Why might we expect labor relations practices around the world to converge to common practices? Is this occurring - why or why not?

Question

What will be an ideal response?

Answer 1

In an integrated world economy, one might expect that labor relations systems around the world would converge as countries learn from each other and free trade standardizes certain practices such as pay and safety conditions. If certain labor practices are more productive than others, we would expect these practices to diffuse across countries. Efforts at political and legal integration, such as has been attempted in the European Union, should also drive policies and practices closer together. The research, however, does not indicate that country industrial relations systems are converging. Intense competition has, in fact, had somewhat the opposite effect as businesses seek more local flexibility and labor relations becomes more decentralized. Increasing decentralization create divergent local labor relations practices because of attempts to tailor these practices to the specific needs and constraints of individual workplaces and because local practices or the outcome of bargaining processes in which firms, unions, and other institutions such as work councils have varying degrees of influence. It is true, however, that these diverging practices are tending to fall into particular patterns such as an anti-union, low wage approach or a high performance work systems approach.