Global Business Management
Labor unions oppose importation of low wage human capital from other countries, the labor unions act in protecting the local jobs and the subsequent social issues in the community. The argument is in the best interest of the country and employees. Importation of low wage human capital has benefits to the businesses involved in the trade, and negative effects to the host country and to the local employees. Countries have the responsibility of protecting the local human capital. Organizations should not be allowed to import cheap human capital in intimidating the local human capital.
Importation of low wage is characterized with immigration of workers from other nations or regions. The effects of immigration results in depression of wages, workers are willing to work for less pay hence exploited, and employers tend to ignore innovation, productivity and training (Dray, 2011). Immigration results in an increase in human population in the host country causing pressure on the public services and resources, increase in unemployment of the local employees, increased friction between the incomers and the local people due to integration difficulties and rise of insecurity due to human trafficking and organized crime (Yates, 2009).
Immigration of employees from low wage nations also affects the countries of origin. The countries of origin are stripped off productive workers through lost professionals and the immigration pattern result to social problems where the children are brought up by absent parents (Dubofsky & Dulles, 2010).
The impacts of importing employees from low wage nations have many negatives to the local employees and to the nation as a whole. The action of labor unions in being against the importation of employees from the low wage countries is justified. Host countries have developed mechanisms of limiting importation of human capital from low wage countries as a way of empowering the local human capital.
Dray, P. (2011). There Is Power in a Union: The Epic Story of Labor in America. Oxford: Anchor.
Dubofsky, M. & Dulles, F. (2010). Labor in America: A History. Hoboken, New Jersey: Wiley-Blackwell.
Yates, M. D. (2009). Why Unions Matter. New York: Monthly Review Press.
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