Globalization system of interaction among countries

Globalization is the system of interaction among the countries of the world in order to develop the global economy. (David, 2000) Globalization also influences among economic, political, technological, and society around the world. It reflects two trends; first, shifts within countries towards market-driven systems of production; second, the increasing international economic integration of countries through trade, investment, and migration. (Andrew, 2004) Globalization had huge impact on the flexibility of labor.

The relationship of Globalization and Labor Flexibility
Back in 1970, the peak oil which leads to the stagflation, high inflation and unemployment rate. After that, government and industry searched for the Neoliberalism. Industries applied the flexible accumulation instead of Fordism. They focus on the rule of the market, cutting public expenditure for social service, deregulation, privatization, and eliminating the concept of the public good or community. (Elizabeth and García, 2000) Under this circumstance, nations had faced the intense competition than before; therefore, nations seek for the corporations to strengthen the power of its own for better profit. NAFTA, WTO, OECD, APEC were established to eliminate the trade barrier, facilitate the cross border movement, promote fair competitions in free trade area. Meanwhile, the distribution of income becomes unequal among nations. It is become clear that the asymmetric in income distribution has created serious social problems. To capitalist, in order to generate more profit, the business models of just-in-time and outsourcing was introduced and it leads to the restructure of international labor market. Industries tried to cut the number of core workers, and hire more of peripheral workers, such as part time workers. Besides, industries also tended to take advantages from the political party which is in favor of employers' side with cheap labor and less aggressive labor union. Mobility of international human resources has become greater than ever. The Labor had more opportunities to search for jobs world wide. On the other side, the developed countries can recruit cheaper labor from less developed countries to reduce its cost.

Flexible Firm- John Atkinson
The idea of labor flexibility, it explained how the organization management and operate their human resource when facing the competitive economy in order to be successful and survive. To best explain the model of work flexibility can refer to Atkinson (1984). According to Atkinson, in his model, the center part of the firm are called “Core Group”, it consist with employee who are full time, permanent position, played the key role in the development of organization. These employees have the grater job protection, better promotion, and training, earn higher salary and offering better insurances. Moving toward the outside, the second part is called “The periphery”, it divided into two sections. One is “secondary labor market”, it consists of the full time workers but the technique can be access easily from the market, such as

the government set up the rules for employing foreign labor in public and private sector. the first is” Functional flexibility”. the New Taiwan dollar appreciated against the US dollar and the wage rose. the business trend for the current economy environment is to reduce the number of core workers. and to slowing down the small medium firm moving to cheap labor countries. and temporary work agency. Seasonal workers. In 1989. industries look for cheap labor which can be dismissed at anytime. to protect the job opportunities for local labor. company reduces the risk of uncertain market and inflation. The development of foreign policy can de divided into three stages. Secondary labor usually have low opportunities for promotion. By doing so. Part-timers have less job protection. the government hoped to solve the problem of basic labor shortage. This brings the advantage both to the organizations and the employees. fixed-term contracts. it benefits both the employer and employee. It makes the unbalance of labor market. After1990. For the internal factors which are illustrated mainly in three sections. Taiwan had applied the use of different types of flexibility labor.secretary with low technique. agency workers. Meanwhile. Employees are able to deal with different challenges and tasks. in this article. subcontracting. Overall. Around 1980. but with such great flexibly. and the insurance have less power to bargain. seasonal or year long such as shiftwork and rostering. Company also provides the employee with complete training for them to enhance the job content. and dispatch. Taiwan economy was heavily replied on exporting. the salary. In 2000. Level of education upgrade and the job values changed. Industries were putting pressure on government for importing foreign labor. Company has flexibility to recruit and lay off employees with short notice period. Company also can pay in different types. and also supply the domestic labor to . Finally. the shortage of fundamental labor. The second is” Numerical flexibility”. Esping-Anderson had future explain John Atkinson's work flexibility. For doing so. The third is” Financial flexibility”. Taiwan labor were not keen on participating on “3K” jobs which represent manual labor. Due to the fast growing number of illegal foreign labor. therefore. contract worker. it has the high flow rate with huge number of labors that bring the higher mobility than the core workers. (Small and Medium Enterprise Administration. The situation will get worst when the economy recession happens. and participants in special program for the unemployed are called numerical flexibility. such as hourly. Development of Foreign Labor in Taiwan Foreign labor has huge influence to the development of Taiwan economy. Taiwan government started to pay attention to this issue. The external of the firm consist of workers who are less influence on the company such as outsourcing. the Council of Labor Affairs (CLA) decided to open up the market to foreign labor. monthly or performance instead of company profit and losses. in-sourcing technique are further explained in detail. Employers can depend on the performance of employees to provide them with different salary. “Temporal Flexibility” Company has flexible working hours which can be days. (Employment & Vocational Training Administration Council of Labor Affairs) The implication of the flexible human resource can enhance the competitive. On the other side. The other section is “Part-timers” that consist of workers with freelancer. Employees will have the ability to cope with various requirements from the fast changing environment. during this time. government had several huge public constructions which needed the labor immediately. job protection. to speed up the development of public construction. there was no policy and regulation of foreign labor. unsanitary working conditions and dangerous conditions. weekly. the economy structure of Taiwan had changed. 2006) The service industry growth rapidly during this period.

