Labour Relations in the Export Processing

Zone: Challenges for Organized Labour

edited by
Funmi de!umi
Labour Relations in the Export Processing Zone:
Challenges for Organized Labour
edited by
Funmi de!urni
t
Friedrich Ebert Founda
nert"#$ %
&&' ()(*+
#,-
Copyright . Friedrich Ebert Foundation/
ll rights reser0ed/ 1o part of this publication may be reproduced,
stored in a retrie0al system or transmitted in any form or by any
means, electronic, mechanical, photocopying, recording or other!ise,
!ithout a !ritten permission of the copyright o!ner/
First Published +&&2
3#41 &25 ' 6*6()/6 '2
Published by the Friedrich Ebert Foundation, Lagos
Printed by/" Colour Printers Limited
Plot /+6, 3ze lyamu #treet,
Oregun 3ndustrial Estate
37efa ' L 1igeria/
Fore!ord
One de0elopment strategy that has generated so much contro0ersy,
especially in respect of its implications for !or7ers8 !elfare and
industrial L relations8: practice in general, : is the' export'dri0en
industrialisation model that is encapsulated8 in the Export Processing
Zone 9EPZ: scheme/ ;enerally concei0ed to boost exports, in0estors
are usually offered a lot of incenti0es by the host country, including the
relaxation of con0entional labour legislations,!hich are too pro'labour/
Export processing zones thus become encla0es !here !or7ers rights
are put ih abeyance, <e0elopments in many EPZs across the !orld
confirmed this 0ie!/ 3t is partly in response to this that there has been
an interest in examining the social and !or7ing conditions in the EPZs/
=he 1igerian go0ernment appears committed 9at least going by the
amount of money in0ested so far: to the ta7e'off of the EPZ scheme/
;i0en this preparedness and ta7ing a cue from the experiences of
other countries !here the scheme is on, it is appropriate to consider
in detail the labour relations issues in0ol0ed and the challenges posed
to !or7ers in the context of the EPZ/ >e do not ha0e to !ait until
problems arise before addressing them/ pro'acti0e stance can be
ta7en/
3t is against this bac7ground that in ?arch +&&2 9on the @)th and
@2th:, the Friedrich Ebert Foundation, in partnership !ith the 1igeria
3ndustrial Relations ssociation, organised a !or7shop on the themeA
BLabour Relations in the Export Processing Zone: Challenges for
Organised LabourB/ =he !or7shop !hich held in Calabar, home of the
premier EPZ in 1igeria, attracted participants from the trade unions,
employers8 associations, the academia as !ell as the 1igerian Export
Processing Zone uthority/ =he collections in this 0olume are
presentations put together for the benefit of a !ider audience/
!ide range of issues are raised by the different authors/ =hese
include an o0er0ie! of the EPZ as a de0elopment strategy, industrial
relations issues !ithin the context of the EPZ 9and this from a
comparati0e perspecti0e:, the rele0ance of international labour
3
standards to employment relations and the maCor issue of protecting
!or7ers8 rights/ 3t is hoped that these !ould eDuip trade unions officials
and !or7ers generally to face the challenges posed by the peculiar nature of
operations in EPZs/
Finally, 3 !ish to seize this opportunity to than7 all those !ho contributed to
the success of the Calabar !or7shop and,by extension, this publication, most
especially, participants and the paper !riters as !ell as the 1igeria 3ndustrial
Relations ssociation for their efforts,
3 ha0e no doubt in my8 mind that readers !ill find this 0olume 8a 0aluable
addition to the existing literature on the subCect matter8of this boo7/
;erhard >endEer,
Resident Representati0e,
Friedrich Ebert Foundation, Lagos,
3F "
=able d CGptents
Page
Fore!ord i0
=able of Contents ' ' ' 0i
Chapter One
Export'<ri0en 3ndustrialization: n O0er0ie! of the Export Processing 9EPZ:
#cheme 1igeria @
Chapter =!o
Ensuring Compliance !ith 3nternational Labour #tandards in EPZs
+(
Chapter =hree
3ndustrial Relations in the EPZ: Learning from the Experiences of
other Countries +2
Chapter Four
3ndustrial Relations in Export Processing Zones: =he Experience of #ri Lan7a @2
Chapter Fi0e
Protecting >or7ers8 Rights in the Export
Processing Zones 9EPZs:: Challenges for the
Labour ?o0ement *2
iii
Chapter One
!E
Export'<ri0en 3ndustrialization: n O0er0ie! of the Export,Processing
9EPZ:,#cheme in81igeria
by
Prof/ 7pan H E7po
<epartment of Economics
$ni0ersity of $yo,,$yo,
7!a 3bom #tate, 1igeria/
3ntroduction
#ince the mid/+&)(s, se0eral de0eloping countries implemented
policies designed to stimulate exports, of non'traditional manufactured
goodsA One type of this export promotion effort is the establishmentA of
export processing zones 9EPZs:/ #e0eral/EPZs !ere created in the
early +&2(s and by:the +&5(s, about 6I existed in sia alone/ EPZs
are increasingly becoming important in the export promotion crusade
of de0eloping countries/
n EPZ is a special encla0e, outside a country8s normal customs
barriers, !ithin !hich8 in0esting/ firms, mostly foreign, enCoy special

treatmeht >ith respect to imports of intermediate goods, :company
taxation, pro0ision of infrastructures and freedom from industrial
regulations applying else!here in the country/ =hough details may
0ary, a uni0ersal feature in EPZs B is the almost complete absence of
either taxation or regulation of imports of 3ntermediate goods into8 the8
zones/ =hese pri0ileges aresubCectto%the%donditions that almost all of
the output produced are exported and that all imported intermediate
goods are utilised fully !ithin the zones or re'exportedB 9>arr, +&&(:
6(:/
Follo!ing the problems in the 1igerian economy created by the
mismanaged, !indfall from petroleum and the, failure, of the,A import
0
=his 8footloose8 character of firms operating !ithin EPZs, that is, their
substitution industrialization strategy 93#3:, policy'ma7ers began to
concei0e of establishing an EPZ for the country as a !ay of promoting
industrialization through exports/
=raditionally, 1igeria exports ra! materials 9agriculture and mineral
resources: to de0eloped countries, 3t !as anticipated that the earned
foreign exchange !ill be utilized in de0eloping and modernizing the
economy/ fter se0eral decades, 1igeria 8 still remains essentially an
export'based economy/ >hat is sad is that the exports are still in ra!
form/ =herefore, the 0arious8 policies, programmes and strategies
including the 0arious incenti0es ha0e not altered the export of ra!
