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 workers 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.

THANK YOU