Convergence or Divergence: The impact of globalization on employee relations in India and China

Abstract

This paper explores the underlying principles of employee relations and the pattern of their evolution in India and China, in the context of globalisation. Globalisation has deeply influenced the way economies function and altered the national patterns of employee relations. Using evidences from available extant literature, we mapped the approaches taken by both India and China to highlight the impact of globalisation on employee relations and found that competition, followed by globalisation, and changes in the trade union structures, have prompted the introduction of the ‘human’ element to employee relations practices, particularly at the enterprise level; besides,a lucid convergence in employee relations patterns is also witnessed, alongside some divergences in the approaches. The points of convergence include the introduction of the human element in employee relations, labourflexibility, reduction in union membership and increased focus on individual employment contracts. Divergence is primarily witnessed in the degree of involvement of trade unions and governments in employee relations. The differences in patterns observed between the countries can be attributed to the unique institutional factors of each country.