Global Economic Developments Research Assignment (Essay Sample)

Trade or labor unions refer to groups of workers’  HYPERLINK "http://en.wikipedia.org/wiki/Political_organisation" \l "Labour_unions" \o "Political organisation" organizations having come together to achieve common goals. The trade union bargains and negotiates with the employer. Their primary goal is to maintain or improve their employment through the negotiation of work rules,  HYPERLINK "http://en.wikipedia.org/wiki/Wage" \o "Wage" wages, complaint procedures, hiring and firing and promotion guidelines. They have a constitution that points of interest and administration at different levels of government relying upon the business that ties them legitimately to their arrangements and working. Ramaswamy & Schiphorst (2000) put it clear that in India, trade union movement foundation began at an early stage of global industrialization, when working class emerged forming one of the outstanding chapters in global trade union history. The movement is divided on political lines. The labor unions been criticized for profiting insider laborers having secure employments, at the expense of untouchable specialists, administrators and the business. However, a dangerous situation has recently arisen. In the public sector, the required and ominous process of privatization threatens the job security of millions. In the UK manufacturing sector the unionism wanted developments that were accompanied with the want of a more favorable political-economic structure having stronger labor rights. The latter portrayed that the private sector industrial relations scene has unfortunately been characterized by fierce battles over downsizing and flexibility. Rather than seeking positive gains, both management and trade unions have adopted strong adversarial positions at the negotiating table (Hammer, 2010).
Globalization means interaction and integration among the companies, people and governments of different nations, usually driven by international trade and aided by the advances in information technology (Hammer, 2010). It is a hegemonic concept for understanding the political economy of international capitalism. Globalization has remained a primary concern concerning world socio-economic development as it has a controversial nature due to its different meanings to different bodies. To some, it is an instrument for accelerated development while to others; it is other means of enslavement and re-colonization. A review of Indian industrial relations points some aspects relevant to this study: First, Indian labor is complex with workers’ working and living zones and identities and political considerations interlink. A good example is the outsourcing case discussed latter in this paper. They thus influence workers’ worldview and strategies, as it is governmental controlled. Second, the above factors pose particular challenges for unionism forms and worker mobilization especially in their interaction with global capitalism (Hammer, 2010). Hammer (2010) puts it clear that the global economy is shaped by the TNC by its decisions to invest or not, in particular geographical locations.
The paper addresses trade-union responses empowering workers in the context of recent developments brought about by global economic liberalization policies in India. More emphasis will be based on the hostile reaction of powerful trade unions to the introduction of schemes. In contrast, many HRM experiments of falling foul of workers would have high potential for improving their position through decisions directly affecting them. It aims to talk about the plans went for worker strengthening inside a setting of solid modern industrial relations in India. The weight put on net revenues by an aggressive business environment and the global economic developments forces most Indian enterprises to view employee empowerment as one among the most crucial strategic option. Empowering workers in responsive areas such as productivity and material use, decision-making and safety extra is a first key alluring prospect. It is equally important to consider both genders in power sharing decisions for equal and fair gains. However, there have been forces at workplaces that have actively obstructed or quietly subverted attempts on power redistribution. Equally, the paper also concentrates on some of the motives a trade union ought to have in order to do so. Empowerment refers to ‘a process by which the oppressed increase some control over their lives by bringing part with others in the advancement of exercises and structures that permit individuals expanded inclusion in matters that influence them straightforwardly. Typical components have been listed as forming part of empowerment e.g. the silenced voicing, facilitating the transformation from subject to object, having a personal vision, creating autonomy and raising self-esteem (Ramaswamy & Schiphorst, 2000). On the contrary, empowerment is not only a recent arrival in labor studies, but also one that is overloaded with negative connotations. According to labor perspective, it implies a management stratagem to introduce new forms of work organization that offer little to workers or their unions.
With organized labor on the downswing, unions need to worry about how best to cope with change, not for managements to think of ways to carry the associations along. The latter raises questions on whether unions have been concentrating too much on job or union security to recognize the potential for worker empowerment (Ramaswamy & Schiphorst, 2000). Bottom participation forms of creating worker commitment; manufacturing worker consent thereby bypassing the union has all been construed as management experiments in ‘empowerment’. Direct participation, teamwork and worker–management councils have found little favor with organized labor.
The first-hand data collected in the Indian case involved an industrial sociologist and a social anthropologist chosen due to their highest levels management’s commitment to break out of conventional industrial relations. The arms offered significant contrasts in ownership, size, technology, product and location. Group interviews were used for coverage of large numbers of workers, union activists and middle managers while union leaders and senior managers were individually interviewed (Ramaswamy & Schiphorst, 2000).
In the studied Kamani Indian cases the position of the trade union was very stable and protected by legislation that provides for both labor and job security. The case presents an ideal ground for the combination of well-entrenched industrial relations with strong HRM. It offers alternative route of mobilization adopted by unions as well as workers. In this risky situation for the trade union movement’s expansion and survival, several labor leaders established a Centre for Workers (CWM). They hoped to change culture in the labor movement and at management level to overcome the adversarial culture of management labor relations (Hammer, 2010). According to Ramaswamy & Schiphorst (2000), previously, workers and their union had allowed management to appropriate the concept of ‘empowerment’ and imbue it arguing that it contradicts its very essence. Is it possible for trade unions to re-appropriate the latter concept and embark on retaining the empowerment concept for their members without losing out themselves? However determined are the trade unions, there is less work on the hurdles placed in its path. Non-union HRM has been alternatively projected as an alternative to union-centered industrial relations.
According to Ramaswamy & Schiphorst (2000), a visionary plan was developed to practice the new pattern in a number of large private enterprises as a learning ground. The Supreme Court ruled in favor of a labor movement initiative to transform Kamani Tubes limited (with plants in Mumbai and Bangalore) that had gone bankrupt due to mismanagement, into a workers’ cooperative. Workers then raised a considerable sum of money to build a new financial asset structure thus showing the pivotal role of the trade unions. “Even worker takeover of ailing firms has failed to make an impact. Much was expected from the worker takeover of the Kamani firms in Bombay, hailed at the time as the harbinger of a new era in collaboration…but by the end of 1998 two of the three Kamani plants had ceased production. The reason, among others, has been the failure to put in place democratic control and management structures.” Leadership was provided by Centre for Workers Management (CWM) in defending the enterprises’ interests. Regrettably, the economic and commercial situation from 1990 onwards became so severe that business failures and bankruptcies were once again prominent. The trade union leadership had misjudged its role and capabilities (Hammer, 2010).
Research revealed lack of conceptual clarity on all actors and institutions involved as the root of the numerous problems. In particular, weak management undermined any chance of success. The Centre for Workers Management failed to make full use of readily available advisory research material to examine the organizational and commercial (Ramaswamy & Schiphorst, 2000). They should have equally examined the legal implications of each individual company that responded positively to the idea of planning for the future. CWM should have done monitoring and advisory role rather than becoming too deeply involved in remedying.
Ramaswamy & Schiphorst (2000) discuss the three legislation pieces that contributed in shaping industrial relations. The Trade Unions Act, 1926, confessed on unions of the basic minimum legality that enables them to function as lawful associations. The Industrial Employment (Standing Orders) Act, 1946, required every establishment employing above hundred workers to have a set of certified stand...