...discussion concentrates on access, labor law, wage rate of workers, private enterprise, and future prospects of living-standards of workers in each country. Seven South Asian countries Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka—launched the economic and political organization SAARC on 8 December 1985. Afghanistan joined it in April 2007. SAARC provides a platform for working together in a spirit of friendship, trust, and understanding to accelerate economic and social development, including education, in South Asian countries. Human resource development is one of five areas of cooperation agreed on by the member countries. In terms of population, the SAARC region covers nearly 1,500 million people, one of the largest such regional organizations. SAARC countries share certain common social and economic problems, including those related comparison between wage rate and living-standards of workers. Raising wages: an urgent imperative A wage that's enough to meet basic needs and to provide some discretionary income - what's not to like? In the past decade, retailers and brands have made some progress in getting their suppliers to pay their workers their statutory entitlements - in other words, the prevailing minimum wage plus any pension contributions, sickness or holiday pay they are entitled to. But in many countries, government-set minimum wages fall far short of what many estimate to be a living wage. The reality is that the vast majority of...
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...million. The country's main export sector is in the garment industry. In 2010, the country decided to raise the minimum wage due to the public's outcry of unfair wages and working conditions. In this research paper, we will look at how the increase of minimum wage has affected the country's economy and what could be done to improve the outcome. Introduction Bangladesh is one of the developing countries of the South Asian region, with the population near about 122 million. Many of the 122 million are garment factory workers whose incomes rely on the garment industry growth and the ability to offer cheaper costs than other countries in the world. Bangladesh is a developing country, which would be consider by most as an old terminology, a third world country, and it's Ready Made Garments (RMG) sector of the textile industry has been known as the biggest earner as an export and the foreign currencies that come as the result of it. The country's Gross Domestic Product (GDP) is greatly contributed by its textile industry. In 2010, the country raised the minimum wage. The fallout was the unforeseen result and halted the country's growing economy. The country's export sector slowed and foreign companies began to start taking their businesses elsewhere to other countries, such as Vietnam and China. We will examine the impact of the minimum wage raise and the possible solution to improve the aftermath of it. Literature Review Step#1 The Transaction Cost Economics...
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...Causes of “Foreign Labour Access” High demanding from employer Non- limitation supply of foreign labour in Malaysia labour market no matter is legally or illegally borne no doubt giving employer free in bringing foreign labour. It is upon employers’ choice to employ either local or foreign labours. However, some employers highly demanding on foreign workers in times of labour shortage, rather than raising wages and improving working conditions to attract local labours. In such way doing so, employers are strike in good position by minimum wage for construction labourers as this would lead to reduce in total marginal cost for the whole project financing, thereby increase the positivism to the financial health of the particular project). The newly arrived labour are mostly willing to accept lower wages and lower conditions so their paid is less than local labours even though they perform the same jobs (Michael, 2001 cited in Foreign Workers In Malaysia Construction Industry Economics Essay, 2014). This will unintentionally create a strong threat to local labours which having such high requirement for working in construction industry site with poor image in mind. However, according to (Tey, 1997 cited in Foreign Workers In Malaysia Construction Industry Economics Essay, 2014), there is no actual shortage of manpower on locals, it was because most employer prefer foreign labours especially them who came in illegally who easily exploited as they have no recourse to law and justice...
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...Ethical decision making is an essential aspect in understanding and demonstrating the values of an organization. The intense pressures of business may not always allow time for reflection, and the high stakes may tempt us to compromise our ideals. Many of us already have well-developed ethical outlooks but by considering various approaches to ethical decision making, we are better equipped to make the right choices when the need arises. Joseph Weiss (2009) identifies fundamental ethical principles that guide decision making: utilitarianism, universalism, rights, justice, and ethical virtue. John Rawls contributes his Theory of Justice as Fairness as another approach for consideration in resolving ethical dilemmas. Utilitarianism The utilitarian view states that an action is considered right or good based on its consequences (2009). The utilitarian approach tries both to increase the good done and to reduce the harm done. An ethical corporate action is the one that produces the greatest good and does the least harm for all who are affected, including customers, employees, shareholders, the community, and the environment. Universalism The universalistic approach holds that moral authority is determined by the extent to which the intention of an act treats all persons with respect (2009). Respect and compassion for all others are a requirement of this reasoning. This approach also calls attention to the common conditions that are important to the welfare of everyone: a system...
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...Employment Of Foreign Workers In Malaysia INDEX 1. Executive Summary 2. Introduction 3. Analysis 4. Challenges 5. Implications 6. Recommendations 7. Conclusion 8. References 1.0 Executive Summary The report investigates on the issue of employment of foreign workers in Malaysia. During the British colonial period in the early nineteenth century, Malaysia was a net receiver of foreign nationals who came to work in the plantations, mines, and construction sectors. Nowadays, rapid industrialization, urbanization, strong economic growth led to labour shortages in rural areas and plantation sectors due to rejection of locals to work in these industries. There are some changes and policy reforms since early 2000 regarding the employment of foreign workers, which includes: Amendments to the Employment Act and Equality in Treatment and Enforcement of Laws. There is also a proposel regarding Foreign Workers Act. The report analyses the advantages and disadvantages of employing foreign workers. Among the advantages are availability of low cost labour, willingness to work for long hours and availability of abundant foreign workforce. Nonetheless, there are also drawbacks to employing foreign workers including rapid expansion of population and increasing in level of unemployment of locals. The main issue is exploitation of foreign worker in Malaysia. Foreign workers are exploited by their employers in different ways, for instance, wage manipulation...
