Globalization of Labour Markets Chapter 12 © 2012 Nelson Education Ltd.

Copyright © 2012 Nelson Education Ltd. Learning Objectives  At the end of this chapter, you will be able to discuss:  labour’s ongoing role in the areas of social and economy policy  labour’s current and ongoing role in advocating human rights and equality  the definition and theories of globalization  the implications of globalization for unions, women and children, collective bargaining and labour policy Continued… 12-2

Copyright © 2012 Nelson Education Ltd. Learning Objectives  At the end of this chapter, you will be able to discuss:  union responses to globalization  union revitalization  the future of industrial relations including a new role for the ILO and the human rights approach to labour regulation 12-3

Copyright © 2012 Nelson Education Ltd. Advocate for Rights and Freedoms  Particular focus of labour movement  Social and economic policy issues jobs, peace  Equity programs lobby efforts collective bargaining 12-4

Copyright © 2012 Nelson Education Ltd. What is Globalizaton?  International Movement over past twenty years  Integrate world economies  removing barriers to the trade of goods and services  enhancing capital and labour mobility  Global markets do not always ensure benefits of efficiency are shared by all 12-5

Copyright © 2012 Nelson Education Ltd. Globalization: A New Political Economy 12-6  World Bank  IMF  Transnational Corporations  global corporations that may integrate product chains horizontally new model of capitalism new modes of labour market regulation

Copyright © 2012 Nelson Education Ltd. Theories of Globalization 12-7  Free Market Globalization  Institutional Globalization  Integration of Free Market and Institutional Globalization

Copyright © 2012 Nelson Education Ltd. Theories of Globalization 12-8  Free Market Globalization  competitive pressures of the marketplace will force corporations and governments to submit to international standards  little room for IR institutions such as collective bargaining

Copyright © 2012 Nelson Education Ltd. Theories of Globalization 12-9  Institutional Globalization  national institutions mediate between market pressures and society

Copyright © 2012 Nelson Education Ltd. Theories of Globalization  Integration of Free Market and Institutional Globalization  Decentralization of bargaining  Greater management power  Decrease in strikes  Impact on corporations

Copyright © 2012 Nelson Education Ltd. Impact of Globalization on IR in Canada  Employment  NAFTA free trade agreement between Canada, the United States, and Mexico signed in 1994 included a labour side agreement: North American Agreement on Labour Cooperation shifted full time to part time employment

Copyright © 2012 Nelson Education Ltd. Impact of Globalization on IR in Canada  Employment  GNP the value of all goods and services produced by a country in a year manufacturing proportion in decline

Copyright © 2012 Nelson Education Ltd. Impact of Globalization on IR in Canada  Unions and Collective Bargaining  reduced power, low wage competition  Labour Policy  disequilibrium  Women and Children  evasion of labour standards  Unions

12-14  Decline of social compromise  Union density in decline  Union coverage  application of union settlement to nonunion workers  steady, increasing Globalization and Canadian Unions Copyright © 2012 Nelson Education Ltd.

Globalization and Canadian Unions  Canadian Labour Challenges  Democratization  Leadership and Alternative Vision  Organizing Continued…

Copyright © 2012 Nelson Education Ltd. Globalization and Canadian Unions  Canadian Labour Challenges  Contingent Workers  Organizational Innovation  Union Education Unions need new approaches

Union Responses to Globalization  Global unions  Corporate Codes of Conduct in the 1970s  Organization for Economic Co-operation and Development (OECD)  Labour Rights Campaigns  International Framework Agreements (IFAs)  Single Union Global Agreements Copyright © 2012 Nelson Education Ltd.

Comparison of Codes and IFAs Copyright © 2012 Nelson Education Ltd.

The Future of Industrial Relations under Globalization  The New Role of the International Labour Organization (ILO)  Implementation of ILO Standards  Standards Obligations  Supervisory System for Ratified Convention  Special Procedures on Freedom of Association

Copyright © 2012 Nelson Education Ltd. An Alternative Approach?  Freedom of association as a human right  Dunmore and the ILO obligation to provide legislation right to organize freely exercised  An International Consensus

Copyright © 2012 Nelson Education Ltd. An Alternative Approach?  Implications for Labour Policy  right to choose  necessary mechanisms  Systemic Denial of Rights  A New Social Movement

12-22 Summary  Globalization  not the end of regulation of labour market  Government intervention  needed for women and children to benefit  Union revitalization depends on many factors  Human rights approach to freedom of association  ILO Copyright © 2012 Nelson Education Ltd.

12-23 Summary Union revitalization will depend on:  Democratization  Leadership  Organizing  Contingent workers  Organizational innovation  Union education Copyright © 2012 Nelson Education Ltd.