materials and import of finished goods feature of the economy/ Partly due
to this, go0ernment decided to create an EPZ to encourage the export
of manufactured or semi'manufactured goods/
=his chapter is an o0er0ie! of this de0elopment strategy/ part from the
introduction, section '@ discusses some 8conceptual 8 issues
highlighting the special features of EPZs/ 3n section 6, the Calabar
Export Processing Zone is examined !hile !or7ers !elfare in the
context of EPZ is analysed in section */ #ection I concludes the
global mobility and capacity to adCust output rapidly in response to
changing conditions has been ignored by most of the existing
theoretical !or7 on the subCect/ =hus, the conclusion more often is
that EPZs are necessarily !elfare'reducing for countries establishing
them/
=he economic literature on EPZs centre on their benefits and costs/
EPZs are closely monitored by host go0ernments and !hen compared !ith
data 8a0ailable for other public8 proCects in de0eloping countries, there
exist a paucity of information/ ConseDuently, empirical !or7s on EPZs are
still scanty/
Features of EPZs
=he detailed features of EPZs 0ary, but the follo!ing are almost
uni0ersal and can be used in describing a typical EPZ/
i:/ Gu6Ja! materials needed for the production of exports may be imported
duty'free/and !ithout regard to any Duantitati0e restrictions existing in
the domestic economy/ lso, products may be exported !ithout
i
chapter/ payment of export taxes, aesl dutieshomef
ih9hostK ecoun country s butythe
Conceptual issues
Export processing zones88or free 8trade zones are special encla0es
,outside a country8s normal customs barriers !here foreign or domestic firms
may manufacture or 8assemble goods for export !ithout paying the
normal custom duties on ra! materials8 and exported8 products/
=he economic acti0ities ta7ing place !ithin EPZs ha0e8 been labour'
intensi0e/light manufacturing processes such as electronics assembly,
garment production, assembly of light electrical goods, among others/
n important feature of firms operating !ithin EPZs is their international
mobility, =urno0er, is often high and firms lea0ing an EPZ in one
country mo0e to an EPZ in another, in !hich, perhaps, conditions are
more fa0ourable/
=his 8footloose8 character of firms operating/ !ithin EPZs, that is, their
global mobility and capacity to adCust output rapidly in response to
changing conditions has been ignored by most of the Eexisting
physically located any!here
processing acti0ities underta7en !ithin them occur 8outside8 the country if the
Curisdiction of normal customs pro0isions is considered/
=hough goods produced !ithin8 EPZs may not normally be sold !ithin the
domestic economy, reCected goods by foreign buyers can be sold
domestically !ith permission/ 3n0ariably, this type of sale !ill displace
imports !hich !ould ha0e occured from other sourcesA and often
attract normal custom duties/
EPZs firms8 purchases of ra! materials and intermediate goods from
!ithin the domestic economy are freDuently subsidized so as to
encourage bac7!ard lin7ages bet!een EPZ firms and the domestic
economy, =hese subsidies are other!ise 7no!n as 8rebates8 or
%dra!bac7s8 and 8 they8 often counteract the effects of domestic
protection,
*
@
iiK smax incGmahGLtdJ:
3n most cases, temporary exemptions 8 from normal income'tax
pro0isions are freDuently "8fered, !ith duration lasting from three to
ten years/ 1ormally, EPZ is negotiate successfully for continuation
of tax holidays/ t times, they threaten to relocate if tax holidays are
not granted/
iii: R s e bumamrm:
EPZ firms are often pro0ided !ith streamlined customs/ documentation
reDuirements for imported ra! materials and8 capital goods and
exported final products/ ?ore often, a special branch of customs is
usually established to mediate bet!een EPZ firms and the go0ernment/
=he idea is to minimize EPZ firms8 administrati0e costs and to pre0ent8
unnecessary and costly delays/ =he extent to !hich these bodies are
empo!ered to act on behalf of the go0ernment differs/ EPZ firms are,
can then rent floor space/ #uch rates are again generally lo!er than
commercial industrial ones else!here in the country/ lternati0ely,
intended EPZ firms may lease land !ithin the zone and construct their o!n
buildings/
>hat is described abo0e is the general characteristics 8of EPZs/ Ho! then
does the Calabar Export Processing Zone in 1igeria,fits into this general
picture/
Calabar Export Processing Zone
=he apparent successes recorded in some sian countries notably
=ai!an and the Republic of Morea !ith EPZs prompted 1igerian policy'
ma7ers to consider establishing EPZs in 1igeria/ 3t !as belie0ed that
EPZs !ould 88 attract foreign in0estment thereby contributing to the
gro!th of the economy/
+&5(, ;ills 1igeria Ltd/, a firm, of consultants, carried out a
generally exempted from the follo!ing regulationsA restrictions on
repatriation of profitsA restrictions on the employment of foreign
Hence, in
feasibility study and recommended, the establishment of an88 EPZ
1ine8 years / after, the go0ernment
nationals in managerial, super0isory and technical rolesA and
reDuirements for special appro0als for the importation and installation of
labour'sa0ing capital eDuipment/ #ometimes EPZ firms may be
granted access to the host country8s allocation of imports/
i0: 4etter infrastructure and subNidized utilities:
n EPZ usually consists of a fenced area !ith a perimeter and gates
around 88the Calabar port/
recommended a re0ie! of the ;ills report gi0en the long internal and
cost 0ariations due to the changing, economic situation/ ne! study
!as conducted by a consortium of $13<O and $1<P experts bet!een
1o0ember +&&( and Lune +&&+/ =he submission of ,this/ report led to
the formation of an inter/ ministerial committee charged !ith the
responsibility of drafting the EPZ legislation/ =hereafter, experts !ere
+&&+, go0ernment
policed by customs officials to pre0ent duty'free materials from being appointed to complete the feasibility study, 3n
6* formally establishing the EPZ, and
smuggled into the domestic economy, ccording to >arr, 9+&&(:
+6I: B !hile infrastructural facilities such as roads, and telephone and telex
communications are normally superior to/ those outside, they are generally
inferior to those found in the industrial area of de0eloped countriesB/
$tilities are more often subsidized/ Electricity tariffs are especially
important in this regard since light manufacturing enterprises are hea0y
users of electrical po!er/
promulgated <ecree 1o/
