Solution and Advantages of the Fair Labor Law - Assignment Example

Fair Labor Law Lester Myers Dr. Michael Anderson ENG 215 May 25, Part Outsourcing labor to foreign countries where the employees have no laborunions or strict labor laws has been taking place since the 1880s and is still in practice. The US-based multinational corporations have engaged in unethical practices after employing labours at cheap employment rates and taking no liability over the interest of the labours outsourced from foreign countries. The government of the United States of America has initiated some implementations against the unfair labor practices that existed in the country. Furthermore, the federal government has introduced some special programs for the multinational organizations that would help them to rear employees in the abroad countries in an ethical manner. The implementations of new policies restrict multinational corporations from continuing practices in foreign land without labor laws and without the employees having labor unions, who would advocate for their rights. The US government’s prohibition against unfair labor laws while outsourcing business in the foreign companies would help to set precedence of the importance of labor equity and fairness locally and abroad. With the expansion of western-based multinational corporations in the world, there has been a rise in competition and most of the companies were motivated to gain huge profit by enforcing hard and hazardous activities in the work environment. The US-based organizations made several investments in the initiation of strict labor laws that were started and closely monitored in order to ensure fairness in work culture. During this period, the idea of outsourcing labor to other places rose greatly. By 1980, most of the companies had outsourced their business to the less developed nations where competition was low and availability of cheap labor was high. Most of the organizations entered the less developed nations in order to gain the advantage of the lack of labor laws in such nations because it would help to generate huge profits as compared to their parent countries, where challenges associated with sustainability and profitability were high. The problems associated with the outsourcing are still in existence and there are several examples that illustrate the unfair labor practices that are going on. One of the most recent debates of the unfair labor practice was conducted on the issue of the companies offering outsourced jobs with justification of providing hob opportunities to the outsourced labors. US has been the forefront of advocacy related to fair labor laws and employee unions domestically, however the same approach is not carried out by multinational companies while outsourcing business in foreign countries (Whittaker, 2003). The double standard has been affecting the economy of the foreign lands because the countries do-not get sufficient opportunity to gain sustainable profit from outsourced businesses. Social relations between US and other countries has been has been affected as a result of unfair labor practices. This signifies negativity on the political and economic affairs and relations of the nation. The first problem is that unfair labor laws and practices have a direct impact on ethical and moral values. Exploitation of labors and paying them less wages, without taking responsibility of the health and other issues of labors can be termed as slavery under the labor laws (Fernandez, 2007). The companies violate human rights for their own benefits, which is a huge ethical issue and it must be addressed effectively by the parent countries and international labor laws bodies. The second issue associated with unfair labor practices has great impact on the economy of foreign lands. Unfair labor practices conducted by outsourced organizations not only affect the economy of the foreign lands but also affect the investors and other stakeholders (Basu, 2012). Unfair labor practices affect the economy of the countries because the labors, who are paid less, cannot afford to pay sufficient taxes that are required for the development of their countries. Therefore, multinational corporations have ill-effects on the development of the countries, where businesses are outsourced. Finally, the socio-political issues also tend to increase as a result of unfair labor practices in outsourced countries. As a result of unfair labor practices in the outsourced countries, inequality issues and high corruption occurs. The socio-political conditions of the countries are affected and it also leads to the saturation of economy. These issues are not good from the development perspective of a nation. Therefore, unfair labor practices must be eliminated by multinational organizations doing business in other countries because it has direct impact on the economic, ethical and socio-political aspects of a nation. In order to eliminate the issues associated with unfair labor laws and practices, fair and strict labor laws should be incorporated while outsourcing business. Part 2 Unfair labor practices have been in existence in the contemporary era, despite the strategies that have been implemented to maintain fairness at work. The government of United States has already enacted several policies in order to protect the right of labors working in multinational corporations that outsource business. The Fair Labor Standards Act is one of the most essential laws that protect the right and honor of employees working in United States and other countries. There are several segments of FLSA, under which the companies that outsource business must follow the laws while managing their employees belonging from the host countries. There is a need of proper implementation of policies for protection of unfair labor practices. The government of United States as well as host countries should prohibit business corporations from continuing business in case of any unfair labor conducts. In order to eliminate unfair labor practices, the following solution can be implemented by the government of United States as well as the business corporations. Labor unions have been proved to be very efficient in order to save labor interests and rights. Labor unions might not be required in developed countries, such as USA but they are highly important for developing countries or host countries, where businesses are outsourced. The labor unions can be made powerful by the host countries so that the labors can be given attention by the multinational corporations (Weiss, 2004). It has been observed that some multinational organizations do not pay for overtime appropriately and they also employ teenagers in business in order to generate maximum output while making low investments. The labor unions can act appropriately and stand with the labors to protect their employment rights and issues. This would help to overcome the socio-political challenges. Organizations should implement a fair work environment because it ensures sustainability. The issues related to unfair trade practices can be eliminated by reporting the unfair practices and incidents directly to the head office. In order to implement this strategy, an efficient domain or portal would be required, which could be accessed by employees. Thus labor unions can be used as a strategy in order to overcome the current issues related to ethical, economical and socio-political perspectives. Advantages The solution mentioned above has following advantages from socio-political, ethical and economical perspectives. Most of the US based companies have clear motive to expand their businesses in less competitive nations and at cheaper employment rates. This factor has resulted in several unfair practices against labors belonging from host nations. The formation of union groups is essential because it can reduce the wrongdoings against the employees of an organization. It has been observed that in many cases the union leaders get biased from the management of the organizations and avoid the request or right of single employees. However, on a broader prospect the union groups can be useful because it would help the employees to get proper response from their organization (Pradhan, 2012). The society can also be peaceful with less governmental interference from the local government or the government of the parent country. On the other hand, the implementation of portals and labor domains would help companies to maintain sustainability because the employees would be loyal towards their organization. Moreover, the ethical practices would help the organizations to enhance their brand value. The interventions made by the government of the host countries can be very effective for the betterment of work-fairness in organizations. Government interventions and policies would not only protect the labors of the host countries with respect to their rights, it would also benefit the organizations significantly and their interests could be preserved in order to ensure long-term business in the countries. This would help the victims of unfair labor practices to raise their voice directly to the industrial development authority (Sciotti, 2004). This kind of implementation is highly recommended because it would help to maintain integrity of employees as well as assure ethical practices in different location of the organizations. In the modern world, the employment policies play a crucial role in the development of business organizations. The important organizational policies such as Fair Labor Laws have profound effect in the development of organizational values as well as maintenance of work-fairness. The government of the host countries can amend policies that would be mandatory for the employers and employees to follow during the entire temerity (Laswoski, 2009). This kind of strategic implementation already exists in some of the countries but it needs to be implemented widely because it would help to overcome the issues associate with the economy of the country. Government can be able to use the tax collected from employees for the betterment of society. These laws and regulations benefit the labors and the business organizations significantly, while outsourcing. References Basu, P. (2012). New Wage Law. Stamford: Cengage Learning. Fernandez, P. (2007). Fair Labour Standards and Welfare Legislations. New York: Springer. Laswoski, A. (2009). Fair Labour Standards. London: Kogan Page. Pradhan, N. (2012). Fair labour legislation standards. New York: McGraw-Hill. Sciotti, M. (2004). Fair labour Standards Act. New Jersey: Pearson. Weiss, D. (2004). Fair and Legal. London: Cambridge University Press. Whittaker, W. (2003). The Fair Labour Standards Act. London: Routledge. Read More