In the pre-globalization era, western labour enjoyed near-monopoly access to western capital

In the pre-globalization era, western labour enjoyed near-monopoly access to western capital. That is to say, western capital was immobile, and had to treat with western labour because it had nowhere else to go. We are now beginning to have, for the first time in human history, a truly global economy, where almost anything can be produced anywhere in the world, and then sold anywhere. (Lloyd,B & Thurow,L).With globalization, when the dismantling of barriers to world trade gave western capital access to vast amounts of low- cost labor in countries that were previously closed off.
Cheap labour, plus the opportunity to exploit new global markets, has brought a profit bonanza to western companies. But it has not been reflected in higher wages for employees at home because companies are no longer in thrall to employees at home. Instead, the gains have been split between capitalists, who have enjoyed higher returns; executives, whose emoluments go up with profits; and poor workers in the developing world, who have gained from the growth in jobs and rising wages that would once have gone to the west.
This is not quite how globalization was supposed to work out.
Although the demand for labour has indeed fallen significantly in both he USA and EU in recent decades; there is the shift from natural resource-based industries into those dominated by brain power. But if we are now moving to a world dominated by the knowledge industries, the key assets become the brainpower of individuals and you cannot own individual human beings that will change what we mean by capitalism. What will capitalism mean when you cannot own the key
asset? Is there a model in investment banks, law firms, consultancy companies? They are capitalist business firms but they do not operate in the same way as ICI, orGeneral Motors.( H. Battu , C.R. Belfield , P.J. Sloane)
According to the principle of comparative advantage, rich countries with their skilled workforces would specialize in turning out advanced products while the poor countries with their unskilled labor would specialize in low-technology goods. Yes, there could be job losses in the rich countries among unskilled factory workers, but western workers overall would gain from the opening of new markets for their products and from cheaper imports.
On the other hand. the countries will move towards higher end products. For example in 50 s Japan use to manufacture clothing and garments for American market. As the Japanese economy developed it started churning out silicon chips and the made forage into automobiles and electronics. Today Japan is the second largest market in the world and it outsource most of its clothing and garments requirements from China, Japanese owned factories in Taiwan and Korea are producing chips for Japanese electronics. Today some of the biggest names in electronics in American markets are Japanese. What started as a Akio Morita revolutionary Walkman today blossomed into Play Station 3, next generation gaming console.(Kendra) As globalization stepped in more and more
countries opened their door to free economy this change led to the emergence of new players like
China, India, Philippines, Russia and South Africa .Among these China emerged as the leader in
manufacturing section while India is excelling in information technology. India today is considered one of the most employer-friendly countries for outsourcing because in India educational system churns out almost 3 million College graduates every year and they earn approximately one-tenth to one-fifth the salaries of their Western European or American counterparts (Kendra)

In addition, the idea that only low-skilled factory workers have anything to fear from globalization has turned out to be a myth. The former Soviet bloc already has many highly educated workers (the Soviets, remember, beat the Americans into space) and the less developed countries are pouring investment into higher education. \"Indonesia, Brazil, China, India - names the country - have more than doubled university student enrolments in the 1980s and 1990s,\" Freeman says. China is investing particularly heavily in science and engineering and \"by 2010 it will graduate more PhDs in science and engineering than the US\". (4)
Tom Peters puts it in one of his presentation (Tom Peters 2004) when I was young, my mum use to tell me finish your food, people in India and China are dying of hunger. Today I tell my daughter finish your homework, people in India and China are looking for your job .

