labor relations
In this modern contemporary society, it is impossible to talk about economic development in a given sector without the involvement of technology. The area of employment relation is more of social, economic interaction, therefore; it has been perpetuated largely by the information communication technology. With the technological advancement in the communication sector, a high impact and significant changes have been realized in the sector of labor relations that is the interaction between the management and the employees at both local level and international. Moreover, a substantial has been felt in the global market due to the faster rates of transactions and transfer of goods and resources making the world the so called the global village. The advancement in information technology has immensely promoted the development of some of the fundamental pillars of international labor relations, and that is industrialization and globalization.
The new technology has exacerbated stiff competition in both the local and the global markets. As a result, demand for more and better and more accurate items have also increased leading to shorter product cycle and higher products market volatility. Such as a state is a dangerous situation in the market and always require quick response and emergent operations to the changes in the market demand.
Significantly, it is important to highlight that with the increasing of new technology there is a relative increase in the flexibility of production process as well as social interactions. However, trade unionist and labor relations at larger have never embraced the advancement in technology due to the many technicalities it brings to the unions. A good example is the Uber taxis which have faced severe rejection from the unionists since the business gave the taxis driver a stiff competition and Eve paralyzing big industrial from speeding around the world.
Different unions including one of the world leading labor unions such as AFL-CIO opposes technological advancement in industrial relations since they view it as a disrupter. They were in the forefront in fighting the so-called calling tech community, who were waiting for ease the hiring of international engineers.
Additionally, a considerable controversy has also been realized in the service output. The technological invention has made it that in the case where more services that are specialized are required; more limited and smaller production operations are needed. With the invention of new technology with the slogan of making, work easier, a job that requires a substantial number of workers can now be completed quickly even with fewer workers (Bonanno, & Cavalcanti, 2014). The scenario has made it possible for every worker to be in opposition to do any job, hence no distinction or clarity in the hierarchical and functionality of different jobs. The distinction between management and labor has also been blurred since every worker has the skills and the capacity to perform every job via the help of the technology. What the presence of fewer workers in the global market economy was experiencing today believed to have been caused by the technological attempts to improve products through innovation and pricing was accompanied by erosion of stable, standardized and segmented production process.
Technology has also affected activities of labor relations through the organization of work. Quick response and efficient response to market changes is the key to an achieving productive efficiency and flexibility. If anything at time forces for re-writing of a worker job description to the worker under the broader grouping of activities, taking and a accomplishing the whole task with a strong emphasis on teamwork. This disruption in the organization of work as well as worker’s job description is a big menace in the employee management hence some of the contrivances brought about by technology in the sector of labor relations.
Nonetheless, there has been an improvement and related changes to act as coping strategies or the adaptation measure to the many menaces brought about by technological advancement in the sector. Some of these coping strategies are geared towards improving the relationship between the employees and the management based on cooperation and consultation. With this regard, many enterprises, as well as unions, have been initiated to establish and maintain safe conducts as well as best practices and centralize organizational learning. The unions created this organizational capacity building strategies to bring back or restore good industrial relations such as the individual performance of both workers and managers, which were eroded by the technologies (Tiraboschi, 2014). The alterations made in this sector are geared towards achieving a good organizational structure that is management hierarchies. Workers to the enterprise also focus the unions to realizing devolution of operational responsibility as well as making the mutual relationship between employees and managers, and commitment.
In the adjustment process, different enterprise and unions have realized the importance of rationalizing their operations to strengthen their competitiveness in the global market. In achieving these affirmative actions, the various organizations have ventured into the process of defining the competitive edge and essential rational in ways possible to substitute technology and labor (Blanpain et al., 2008).
Some trending and emerging issues on Global labor relations
Today, labor relations is all about signing agreements called the collective bargaining agreement. The documents containing the terms of the accord is signed between the employer or the management and the workers or the employees. In the case of violation of any terms of the agreement then either party seek justice in court or by organizing strikes, picketing line or revising the collective bargaining agreement in what is called unionization campaign.
Nowadays, the unionization campaign is branded the name corporate campaigns, because trade unions do not only organize such campaigns only, but they are also orchestrated and hosted by politicians, community leaders politicians and religious groups. Most of these campaigns are against human right violations such as unsafe working conditions, child labor, human trafficking. The primary purpose of these campaigns to strengthen the union by increasing the membership which in turn accolade the company influence and power to be able to enforce policies into law to promote good labor relations both local and internationally (Tiraboschi, 2014).
The high shortage of union members has led to negative influences on different companies’ reputations as well as commercialization since the unions have gone hunting for members in businesses’ using the top bottom approach instead of the bottom, top plan. In this context, various unions have an alliance with NGOs and other organizations must be behind the strengthening and legitimacy. Due to excess alcohol intake, Oxfam saves the children that did focus more on their attention and resources on pushing an operations launch or effective campaign.
On matters about location and appearance, it is intuitive that corporate campaigns have gone global and more sophisticated and well coordinated than before. As a matter of fact, the management and execution of this companies plans are well calculated, and any blender in the operation of the business means falling into the trap of the trade union’s schemes. And if an individual has the interest to become a member, the union specifically higher researchers to scrutinize the recruit, for instance, the United Autoworkers and SEUI employ a group of the researcher to investigate new hires.