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...Expectations of Foreign Investors in terms of Labor Laws India, like other countries worldwide, is experiencing the effects of globalization. In order to make conditions friendlier for investors, there is a need for adaptability. Labor legislation, such as the Indian Disputes Act and Contract Labor (Regulation and Abolition) Act, are now under debate, along with issues concerning special economic zones. Submitted by: Introduction There has been a steady expansion of foreign investment in recent decades. The upward trend is particularly strong for less developed countries, signifying the increased importance for these countries of FDI, as well as the increased presence of multinational firms. Alongside the expansion of FDI have risen concerns regarding competition between countries or regions to attract FDI. After adopting new economic policy by government of India in July 1991 many foreign investors came in the Indian economic scene because the government of India gave many incentives to the foreign investors. So it is clear that government opened the doors of Indian market to foreign investors. With more companies operating internationally, the impact on various business functions and labour laws in India is becoming more pronounced. Globalization, and the need to attract foreign investment...
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...Appendix 2), it can be proved that income inequality exists. The real family data show that before 1975, all classes shared the prosperity, growing at a similar rate. Starting from 1973, the 95th Percentile (the level separating the 5 percent of the richest from the rest) rose at the same pace and increased approximately 60 percent; however, the growth of both the median (the level separating the half of the richer families from the other half) and the 20th Percentile (the level separating the 20 percent of the poor families from the rest 80 percent) slowed down. The Median only increased only 10 percent, while the 20th Percentile roughly grew (DeBot et al., 2015). This shows that the 1970s is the beginning of the income inequality and the US wage gap constantly widened since then, proving that income inequality exists in the US. It is very important...
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...statement: “Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low-wage Asian clothing.” Answer the following: (10 points) a. Which parts of this quote are positive statements? Which parts are normative statements? b. Would such a policy make some Americans better off without making any other Americans worse off? Explain who and why. c. Would low-wage Asian workers benefit from or be hurt by such a policy and why? 1a. The positive quotes of this statement are that “workers in Asia often work in sweatshops and earn only pennies and hour and American workers are more productive and as a result earn a higher wage. The normative statement of this quote is that “In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low-wage Asian clothing” 1b. Although such a policy may increase jobs for the American workplace making it better off for certain geographical areas, it may make it worse off for the people who can’t afford the higher priced clothing due to the cost of the production of the clothing cause of the higher priced labor. Upper class families may have no issue to the adjustment, but the lower class families may have a hard time purchasing the clothing. 1c. In my opinion the low wage Asian...
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... Behavioral factor has been seen as one of the factor that contributes to the increase of employment among foreign workers in certain sectors. In determining the behavioral factor that involve in this study, the researchers choose MARS Model, which is introduced by McShane (2013), as a guideline. MARS Model is an acronym for motivation, ability, role perceptions and situational factors. Omollo (2015) stated that elements in MARS Model are greatly connected to each other, which affect the employee behavior and performance. Omollo also gave an example, which described the sequence or connection of all elements by saying, “enthusiastic and employee with...
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...economy over the last two decades, the world of work has radically changed in eastern European and Asian countries. Transition reforms have led to rapid structural shifts in the economy: China has become a focal point for much of the insecurity that globalization has produced: for the past two decades China has experienced explosive economic growth that has attracted jobs and capital from around the world (Feng, 2007). No other industrializing country has ever attracted jobs at both the high and low ends of the production chain. From basic level assembly work to the upper tiers of industry and services, China is setting the global norm for working standards around the world. Workers in rich and poor countries alike feel the effect of China as global corporations move to China to lower labor costs and use the threat of this mobility as a lever to drive down wages and working conditions for workers in other countries such as Germany, examined in this paper. China continues to welcome foreign firms with open arms- the Chinese government provides a...
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...Labor organizations or unions are formed by employees who want better wages, benefits, and healthy working conditions. Over the years, participation in unions has declined regardless of the benefits it offers. There are less strikes and better wages in the United States which in turn does not warrant the high need for these types of organizations in the work place. Labor unions today compared to in the past have fewer members and are more populated by political parties and public sector employees. During the implementation of unions, the labor force consisted heavily of automobile and steel plant workers. This has decreased due to outsourcing these jobs to foreign countries (AFL-CIO, 2004). Americans have also seen a decrease in highly-skilled jobs due to outsourcing. The United States Government current push on company’s to send these skilled jobs offshore, in return for a tax break, is hurting the economy and trade deficit. While jobs are increasing in foreign countries workers rights are not. Wages are low and employees do not have the respect and healthy work conditions as most American unions. According to a petition filed with the U.S. Trade Representative by the AFL-CIO and Industrial Union Council, the United States has lost more than 1 million jobs because of constant violations of workers rights in China (AFL-CIO, 2006). Countries with low wages or no minimum wages have the ability to offer low cost product because the labor rates put into producing these items are...
