scholarly journals Mr A preliminary comparative perspective on the role of multinational enterprises in influencing labour relations of their host nation

2020 ◽  
Vol 6 (12) ◽  
pp. 298-318
Author(s):  
OLANIYI JOSHUA OLABIYI OLABIYI

This paper examines the operations of multinational enterprises (MNEs) in so far as they are able to influence the public and labour relations policy and law of their host nation with a special attention on African nations. It is to be expected that MNEs would already be comfortable with the mechanisms in place for the resolution of labour-related or commercial disputes in their country of origin. The question then that arises is: If confronted with an employment relations situation in their host nation, would the MNE attempt to circumvent or adapt the process to suit what they are already familiar with? This could pose a challenge for the practice of international labour law. Literature (Briscoe, Schuler & Tarique, 2012; Eweje, 2009; Iyanda & Bello, 1979; Onimode, 1978) already alludes to the fact that MNEs tend to take the ‘line of least resistance’ if confronted with ‘higher’ labour standards. A comparative exploratory analysis was undertaken. The paper identified MNEs in selected African countries – Nigeria, South Africa, and Zambia – that have been reported to have had a challenge in dealing with labour-related or commercial standards of their host nation. The selected MNEs had been reported in the news media for having had a ‘run in’ with their host nation on, at least, a labour - or commercial law-related matter. The principal legislation governing labour relations in these countries are, in some cases, briefly highlighted to underscore the extent of their breach or disregard by the examined MNEs. Furthermore, a qualitative, thematic analysis of selected reported cases involving these MNEs were undertaken to highlight evidences (or instances) of attempts, if any, by the MNEs to circumvent the commercial, fiscal or labour standards of the host nation. Finally, it is hoped that the result of the above analyses would inform the possibility of proposing a framework for MNEs compliance with the labour standards of their host nation.

Author(s):  
Muchlinski Peter T

This chapter examines labour relations. The main elements of corporate social responsibility (CSR) applicable to multinational enterprises (MNEs) revolve around labour relations, human rights and environmental sustainability, which form the core contents of international corporate social responsibility (ICSR) instruments. The extension of CSR to MNEs arises from the perceived risk that they have the power to act with impunity against the interests of stakeholders affected by their operations, giving rise to growing demands for rebalancing corporate responsibilities towards more social ends. Labour rights represent the oldest category of social rights under national and international law and are key to understanding the rise of ICSR and its legal responses. The chapter then explores the historical role of labour rights in ICSR. It considers how the operations of MNEs and global value chains (GVCs) have caused changes in labour practices. It also studies the consequences of these changes on the regulation of labour relations in MNEs and GVCs, including the shift in contemporary transnational labour standards to the notion of ‘decent work’. Finally, the chapter assesses how the ‘decent work’ idea can be put into practice through national laws, international labour rights and transnational labour practices.


2017 ◽  
Vol 25 (1) ◽  
pp. 47-65
Author(s):  
Tapiwa V. Warikandwa ◽  
Patrick C. Osode

The incorporation of a trade-labour (standards) linkage into the multilateral trade regime of the World Trade Organisation (WTO) has been persistently opposed by developing countries, including those in Africa, on the grounds that it has the potential to weaken their competitive advantage. For that reason, low levels of compliance with core labour standards have been viewed as acceptable by African countries. However, with the impact of WTO agreements growing increasingly broader and deeper for the weaker and vulnerable economies of developing countries, the jurisprudence developed by the WTO Panels and Appellate Body regarding a trade-environment/public health linkage has the potential to address the concerns of developing countries regarding the potential negative effects of a trade-labour linkage. This article argues that the pertinent WTO Panel and Appellate Body decisions could advance the prospects of establishing a linkage of global trade participation to labour standards without any harm befalling developing countries.


2021 ◽  
Vol 13 ◽  
pp. 184797902110233
Author(s):  
Stefania Bait ◽  
Serena Marino Lauria ◽  
Massimiliano M. Schiraldi

The COVID-19 emergency is affecting manufacturing industries all over the world. Notably, it has generated several issues in the products’ supply and the global value chain in African countries. Besides this, Africa’s manufacturing value-added rate grew only 1.5 since 2018, and the foreign direct investment (FDI) from multinational enterprises (MNEs) remains very low due to high-risk factors. Most of these factors are linked to a non-optimized location selection that can adversely affect plant performance. For these reasons, supporting decision-makers in selecting the suitable country location in Africa is crucial, both for contributing to countries’ growth and companies’ performance. This research aims at presenting a comprehensive multi-criteria decision-making model (MCDM) to be used by MNEs to evaluate the best countries to develop new manufacturing settlements, highlighting the criteria that COVID-19 has impacted. Thus, it has affected countries’ performance, impacting the plant location selection choices. A combination of the Analytic Hierarchy Process (AHP) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methods have also been used for comparative analysis. The criteria used in the proposed approach have been validated with a panel of MNEs experts.


2002 ◽  
Vol 18 (1) ◽  
pp. 1-22 ◽  
Author(s):  
L. A. Visano ◽  
Nicholas Adete Bastine

Informed by critical theory, this paper focuses on the dialectical interplay between law and economics evident in the practices and policies of the International Labour Organization (ILO). It is argued, first, that governments do not comply with international labour standards because of the inherent weaknesses of the ILO as the source and enforcer of international obligations. Second, the parochial politicization of rights defers to the arrogance of ignorance. Third, developing societies are overwhelmingly preoccupied with socioeconomic development. In exploring the impact of ILO practices on developing societies within the policies of the International Monetary Fund (IMF) and the World Bank (WB), this paper asks the following questions: to what extent does capital form and inform the law in relation to conflicting economic narratives of development and nationhood? How and why does the ILO talk up legal narratives of regulation and contest? How does law hegemonize capital integration? How does law symbolically function to mediate labour relations meanings and manipulate the inaction of civil society? Within the larger structure of “market forces,” the commodity of law is a complex form of social communication that diverts attention away from the political impact of predatory economies.


