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With economic globalization growing ever deeper and international competition intensifying it is increasingly clear that cannot be Foundation for the improvement of living and working Condition has through the European industrial relations observatory conducted an annual project comparing and benchmarking aspects of industrial relations in the European Union and the world’s two other largest economies- Japan and the USA. However globalization means that these developed economies now face a mounting challenge from rapidly developing economies such as China and India. To take this in to account and widen the perspective the look at industrial relations in Asia more widely and also in Latin America.

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The main written product of the Foundation’s work in this area has until now been an annual comparative report examining basic industrial relations actors and processes- such as collective bargaining, trade unions employer organizations labor legislation and employee involvement- in the EU, Japan and USA and summarizing the main developments in the year in question. The two topics chosen for consideration are the setting of minimum wages and the industrial relations aspects of cross- border relocation  although of course minimum wages play a part in areas such as the relative labor- cost position of countries and highlights very effectively the difference and points of similarities between industrial relations systems in such areas as the respective roles of law and collective bargaining or the input of the social partners.

The second topic is more transnational as relocation necessarily involves two or more countries and often involves a direct comparison between their industrial relations systems and the outcomes of these systems. Relocation is also the way in which globalization is most directly and immediately felt by workers and employers especially in those countries that lose production and jobs through outward relocation the differences in how these processes are managed are often revealing of the distinctive aspects of national industrial relations systems.

All of the countries examined in this report- the EU member states the two EU acceding countries have some system for regulating pay at the lower end of the lower market so providing a floor for wage levels across the economy. These systems differ in many ways and their differences provide a useful insight in to the distinctive aspects of the industrial relations system of the variations in areas such as the role of law and collective bargaining the input of trade unions and employers and the respective roles of the various levels national regional sect oral etc.