pro0iding for the appointment of the 1igerian Export Processing Zone
uthority 91EPZ: to handle its implementation/
total area of +I@,((( hectares close to the Calabar port complex
has been set aside to ser0e as the permanent site of the first EPZ in
1igeria/ =he foundation stone of the EPZ !as laid on 1o0ember ++,
+&&+/ ;o0ernment inaugurated an implementation tas7 force in ?arch
+&&@ !ith the responsibility to o0ersee 0arious aspects of the proCect/8
Rates charged !ithin EPZs are freDuently
belo!, and ne0er abo0e, industrial rates else!here in the host country/ =he role played by EPZs in promoting industrialization and
3n addition, EPZs include standard construction factory/ buildings,
constructed and managed by go0ernment authoritiesA in0esting firms
manufactured exports has al!ays been contro0ersial/ ;o0ernment has
allocated huge funds for/the realisationA of EPZ in 1igeria/ s at the
3t 3
I
first Duarter of +&&2 about 1@/I billion has gone into the proCect/ For
the most part, the Calabar EPZ has met almost all the con0entional
=able
'+/
?anufactured x Ports as a Proportion of =otal Exports, +&5@' &@ 1o:
Jear ?anufactured Oil Exports
reDuirements for it to ta7e'off/ For example, in +&&I, go0ernment
allocated about 16 million for the pro0ision of facilities in the free trade
zone/
=he economic en0ironment in the last three years has been fa0ourable
for the ta7e off of the EPZ/ =he rate of inflation is around @@OA the
exchange rate regime is stableA interest rate is no! mar7et determined
and budget deficits ha0e been curtailed, =hese indices should attract
foreign in0estors to use the facilities pro0ided by the Calabar EPZ/ 3n
the +&&I budget, any export processing factory in a bounded export
zone !as entitled to an accelerated first year +((O capital allo!ance
claim on its Dualifying building and plant expenditure !ithout any
restriction to full claim of capital allo!ances in any year of assessment/
Furthermore, in the +&&2 budget, plant and machinery imported for
use in the EPZ are exempted from F=/ =his is to encourage
in0estment in certain preferred sectors of the economy/
lot of resources has gone into the EPZ scheme hence, society could
benefit/ =he Calabar EPZ !ill generate employment, increase incomes of
firms, result in the establishment of auxilliary 0entures 9bac7!ard and
for!ard lin7ages: and contribute positi0ely to the economy of Cross
Ri0er and neighbouring states/=he state of manufactured exports in
1igeria indicates the need for an EPZ/
Ho!e0er, in spite of !hat appears to be a fa0ourable economic climate
foreign in0estors ha0e not sho!n enough enthusiasm in the scheme/
gain as at ?arch, +&&2 only t!o firms !ere on the 0erge of ta7e'off,
>hat appears to be an impediment is the inclement political climate in
the country/
Performance of manufactured exports in 1igeria,
=able 3 belo! sho!s the performance of manufactured exports in
1igeria/ For the entire period, manufactured exports as a proportion
of total exports !as less than +O, On the other hand, oil export
continues to dominate, =he establishment of the EPZ in Calabar is
aimed at increasing the share of manufactured exports, =he
Exports as a O of as a O of =otal8
total Exports Exports/
+&5 (/+) &2/+
+&56 (/+@ &*/@
+&5* (/+) &I/(
+&5I (/(2 &)/2
+&5) (/(* &6/+
+&52 (/I+ &I/6
+&55 (/)( &+/@
+&5& (/II &*/&
+&&( ' (/)2 &2/(
,+&&+ (/&@ &)/@
+&&@ (/I6 &2/5
#ource: Lerome, L/ and / deni7inCu B=rade Policies and the Promotion of ?anufactured
Exports in 1igeriaB in 1E#, +&&I, p/ @((/
Export Processing Zone and !or7ers8 !elfare
3t is necessary that the !elfare of !or7ers be addressed in the Calabar EPZ/
=here is a general tendency for firms in the EPZ to exploit !or7ers '
pay lo!er !ages and do not pro0ide necessary facilities li7e adeDuate medical,
care/
>or7ing conditions in EPZs ha0e been !idely criticized by scholars
from industrialized countries/ =he criticism centres on harsh !or7ing
conditions and lo! !ages/ =his situation !as disco0ered in a study on
!or7ing conditions in Phillipines8 4ataan EPZ/ =his ought to be a0oided in
1igeria hence, it is useful that from the start a cordial !or7ing
relationship should exist bet!een/!or7ers and employers/ 3ndustrial
peace is neceassry for sound EPZ that !ill stimulate gro!th in the
economy/ =his issue is treated more elaborately in Chapter I/
)
2
5
Conclusion
rasurmg Com llanc !ith 3nternation, al Labour #t n a ds n EP
=his chapter has examined export promotion in the context of EPZs/
=here is no doubt that the Calabar Export Processing Zone has some
of the basic features of any EPZ in the !orld, 1onetheless, there is
need to continue to de0elop the basic infrastructure/ ;o0ernment
should as a/ matter of urgency commission the Calabar EPZ/ 3t !ill
enhance the economic acti0ities of the area and neighbouring states/
=here is need to state that firms operating !ithin the EPZ must ensure
industrial peace/ =he surest !ay of achie0ing this is to pro0ide basic
facilities and incenti0es for !or7ers/ 3ndustrialization through EPZ
should not negate the !elfare of !or7ers/
References
E7po, /H/ 9+&&I: Openness and Economic Performance in 1igeria: =ime #eries
nalysisB in 1igerian Economic #ociety 9+&&I: ansl
EeGrgrCie/<e0el>r$ tLO 1igg 3badan, #teps'head,
Federal ;o0ernment of 1igeria/ nn gLL *gP &I arzdQ+ Lagos,Federal
;o0ernment Press/
Lerome, / and / deni7inCu 9+&&I: B=rado/EGLL ies and the PrG/mG9fgn
f anut turd xu rx/ n 1iserLaB 3n 1igen n: ;otGmics Ropiety, op,cit,
?iluer, P/ 9+&&(: 9ed/: ESp&rf P
romoti
gn +geQeO/=he&ncQand
by
Cynthia Jinusa 9?rs/:
1ational Programme Officer,
3LO, rea Office, Lagos
introduction
For'practical purposes an EPZ is seen as a clearly delineated industrial
estate !hich constitutes a free trade encla0e in the customs and trade
regime of a country and !here foreign manufacturing firms, producing
mainly for export, benefit from a certain number of fiscal8 and financial
incenti0es/
=he maCor interest of the modern8 EPZ concept lies not so much in the
in0ention itself, as in the !orld'!ide diffusion to de0eloping countries
rather than to the more industrialised countries of Europe and 1orth
merica, 3n +&2(, there !ere some ten de0eloping countries
throughout the !orld !ith at least one B#hannon'styleB EPZ/ 4y +&5),
their number had reached a total of *)/ 3nformation a0ailable indicate
that more than half the countries classified by the $nited 1ations as
Bde0elopingB are acti0e in the EPZ business/ 3n frica, the early
starters include ?auritius, Liberia, #enegal and =ogo/ Others !ho