So globalization is not just about a few blue-collar factory workers in the west losing their jobs and everyone else being better off. Because of plummeting telecom charges, all kinds of middle-class, white-collar jobs once thought of as non-tradable – not just in telemarketing and call centers but in accountancy, medical diagnostics and information technology - have started moving to the developing world. (4)
Today Young peoples sitting in their offices in India and Beijing are answering average Western s insurance queries, planning their taxes, helping them fixing their computers, providing information regarding their credit card accounts and helping them in planning their debts. The surge doesn t last there it hasnow started threatening the white collar jobs which was once considered western birth right. So what will be the future for Europe and American jobs market, will it be as doomed as the candidates in the presidential race made to believe us or we have to dig deeper to find the real truth. (Kendra)
The median wage for men in the United States in 2006 was $16.66 an hour; jobs paying less than two-thirds of the median wage for men paid $11.11 or less per hour. Some 44 million workers in the USA about one of every three hold low-wage jobs paying less than $11.11. That is bad news, and worse than most people realize. Clouding the picture further, most low-wage jobs don\'t offer employment benefits like paid sick days, health insurance, or retirement accounts. They also tend to have inflexible or unpredictable scheduling requirements, and provide little opportunity for career advancement
While low-wage workers haven\'t seen much of a raise since 1979, the economy and worker productivity have grown substantially. For several decades before 1980, productivity growth and wages rose together in other words, U.S. workers were productive and shared in the gains from their productivity. In the last few decades, workers have continued to be increasingly productive, but they have seen little payoff in wages for their hard work. Between 1973 and 2006, productivity increased by 83 percent, while the median wage increased by only 13 percent. (6)
We have many more entry-level jobs than we have entry-level workers that is, workers who are new to the labor market and too few jobs that provide a middle-class standard of living. It turns out that in the U.S. labor market today it\'s not possible for everyone to be middle class, no matter how hard they work. Plus, it is getting harder to climb that ladder.
The only way to restore the middle class is to improve the labor market with a mix of new ideas and strategies for improving low-wage work. Our economy and our nation will be stronger for us all when we do.
According to sociologist such as Dennis Gilbert of Cornell University the middle class is divided into only two groups: the upper middle and lower middle class .As mentioned above the upper middle class, according to Gilbert as well as Thompson & Hickey constitutes roughly 15% of the population. The lower middle class is the second most populous according to both models the most populous class constituting roughly one third of the population, the same percentage as the working class. (3)
The lower middle class.. these are the people in technical and lower-level management positions who work for those in the middle class as lower managers, craftspeople and the like. They enjoy a reasonably comfortable standard of living although it is constantly threatened by taxes and inflation. Generally, they have a high school educational and perhaps some college or apprenticeship education. Brain K.William, Stay C. Sawyer and Carl M.Wahlstrom, Marriages, Familities & Intimate Relationships,2006 (Adapted from Dennis Gilbert 1997; and Joseph Khal 1993). (1)
Everyday, middle class families carry higher risks that a job loss or a medical problem will push them over the edge. Although plenty of families make it, a growing number who worked just as hard and followed the rules just as carefully find themselves in a financial nightmare. The security of middle-class life has disappeared.
The new reality is millions of families whose grip on the good life can be shaken loose in an instant.
So, as we see, the situation can be changed to some extend, but not much , this means that Tomkin s state that in any case a middle-class worker is a looser is completely realistic and true due to the facts of today s life. And there are an overall tone of the text, we are all losers and no one wants to admit this.
If the middle-class is loser, there may also be a winner like capitalists , who have enjoyed higher returns; executives, whose emoluments go up with profits. Graef S. Crystal (1991) reveals that In the last 20 years the pay of American workers has gone nowhere, while American CEOs have increased their own pay more than 400 per cent The CEOs are indeed the big winners with benefit packages often reaching $100 million or more; plus, the satisfaction of having an even bigger market
share.(Butts,D,1997)There are a number of companies in the USA where the workforce have found that their wages have been reduced across the board by 20-30 per cent. At the same time, overall the
real wages of CEOs went up 30 per cent last year, while the real wages of the workforce went down.
If I were a head of the company and had a responsibility for negotiating on my company s behalf with the employees over salary rises I would do definitely make negotiations with the employees through their managers or supervisors. . It seems to me, it is better to use team-reward system. Workers do not always work autonomously. Many tasks require group work, with skills diffused through teams and across the workplace; and organisational cultures (e.g. those associated with high-performance management) may depend on the average workforce skill level. Furthermore, firms may deliberately cultivate a team dynamic , with information-sharing, co-training, monitoring, and support so as to exploit these spillovers. Idson (1995), As organizations are moving into team-based management systems, the implementation of team reward systems is on the rise. A team reward system is a system in which a group members pay is at least partly contingent on the
performance of their group or team. Team rewards should create increased cohesiveness and cooperation as well as reinforce individual performance when they are used. Organizations using team reward systems begin to look at team reward systems as ways to motivate employees to make larger, more significant contributions to the organization. (5)
If implemented and used correctly, team reward systems have the potential to be an extremely helpful tool for organizations who are using a team-based system of management. There are many variables that must be analyzed and considered as the transition to team reward systems occurs. Team reward systems have great potential to grow and foster cohesiveness and cooperation within a team as well as enable the employees within an organization to find intrinsic motivation and self-fulfillment within the workplace.
There are many possible reasons to support the implementation of team reward systems. The most fundamental reason is that the organization structure is team-based management. Also, team reward systems promote team productivity and increase cooperation among team members. Some organizations use team reward systems because they give employees an opportunity to see more directly the rewards for their hard work. Others continue to use more long term reward systems in addition to team rewards, such as gain sharing or profit-sharing.
There are certain guidelines to consider when using team reward systems. First, the team leader and/or management should be able to communicate well with other group members in order to explain the process of team reward systems and be as fair and consistent as possible as group members adjust to the change. It is also important for team leaders to consider the size of the reward, frequency of payout, and allocation procedures that the organization will be using.
As a head of the company I have to identify issues and the objectives that will drive the negotiation, need to learn more about the employees objectives and the road map that the employee\'s negotiator will likely follow in attaining those objectives.
One of the most difficult tasks during a negotiation is to confine the discussion to what is important while avoiding irrelevant subjects. One of the best ways to promote productive and efficient discussion is to establish an agenda for both sides to follow.

As a conclusion we can say that a way out for western middle class poverty definitely exists. A lot depends, of course, from the political, economical and social factors. But if to take an ideal situation, when all those factors do not influence the situation, a lot depends on the politics of the management stuff of this or that company. Capitalists are people who know how to make money. The only things to be in need are chip working staff, good equipment. This is really true; nowadays it is much more beneficial for a capitalist to organize a part of the business in such countries as Russia, India, Chine, etc. This is clear for everyone, and do not need any additional confirmation, that for one and the same work US workers get definite sum of money, and Russian workers will get twice or trice less, and they will be happy of this. The living level is the main difference. Reach people sometimes do not take into account that they also should raise the living level of their native workers, I mean, the workers of the country they live in. So, the situation with the western workers leaves much to be desired. The people who can make the situation better, do not want to do anything, this contradicts with their becoming richer and richer. The main problem for a head of the company is how to raise salaries and wages for the workers and not to lose with money. From my point of view the best solution is negotiations and team reward system. This will change the situation for the better and also will give the workers to feel as one community, one body. They will be interested in work and as a reward, their salaries will grow.