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Global-labor, Risk or Opportunity?

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There are many term concerning labor. They are all started as academic terms and mass
media have been using them ever since as popularize the terms. Migrant worker, global
labor, forced labor, free labor, female labor, skill labor, and international labor are some
of them to name a few. As we live around "fast-flows" society, people interact, intersect,
intermingle and intermix with each other. There are 45 million new entrances to the
global market jobs across the globe and the labor forces are growing even considering the
global economic crisis. International policy portrays the world as a relationship within.
Each member of this global village knows each other business just like their next-door
neighbor. Each country has their own agenda to empower and develop the wealth of their
inhabitant. The social nature of human as the inhabitant of country is to interact. The
country as well needs interaction one another. The relationship between countries could
be done through politic, economic, military, and educational type of interaction.
Economic relationship between countries has been extensively increased due to the world
financial condition. Every country tries out any opportunity to relate to international
scheme in order to increase or maintain its welfare. Welfare affects people as a
production factor. When one couldnt taste welfare in their own area, he will seek out in
the neighbors area. This phenomena lead to mobility of labor. Labor moves to other
country to pursue better life on the other hand neglecting its own country welfare. The
small quantity of labor mobility reduces the country welfare.

Contents
[hide]
1 Basic Definition
2 Global-Labor and Welfare
3 Risk
4 Opportunity
5 Conclusion
6 References
7 See also

Basic Definition
Global labor is a term basically link back to its root of what is labor in general. Labor has
been described long ago as the political economy professor from Trinity College,
Connecticut defined the term as the application of power and device of man, to supply the

wants and to gratify the desire of the race. Labor is a part of production factor in order to
produce any kind of goods or services. It will grow from time ahead and in case other
factors of production and distribution are organize in global perspective the global labor
is in process. This global labor is valuable and specialty labor. They have the necessary
skills and capabilities to work around the globe. They are varied from top level manager,
political consultant, computer programmers, and biotechnologist to sports stars. We could
categorize them into unskilled, semi-skilled and professional labor. All of them are
mobilize themselves in the international labor market. The unskilled and semi-skilled
usually land on the market through contracted scheme. The professional has higher
bargaining position and academics and students fall to this category as well.

Global-Labor and Welfare


They are from their home country fly to different country to fill the demand of the labor
market. Many developed countries are not only the one which become the target
destination. It is obvious to say that developed countries open a wider market. There were
1.505 million foreign working in the UK in 2005. It was 5.4 percent of the UK employed
population (see). It was quite significant considering the population in UK at the time.
According to the statistic from 2006, out of 1.763.822 employed man In Austria, 234.506
were foreign workers.(see). The foreign workers in Canada were nearly 2.5 million in
2007. It increased 2.1% from the previous year. (see). The trend continues to increase
until the crisis hit. The crisis will decline the labor force especially in Europe.
The studies in some literature about the motivation and reason behind the global labor
mobilization are most of the time being related with welfare. The certain condition the
origin country of labor brings some urges to grasp the opportunities elsewhere. Welfare is
not only limited to wage however this seems to be the motive behind the mobilization.
An illustration in the health field, nurse from Philippines earn $189 per month working in
Manila. Filipino nurse work in Gulf could earn $570 and some of their fellow Filipino
nurse work in US earns $3.000. Overseas Filipino Workers (OFW) sent home around 14,
4 billion US dollars in the year of 2007. Standard of living in the developed countries is
another driving force of this global labor.

Risk
As many as 37,000 Pilipino has been flying abroad to find a better life through global
labor market. Global labor market is growing not merely because of globalization. It has
been a market since labor from low-wage nations looked outside their countries as the
grass is greener. Even though around 70 per cent of the countries have increased its
minimum wage as big as 5.7 per cent per year in real terms, the global labor market is
emerging. Although unskilled-workers suffer the most, they keep coming in. From the
farming field in America to Bangladesh construction workers in Middle East, their wages
and working conditions are scary. It is well said that globalization has brought impact to
labor market. Even though more goods are produced and manufactured in developing
countries where labor costs are cheap, workers are going outside their country to find the

better conditions. It is not surprising fact when we find tag label of any jeans, electronics,
jacket, etc which say made in Bangladesh, Indonesia, India, China, Thailand, etc.
Services are also delivered and relocated from countries where it is possible for
companies to cut cost. India has the largest call center off shoring in Asia. Inhabitants of
those countries mentioned are still looking outside and end up in the different side of the
pole to try they luck. Standard of living in the giving countries mostly is low compare to
its receiving countries. One of the indicators of living standard is income per capita.
Some low-income and middle income countries mostly supply unskilled-workers into
global labor market outside their country of origin. Countries with income per capita less
than US$ 975 like Bangladesh, Mali, Senegal, Myanmar, etc as low-income countries are
sending their unskilled-workers without proper education and even travel document.
(see)
Looking at it from workers point of view, just picture a shoe worker in America that has
lost his job because of his company couldnt compete with the low cost production in
Brazil. Some Chinese workers who work for food industries drowned in the sea due to
lack of safety facilities and bad working conditions by British gang masters. This chance
of death on the job is probably never come across these workers who came all the way
from China through illegal channel. The international labor standard has come to an ideal
condition. Some of the workers are exploited due to their low bargaining position. It is
inevitable that working conditions vary all around the globe. Some people try their luck
by getting into some developed illegally. Some workers are willing to work for a decent
pay even though the job is lower than their qualification, educational background and
experiences. Potential risks to the receiving countries are numerous. A part from the
classical phenomenon such as illegal aliens, some social risks could also pinpoint. This
social implication does worth mentioning compare to global labor who gives impact in
lowering the locals wage. The impact to locals wage is minor compare to the cost of
social impacts.
The undocumented workers come from illegal entrance or simply overstayed their visa
and take up some informal jobs. Based on the data from 1994, the number of the category
of labor reached up to 3 million in both USA and Europe. This fact brings the implication
in the labor market although only apply in the unskilled market. This number will bring
the implementation of tight policies concerning the global labor market in the particular
country thus at the end affect both sending and receiving countries.
Human being travel not only brings his body but also bring his value and culture. This
fact could potentially resulted in conflict as interrelated with others. The conflict
sometimes could be in direction to violent. Some forms of racism also are faced by
workers and their family in the receiving countries. A common reason from the locals is
because the global workers are taking away their job opportunities. Even worst is the act
of xenophobia by narrow-minded local which resulted in a greater potential cultural
conflict. The unskilled labor could at least work their way up by working on their next
generation even if they have to work long hours under minimum wage in that country.