ha0e since Coined the band !agon are =unisia, Egypt, ?adagascar,
=anzania, Cameroon, ;hana, 1igeria, Zaire and Menya/ Others li7e
Zimbab!e, Cape Ferde, Ethiopia, 1amibia, ?ala!i, ?ozambiDue,
E/0Qid Cmyr g , 1e! Jor7, Har0ester
>arr, P/ 9+&&(:Exp rot Pg@gne 8, in ?iluer, C/ '9ed: op/cit/
>orld 4an7 9+&&@:
Country Economics <epartment/
>heatsheaf, Zambia, #eycheilles and #outh 8frica/ are de0eloping their
programmes/
=he modern EPZ should rightly be considered an 3rish in0ention, Faced
!ith8 the ineluctable decline of #hannon international irport, caused by
the8 ad0ent of the Cet airliner !hich, unli7e iteB% Gpeller"dri0en
+(
predecessors, no longer needed to refuel ,on the trans8'atlantic flight,
the 3rish authorities decided in +&I& to transform the airport area into
a free trade zone and attract foreign firms to set up manufacturing
facilities in the area/ =he reasoning behind this !as that the firms
!ould help to replace the Cobs lost as a result of the airport8s decline,
pro0ide ne! employment opportunities in !hat !as then a some!hat
industrially underde0eloped economy, and through the export by air of
industrial products !ith a high 0alue added, gi0e a ne! lease of life
both to the airport and the national airline/ #ubseDuent e0ents pro0ed the
0alidity of this approach/ 3n +&)(, its first year of operation, the
#hannon free trade zone sa! the creation of **( ne! industrial Cobs,
and by +&2I !as employing o0er 6,5(( people 9!ith a pea7 of *,2I(
in +&2(:/ s for the airport itself, the total number of employees rose,
from +,@I( in +&)( to @,@(( in +&2I/
Employment in these zones ha0e8 gro!n from about I(,((( in +&2( to, o0er
+/6 million in +&5)/ ;lobal employment in EPZs gre! by &O8
bet!een +&2I and +&5) and by +*O bet!een +&5) and +&&(/88 >ith
the expansion in the number of EPZs spread all o0er the !orld,
aggregate employment in these zones has hit the 6/I million mar7/
=his figure does not include China8s Bspecial economic zonesB !here
bet!een +* and *(/ million !or7ers are employed/
3nternational labour standards r
=he significance of international labour standards stem from the 3LG8s aims
and purposes/ 4y its constitution, the 3LO is committed to see7ing
the realisation of certain normati0e obCecti0es, !ith a 0ie! to ensuring that
all <uman beings, irrespecti0e of race, creed or sex, ar able to pursue their
material !ell being and their spiritual de0elopment in conditions of
freednr' anal dignity, economic security and eDuality/ , ll
member/states by 0irtue of their membership/, ha0e a common
responsibility to !or7 to!ards the attainment of these goals// ,
3nternational labour standards are central, to, the acti0ities/ of, ,the 3LO/
O0er the years, the i go0ernments , of / member #tate s /and their
employers8 and !or7ers8 organisations ha0e built up a system of
international standards in all !or7'related matters, such as the abolition
of forced labour, freedom of association, eDuality of treatment and
opportunity, employment promotion and 0ocational training, social
security, conditions of !or7, pre0ention of >or7'related accidents,
maternity protection, minimum age for entering the labour mar7et, and
protection, of migrantsA and categories: of !or7ers such as seafarers,
fishermen, nursing personnel or plantation !or7ers/
3n Lune of each year, after considerable preparatory !or7,
representati0es of go0ernments and employers8 and !or7ers8
organisations of all member countries meet in the 3nternational Labour
Conference in ;ene0a to adopt or re0ise those standards !hich !ill
become international labour Con0entions or Recommendations/ =hese
international instruments, !hich deal !ith people and their !or7, are
binding on countries !hich ratify them/
=he, international labour standards/ ha0e been a, source of guidance and
inspiration for formulating labour, and social policy, in the 0arious
countries, ,, =here are also a series 8of resolutions, conclusions and
codes ,ofpractice adopted by the 3nternational Labour// Conference or
technical meetings of 3LO such as those of industrial committees or
meetings of experts !hich ser0e as social policy guidelines and
supplement the international labour standards/
4ased on reports submitted to the 3LO, the8 standards thatBare 8of
special rele0ance td export processing zones include:
Freedom of ssociation and Protection of the Right to Organize Con0ention 52 9+&*5:/
Establishes8 the right of all !or7ersEemployees to form and Coin
organisations of/ their: o!n choosing !ithout prior authorization,/ and lays
do!n a series of guarantees for the free functioning of
organisations !ithout interference by the public authorities/
Right to Orggh se and Collecti0e 4argaining Con0ention 1o/ &5 9+&*&:/
Pro0ides for protection against/ anti'union, discrimination, for protection of
!or7ers8/ and employers8 organisations against acts of interference by
each other, and for measures to promote collecti0e bargaining/
++
Labour 3nspection Con0ention 5+ 9+&*2:
#ets out the mechanism to secure the enforcement of the legal
pro0isions relating to the conditions of !or7, and the protection of
!or7ers !hile engaged in their !or7 9including hoursA safety, health
and !elfare:/
?aternity Protection Con0ention +(6 9+&I/
#tipulates that at least +@ !ee7s8 lea0e should be granted the
concerned !or7er,and also pro0ides that an employer may not dismiss a
!oman !hile she is on maternity lea0e or gi0e her notice of dismissal at
such a time that it !ould expire !hile she is on lea0e/
Human Resources <e0elopment Con0ention +*@ 9+&2I:/
ReDuires the adoption and de0elopment of comprehensi0e
t programmes of 0ocational guidance and training ta7ing account of
employment needs and the le0el of economic obCecti0es/ =he
programmes are to enable all persons !ithout discrimination, to
de0elop and use their capabilities to !or7/
Ensuring compliance
Resolution ,@&, adopted by the Fourth =ripartite/, =echnical ?eeting for
the Leather and Foot!ear 3ndustry, called for the full application of 3LO
standards in EPZs to be ensured and for the promotion of the =ripartite
<eclaration of Principles concerning ?ultinational Enterprises and
#ocial Policy/ =he =ripartite <eclaration pro0ides, among others, that
all rele0ant international labour standards, notably Con0entions 52 and
&5 must be respected by multinational enterprises/
=he implementation of these standards in EPZs are subCect to constant
super0ision by the 3LO/ Each member country agrees to present
periodically to the 3LO a report on the measures ta7en to8 apply, in la!
