Abstract
This paper analyzes how changes to the global organization of capitalism have accompanied and intensified globalization as well as have affected the regulation of labor and employment relationship. One of the most significant of these changes has been the dramatic increase in the rate of cross-border merger and acquisition activity. Of equal significance, especially for the regulation of labor and the employment relationship, has been the pronounced tendency of global enterprises to transform themselves into coordinators and organizers of activities performed for them by contractors, sub-contractors and suppliers. Outsourcing and subcontracting have allowed global enterprises to reduce and externalize the costs incurred from the direct employment of labor. This reorganization of the operations of global corporations has been greatly facilitated by the removal of barriers to trade and the global movement of capital, and labor market deregulation. Labor market deregulation has largely been brought about by the emasculation of national Industrial Relations Systems (IRSs) in developed and developing nations alike. As national IRSs have been emasculated, so has the regulation of labor and the employment relationship increasingly been internalized in the firm by the use of Human Resource Management (HRM).
Highlights
With increasing globalization there have been enormous and far-reaching changes in the global organization of capitalism
In terming the contemporary era one of global capitalism, we are suggesting that the global variant, and global firms, are emerging as dominant in relation to firms that continue in monopoly or competitive sectors of the social formation
Global business is characterized by the free flow of human and financial resources especially in the developed economies of European Union (EU), the North American Free Trade Agreement (NAFTA), other regional groupings such as the Association of South East Asian Nations (ASEAN), the Economic Community of West African States (ECOWAS), the Southern African Development Community (SADC), etc
Summary
With increasing globalization there have been enormous and far-reaching changes in the global organization of capitalism. The peripheral workers are not employed by the enterprise itself, but by its sub-contractors and suppliers They are generally part-time or intermittent workers on low casual rates of pay. In contrast, HRM emphasizes short term and insecure employment, low hourly rates, degrading conditions of employment, lack of opportunities for training and career advancement, and so on It is about “improving” the performance of the flexible workforce by speeding up or reducing the piece rate or casual hourly rates received by flexible workers, and offering them only intermittent employment, but at the same time extending the length of the working day. As a consequence, such firms are under duress to organize production in exactly same way as global business enterprises organize production
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