Globalization

The balance of economic efficiency and social equity is the ultimate debate in the field of employment relations. This happens as job losses in un-competitive industries outstrip job opportunities in new industries. Globalization has effected these issues by creating certain economic factors that disallow or allow various employment issues.

By meeting the needs of the employer; generating profits to establish and maintain economic efficiency; whilst maintaining a balance with the employee and creating social equity that benefits the worker so that he/she can fund and enjoy healthy living; proves to be a continuous revolving issue in westernized societies.

Economist Edward studies the effects of globalization and summarizes the four major points of concern that affect employment relations International competition, from the newly industrialized countries, will cause unemployment growth and increased wage disparity for unskilled workers in industrialized countries.

Economic liberalization will result in unemployment and wage inequality in developing countries. Workers will be forced to accept worsening wages and conditions, as a global labour market results in a race to the bottom. Increased international competition creates a pressure to reduce the wages and conditions of workers.