and in practice, the rele0ant con0entions !hich it, has' ratified, 8 =he
go0ernment reports are examined by the Committee of Experts on the
pplication of Con0entions and Recommendations, composed of some
t!enty independent, eminent figures in either the legal or social field
and !ho are also specialists in labour matters/ =he committee submits
an annual' report to the 3nternational Labour Conference, !hich is
closely examined by a tripartite committee composed of go0ernment,
employers and !or7ers members/
3n parallel !ith this mechanism of regular super0ision, procedures
!ritten into the 3LO Constitution also contribute to respecting the
system of international labour standards/ 4y 0irtue of its constitution,
the 3LO !as established in/particular to/ impro0e !or7ing conditions and
to 8 promote8 freedom of association8 in its member states/
ConseDue8ntly, the matters dealt !ith by the 3LO in8respect of !or7ing
conditions and freedom of association can not 8 be considered to be
undue interference in the internal affairs: of a so0ereign state, since
such issues fall !ithin the mandate that the 3LO recei0ed from its
members/,
=hus, !hen a state decides to become a member of the organisation, it
accepts the fundamental principles embodied in the Constitution and the
<eclaration of Philadelphia, including the principles of Freedom of
ssociation/ =his in effect means that all member/ #tates are expected to
respect the minimum standards of trade union rights enshrined in
Con0entions 52 and &5, and other basic human rights, no matter the le0el
of de0elopment of the country concerned/
Employers and !or7ers8 organisations can also lodge complaints !ith the
3nternational Labour Office on a member state8s noncompliance !ith a
Con0ention it has ratified, 3f the complaint is Cudged: recei0able by the 3LO
;o0erning 4ody, it appoints a tripartite committ ee toA study the Duestion/
=his8 committee, thereafter, submits a report con0eying its8conclusions
and/recommendations to the ;o0erning 4ody//
?oreo0er, any8lnember country can lodge a complaint !ith the Office
against another member country !hich, in its o!n opinion, has not
ensured in a satisfactory manner the implementation of a Con0ention
!hich both of them ha0e ratified/ =he ;o0erning 4ody has the option
to establish a Commission of 3nDuiry to study the Duestion and present
a report on the subCect/ =his process may also be set in motion by the
;o0erning 4ody itself orT/on the complaint of a delegate 8to, the
Conference,
+@
+6
employment !ith employees that include !age scales, minimum
=he Commission of 3nDuiry formulates recommendations on measures
to be ta7en, if necessary/ =he go0ernments concerned then ha0e
three months to accept these recommendations/ 3f they do not, they
may submit the disagreement to the 3nternational Court of Lustice/
3f a member state/ does8 not comply !ith the recommendations of the
Commission of 3nDuiry or !ith a decision of the 3nternational Court of
Lustice !ithin the stipulated period, the ;o0erning 4ody may
Brecommend to the Conference such action as it may deem !ise and
expedient to secure compliance there !ithB/
3n addition, the super0isory system of the 3LO includes a' standing
tripartite committee of the ;o0erning 4ody8 responsible for examining
special complaints concerning freedom of association and the right to
organise/ Rights, !hich as earlier stated, ha0e a central place in the
3LO constitution,
Conclusion
=his chapter has briefly loo7ed at the emergence of EPZs and
international labour standards that are of special significance to this
sector based on the reports submitted to the Committee of Experts/
=he measures used for ensuring compliance !ith these standards ha0e also
been highlighted/
$nfortunately, the information pro0ided to the Committee of Experts
and the Freedom of ssociation Committee of the ;o0erning 4ody
ha0e been 0ery negligible/ =rade unions do not seem to ha0e free
zones specialist capacities to pro0ide expert inputs into EPZs/ =his
may/ ha0e resulted in the 0ery limited use of the 3LO super0isory
mechanism to ensure that international labour standards are complied
!ith in EPZs/
/3t has, ho!e0er, been/ obser0ed that as a result of the 3LO8s persistence in
!or7ing to!ards the implementation of international labour standards in
member, states 9including EPZs:,, EPZ legislations are becoming
consistent !ith these standards/ " For example, 8the ;hana Free Zone
legislation reDuires employers to Bnegotiate and establish contracts of
!or7ing hours, employee suspension and dismissal, settlement of
disputes/// and other such terms of employment !hich shall be
consistent !ith 3LO con0entions on !or7ers8 rights and conditions of
ser0iceB/ ;hana still !ent a step further by ensuring the representation of
;hana =rade $nion Congress on the Free Zones 4oard/ =he 4oard8s
Committee on 3mmigration and Labour is 8expected to Bensure
compliance of zone de0elopers,and operators !ith /3LO Con0entions on
!or7ers rights, conditions of ser0ice as !ell as other labour
reDuirements in the Free Zone Regulation 5+)+B/
$nfortunately many member states ha0e not been as protecti0e of
labour standards in the EPZs, infact some ha0e denounced their
ratification of 3LO Con0entions/ #ri Lan7a denounced its ratification of
Con0ention 5& on 1ight >or7 in order to encourage foreign enterprises in the
EPZs 9this decision is further explained in chapter four:/
=here is, therefore, 8 a lot of !or7 that needs to be done to sensitize
trade unions, and other sta7eholders on the challenges posed by/ export
processing zones to trade unions/ =hey should also be made a!are
that they can a0ail themsel0es of the super0isory machinery !ithin the
3LO/to enhance the conditions operating !ithin these encla0es/ 3t is my
hope that trade unions in 1igeria !ill transform themsel0es from being
passi0e obser0ers of the national EPZ scheme into pro'acti0e players, //
References
;eorge 4oagye:BChallenges po/sedQby fre/eQtrade zonesto =adQQllnions/in ricaB
Paper presented at the +CF=$E;=$C Regional Conference on organising
>or7ers in EPZs, ;hana +&&)/
3LOE$1C=C: Economic U #ocial Effects of/ ?/ultinational/Ente/rprises in/// /Export
proce/singQZ,ones/9+&#4:/
3LO: =ripartite <eclaration/ of Principles Concerning/ ?ultinat
iona
l/Enterprlse 3LO
Fact #heet/
+) ,ti
+*
+I
#edondlyA it is not an o0erstatement tc explain here that the o0erall
probability of success of the 1igerian, EPZ ProCect is also closel8
3ndustrial Relations in the EPZA Learning from t e Exp:grfences
0uier t,uunirres
by
<r #egun ?atanmi
ssociate Professor of #ociology,
Lagos #tate $ni0ersity, OCo, Lagos/
#ecretary ' =reasurer 1igeria 3ndustrial Relations
ssociation,8
3ntroduction
Fundamentally, the raison d8etre for the creation of export processing
zones 9EPZs: cannot be o0er'emphasised, particularly as a 0iable,
