LABOR-LAW IN THE CONTEXT OF THE GLOBALIZA TION OF THE ECONOMY

The globalization of the economy, defined as a sharp increase in the i nternational mobility of investment, capital, production, goods and se rvices, poses a serious threat to the development of national labour l aws and, more generally, to labour law. This articles first reviews th e threats and challenges that globalization creates for labour law, us ing Canadian and Quebec labour laws as a point of reference. In the se cond part, it is demonstrated that labour law is not completely powerl ess in the context of globalization. Examples drawn from Canada, as we ll as from European and French labour law, show that state regulation and labour institutions can to some degree counter the problems create d try globalization. In this respect, resorting to international labou r law and institutions becomes imperative and should be an element of any state's strategy towards globalization. Labour law is taken to be the expression of the state's responsibility to protect workers and de fine or maintain acceptable and decent working conditions. In the Cana dian post-world War II regime, this has been achieved mainly by encour aging collective bargaining and by enacting minimum labour standards. Labour law, like any public policy, must also be seen as the expressio n of the interplay of political forces and the result of the exercise of political power. The article suggests that the globalization of the economy affects these two different components of labour law. Canadia n labour policy has traditionally relied on collective bargaining to d efine and maintain fair working conditions. Bargaining structures are highly decentralized, usually to the firm or plant level, thereby givi ng parties leeway to adjust to fluctuations in the economic environmen t. Globalization generally increases employers' bargaining power vis-a -vis unions at the bargaining table. An employer can claim with greate r credibility that its business faces tighter competition. Consequentl y, it can ask far greater flexibility in work organization and concess ions in working conditions and wages in order to improve productivity. If its demands are not met, the employer may also threaten to shift i ts production facilities to another country with lower working conditi ons. For similar reasons, globalization also increases employers' barg aining power vis-a-vis national governments. Furthermore, unions are o ften powerless to counteract employers' strategies associated with glo balization. This shift in the balance of power raises questions about the continued efficacy of national regulatory institutions and their c apacity to adjust to globalization. Thus, even though the so-called '' race to the bottom'' has not affected labour standards in Canada, refo rms aimed at improving the effectiveness of labour law will be more di fficult to achieve in this context. In Canada, the collective agreemen t has adapted to the new economic context. Union density has remained relatively constant over the last decade. New approaches in collective bargaining have taken root in some industries. There has been a shift from wage-related demands to a quest for more job security on the uni on side of the bargaining table. Employers, for their part, are lookin g for more labour flexibility and lower labour costs. One possible int erpretation of these new trends in collective bargaining is that union s are in retreat. These new trends in collective bargaining have not b een matched by changes in state policy in the field of employment and labour relations. Indeed, there has been no dramatic shift in the fiel d of labour regulation, and this lack of change has left in place a st ructure of labour law that is not well-adapted to the exigencies of gl obalization. The French and European experience, particularly with res pect to information sharing and mass layoffs, shows how national gover nments can respond to globalization. The changes in the economic envir onment and the globalization of the economy should also lead national governments to resort to supranational regulation as a mean to complem ent national regulation. Supranational regulation is important since i t helps to level the ''playing field'' and permits social forces to in teract at the same level as the market for capital, goods and services . In parallel with the International Labour Organization and its conve ntions, the inclusion of a ''social clause'' in international trade: a greements could help to foster worker protection. Thus, the North Amer ican Agreement on Labour Cooperation (NAALC), one of the NAFTA ''side accords'', has produced some encouraging results concerning labour reg ulation in North America. This analysis shows that the nation-state, i f it exploits the possibilities of both national and supranational reg ulation, can counteract some of the adverse effects of globalization o n worker protection. However, to do so, a substantial amount of politi cal will is required. And political will is also seriously affected by globalization.