Around the world in 80 ways - Today's global market place
Resource pack
The term globalisation refers to the process of increasing economic, technological and cultural interdependence which transcends national borders. It is used by different interest groups for different purposes. Some stress the potential new business opportunities; others highlight the risks of change, in particular concerning jobs moving to low-cost countries.
Work - Competing for jobs in a global labour market
Companies can decide to produce goods or services in any place where workers with the right skill levels are available at a low price. This increases competition between workers and creates uncertainties about job security. But is the fear of jobs moving on a massive scale from high wage European countries to low-wage countries justified?
No, according to the European Restructuring Monitor (ERM). Only 8% of job losses between 2003 and 2006 were due to companies deciding to move activities to another country. However, public perceptions are somewhat different. The proportion of European citizens seeing globalisation as a threat to employment went up from 39% in 2003 (EU15) to 47% in 2006 (EU25).
Support - Making the most of active labour market policies
Even with the best possible planning by companies or policymakers, structural change will lead to the loss of jobs and ultimately unemployment. Active Labour Market Policy (ALMP) is one approach to supporting workers who have lost their jobs through restructuring. It consists of a series of measures such as:
- occupational guidance
- training and re-training
- entrepreneurship promotion
- mobility allowances
- pay subsidy vouchers
- vocational skill and competence analyses.
But does it work? There is little information on how those who received special support through ALMP got on compared to those who did not get this kind of help.
Business - Securing European competitiveness
Globalisation is putting pressure on European companies to adapt business strategies, including location and sourcing decisions, to an increasingly competitive business environment. China and India are becoming major players on the world stage and are competing in high-skill products and services. But globalisation also requires trade unions and other bodies representing workers to adapt.
European works councils (EWCs) were created following the controversy caused by some cases of cross-border restructuring and the resulting job losses. They are now considered a key tool for managing the impact of globalisation. Eighty per cent of EWC agreements provide for an extraordinary information and consultation procedure in cases of restructuring.
Quality of life - creating a win-win situation
As consumers, European citizens benefit from globalisation through lower prices and wider choice for goods and services. As workers, many fear that their jobs may be moved to cheaper locations. Is it possible to create a situation where the interests of consumers and workers are reconciled? Comprehensive and coordinated strategies are needed to improve quality of life and work in a globalised world.