The Impact of Globalisation on Employment Relations: Some Research Propositions

Abstract

While there is widespread agreement that changes in the international economy associated with globalisation have important consequences for employment relations, there is less consensus about their nature and significance. One view is that globalization has created pressures for convergence between different countries in regard to employment relations. Another is that national level institutions play a mediating role in maintaining cross-national differences, leading to divergence. A third school rejects the convergence/divergence dichotomy and argues that complex interactions between global and national (or local) forces shape employment relations outcomes. Results outlined in this paper of a preliminary study of employment relations in the auto and banking industries in Australia and Korea reveal evidence of both similarities and differences on a range of dimensions. This implies that the relationship between globalization and employment relations is best explained by an interaction approach.