Impact of Global Competition on Trade Unions

To what extent does global competition undermine the power of trade unions?

The development of free-market economics has, since the 18th century, resulted in the spread of a set of ideas, creeds and practices all over the developed and much of the developing world. Today, the globalisation of trade, capital, technology and innovation has accelerated competitive conditions for businesses all over the world. Globalisation may be defined as the opening of markets to the forces of neoliberalism and capitalism; it is characterised by the free movement of people, talent, skills, capital (intellectual, social and economic) across international borders. All kinds of barriers have either been swept away, diffused or made obsolete by the forces of globalisation: trade barriers, subsidies, geographical boundaries, linguistic and cultural differences. Technological advancements have pulled the world closer and, in the process, affected how labour relations and worker/employer relations operate and develop. The multinational corporation as well as the public sector alike are affected by global competition.
In its essence, neo-liberalism advocates free trade, private enterprise, the free flow of capital across borders and, importantly, restrictions on the power of trade unions. These restrictions are important to study and discuss because the world today is no longer regulated by the orthodox laws of economics where supply equals demand (more or less). Instead, we witness radical inequalities and volatility in market conditions. Unemployment remains frighteningly high in many parts of Europe while many workers in parts of Asia and Africa suffer exploitation and work punishingly long hours in extremely poor conditions for a pittance.
Under...

... middle of paper ...

...part of workers:

Works Cited

Bryson, J., Daniels, P. and Warf, B. (2004) Service Worlds: People Organisations Technologies Oxford: Routledge.
Davidow, W. and Malone, M. (1993) The Virtual Corporation. New York: Harper Business.
Dolvik, J. and Waddington, J. (2004) 'Organising Marketized Services: Are Trade Unions up to the Job.' Economic and Industrial Democracy 25(1): 9-40.
Eisenscher, M. (2002) 'Is the Secret to Labor's Future in Its Past?' Working USA 5(4): 95-122.
Taylor, P. and Bain, P. (2003) 'Call Centre Organizing in Adversity: From Excel to Vertex' in G. Gall (ed.)
Union Organizing: Campaigning for Trade Union Recognition, pp. 153-172 London: Routledge.
Willman, P. (2004) 'Structuring Unions: The Administrative Rationality of Collective Action' in Kelly, J .and Willman, P. (eds.) Union Organisation and Activity, pp. 73-89 London: Routledge.