Why Globalization Manufacturing Since The 1980's Has Changed Labor Relations

Essay by unstopable72 January 2010

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What effect has globalization impacted upon labor and employment, regarding towards unions since 1980's? "The increasing integration of world's economies, including the movement to free trade", is called Globalization and with this statement we can understand, the more intermingling with economies, the more globalization exists and grows (Mankiw; krugman, 2007, p.193). Because of the spike in globalization, and the dependency of international business that has occurred through globalization, along with the shift of manufacturing toward service oriented, and intellectual businesses/jobs (John A. Fossum, 2009, p4), the North American Free Trade Agreement, (NFTA) opened more portals for globalization such as the agreement in the 1993 with the economies of Canada, and Mexico. This agreement was established to reduce tariffs on imports between the United States, Canada, and Mexico making it easy for companies by having a high productivity level (Fossum, 2009, p. 141 - 144).

An explanation for why companies which make up the bulk of the economy we live in, choose to use globalization as opposed to keeping the manufacturing industries, is to attain or retain more capital by; cutting costs (manufacturing labor) in order to invest into other productions .as

a result of globalizing the labor and employment is decreased along with the union, the union is only a monopoly power as long as it has a proper bargaining abilities which is the ability to resist production. If there is no employment or minimal employment unions will have a decrease in members and will lose their voice for bargaining (Fossum, 2009, p. 5).

As established manufacturing industries with excess production capacity have pursued cost cutting through globalization and work design changes to enhance productivity, there is increasing competition both between and within companies, leading to the possibility of locals competing with each other to retain work. This...