Many claim that international labour standards are a treatment to address inferior working conditions and low wages in developing countries. Others have asserted that efforts to inflict a "living wage" or improve working conditions in developing countries can lead to higher labor costs, which could in turn hurt the very workers these movements seek to protect by relegating these workers to even worse jobs or no jobs whatsoever. A lot of individuals who strongly feel about labor rights opt for a social boycott and campaigns that target multinational companies to demand them to improve the conditions of their workers.
In the 1990s, Indonesia--home to heaps of Nike, Reebok, and Adidas subcontractors--was a primary goal for these activists. At exactly the same time, the Indonesian government--prompted by the U.S. government--significantly raised its minimum wage. Both of these distinct interventions resulted in a doubling of wages for unskilled workers in Indonesia.
PUBLICATION DATE: February 01, 2006 PRODUCT #: CMR335-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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