Union structures
Trade unions federations in a different sector of the economy such as sectoral, national or regional and industrial have developed as common characteristics of union structures. Many countries have one trade union federation this include country such as Singapore and China White a bigger number of countries having two to three federations. Nonetheless, other countries like Philippines, Thailand, and Pakistan have many.
The scope of bargaining
The older forms of both decentralized and centralized approaches of bargaining are becoming outdated, and everything is changing. Different countries across the world such as New Zealand have had and applied the use of the traditional approach of the centralized collective bargaining agreement with other nations which were the majority implement the decentralized approach at the enterprise and the industry levels.
Over a substantial period, different countries especially those with the union that used the centralized collective bargaining agreement approach which are countries such as Singapore and new Zealand began abandoning the centralized wage fixating. The states chose to give up the centralized bargaining approach due to its fixed nature to a more flexible one the decentralized approach of collective bargaining agreement considering the many competitive circumstances experienced by individual enterprises and industries (Clark, Delaney & Frost, 2002).
With the rapid global market dynamic, a lot of alteration is taking place in the international market and up to the different countries to change their systems of operation to adapt to the situations. Therefore, countries such as Mongolia and China, which has not yet, adapt to the current labor relations changes are undergoing legislative development as well as developing a Lao PDR to give a framework for the formulation of collective bargaining agreement.
Unfortunately, in a contemporary society of globalization and technological advancement, it is absurd for any country to be left behind both regarding technological progress and even the knowledge of the trending issues in the world. Workers and management in these regions that have not incorporated the collective bargaining phenomenon into their labor relations systems lack the concepts and knowledge and practice involve in the effective negotiation of collective bargaining agreement.
All over in the world, there has been a substantial difference between countries concerning this subject of collective bargaining. Different countries have their limit of issues that they submit to bargain or any form of mutual concern hence only embrace labor relations to a particular extent (Bonanno & Cavalcanti, 2014). For instance, have no such boundaries in the agreement and give permission to the parties to have a mutual concern or bargain in any issue. On the other hand, some countries such as Malaysia and Singapore have their boundaries and do not allow bargain in anything related to or falling within the management prerogative.
Moreover, in another different angle altogether, some countries require certification of collective bargaining that in most cases involves many precondition measures. As if those one are not enough, diversity is healthy and productive many people like doing things differently. For the event of countries such as New Zealand and Australia has permitted their industrial parties to come up with their individual bargaining agenda.
The three level of labor relations both in the local and global market.
Primarily, in the framework below it is argued that the occurrence of labor relation in any given societal setting is determined by the actions of the government, economic context, NGOs, and international agencies. Moreover, the framework also asserts that there are three main levels of labor relations activities. Meaning the stages at which labor relations occur.
At the top is the first tier or level of public relations called the strategic level. At this juncture, the framework illustrates that this level entails structure and strategies that have long-term influence in work conditions as well as employment levels (Clark, Delaney & Frost, 2002). This phase emphasizes the centrality of business strategies as resource or bedrocks to effective labor relations. Business strategies influences product strategies and impact investment hence it is an active primary process a perfect relationship between different stakeholders.
In addition, the effective interaction between government unions, international agencies, and NGOs even as illustrated in the framework is made possible by the and perpetuated by the strong business organization. O the other hand government plays a very instrumental role in this stage of strategic level as a policy maker and employers. The government management in this case as an employer influences in private and public levels via the law and policies enacted to shape and facilitate the businesses.
In the second tier or the second stage is the functional level. This level entails the outcomes as well as the process of collective negotiations. Furthermore, this stage also involves the activities that accompany any modern labor relations and that the strikes, wage determination process, bargaining power, and bargaining structure. This event forms the primary tools and strength of the different unions of labor relations to maintain and ensure the good welfare of workers in the workplace as well as supports of good management-worker relationship.
In the third and the last level of this framework, illustration is the workplace level. This is the interaction stage. It entails the activities through which different stakeholders that are the workers the supervisors together with the representatives interact and relate to each other on a daily basis. On a daily basis challenges and problems emerges daily hence there is need to overcome those challenges to achieve the desired or the anticipated outcomes (Bendix, 2001). The day-to-day challenges at workplace entail conflict among the employee and even down or up the ladder. Therefore, sufficient resolution and dispute settling strategies are very essential at this stage of labor relations building.
Therefore, this framework posits that the proper coordination and interactions of the three levels of activities are imperative in labor relations building. The three tiers, workplace, functional and strategic levels are the primary components of the effective economic environment that foster good labor relations.
Fig 1.1. The three-tiered approach to the study of labor relations in emerging countries
In conclusion, labor relations are very essential in the day-to-day organizational operations. It is critical not only because of it foster and maintains good management- worker employee but also enhancement of quality production. Labor relation is very vital in the society significant since it promotes the following in the economic world. Technological advancement especially in the sector communication has brought a lot or controversies and difficulties in the field of labor relations a good example being the Uber taxis that highly resisted by the unions.
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