Effects of globalization and corporate downsizing on employee health

Abstract

The purpose of this study was to assess the impact of corporate downsizing; a function of globalization, on the self-reported physical and mental health of unionized individuals employed in the primary sector of the workforce. An analysis of the literature revealed that downsizing negatively affected the physical and mental health of survivors of job cutbacks and their respective family members. Survivors of job cutbacks had worse self rated health and higher rates of long standing illness than their unaffected counterparts. Downsizing was found to have a negative impact on the nature of work and social relationships. Job insecurity; or perceived job insecurity, perpetuated by impending or past downsizing in the workplace was found to have long term negative health consequences. Rather than adjusting over time to stressful working conditions, employees appeared to lose their ability to cope. The negative health effects of downsizing were not limited to the survivors of job cutbacks. Marital tension in the home increased with increasing levels of perceived job insecurity. Physician consultation, hospital referrals and hospital attendance increased not only among workers who were experiencing or perceived an upcoming period of job insecurity, but increased for the workers respective family members as well.