The Case of the Plant Relocation

Thèmes abordés

Plant Relocation, Mexico, Electrocorp, Philippines

Résumé du document

Mexico: The country of Mexico that could be the welcome country for Electrocorp. A lot of cities are cross border and enjoy the American employment market, to work in the illegality. The minimum wage is around $3 a day but this minimum wage is not sufficient for a worker to live, so the employee turnover is important. Mexican law regulation on the environmental effect and health is really reduced compared to the United states of America. At the same time the law against the use of special chemical product does not exist in Mexico, so wastes can be deposit easier.

The problem is that population is beginning to protest against companies that do not respect the environment and the well being of the population, and came across the border to facilitate the dropping of dangerous wastes.

Philippines: Philippines are one of the countries targeted by Mr. Smith the responsible of the anticipation of the operations in foreign countries. Philippines' minimum wages is $1 per day even if you do not wanted to include workers under 16. In the same way of Mexico, Philippines minimum wage is not sufficient to live has only work. Safety and healthy regulations are the same than in Mexico, not really constrainable, same for environmental issues. But the population does not complaints against unfavorable healthy and safety regulations.

Extraits

[...] federal law, approved by the Congress of the United States in 1938. The FLSA establishes minimum wage, offers overtime rules and prohibits the employment of minors and children in hard labor. It applies to employees working for a company, engaged in commerce or in the production of goods. What is important in the FLSA is that in our case, Electrocorp have to prevent its employee about the relocation of the company one month before the departure. If we are in an ethical relocation, the company has to forecast a social plan for employees that will be left in the relocation of the company because plant closure will cause economic dislocation and you do not want dislocation in your country. [...]

[...] - Collective labor relations: The unionization rate is high in Mexico employees, whether or not of the same company, can create a union. The signing of a collective labor agreement may be requested in firms with fewer than 20 employees. The strike right is recognized and protected by law. - Social protection: the employer and the employee pay Social security contributions to the Mexican Institute of Social Security (IMSS). Payroll taxes (between 25% and 35% of salary) shall be borne equally by the employer. No mandatory retirement age. [...]

[...] While, on a ecological point of view, this country does not reprehend if you want to pollute more than usual or use chemical substances which are often banned in other countries. As seen in the paragraph above, the laws regarding the chemical products and excessive pollution did not have applications on these lands. Finally, the non- enforcement of contracts is a common problem, they are sometimes unilaterally renegotiated, and the law is ineffective to ensure the compliance. Mexico. Mexico is one of the other choices that we have. [...]

[...] The minimum wage is around $10 per day and there is a strong Union movement into employees and workers. The South African's government worked with workers unions on the safety and healthy regulations and also on the environmental aspects of the future. Thanks to these regulation, there are requirements for a solvent recovery system, means that Electrocorp have to use the special deposit facilities in order to leave its wastes; More than that, equipment are necessary to reduce pollutions and toxic chemical to obtain an acceptable level for the government. [...]

[...] They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. - The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. - The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.” The section 14 of the constitution concerns women: “Section 14. [...]