EFFECT OF GLOBALIZATION ON INDUSTRIAL RELATIONS IN THE NIGERIAN BANKING INDUSTRY
1.1 BACKGROUND OF THE STUDY
The effect of globalization on the economy of many nations can be traced to as far back as 16th century during the time of Adam Smith, David Ricardo and Reverend Malthus. Specifically, the early influences and contributions of these scholars to labour as input of production had early globalization implications (Hoass and Madigan, 1999). The various theories of international trade evolved from these early contributors. Over the past two decades, the Nigerian economy has become more open and liberalized due to the influence of globalization of the world economy. In Nigeria, The amalgamation of the Southern and Northern protectorates in 1914 by Lord Lugard of England had globalization implications.
Furthermore, the establishment of Nigeria Breweries Plc in 1946 (Nigerian Breweries Plc (2010), Guinness Nigeria Limited in 1963 (Guinness, 2006) and other Multi-National Enterprises (MNEs) had globalization implications.
Driven by technological advances, improved communications, economic liberalization, and increased international competition, globalization has brought in an era of economic, institutional and cultural integration (Ali, 2005). Scholars are not only analyzing the benefits and the deleterious effects of this phenomenon on the employment relations of developed and under-developed nations, they have also stirred up the old controversy regarding the longer-run trajectory of employment relations systems under the pressures of globalization. The contention is whether the industrial relations systems in the context of globalization are converging or diverging. In comparative employment relations, there are contrasting arguments that there are international pressure leading to convergence and national pressures leading to divergence (Martin and Bamber, 2005).
Literally, globalization entails the process of the transformation of local or regional phenomena to global ones. The process encompasses economic, technological, sociocultural, political and biological factors (Croucher, 2004). Essentially, the process is holistic and transcends the interaction and integration among people, companies and government of different nations. Friedman (2000) in Yazdani (2009) stresses that the globalization process of today is farther, faster, cheaper and deeper. This position signals the fact that globalization is given impetus by some key drivers such as international trade and investment across national frontiers, liberalized economic policies, technological advancements, information and communication, and migration.
The multi-dimensional nature of globalization phenomenon leads to the multiplicity of the concept and definition. Ritzer (2004)characterizes globalization as the worldwide diffusion of practice, expansion of relations across continents, organization of social life on a global scale and growth of shared global consciousness. Implicit in this definition is the stress on globalized practices, social interrelationships, and the consciousness of the global world as a whole among key players that involve societies (inter governmental agencies, nation states, companies and individuals (Robertson, 1991, 1992). In consonance with the world culture theory, Robertson (1992) advocates a global world thinking that replicate pattern of socialization, internationalization, individualization and generalization of the consciousness of human kind. Ostry (1977) in Nwosu and Oludayo (2007) opines that among the many domestic policies and institutions that are being and will continue to be subject to the pressures of globalization, none is more fundamental or more politically sensitive than industrial relations.