The Effect of Globalization on Labour Relations and Social Security

This article examines the effects of globalization on labour relations and social security. Globalization of economy and the desire of States to join the World Trade Organization (WTO) have had extensive effects on economic and social rights of citizens. The principles governing the world economy and the conditions for joining the WTO are in such a way that the policies of States have direct effects on the reduction of social protections in the areas of labour relations and social security. Conditions such as privatization, free competitions, deregulation, elimination of tariffs, and legal flexibility in protective laws are the necessary prerequisite for globalization. The role and dominance of multi-national companies on economy in the era of globalization has reduced the role of States in the areas of labour relations and social security and as a result States do not follow their protective policies in these areas. Globalization has had negative effects on job security for workers and their wages, migrant workers, labour standards, the salary for elderly people and the relatives. If this trend continues, it can cause more poverty and social inequality.