mechanism for the desired acceleration of 8 socio'economic
de0elopment processes in underde0eloped countries and additionally8
for theA obCecti0e of sustainable human 8de0elopment 9#H<:/ For,
example, the 1igerian EPZ proCect that !as initiated in +&&+ !as
primarily a de0elopment strategy to attract8 necessary in0estment
capital into the country through both foreign and local sources, and
ultimately for the composite obCecti0es, among others, of:
" increasing the production of exportable goods, especially from the
non'oil sector'!hich by impEication, in0ol0es the strategic
de0elopment and expansion of the production base of the
agricultural and solid mineral export sector,,
" creating labour employmentA and
associated !ith the8: status of industrial relations climate and
organizational beha0iour much as a battery of other critical success8
factors' such as the nature of macro'economic policies, the larger
en0ironment of politics and go0ernance, strategic resource
management, flexibility'ha0e been identified in the literature relating to the
subCect'matter/
4ac7ground scenario of the international economic system and realities of
globalization/
3n spite of the relati0ely ne! and on'going dispensation of global order,
9than7s to the positi0e de0elopments of general globalization, such as
the more rapid/ integration and greater openness and flexibility of a
larger number of the national economies, as !ell as the implicit
opportunities and challenges:, the political and economic dimensions of
these de0elopments are hardly fa0ourable to the frican countries and,
indeed the/ generality of underde0eloped countries/ For example, !hile
the unsustainable burden of external debt particularly necessitated the
!idespread adoption of mar7et'oriented economic policies by the
underde0eloped countries generally, and the greater trade, in0estment
and technology flo!s, ha0e also further unified cross'national mar7ets,
the de0elopment gap bet!een sub'#aharan frican countries and the
industrial countries, has actually !idened 9see 0arious issues of Human
<eueCopment Report +&&(/+&&)/:
#tatistical corroboration for such a finding is further pro0ided e0en by
comparison !ith the parallel rates for the more faster'gro!ing
de0eloping countries of East sia/ For instance, the real ;<P per
capita in sub'#aharan frica !as @/+, (/* and ' +/@O respecti0ely for
the broad periods of +&)I/+&26/5( and +&5('5&/ 3nstead, the East
9e/g/ ?alaysia, =hailand and Morea: ha0e been
" generating foreign exchange 9see l7pf, +&&*:
sian countries
associated !ith figures of
)/@O respecti0ely for the
I/6, */&/ and
=o date, it is appealing that the 0ision9s: of a premier EPZ proCect at
Calabar and the Onne Free Port are about to be realized,
+2
same designated time period abo0e/ ;ranted that the East sian
countries ha0e been able to achie0e that appreciable gro!th rate of
real ;<P' through their adoption of mar7et'dri0en de0elopment
strategy, it is a further e0idence of the reality that the less de0eloped
economies are far from being monolithic on accounts of their existing
+5
+
le0els of de0elopment/ 3t is also a general affirmation of the inherent
ineDualities in the emergent pattern of the ne! international economic
order 9=he >orld 4an7, +&&I: @*&A%FaCana, +&&)A ?atanmi, +&&)a:/
3n general terms, a do!n!ard trend had been associated !ith the
gro!th of frican economies 8 since8 the +&2(s/ ?oreo0er, the
longitudinal trend for sub'#aharan frica has generally declined, also
specifically from +&5( to +&&6 9see =able + belo!:/ s further
depicted by the statistical table, the composite data on all lo!'income
economies 9excluding China and 3ndia:, !hich indicate a modest
positi0e a0erage gro!th in the same period, ha0e actually portrayed
ho! !orse8 off the frican sub'region has been/ =he o0erall
implications of that statistical sho!ing/ are that the frican countries
9especially #ub'#ahara: are predominantly lo!'income economiesA and the
fall out of a general trend of economic deterioration has been the lo!
standard of li0ing and Duality of life in the generality of these
countries/ 3t should be recognized that the present economic crises in
frica is attributable to a combination of internal and external factors
that range from structural economic constraints8 and the mostly
unfa0ourable terms of international trade, to the huge debt burden
9FashoyinU?atanmi,+&&):*@/*6:/
=able /,
Cross'country profile of annual a0erage percentage gro!th of the ;<P for frica in
the Lo!'income group as compared to global corn arable rou +&2('+&&68
Country of Region +&2(/5( +&5( '&6
+/ 4enin @/@ @/2
@/ 4ur7ina Faso */* 6/2
6/ 4urundi 6/+ 6/)+
*/Central frican Republic @/* +/(
I/ Cote d8l0oire )/5/ )/+
)/ ;ambia */I @/*
2/ ;hana '(/+ 6/I
5/ ;uinea 6/2
&/ ;uinea 4issau @/*8 */5
+(/ Menya )/* 6/5
++/ Lesotho 5/) I,I
+@/ ?ala!i I/5 6,(
+6, ?ali */2 +/&
+*/ 1iger (/) (/)
+I/ 1igeria */) @/2
+)/ #ierra Leone +/R +/+
+2/ =anzania 6/( 6/)
+5/ =ogo */( (/2
+&/ Zambia +/* (/&
@(/ Zimbab!e +/) @/2
@+/ #ub'#aharan frica 9excluding #outh frica: 6/5! +/)!
@@/ ll lo!'income Economies excluding China and 3ndia *,6! I/2!
Mey
! F !eighted a0erage
9#ource: 8 =he >orld 4an7, >orld <e0elopment Report +&&I, >ashington, <C/: Oxford $ni0ersity Press,
+&&I:+)*'I:,
3n 0ie! of the abo0e, the more feasible a0enues for the achie0ement of
economic reco0ery in: the, frican countries appear to lie in the
follo!ing:
" the formulation and acti0ation of sound macro economic policiesA " the
pursuit of the de0elopment of good infrastructures'!hich also
ha0e their multiplier effects across sectors in these countriesA
" the attention to human resource dimensions of the acti0e
de0elopment of reliable and s7illed labourA and again
" the absolute concern about the achie0ement of social and political
stability,
3n particular, it has been argued that frican countries ha0e generally
not benefitted much from the trend of economic globalization and the
liberal international trade patterns because of the absence8of the/ abo0e
+&,
mentioned critical de0elopment agents or factors/ ?ore specifically,
there is an urgent need for the frican countries 9or go0ernments: to
create fa0ourable operating en0ironments for the particular attraction of
necessary in0estment capital and, eDually, the reduction of capital flight/
One parallel global de0elopment that further compounds the
frican predicament is the on'going economic reconstruction of former
centrally planned economies 9e/g/ former #o0iet $nion: !hich has
intensified the competition for direct foreign in0estment in frica
9FaCana, +&&):/
enough to further promote labour mar7et and employment flexibility,
!hich is pro'gro!th and pro'employment/ For example, labour mar7et
flexibility tends to be more associated !ith faster gro!th of outputs
