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Chap009

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BUS 305

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Chap009

  1. 1. Chapter 09 Labor Forces McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. 9-2 Learning Objectives • LO1 Identify the forces that affect the quantity and quality of labor in a nation. • LO2 Discuss major factors that may impact employment policies in an international setting. • LO3 Discuss the differences and trends in labor unions from country to country and worldwide. • LO1 Identify the forces that affect the quantity and quality of labor in a nation. • LO2 Discuss major factors that may impact employment policies in an international setting. • LO3 Discuss the differences and trends in labor unions from country to country and worldwide.
  3. 3. 9-3 Overall Size of the Workforce • 2010 World Population – 6.8 billion – 48% < 25 years – 31% < 15 years • 2010 World Population – 6.8 billion – 48% < 25 years – 31% < 15 years • Developing Nations: – younger, growing populations due to high birth rate and reduced infant mortality • Developed Countries: – Population decline due to low birthrate and low immigration • Developing Nations: – younger, growing populations due to high birth rate and reduced infant mortality • Developed Countries: – Population decline due to low birthrate and low immigration
  4. 4. 9-4
  5. 5. 9-5 Worldwide Labor Conditions and Trends • Labor Quality: – The skills, education, and attitudes of available employees • Labor Quantity: – The number of available employees with the skills to meet an employer’s business needs
  6. 6. 9-6 Unemployment • Global Unemployment – 6.6% – 34 million increase over 2007 with 2/3 in developed countries • Global Unemployment – 6.6% – 34 million increase over 2007 with 2/3 in developed countries • Projections: – Employment Growth: SLOW! – Recovery: • Labor LAGGING behind economic recovery • Unemployment Rates – SLOW reduction • Projections: – Employment Growth: SLOW! – Recovery: • Labor LAGGING behind economic recovery • Unemployment Rates – SLOW reduction
  7. 7. 9-7
  8. 8. 9-8
  9. 9. 9-9 Vulnerable Workforce: • Self-employed or contributing family members – No contracts or formal work arrangements – Characteristics: • Inadequate earnings • Low productivity • Difficult work conditions that undermine fundamental work rights • Found in all economies but most in developing countries • Growing worldwide • Self-employed or contributing family members – No contracts or formal work arrangements – Characteristics: • Inadequate earnings • Low productivity • Difficult work conditions that undermine fundamental work rights • Found in all economies but most in developing countries • Growing worldwide Aging Populations: • 2010: 7.6% was 65 + years old, getting older and found in developed countries • Projected to grow by 8.4% in 2015 and 16.4% by 2050 • 2010: 7.6% was 65 + years old, getting older and found in developed countries • Projected to grow by 8.4% in 2015 and 16.4% by 2050
  10. 10. 9-10 Urbanization of Workforce • Global Shifts from Rural to Urban: – 1950: < 25% urban – 2010: 50% urban – 2030: 60% urban – Developing countries: 4x rate 4x faster than in developed countries • Global Shifts from Rural to Urban: – 1950: < 25% urban – 2010: 50% urban – 2030: 60% urban – Developing countries: 4x rate 4x faster than in developed countries • Impacts: • Shift from agriculture to industry or service sectors • Growing low-cost, low-skill labor pool • Large % vulnerable workforce • Quick to learn industrial skills • Social and psychological problems adjusting to industry and service sectors • Impacts: • Shift from agriculture to industry or service sectors • Growing low-cost, low-skill labor pool • Large % vulnerable workforce • Quick to learn industrial skills • Social and psychological problems adjusting to industry and service sectors
  11. 11. 9-11 Immigrant Labor • Facts: – 1850-1970: 60 million Europeans emigrated – By end of WWII: 30 million S. Europeans & N. Africans went to 8 European countries – 2005: 191 million living out of birth country – 2008 - U.S.: 5% of world population and 20% of world’s immigrants • Facts: – 1850-1970: 60 million Europeans emigrated – By end of WWII: 30 million S. Europeans & N. Africans went to 8 European countries – 2005: 191 million living out of birth country – 2008 - U.S.: 5% of world population and 20% of world’s immigrants • Reasons: – Better economic conditions – Global labor supply, demand – Looser regulations • Migrant Labor Skills: – Highly skilled: medicine, IT – Low skilled: agricultural, domestic service, 3-D jobs – 9dirty, dangerous and degrading) • Reasons: – Better economic conditions – Global labor supply, demand – Looser regulations • Migrant Labor Skills: – Highly skilled: medicine, IT – Low skilled: agricultural, domestic service, 3-D jobs – 9dirty, dangerous and degrading)
