The Influence of Globalization on Labor Relations

Abstract

The globalized economy has diminished the role of the State. On one hand, the globalization of trade has led to a reduction in the traditional prerogatives of the State. On the other hand, the aspiration of economic and social partners for more responsibility within economic enterprises has allowed them to take over the resolution of disputes through their own representative organizations.
The decline in the public authorities' prerogatives has consequently led to a decline in labor law. This decline has revived rules that traditionally fell under common law, and these have been transposed into the labor world, such as the rule "Pacta sunt servanda." This rule states that commitments must be faithfully executed, notwithstanding the fact that the employment contract is an agreement between two economically unequal parties. The decline in labor law has introduced new concepts, such as the "flexibility" of labor relations, the involvement of employer organizations and the State with trade unions, to adopt legal rules whose primary objective is economic stability