and total employment gro!th 9Rama:, +&&I: @*2, @)@'@)IA ?atanmi,
+&&)b: @6'@):/
=he EPZ ConceptEEndustrial relations connecti0ity
s one of the critical/ inputs in the operation of EPZs is the labour
resource, it is then ob0ious !hy industrial relations is crucial in the
context of EPZs,
Hence, the sharpening of existing apparatuses of production in the
frican countries, !ith all its implications in terms of the necessary
creation of conduci0e climate for competiti0eness and optimization are
all necessary conditions, if the frican countries are to benefit much, or
at all, from the emergent open opportunities in the !a7e of the
continuing global integration of trade and in0estment/ 4ut, it is
obser0ed that these countries are still a long shot from the model
economies of the East sian countries ' !hich !as alluded to earlier/ =he
attribution for the latter8s success story has been their ability to
explore and utilize the 0arious opportunities of the ne! international
economic order/ =he structural reforms in their countries Bha0e
permitted the in'flo! of capital to reinforce the effects of open trade
still generally lac7ing in the maCority of frican countries, especially
south of the #ahara but excluding #outh frica/ 3nstead, economic
globalization and trade liberalization ha0e actually increased their
marginalization, unli7e the greater economic integration of the East
sian countries in the global economyB 9FaCana, +&&):/
=herefore, by and large, the possibility of economic reco0ery in the
frican nations 9especially including 1igeria: appears to generally hinge
on the extent of institution'building, through / capacity'building and
enhancement, better natural resource processing and management
9including the establishment of EPZs: and the complementary measures
of 8promoting organizational performance and producti0ity/ =hese also
call for a regime of labour mar7et and other institutional policies, '/ such
as the de0elopment of small'scale enterprises 9#?Es:-and a greater
role by the business sector in economic acti0ation, ' that are flexible
3t is also little !onder that the employment
relationship is a matter of foremost concern in this discussion: for
instance, the 0arious dimensions of suitable !or7force, !or7ing time 9in
terms of normati0e hours, o0ertime, lea0e, etc/:, general !or7ing
conditions, including fringe benefits, !ages and other remuneration, and
the sensiti0e issues of labour8s right to organisation and collecti0e
bargaining/
EPZ profiles all o0er the !orld ha0e tended to sho! practical 0ariations
and peculiarities: for example, most are intolerant of labour/ acti0ism,
!hile a fe! 9e/g/ ?auritius and #ri Lan7a: actually encourage unioinism
as a chec7 and balance/ For specific illustration, the follo!ing cases are
cited:
a: =ur7ey >or7ers are forbidden to stri7e during the first +( years of
operation of an EPZA disagreements must be settled by binding
arbitrations8
b: 4angladesh ' =he go0ernment suspended union acti0ity in the
Chittagong EPZ in +&5IA national labour la!s do not apply in the EPZs
c: Pa7istan ' =he go0ernment bans stri7es in its EPZ in Marachi/ 3n +&5I,
the go0ernment of Pa7istan had told the 3LO that the ban !as adopted
Bto meet the condition laid do!n by multinational organisations before
ma7ing in0estments in the countryB/ =hat claim 8prompted a $/#
<epartment of Labour delegate to the +&5I 3LO Conference to call the
stri7e ban a Bdeplorable situationB, and to ad0ise the Pa7istani
delegation that Bgo0ernments ha0e an obligation ' to resist those 7inds
of pressuresB
@( @+
the technological reDuirement, the possession of positi0e !or7 ethic
d: Morea ' $ntil the democratization process of mid'+&52, Morea legally
restricted the right to form unions and bargain collecti0ely in its t!o
EPZs/ lthough these restrictions !ere lifted in +&52, and that
country8s largest EPZ became an acti0e centre of union organisation
and stri7e action, the Morean go0ernment in ugust +&5& re'
introduced restrictions on stri7es by ruling that EPZ firms are Bpublic
interest companiesB " implying the restriction of labours8 right to stri7e,
and imposition of mandatory arbitration in almost all cases of industrial
conflict 9#ource, $#8 <epartment of Labour, >or7ers8 rights, in/ Export
Processing ZonesA 4ureau of 3nternational Labour ffairs, P/ 2,
>ashington <C, +&5& ' +&&(:/
4e that as it may,/ the direct interface of EPZs and industrial relations is also
manifested in the follo!ing areas:
PrGdtiVTVlximperQatieQaftdthe multiplier
4y simple calculus, greater marginal producti0ity in the EPZs should
generate 0alue'added output, and, thus create additional demand for
labour/
9ii: rnploy/ment/generatiGOQpOteCfial
and/ industrial discipline, as !ell as !illingness to accept the Bgoing
!age ratesB 9see <ror, +&5*: 2():/
3nternational and comparati0e e0idence on EPZs
r/ ?auritiras
=he EPZ ProCect in ?auritius too7/ off some @2 years ago, in +&2(/
=he EPZ output in, that country is,outstanding, gi0en,,a record of high
ratio of/industrial employment and of EPZ exports to total exports/ 4ut
on the !hole, there are no significant labour la! differences bet!een
the ?auritanian EPZ and the rest of the country, concerning regulation
of industrial relations or trade8union acti0ity 9<ror, +&5*: '2(5:/
@/ /a7istan
=he practice here reflects one extreme, in !hich there is the absence of
labour 8relations regulations 9e/g/ exemption:, or the denial of
minimum 8!age protection in the EPZ/ =hus, labour matters that
reDuire collecti0e a8ction by nature 9e/g/ collecti0e bargaining: cannot be
accommodated in indi0idual contracts of employment, and therefore are8
completely unregulated in Pa7istan8s EPZs 9<ror, +&5*: 2(&:/
6/ P
8=he a0ailable data on the existing EPZs, particularly in frica 9Egypt,
;hana, ?auritius and =unisia:, sia and the Pacific 9China, Hong Mong,
and #ingapore:, as !ell as Latin merica and the Caribbean 94razil,
hilippines
=his presents another extreme practice of comparable regulation, as
opposed to /the Pa7istani model/ =hat is, for a number8 of the labour
la!s, 88
<ominican Republic, ?exico and Puerto Rico: ob0iate any further
explanation about their employment effect 9see 3LO ?ulti <ata 4ase in
3moisili, ed/ +&&*: 22'5(:/ =hus, the Duantitati0e or economic aspect
of employment in EPZs is appealing and uni0ersally ac7no!ledged/
Rather, EPZs ha0e'often been criticized more than complimented for
their employment effect particularly on the ground of the seemingly
B
pro0isions are of general application and not confined to EPZ
enterprises, For example, in the 4ataan EPZ in that country, the, trade
unions are particularly strong 9&ror, +&5*: 2(&:,
*/ Rri Lan7a,
Here, the ;reater Colombo Economic Commission 9;CEC: is/iin control,
similar to 8 1igeria8s 1EPZ 91igerian Export Processing Zones