the number of importing foreign labors should not threat the employment opportunities of local workers.658. there was a serious demonstration against the unethical management. is under the protection of pertinent laws.924. the issue of human right was highly emphasis. especially in the construction industry which is about 1 percent to 2 percentages higher than other industries said by Hu Ho-Tse.000. and benefits from discrimination. Taiwan had joined WTO in 2002. and the rest are among fundamental labor force. working benefits. The Employee Benefit Regulations and the Labor Insurance Regulations helped to protect the minimum wage. (Foreign Workers statistic. 1. Taiwanese unwilling to do in 3K work and require more salary which may encourage the factories to invest in cheaper country. The number of foreign labor was 15. chairman of the National Federation of Chinese Construction Workers Union.999 skilled labors were employed from Thailand.000 in the construction industry. Council of Labour Affairs) The Council has introduced the foreign labor according to the principle of supplementation and the limit control under the certain quantity by different industries. 300 Thailand labors burn the dormitory and the cars. (Foreign Workers statistic. It has been a difficult time for Taiwan government to make the right decision.96%. This is based on the Universal Declaration of Human Rights states that “All are equal before the law and are entitled without any discrimination to equal protection of the law. number of foreign workers gone up to 294. Labor Standards Law (LSL) announced “Every foreign worker in Taiwan. 5. the number of foreign labors has reached the number of 37. Vietnam and Mongolia. (Council of Labour Affairs) Whether to cut the foreign labor has become a huge debate among the industries.(CLA) The biggest step is to lower down the Taiwan brokers fee in 2001. therefore. this strike revealed the unethical treatment. However.967 in total.Taiwan government was even increasing the restriction on the application of huge investment from 2 billion to 5 billion in 1999. the rights of foreign workers were brought up attention. this protect the foreign workers from overpaying to those manpower agencies. the representative of industries argue that cutting foreign labor will delay the projects and the development of construction. the local labors has fewer opportunities for work.the family who is in need. Council of Labour Affairs) The third stage from 2000 till now. therefore. Manufacturing jobs is 195. The Problems behind foreign labor in Taiwan It's been over twenty years since the Taiwan government legalizes the foreign labor. however. the contribution of foreign labor is vital to the economy and it should be credited for their achievement. As a democratic country. domestic workers and caretakers. Philippines. it is shame to see the curial treatment we provide for them. in the end. Malaysia. Thailand labors were . the new government build. In august 2005. working hours. The regulation of foreign labor had well established. attack the manager and the fireman.000 in agriculture. Till the end of October 2009. Government project account on 6. In October 2009. new party emphasis on the human right. Indonesia. Manufacturing industry is account for 166.319. (Foreign Workers Statistic. and the national workers. Council of Labor Affair. during this period. the unemployment rate of Taiwan reached 5. The current strategies of foreign labor is based on the protection of nationals' right to work. more and more foreign labors were employed legally by employers. The phenomenon of Globalization had huge impact on Taiwan. both the domestic helper and caretaker together in number of 166. the high unemployment rate is striking the local labor seriously. Beside the damage that foreign labors had brought to Taiwan. Council of Labour Affairs) In 1992. In order to keep up with the world.463. 2.268. Taiwan had passed the law on Employment Services Act and Regulations on the Permission and Administration of the Employment of Foreign Workers.

(Taiwan International Workers Association) Although “ Regulations on the permission and Administration of the Employment of Foreign Workers” stipulate that the “ Foreign Worker's Affidavit Regarding Expenses Incurred For Entry into the Republic of China to work and the Wages” shall be specifically listed the salary and related expense after entering Taiwan. no holiday and no their own private time. (Taiwan International Workers Association) This is just small part of problems. employer. and the working conditions. also the over time working hour payment was only be paid for 40 hours instead of the 100 hours. Again. and the high cost of brokerage fee charged. brokers of both Taiwan and labor sending country. Economy of Taiwan is an example of using insourcing strategy. They are afraid of the unjustified repatriation. Without the protection of LSL. Human right should be highly value especially in democracy country. foreign worker. The monthly allowance was only from 3. greatly implying both numerical flexibility and temporal flexibility. Conclusion Globalization had brought the benefits among nations as well as competition. and if it's over 5. Industries had applied Atkinson's work flexibility model in order to survive. They are not currently covered under the protection of Labor Standards Law (LSL). sometimes even got abuse with violence. and notarized by the labor sending countries prior to foreign workers' arrival in Taiwan. Importing cheap foreign labor maximize the profit both for Taiwan government and employers. some of them did not receive the respect as it deserved. However. They work over times with no extra payment. However. they choose to tolerate the unfair treatment. working hours.beaten by the violence.000NTD. the manager had stolen the money. the company will give the voucher which can only be used in the shop in factories. signed by all four parities. there is no guarantee for the minimum wages. the weakest group of foreign labor is those household maids and in-home caretakers.000NTD. (Council of Labour Affairs)This is still not enough to ensure their human right. There is no electric or water after 10PM.000NTD to 5. we should all persuade the best not only for the employers but also those hard working foreign labor .