Emerging Labor Issues In Industrial Development Zones Of Ethiopia An Appraisal Of Legal And Policy Frameworks.

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Economic globalization as facilitated chiefly by the sophisticated transport and communicationrntechnology enabled FDI to locate their business in areas that can fetch for them better outcomes.rnStates in their developmental endeavors are also competing in attracting the FDI in to theirrneconomy by providing different investment incentives. In view of this developing countriesrnincluding Ethiopia are establishing industrial development zones (IDZ) or EPZ with packages ofrnincentives.rnGovernments and industries tend to suppress labor standards in their attempt to attract FDI in tornEPZ and to be competitive in international market by minimizing their labor cost. They reducernworkers' wage, prevent operation of unions, collective bargaining and inspection services inrnEPZs. However, different studies uncover there are no evidence that FDI is attracted to areasrnwhere labor rights are reduced, or union and inspection rights and minimum wage is absent. It isrnhowever found that FDI location is mainly determined by factors like quality of infrastructure,rngenerosity of incentives, market access, ease of administrative bureaucracies and productivernlabor. And cost oflabor is considered not a factor or insignificant factor.rnToday there is a shift of focus from EPZ based on low labor cost to EPZ which is based onrnrespect of labor rights because respect of labor standards are becoming preconditions for grant ofrnmarket preferences to developed countries like EU and USA and also for engaging in businessrnwith reputed MNEs. Therefore, EPZ competitiveness based on low labor cost is traditional and isrnracing to the bottom of labor standards.rnIn what mechanism and how some emerging labor issues in IDZs of Ethiopia could be protectedrnare the main questions raised by this thesis and the answer is respecting and enforcing laborrnstandards in zones. This research employed a qualitative methodology is employed and literaturernreview, comparative study and different interviews and FGD are conducted with relevant bodiesrnand common themes were gathered and analyzed to proof the real data with the theories. It isrnfound that wage paid in IDZs Ethiopia is below poverty line and not livable. As a result, againstrnGoE policy objective of poverty reduction the workers in IDZs are working under extremernpoverty and are burden to the society and the economy. Unionization rights are practicallyrnlimited and suppressed due to enclave nature of zones preventing access and by acts ofrngovernment and industries in the zone. As a result there is no forum for voice of workers in IDZsrnof Ethiopia. Generally the zones social condition lacked government attention. The relevantrnorgan of government entrusted with labor administration is weak and not committed to inspectrnviolation of workers' rights.rnIf IDZs of Ethiopia are required to succeed there should be industrial peace which relies mainlyrnon allowing workers get their fair share by way of wage, and the right to labor union andrncollective bargaining protected and effective inspection services allowed. To this effect MOLSA,rnindustries and workers in IDZs and other stakeholders should work toward reforming thernpractice, law and policy design of IDZs of Ethiopia by fixing minimum wages, allowing right tornorganize and collective bargaining, guarantee the enforcement of labor standards in IDZs byrnstrengthening the inspection structure.

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Emerging Labor Issues In Industrial Development Zones Of Ethiopia An Appraisal Of Legal And Policy Frameworks.

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