Abstract

This paper examines the operations of multinational enterprises (MNEs) in so far as they are able to influence the public and labour relations policy and law of their host nation with a special attention on African nations. It is to be expected that MNEs would already be comfortable with the mechanisms in place for the resolution of labour-related or commercial disputes in their country of origin. The question then that arises is: If confronted with an employment relations situation in their host nation, would the MNE attempt to circumvent or adapt the process to suit what they are already familiar with? This could pose a challenge for the practice of international labour law. Literature (Briscoe, Schuler & Tarique, 2012; Eweje, 2009; Iyanda & Bello, 1979; Onimode, 1978) already alludes to the fact that MNEs tend to take the ‘line of least resistance’ if confronted with ‘higher’ labour standards.
 A comparative exploratory analysis was undertaken. The paper identified MNEs in selected African countries – Nigeria, South Africa, and Zambia – that have been reported to have had a challenge in dealing with labour-related or commercial standards of their host nation. The selected MNEs had been reported in the news media for having had a ‘run in’ with their host nation on, at least, a labour - or commercial law-related matter.
 The principal legislation governing labour relations in these countries are, in some cases, briefly highlighted to underscore the extent of their breach or disregard by the examined MNEs. Furthermore, a qualitative, thematic analysis of selected reported cases involving these MNEs were undertaken to highlight evidences (or instances) of attempts, if any, by the MNEs to circumvent the commercial, fiscal or labour standards of the host nation. Finally, it is hoped that the result of the above analyses would inform the possibility of proposing a framework for MNEs compliance with the labour standards of their host nation.

Highlights

  • AND BACKGROUND The emergence of multinational enterprises (MNEs), or multinational corporations (MNCs) and transnational corporations, as they are referred to, could be traced to the advent of the industrial revolution, and concomitantly, the onset of colonialism in the 17th and 18thAdvances in Social Sciences Research Journal (ASSRJ)Vol.6, Issue 12 Dec-2019centuries1

  • The operations of multinational enterprises had an influence on price, consumer and market behavior that apparently led to an influence on the labour or employment relationship that exist in the host environment (Zhao, 1998)

  • Generally, most of the MNEs will continuously want to repatriate capital from the subsidiary and move it to their headquarters, which absolutely results in capital flight, which may in the long run have negative effect on the economy of the host nation

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Summary

Introduction

AND BACKGROUND The emergence of multinational enterprises (MNEs), or multinational corporations (MNCs) and transnational corporations, as they are referred to, could be traced to the advent of the industrial revolution, and concomitantly, the onset of colonialism in the 17th and 18thAdvances in Social Sciences Research Journal (ASSRJ)Vol., Issue 12 Dec-2019centuries. The operations of multinational enterprises had an influence on price, consumer and market behavior that apparently led to an influence on the labour or employment relationship that exist in the host environment (Zhao, 1998). In influencing this employment relationship environment, multinational enterprises go further to influence the labour relations policy, and possibly the labour laws of the host country What happens if a multinational enterprise refuses to observe the labour laws of the host nation, how will the government sanction it? Are there any procedures or regulations, pre-established by the host nation’s legislative framework, for dealing with such transgressions? Often times, governments do not have pre-existing mechanisms to keep them in-check

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