  12. 12. 9-12 Child Labor • Facts: – 158 million 5-14 year olds work in conditions that fail to meet basic needs in exploitative, hazardous or illegal conditions -UNICEF – Child labor exists in all countries but mostly in developing countries – 7% child labor in agriculture • Facts: – 158 million 5-14 year olds work in conditions that fail to meet basic needs in exploitative, hazardous or illegal conditions -UNICEF – Child labor exists in all countries but mostly in developing countries – 7% child labor in agriculture • UNICEF’s Convention on Rights of the Child: 1. Nondiscrimination 2. Devotion to the best interests of the child 3. Right to life, survival & development 4. Respect for views of the child • UNICEF’s Convention on Rights of the Child: 1. Nondiscrimination 2. Devotion to the best interests of the child 3. Right to life, survival & development 4. Respect for views of the child
  13. 13. 9-13 Forced Labor • 12.3 million women, children & low-income men affected • 59% women and girls forced in servitude: domestics, sweatshops, prostitutes – South & East Asia – North & West Africa – U.S. – Latin America • 12.3 million women, children & low-income men affected • 59% women and girls forced in servitude: domestics, sweatshops, prostitutes – South & East Asia – North & West Africa – U.S. – Latin America • U.S. State Department Trafficking in Persons Report includes: – Bonded labor – Involuntary servitude – Debt bondage – Involuntary domestic servitude – Forced child labor – Child soldiers – Sex trafficking, prostitution – Children exploited for sex, child sex tourism – Prison labor – Descent-based slavery • U.S. State Department Trafficking in Persons Report includes: – Bonded labor – Involuntary servitude – Debt bondage – Involuntary domestic servitude – Forced child labor – Child soldiers – Sex trafficking, prostitution – Children exploited for sex, child sex tourism – Prison labor – Descent-based slavery
  14. 14. 9-14 Brain Drain • Brain Drain: – Country’s loss of most intelligent and best- educated people – Record numbers of scientists, IT personnel, engineers, teachers and health care professionals move to OECD countries – Reasons • Salary • Standard of living • Research • Social environment • Brain Drain: – Country’s loss of most intelligent and best- educated people – Record numbers of scientists, IT personnel, engineers, teachers and health care professionals move to OECD countries – Reasons • Salary • Standard of living • Research • Social environment • Reverse Brain Drain: – Highly skilled immigrants return home after contributions to host country – Aided by U.S. outsourcing of knowledge work in engineering, software, product design and development • India • China • Russia • Reverse Brain Drain: – Highly skilled immigrants return home after contributions to host country – Aided by U.S. outsourcing of knowledge work in engineering, software, product design and development • India • China • Russia
  15. 15. 9-15 Guest Workers • People who legally go to foreign countries for jobs in: – Service work – Factory work – Construction • People who legally go to foreign countries for jobs in: – Service work – Factory work – Construction • Why? – Countries with low birth rates & labor shortages need labor – France, Germany, Switzerland and Scandinavia • Issues: – Good in growing economy – Bad in slow economic growth with excess labor • Why? – Countries with low birth rates & labor shortages need labor – France, Germany, Switzerland and Scandinavia • Issues: – Good in growing economy – Bad in slow economic growth with excess labor
  16. 16. 9-16 Considerations in Employment Policies • World-wide employment policy issues include: – Social status – Sexism – Racism – Minorities within traditional societies – Labor situations in developing countries • World-wide employment policy issues include: – Social status – Sexism – Racism – Minorities within traditional societies – Labor situations in developing countries • Social status – Culture dominates human behavior & attitudes – Social status is a part of culture – Extreme social status = social division – Employment & HR practices need to factor social status into work relationships • Social status – Culture dominates human behavior & attitudes – Social status is a part of culture – Extreme social status = social division – Employment & HR practices need to factor social status into work relationships
