WORKING  CONDITIONS  IN  THE  FOREIGN  OPERATIONS  OF  

MULTINATIONAL  ENTERPRISES

Paper written by Alexander Hijzen Analysis and Policy Division of the OECD

2008

By William Parra

MNE  Key  Drivers  of  the  World  Economy

•  Increase from 8% of world GDP in 1990 to 20% in 2006 of foreign investment

•  FDI Since mid-1990 biggest source of external finance for developing countries.

FDI has contributed to their development in emerging and developing economies.

How  it  works? •  Introduction of modern production. •  Management Techniques

•  Raise productivity in the host country •  Promote better wages and working

conditions

•  Stimulate local companies to improve wages and working conditions

However... •  Practicing unfair competition •  Violating human rights and labor conditions

Where are the non-wages working conditions?

Foreign takeovers raise average wages Source: OECD (2008) Employment outlook

What  to  do? •  Initiatives to promote responsible business conduct

•  Guidelines for Multinational Enterprises

•  OECD Guidelines are playing a role in the improvement of labor conditions worldwide

Thank  you  for  your  aKention