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...export-oriented readymade garments (RMG) industry of Bangladesh has witnessed remarkable growth since its inception in the late 1970s. Paradoxically, this flagship industry of Bangladeshi private entrepreneurial talent took roots through the first export consignment of shirts from Bangladesh made by the state-trading agency, the Trading Corporation of Bangladesh (TCB), in the mid-1970s under countertrade arrangements and the destination was some East European countries. Subsequently, however, private entrepreneurs entered the industry and phenomenal growth took place in RMG exports from Bangladesh. Export of RMG increased from US $40 thousand in 1978 –79 to US $6.4 billion in 2004-05. The industry has also provided employment to nearly 2 million workers, most of them women drawn from the rural areas. Explosive growth of RMG exports is of course not unique to Bangladesh. The annual compound growth rate of RMG export industries in Indonesia (31.2%), Mauritius (23.8%), and Dominican Republic (21.1%) compares favourably with that of Bangladesh 1 (81.3%) over the 1980-87 period . However, while initial conditions were favourable for export growth in the countries noted above, this was far from true in the case of Bangladesh. This makes research into the factors responsible for the observed striking growth of RMG exports from Bangladesh a compelling case study in economic 2 development . Academics and researches have generally attributed the remarkable growth of RMG exports from Bangladesh to...
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...Economist print edition Many workers are missing out on the rewards of globalisation RICH countries have democratic governments, so continued support for globalisation will depend on how prosperous the average worker feels. Yet workers' share of the cake in rich countries is now the smallest it has been for at least three decades (see chart 5). In many countries average real wages are flat or even falling. Meanwhile, capitalists have rarely had it so good. In America, Japan and the euro area, profits as a share of GDP are at or near all-time highs (see chart 6). Corporate America has increased its share of national income from 7% in mid-2001 to 13% this year. Like so many other current economic puzzles, the redistribution of income from labour to capital can be largely explained by the entry of China, India and other emerging economies into world markets. Globalisation has lifted profits relative to wages in several ways. First, offshoring to low-wage countries has reduced firms' costs. Second, employers' ability to shift production, whether or not they take advantage of it, has curbed the bargaining power of workers in rich countries. In Germany, for example, several big firms have negotiated pay cuts with their workers to avoid moving production to central Europe. And third, increased immigration has depressed wages in sectors such as catering, farming and construction. Most of the fears about emerging economies focus on jobs being lost to low-cost foreign competitors. But the real...
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...progress? 3. Can you think of other possible indicators of a nation's progress? Explain. 4. Feel free to give your thoughts on this report and its practical application or implications. 5. Feel free to review classmates' postings and comment on their viewpoints. Week 1 Discussion Topic: Part 3: Government Price Controls 1. There are federal and state laws setting minimum wages for workers. There are also city laws setting price ceilings for housing rents. a. Why are there laws setting minimum wages for workers and maximum rents for housing? b. Why are there no laws setting maximum wages for workers or minimum rents for housing? 2. It has been stated that price controls cause shortages or surpluses. a. Do rent controls cause shortages or surpluses, and why? b. Do minimum wage laws cause shortages or surpluses, and why? 3. What are the advantages and disadvantages of minimum wage laws for: a. Workers? b. Employers? c. Consumers? d. If minimum wage laws are beneficial, why are minimum wages set as low as they are – for example, what about a minimum wage rate of $100 per hour? e. If rent controls are beneficial, why are rent ceilings set as high as they are – for example, what about a rent ceiling of $100 per month for every rent-controlled dwelling? 4. From the questions and answers above, what do you conclude in general about the advantages and disadvantages of price control laws that set price ceilings and price floors for any...
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...Nguyen Duy Tung 4453554 Group B Tutorial 5 1. Discuss the trade-off between locating manufacturing operations in countries with relatively low wages versus manufacturing in relatively high-wage countries like Singapore or Australia. * The relative wage lies between the ratio of the productivities in each industry. * The domestic country is 6/1 = 6 times as productive in cheese production, but only 3/2 = 1.5 times as productive in wine production. * The domestic country has a wage rate 3 times as high as that in the foreign country. * These relationships imply that both countries have a cost advantage in production. * The cost of high wages can be offset by high productivity. * The cost of low productivity can be offset by low wages. * Because foreign workers have a wage that is only 1/3 the wage of domestic workers, they are able to attain a cost advantage (in wine production), despite low productivity. * Because domestic workers have a productivity that is 6 times that of foreign workers (in cheese production), they are able to attain a cost advantage, despite high wages. 2. In terms of warehousing design, give examples of trade-offs involving space, labour, and the use of automation. Why is it important to undestand these trade-offs? * One key to effective design of warehouse processes is the relative dominance between picking and storage activities because these two warehousing functions typically have opposing requirements. Techniques that...
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