  17. 17. 9-17 Sexism • Patriarchal values inherent in many cultures deny women equal participation – Saudi Arabia, Middle Eastern laws and traditions prevent gender mixing in workplace – Women’s roles are changing in Saudi Arabia • Patriarchal values inherent in many cultures deny women equal participation – Saudi Arabia, Middle Eastern laws and traditions prevent gender mixing in workplace – Women’s roles are changing in Saudi Arabia • Facts: – Women hold < 25% senior management positions worldwide – 1/3 private companies have no women in senior management – Women’s education is increasing, illiteracy declining, economic impact growing • Facts: – Women hold < 25% senior management positions worldwide – 1/3 private companies have no women in senior management – Women’s education is increasing, illiteracy declining, economic impact growing
  18. 18. 9-18
  19. 19. 9-19
  20. 20. 9-20 Racism • Racism: – Racial conflict and discrimination is world- wide • Globalization: – Increases contact between very different people – May eventually minimize racism by valuing differences • Racism: – Racial conflict and discrimination is world- wide • Globalization: – Increases contact between very different people – May eventually minimize racism by valuing differences
  21. 21. 9-21 Minorities in Traditional Societies • Traditional Societies Problems and Opportunities: – Merchants, bankers & business people scorned in some societies – Outsiders may dominate local commerce • Traditional Societies Problems and Opportunities: – Merchants, bankers & business people scorned in some societies – Outsiders may dominate local commerce • Advantages to Foreign Employers: – Skilled minorities immediately available – Speak local language and others – Less nationalistic than locals • Disadvantages: – Unpopular with locals – High dependence on minority employees – Discrimination against minorities may result • Advantages to Foreign Employers: – Skilled minorities immediately available – Speak local language and others – Less nationalistic than locals • Disadvantages: – Unpopular with locals – High dependence on minority employees – Discrimination against minorities may result
  22. 22. 9-22 Labor in Developing Nations • Challenges: – Poverty: • Low educational levels affect quality of labor force – HIV/AIDS: • Creates social unrest and labor shortages with up-skilling a major challenge – Outsourcing: • Developed country: outbound job transfers seen as problem • Developing country: economic growth seen as benefit of globalization • Challenges: – Poverty: • Low educational levels affect quality of labor force – HIV/AIDS: • Creates social unrest and labor shortages with up-skilling a major challenge – Outsourcing: • Developed country: outbound job transfers seen as problem • Developing country: economic growth seen as benefit of globalization
  23. 23. 9-23
  24. 24. 9-24 Multinational Labor Activities • Companies escape unionization by outsourcing and production transfer to other countries • Companies escape unionization by outsourcing and production transfer to other countries • Unions’ response: – Collect and disseminate company’s information – Consult with unions in other countries – Coordinate policies and tactics with those unions – Encourage international company codes of conduct • Unions’ response: – Collect and disseminate company’s information – Consult with unions in other countries – Coordinate policies and tactics with those unions – Encourage international company codes of conduct
  25. 25. 9-25 GLOBAL gauntlet • Are harmonized labor standards a good idea or is labor best a national-level concern? • Are harmonized labor standards a good idea or is labor best a national-level concern? • Labor unions, human rights activists and some governments argue that market access be dependent on improved labor standards and sanctions be imposed for violations (the Social Clause). • IMF holds harmonized labor standards are a weak economic argument and high labor standards are a result of economic growth. • What do you think? Is there a threshold level of labor standards all nations should follow, or are labor conditions purely a national-level issue? • Labor unions, human rights activists and some governments argue that market access be dependent on improved labor standards and sanctions be imposed for violations (the Social Clause). • IMF holds harmonized labor standards are a weak economic argument and high labor standards are a result of economic growth. • What do you think? Is there a threshold level of labor standards all nations should follow, or are labor conditions purely a national-level issue?

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