Opportunity

The global labor is expected to increase even though the economic crisis hit the market
and inevitably will affect the labor market as such. The category of professional or even
the unskilled one could taste the benefit from this global labor scheme. The professional
could opened up and broaden up their opportunity to explore new multinational company
in the different country. There is a sharp growing demand in highly paid professional.
Multinational companies with branches all across the globe doesnt pick workers only
from locals. They are developed from personnel in multinational working environment.
In the field of education some academics has benefited from this globalization. Some
high level professor teaches in different countries and enjoyed many reward through
advanced educational institution growth.

Conclusion
It is obvious that developed countries have a lot to offer when it comes to working
condition and better pay. These dreams of a good deal of global labors who try their luck
are not merely come true. Some of them could enjoy such luxury after they got the job
offering. The rest are going to worst condition just try to survive and hang on to their
illegal status. One clear pulling forces of this emerging trend is around the welfare issue.
Receiving countries as well as giving countries need to work hand in hand to create a
sustainable global labor condition. Receiving countries need to protect their countrys
economic, social and political interests. They have all the rights to regulate any labor
coming in to work in their territory. Such regulations like immigration policy, litigation
assistance and workmens compensation laws have a potential to open chances to likely
labor to get the opportunity abroad in a safer manner. Even bogus job offer for some
people who dont have many options will be a dream come true.
Giving countries could optimize their local regulation for example such regulation
concerning document for global labor. Some of the biggest skilled and unskilled workers
suppler such as China, India, Philippine, Indonesia, Thailand, Bangladesh, etc need to
look more into tidying up their own regulation. Investing on education is an important
aspect in regard to enhancing bargaining position of their inhabitant in the global labor
market.
To take an example from Philippine, their worker has been all over the world. They treat
their workers as income hero. They manage them in a sufficient way and even president
of the country acknowledge them. They have professional from educational to hospitality
industries, from Canada to Abu Dhabi, from cleaning service personnel in Munich airport
to Registered Nurse in Mira Loma, California. Canada has released a demand particularly
for 30,000 Philippine workers to fill in its job market in 2008 and has been in contact
with the embassy of Philippine in Ontario.(see) International organizations which
concern on the issue have also given their contribution by setting a global awareness
campaign. The campaign through mass media and recommendation is needed to put a
balance on the issue. All of this concern has to touch into application in the field. The risk
of global labor doesnt stop leading to financial, social and even life consequences with
just campaign and press releases.

ILO is in UN wings has done some research in global labor market and opportunity. The
negative side of the global labor has been its concern for instance child labor, forced
labor and discrimination and also some legal assistance. Many more international or local
organizations which normally NGO have been handling this matter. The opportunities of
the mobility of global labor to fulfill global labor market are still high. It needs a global
awareness of global standard in keeping it as opportunity before going to be destructive
risk and finding a win-win solution to receiving and giving countries. We need them
putting the effort more to minimize the risky working conditions, low wage standard and
discrimination to workers.

References
Fuest, Clemens and Thum, Marcel,"Welfare Effects of Immigration in a Dual
Labor Market", 1999. CESifo Working Paper Series No. 215
Colton, Calvin, The Rights of Labor" New York., 3rd Edition, A.S. Barnes &
Co.: 1846. Print
Castells, Manuel : The Rise of Network Society Cambridge, 2nd Edition, Wiley,
John & Sons, Inc. 2000. Print
Stalker, Peter :The work of Strangers : a survey of international labor
migration, Geneva, International Labor Office.1994
Jong-Won Yoon, "Beyond the Crisis: Toward a New Horizon". 2009.Paper
published in electronic journal.
Enderwick, Peter , Globalization and Labor Philadelphia. Chelsea House
Publisher: 2006
http://www.ilo.org/wcmsp5/groups/public/---dgreports/--dcomm/documents/publication/wcms_116500.pdf
Farrell, Diana , Offshoring: Understanding the Emerging Global Labor Market
Boston, McKinsey Global Institute, Harvard Business School Publishing: 2006.
Print

See also
http://en.wikipedia.org/wiki/Labour_%28economics%29
Author: Irmawan Rahyadi. This article was published under Creative
Commons Attribution-Share Alike 3.0 Unported License. How to cite the
article: Irmawan Rahyadi. (31. 08. 2010). Global-labor, Risk or
Opportunity?. VCSEWiki. Retrieved 07:50 31. 08. 2010) from:
<http://www.czp.cuni.cz/vcsewiki/index.php?title=Globallabor,_Risk_or_Opportunity%3F&oldid=1347>.

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