Thursday 27 November 2014

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Unions believe that such measures would help to add a social dimension to relocation decisions and reduce the negative repercussions on local communities. These rules could be particularly strict when relocation concerns profitable activities. A proactive approach this is not explicitly directed towards regulating relocation rather it aims to balance the impact of relocation by fostering employment creation in high- skilled sectors in which European economies enjoy substantial comparative advantages. The proactive approach focuses mainly on the contribution of the social partners to training and innovation policies. It relies on cooperation at company level to manage relocation in a way that mitigates its social consequences.
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The first two approaches can arguably be implemented irrespective of the features of a national industrial relations system. The third however seems to presuppose a participatory framework with developed social dialogue at both national and decentralized levels. Several unions in Nordic countries take the position that relocation is less problematic for trade union strategies than is usually thought.

 They maintain that unions should not try to avoid relocations by concession bargaining especially on wages since the international division of labour actually benefits wage earners. Danish unions as well as supporting a number of traditional and restrictive measures argue that the challenges of relocation are creating new jobs increasing educational levels and placing more emphasis on innovation.
Similarly the Swedish Metalworkers union has recently expressed its opposition to measures that make relocation more difficult to expensive.
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 It argues that only the development of a competitive environment can support the growth of the Swedish economy thereby providing new job opportunities to counterbalance those transferred abroad. This approach suggests that although relocation needs to be governed by industrial relations and must not be left unchecked it should not be opposed as such since it can place virtuous constraints on the development of national economies. 

A less radical version can be found in Germany where the Confederation of German trade unions maintains that relocation should not make unions change their wage policy as German firm continue to demonstrate Their competitiveness through good export performance. In other words concession bargaining is not the right answer there are other ways to address the issues raised by globalization and relocation.

Some unions in Europe seem to downplay the threat of relocation. However all of these cases are found in countries where the industrial relations system provides substantial support to trade union action while the social protection system contributes significantly to reducing the negative effects of relocation on the workers involved.


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