In the last 20 years, many employers have turned away from the traditional model of the employment contract characterized by full-time, continuing (open-ended) employment. AbstractThis paper examines the impact of the changed trend of employment from permanent one to non-permanent one as contract or temporary employment. This trend is highly marked in developed countries where employers have to be competitive in the wake of globalization. Globalization also brings with it innumerable employment opportunities so that it is not really an issue for the employees whether the jobs are permanent. as long as they get jobs at better bargains and with assured income security policies of the Governments. IntroductionThe employment trends have changed over the last 20 years in developed countries from permanent employment to other forms of employment such as contract employment, temporary employment due to variety of reasons from economic to social in the wake of information technology explosion and the resultant globalization.
This paper seeks to enquire into the changed trends in detail and to find out whether or not employees have benefited as a result. Fading culture of permanent employment After the advent of industrial revolution and unionization and Governments’ commitment to job security, employers were compelled to assure permanent employment to workers through legislation during the 19th and 20th centuries marked also by the ill effects of Great depression and two World Wars.
It was only by the end of 20th century, trend has changed through the notions of globalization towards contract and temporary employment. The reasons are not far to seek. Both employers as well as workers have been responsible for this change because employers are driven by economic compulsions to depart from permanent status to contract or temporary status while workers are motivated by wide spectrum of opportunities presented by globalization thus resulting in high attrition rate that workers even came to be called as job hoppers.
While this may be true of information technology industry, expansion of job market through globalization and technology explosion in developed countries have contributed to this trend. Employers divide employees as core and non-core categories and accord core categories permanent employment status with a view to retain talent and non-core categories temporary status treating them as disposable workers.
But those under core categories by virtue of their talents maintain contract employment status without controls and restrictions that come with permanent status. But the contract status remains permanent without controls and gives value addition and competitive advantages to the employers. And the so-called disposable workers remain permanent practically without being termed as such. The state of affairs regarding permanent or non-permanent are not always the same in all situations and hence temporary and permanent status are characterized by both favorable and adverse outcomes.
Hence, the aim of this paper is not the permanency or otherwise but whether such a trend is for the benefit of working class. It is imperative therefore to examine various aspects of employment in broader perspective before coming to the conclusion expected of this paper. Decline of union membership