Author(s):  
Frank M. Horwitz ◽  
Linda Ronnie

This chapter provides a critical overview of the evolving human resource management (HRM) research context, labor market developments, insights regarding cross-cultural diversity, human resource practices, issues pertaining to the efficacy of adoption of Western and East Asian international HRM, and employment relations in African countries. Given the influence of multinational corporations on the diffusion and development of HRM in African countries, issues pertaining to their influence are critically evaluated. Even with the increasing focus on the Chinese–African HRM nexus, studies on African management or HRM are often country specific, occasionally comparative, and variously suggest that HRM practices follow the convergence perspective, “cross-convergence” perspective, or divergence perspectives. There are still unexplored issues relating to African management or HRM, and new findings could reshape the research agenda, HRM policy, and practice. Though often country or regionally focused, there is evidence of increasing research on HRM issues and mergers and acquisitions, impacts of privatization on HRM, knowledge appropriation, emerging market multinational corporation HRM policy and practice, diversity and cross-cultural management, HIV/AIDS policy implementation issues, sustainable development and corporate social responsibility, and impacts of the institutional and regulatory environment on HRM and employment relations.


Obiter ◽  
2018 ◽  
Vol 39 (2) ◽  
Author(s):  
Johana K Gathongo ◽  
Adriaan van der Walt

There have been notable concerns in the current dual dispute resolution system in Kenya. The problems include protracted referral timeframes for dismissal disputes, non-regulation of maximum timeframes for the agreed extension after 30 days conciliation period has lapsed, the absence of statutory timeframes for appointing a conciliator/ commissioner and arbitration process under both the Labour Relations Act, 2007 and the Employment Act, 2007. Likewise, the responsibility of resolving statutory labour disputes in Kenya is still heavily under the control of the government through the Ministry of Labour. There is still no independent statutory dispute resolution institution as envisaged by the Labour Relations Act, 2007. As a result, the Kenyan dispute resolution system has been criticised for lack of impartiality leading to the increase in strikes and lockouts.This article examines the effectiveness of the Kenyan labour dispute resolution system. The article evaluates the provisions of international labour standards relevant to labour dispute resolution. The article illuminates and describes the bottlenecks in the current Kenyan system and argues that it does not adequately respond to the needs of parties in terms of the international labour conventions. A comparative approach with South Africa is adopted to see how independent institutions, such as the Commission for Conciliation, Mediation and Arbitration, Bargaining Councils and specialised Labour Courts can lead to effective dispute resolution. In view of that, a wide range of remedial intervention intended to address the gaps and flaws highlighted in the study are made. Systematically, the article provides suggestions and possible solutions for a better institutional framework and processes to address them.


2018 ◽  
Vol 39 (1) ◽  
pp. 72-91 ◽  
Author(s):  
Lela Rekhviashvili ◽  
Wladimir Sgibnev

This article offers a first comparative discussion about ride-sharing (ride-sourcing) practices and informal transport. It focuses primarily on Uber, and marshrutkas – a socially and economically crucial mobility offer prevailing in many post-Soviet cities. The absence or evasion of state regulations, low labour standards of transport workers, and high safety risks for passengers unite the high-tech globalised corporate ride-sourcing sector and low-tech localised marshrutkas. The digital technological leap has made it infinitely easier to recruit transport workers to de-territorialise coordination activities, to advocate for avoiding regulations and draw significant capital investments. In cities of the Global North this leads to an informalisation of formerly relatively protected labour relations. In cities of the Global South, this can involve the loss of horizontally embedded modes of shared transport, in favour of corporate ride-sourcing: further fragmentation and alienation of the labour force, without solving issues of negative externalities.


Author(s):  
Edet E. Okon

The operational structures of Multinational Enterprises (MNEs) in Africa, a developing and emerging economy do not necessarily differ from those of the developed or even Less Developed Economies (LDEs) except in few areas such as size and capital outlay. Meanwhile, both MNEs of African origin and those which originate from outside Africa do have salient attributes: they have many foreign affiliates or subsidiaries in foreign countries; they operate in a wide variety of countries around the globe; the proportion of assets, revenues, or profits is high; their employees, stockholders, owners, and managers are from many different countries; and they are involved in much more than merely establishing sales office, but incorporate a full range of manufacturing, research and development activities. This chapter examined operational structures of MNEs with focus on meaning, attributes, financing, exchange rate risk and international financial investment, strategies for improved financing and outlay of MNEs in selected African countries.


Author(s):  
Annet Wanyana Oguttu ◽  
Monica Iyer

This chapter analyzes whether the international tax reform measures instituted under the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) Project are effective in ensuring African countries get a fair share of taxes from multinational enterprises (MNEs) transacting within their borders, so that they can finance their development goals and promote the human rights of their citizens. The OECD chose to focus on curtailing sophisticated tax-avoidance schemes by strengthening existing anti-avoidance provisions. MNEs have abused these existing laws, however, making them largely ineffective. Given that MNEs are always a step ahead in devising new tax-avoidance strategies, one wonders whether emphasis on strengthening anti-avoidance laws will achieve much. The OECD seems to have missed an opportunity to evaluate the whole tax system and deal with the very root of the problems inherent in international taxation.


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