This article examines the effects of globalization on the trade unionmovement in developing countries (the "South");. It concludes, first, thatglobalization has been asymmetrical: much further-reaching for tradein goods than for capital flows, weak for technology transfer and verylimited in migratory flows. Second, it examines the role and economicrepercussions of labour unions. It finds that, contrary to the orthodoxview, these have little negative impact on employment but do significantlyreduce wage inequalities. In view of the shift in the South since the 1980saway from development strategies based on import substitution aimed atdomestic markets and towards export-oriented strategies, the final sectionproposes new tasks and priorities for unions that are more consistent withthis strategic reorientation, both at the national and international levelsas well as within firms.