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EFFECTS OF GLOBALIZATION ON INDUSTRIAL RELATIONS PRACTICE

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

Globalisation means intensified competition, the transfer of investments, production relocation outside of Europe, job losses, unemployment and rapid structural changes. European labour markets are characterised as relatively rigid, with high social security and strong industrial relations (IR). Over the past years, Europe has had to deal with strong challenges stemming from globalisation in the form of intensified competition, the transfer of investments, production relocation outside of Europe, job losses, unemployment and rapid structural changes. High expectations exist related to the competitiveness of the European economy, which means that labour markets will have to become more flexible as employers demand further deregulation of the labour market in order to successfully cope with worldwide competition. At the same time, the European social model underlines the importance of employment security and social cohesion as workers seek greater job security in light of rapid structural change and job relocation. The key issue is how to find a balance between an European social model and the flexibilisation of labour markets while remaining competitive. 

The effect of globalisation on industrial relations procedures and their substantive outcomes depends on the conditions under which industrial relations take place within a country. For instance, how quickly will change the structure of industries, what will be the share of informal sector, and so one. It is obvious that the future of industrial relations systems will depend also on political and economic developments in the countries: which party will be on power; whether there will be shift towards right-wing policies, liberalisation, etc. 

1.2   Statement of the Problem

The importance of modernising industrial relations has been debated in Europe already since the 1990s. Discussing on modernisation of industrial relations rises up questions on problems of today and also challenges of future. Today’s problems have been analysed in the numerous academic reports. But we have only few studies analysing systematically what are the challenges of the future and what would be their impacts on industrial relations. How social partners, governments and researchers see challenges and future development of industrial relations? Developments in industrial relations systems will depend on the processes in environment. For example, pressures of globalisation affect employment relations and industrial relations at regional, national and international levels. These pressures interact with national characteristics: the economic and political system; the type of government; legislative developments; level of economic development; the exposure to globalisation; the influence of labour and the state in each country; and different policies regarding industrial relations.

1.3   Objectives of the Study

The main objective of this study is to determine the effects of globalization on industrial relations practice. Specific objectives include;

i.  To evaluate the relationship between globalization on industrial relations.

ii.  To examine the effect of globalisation on employment relations and industrial relations at regional, national and international levels.

iii.  To find out the challenges of globalisation on future development of industrial relations.

1.4   Research Questions

i.  What is the relationship between globalization on industrial relations?

ii.  What is the effect of globalisation on employment relations and industrial relations at regional, national and international levels?

iii.  What are the challenges of globalisation on future development of industrial relations?

1.5   Research Hypotheses

Hypothesis I

H0: There is no significant relationship between globalization on industrial relations.

Hi: There is a significant relationship between globalization on industrial relations.

Hypothesis II

H0: Globalisation does not affect employment relations and industrial relations at regional, national and international levels.

Hi: Globalisation affects employment relations and industrial relations at regional, national and international levels.

1.6   Significance of the Study

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.7   Scope of the Study

This study is on the effects of globalization on industrial relations practice. The study will be conducted in Lagos state.

1.8   Limitations of the study

The demanding schedule of respondents made it very difficult getting the respondents to participate in the survey. As a result, retrieving copies of questionnaire in timely fashion was very challenging. Also, the researcher is a student and therefore has limited time as well as resources in covering extensive literature available in conducting this research. Information provided by the researcher may not hold true for all research under this study but is restricted to the selected respondents used as a study in this research especially in the locality where this study is being conducted. Finally, the researcher is restricted only to the evidence provided by the participants in the research and therefore cannot determine the reliability and accuracy of the information provided. Other limitations include;

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8   Definition of Terms

Globalization: It is concerned with increasing the interconnected and interdependent world international trade, management, Administration, investment and finance that have been growing much faster than national incomes (Wolfensoh, 2001).

Informational Technology: It is use of electronic system for processing and transfer or disseminates information. There includes computer, Telecommunication etc. 

Network: It is a system whereby people indifferent locations are linked together via computer.

Industrial Relations: Is the Complex interrelationship existing among stakeholders. i.e. government, workers, managers and other interrelationship workers.

System: It is the interrelationship existing within a body i.e. interconnectivity of various component.

Conflict: It is the disagreement between component that form an organization i.e. workers and management, labour and government etc.

Organization: It is a system through which individual effort channel toward attainment of a major goal or objective.

Trade Union: It is an organization of employee to take care of member's needs one's interest.

Productivity: It is the ratio or proportion of output to input.

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