Evolution of Industrial Relations in the Context of Globalization

In the context of economic globalisation, activities of single enterprises expand into several countries. Outsourcing, subcontracting and flexible enterprise structures have also become prominent. These have consequences for industrial relations. There is a mismatch between the bargaining power of workers with local trade unions and employers with global extension. The traditional means, including national legislation, local institutions and collective bargaining are not adequate to solve labour issues with an employer at the international level. However, institutions and tools have been evolving. Trade unions merge or cooperate at international level. There are several (non-traditional) private, government or multi-stakeholder initiatives to promote labour standards, including NGO and consumer group initiatives, enterprise codes of conduct, and labour clauses in trade and economic integration agreements. These initiatives are, at present, mostly fragmented and self-regulatory. They are short of what can be called a system of international industrial relations. The research will focus on the role of “international framework agreements” between Global Union Federations and the multinational enterprises and the impact of national institutions on those international agreements. It should respond to two essential questions: a) are the existing mechanisms and the emerging tools adequate for industrial relations at international level? b) what are the possible missing elements for the construction of a functioning global industrial relations system?