IMPACT OF GLOBALIZATION ON TRADE UNION

abhishreshthaa

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Impact of Globalization

Global economic trends have put tremendous pressure on the working class. Global institutions governed by Capital, like WB-IMF-WTO, are putting tremendous pressure on Nation sates to rationalize labour laws and undermine trade union rights. This emerging global economic environment is very conducive to the growth of Multi National Companies.

It is fast turning National economies into a production chain with progressive low wages. In the process, the MNC's regain their dictatorship over global commodities, for consumption in developed economics.


Companies are increasingly adopting methods to lower wages and social security costs by adopting measures like privatization, closures, lay-off, retrenchment, Voluntary Retirement Scheme and sub-contracting. They have


adopted labour intensifying incentive schemes, performance linked wage systems and compulsory overtime. In all these management strategies the key element is the flexibility in labour relationship.


Indian law ensures strong protection for the rights of workers, but gives limited access to the workplace to unions. This is one of the reasons that the trade union movement has generally relied on its political connections and affiliations. India’s trade union federations have historically aligned with political parties.


India has not ratified ILO conventions on Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87) and Right to Organize and Collective Bargaining Convention, 1949 (No. 98).


As India became more open to corporate globalization, the impact of the neo-liberal economic agenda became increasingly evident. Privatization, de-regulation, down-sizing, and outsourcing have generated massive unemployment and hunger, with the vast percentage of Indian workers employed in agriculture and the informal sector.
 
Impact of Globalization

Global economic trends have put tremendous pressure on the working class. Global institutions governed by Capital, like WB-IMF-WTO, are putting tremendous pressure on Nation sates to rationalize labour laws and undermine trade union rights. This emerging global economic environment is very conducive to the growth of Multi National Companies.

It is fast turning National economies into a production chain with progressive low wages. In the process, the MNC's regain their dictatorship over global commodities, for consumption in developed economics.


Companies are increasingly adopting methods to lower wages and social security costs by adopting measures like privatization, closures, lay-off, retrenchment, Voluntary Retirement Scheme and sub-contracting. They have


adopted labour intensifying incentive schemes, performance linked wage systems and compulsory overtime. In all these management strategies the key element is the flexibility in labour relationship.


Indian law ensures strong protection for the rights of workers, but gives limited access to the workplace to unions. This is one of the reasons that the trade union movement has generally relied on its political connections and affiliations. India’s trade union federations have historically aligned with political parties.


India has not ratified ILO conventions on Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87) and Right to Organize and Collective Bargaining Convention, 1949 (No. 98).


As India became more open to corporate globalization, the impact of the neo-liberal economic agenda became increasingly evident. Privatization, de-regulation, down-sizing, and outsourcing have generated massive unemployment and hunger, with the vast percentage of Indian workers employed in agriculture and the informal sector.

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