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BBM-XIMB-2013
What is Globalisation?
Globalization is the free movement of Goods,
Services People and Information across National
boundaries.
Opening of economy increases competition
internationally and leads to structural changes in
economy and alters consumers preference, life
style and demand of citizens
In other words it is the world wide production
and marketing of goods and services by
Multinational enterprise.
BBM-XIMB-2013
The Policy Resolution of 1956 also identified the following three categories of
industries:
Disinvestment/Deregulation/Merger/
Acquisitions
Disinvestment Affecting ownership of business, work
organisation, employment practice etc.
Deregulation - Labor laws leads to erosion of the accrued
interest of workers and trade union
Concern of industries to remain globally competitive was given
outmost priority
Decentralization -Shift in IR from Macro to micro from industry
to enterprise
Lead to weakening of bargaining power of unions
Industry adopting core, casual and outsourced employees
BBM-XIMB-2013
Globalisation: Impact on IR
New actors and emerging dynamics
Trade unions are getting isolated- pressure to realign with society
Pro-labour-pro-investor policy leading to declining power and
influence of unions.
Changed mind-set of Legislators and Executives-(less importance
reinstatement/regularisation)
Pro-labour social security became more prominent- ESI, PF,
Minimum Wages
Emergence of NGO activity and influence
BBM-XIMB-2013
Impact of Globalisation ON IR
Declining trade union density-due to
composition of workforc
Social security measures even to un-organised
sectors
Worker militancy replaced by Employer
militancy
Bargaining power of union is shrinking
BBM-XIMB-2013
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