Impact Of Globalization On Industrial Relations 4t3n22

IMPACT OF GLOBALIZATION ON INDUSTRIAL RELATIONS

Presented By :Shivraj Singh Rathore

Globalization: What does it means? • The processes that brings people of different countries closer together, the final result being an absence of barriers to economy of social relations. • Occurs through closer international economic integration of trade and investment • Such as Vietnam and India, Hong Kong and Singapore, South Korea and Japan

IR IN THE ERA OF GLOBALISATION (1991-onwards) • The LPG Era has brought significant changes in the• Social; • Economic; • Technological; and • Political environment of Indian business. “And it has a huge impact on the industries and the relations existing within them.”

IMPACT OF GLOBALISATION ON INDUSTRIES AND THEIR RELATIONS

1.Integration of economies. 2.Global benchmarking. 3.Change in management style. 4.Increase in education level. 5.Change in skill level. 6.Knowledge workers. 7.Workers’ participation in management.

Industrial relations during colonial period Industrial relations in by- product of Industrial Revolution and it owes its origin from excessive exploitation of workers by the owners of industries. The relationship was that of two unequal- the powerful employers and powerless workers. It was a master servant relationship which continued for a long. In early stage, the Government adopted the policy of Laissez- faire and later on, enforced penalty on workers for breaches of contract. Some attempts were made to form trade unions, which were resisted and crushed by the employers. The First World War is the first milestone enroute to industrial relations in India. In certain social, economic and political conditions, which raised new hopes among workers in industries. It was for the first time, that workers realized their importance that unless they produce goods required for wars, the wars cannot be fought successfully.

After war, prices of consumer goods also become dearer. This lead to intense labour unrest because worker’s earnings did not keep pace with the rising prices and their aspirations. Many other events happened which accelerated the pace of industrial relations during the period1. Establishment of ILO(1919) and the influence of its conventions and recommendations. 2. Formation of the Labour Party Govt. in U.K in 1924. 3. The Indian Trade Union Act of 1926. 4. The Trade Dispute Act, 1929. 5. Formation of Royal Commission on labour, 1929-31, which made a comprehensive study of Indian Labour problem regarding health, safety and welfare of workers and made recommendations of far- reaching consequences.

IR in Post-Globalization Period from 1991 to till date The requirements a of global competitiveness are of international standards in quantity, quality, cost- effectiveness and customers. This in turn, requires introduction of state of art technology, followed by innovation, creativity and strategic alignment of divergent resources to create performing climate. Such a performing climate requires a dynamic and synergetic relationship. The tradition of IR is under tremendous pressure, because it was made to cater to the requirements of a controlled, protected and regulated market and was unable to address the new imperatives of a competitive, global market.

A tug of war is going on between “forces of change” and “ forces of inertia”. The market requires a flexible, and aggressive employee relations approach, while traditional industrial relation wants to remain adhered to status quo without any change. Traditional institutions of IR are losing their importance and relevance. Trade unions are marginalized and kept outside the mainstream of business. Strike is losing its cutting edge. Collective bargaining is being replaced by collaborative and productivity and individual bargaining.

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