exploitati0eB, conditions of this employment 9<ror, +&5*:2+::
9iii: C ate of industrial relations and'go0ernance 9of the
uthority:/ 3n #ri Lan7a, no, pro0ision is made forcollecti0e bargaining
'political en0ironment:
certain measure of labour mar7et flexibility is often considered ideal
for the successful operation of EPZs/ =his is also considered a general
function of social and political stability, the absence of militant trade
unions,/ or e0en, the opposition from unions to the establishment, of
EPZs, the a0ailability of an abundant labour force that is adaptable to
B3
or similar negotiations bet!een employers and trade unions/
>hene0er trade disputes arise, they are resol0ed by the Commission,
lea0ing no room for a bipartite settlement or collecti0e relations 9<ror, +&*:
2+@'6:/
Lessons for the 1igeria EPZ
+/ =here is a need for some semblance of democratic machinery for
the achie0ement 9or pursuit: of synergetic collecti0e relations !hether
by the mechanism of !or7s councils or other appropriate apparatuses/
@/ >hile EPZs should be empo!ered or enabled to pursue their
intended obCecti0es, part of this enabling en0ironment should be the
guarantee of baseline standards in conformity !ith accepted norms
and international standards of humanistic !or7ing conditions and the
Duality of !or7ing life 9G>L:/
6/ =here is need for utmost caution not to promote the Bsacred co!B
or Bspecial classB syndrome in a !Dy that the labour employed in the
1igeria EPZs are treated specifically or differently from other labour
groups or sectors/ =he 1igerian labour organisation must not be
bal7anised, such that segments from different sectors are pitted
against one another, simply on the basis of differential regulation, etc/
*/ For no!, it appears !e can only conCecture about !hat !or7ing life and
industrial relations in the EPZs of 1igeria may loo7 li7e/ Ho!e0er, in the
short to medium term, !hen obser0able patterns !ill coagulate, the local
EPZs !ill constitute good grounds for formati0e research on the emerging
trends in industrial relations, not only in terms of employment
policies and practices, but also the contour of the associated labour
mar7ets, !age profile comparisons, the dynamics of aggregate sectoral
emT8,//,AB8nnt, as !ell as the scope of human resource de0elopment and
institution 'building/
References
FaCana, Olufemi 9+&&)::B;lobal Economic En0ironment and the 1e! >orld Economic
OrderB/ Paper deli0ered at the #eminar on the theme: Labour
management Relations under Economic Recession, organised by the
$ni0ersity of Lagos, +*/+I 1o0ember/
Fashoyin, =ayo U ?atanmi, #egun 9+&&):, B<emocracy, Labour and <e0elopment:
transforming industrial relations in fricaB, 3ndustrial Relations Lournal: 9=he
European Lournal of nalysis, Policy and Practice:, 0ol/ @2 1o/ +, ?arch
%&)/ 65/*&,
37pi, / 9+&&*: B=he Export Processing Zones #cheme in 1igeriaB, in 3moisili, 3/C/ 9ed/:
3ndustrial/ Relations in the EPZ, Lagos: 1EC, pp/ 6I/*6/
?atanmi, #egun 9+&&)a::B3ndustrial Relations in <e0eloping CountriesB, in >arner,
?alcolm, 9ed/: 3nternational Encycl/opediaQof 4usinessQandQ?anagemQent,
London: Routledge/
?atanmi, #egun 9+&&)b:: B re0ie! of #tate Role in Producti0e Employment
;eneration in a =ransitional Economy:A in FaConyomi, 4anCi 9ed/:, =opical
3ssues in 1igerian Publicdministraton/,///Lagos: Olu"7in Publishers, pp/
+2/6(/
Rama, ?artin 9+&&I:: B<o labour mar7et policies and institutions matterP: =he
dCustment Experience in Latin merica and the Caribbean, Labour
9Re0ie! of Labour Economics and 3ndustrial Relations #pecial 3ssue, pp/
@*6@)5/
$# <epartment of Labour: >or7ers/ rights in//EPZs 4ureau of 3nternational Labour
ffairs, >ashington <C, +&5&'&(/
@)
@*
+2x
@I
Chapter Four
3ndustrial Relations in Export Processing Zones:
=he Experience of #ri Lan7a
by
Leslie >iCetunga
<irector of 3ndustrial Relations, 4oard of
3n0estment of #ri Lan7a/
3ntroduction
=he concept of Export Processing Zones 9EPZs: originated in 3reland in +&I&
!ith the setting up of the #hannon Free =rade Zone/ =he concept
!as concerned !ith employment and the de0elopment of the
manufacturing exports and !as designed to attract a portion of the
flo! of international in0estment into the country 9Melleher, +&2):/
EPZs ha0e been defined as !ell organized encla0es !ith sophisticated
infrastructure and other facilities, !hich are ready for occupation by
in0estors/ =hese encla0es pro0ide the flexibility necessary for the
enterprises to lin7 !orld!ide production facilities to their global
mar7ets/
study carried out by the 3nternational Labour Office 93LO: and the
$nited 1ations Centre on =ransnational Corporations 9$1C=C: in +&5)
re0eals that there are around +& different terms in use in the English
language to describe these economic encla0es/ #ome of the more
popular terms are Export Processing Zone, Free =rade Zone,
3n0estment Promotions Zone, Export Free Zone, 3ndustrial Free Zone and
#pecial Economic Zone 93LO, +&55:/
EPZs ha0e multiplied rapidly during the last 6( years/ ccording to the
>orld Export Processing Zone ssociation8s 9>EPZ: 3nternational
<irectory, there are I@) EPZs and F=Zs in the !orld and )2 national
go0ernment authorities regulating such EPZs and F=Zs/ =he de0eloped
countries ha0e adopted the EPZ concept to increase their production
facilities and mar7ets !hile the de0eloping countries ha0e loo7ed unto the
idea to di0ersify their economies and to find employment
opportunities for the large number of unemployed in their countries/
=he case for EPZs in #ri Lan7a
3n #ri Lan7a successi0e go0ernments ha0e in0ested hea0ily in human
capital/ Free education is pro0ided from the 7indergarten through the
uni0ersity le0el/ =echnical education is pro0ided through a net!or7 of
technical colleges and s7ills de0elopment centres/ =he island has
maintained a high literacy rate o0er the last t!o decades as sho!n in
=able +/
=able/ +,
dult Literacy Rate 9+&I6 +&&I:
Jear Percentage
+&I6 )&/(
+&)6 Q/QW 22/( 8Q/// ///
+&2+ 25,I
+&5+ 52/@
+&&(
+&&I 5&/6
9#ource / <epartment of Census and #tatistics:
Ho!e0er, due to the mismatch bet!een educational attainments and the
Cob opportunities a0ailable, unemployment had increased during the period
+&)6 to +&26/ =he unemployment rate had more than doubled during this
period as sho!n in =able @/
@2
=able
$nemployment Figures +&)6 ' +&26
?ales Females =otal Percentage
Census +&)6 +&&,*&( )I,*5( @)*,&2( 2/2
Labour force
sur0ey +&)5 6+@,((( +I@,5(( *)*,@&& +6/*
Census +&2+ *2*,()I +&2,&+2 )2+,&5@ +I/)
Labour Force
#ur0ey +&26 **),&@& 6*),(2+ 2&6,((( +5/6
9#ource " <epartment of Census U #tatistics:
4y +&26 unemployment had become a maCor issue in the country and the
go0ernment had to ta7e meaningful steps to arrest the increasing trend
of unemployment/ =herefore, in +&25 the ;o0ernment of #ri
Lan7a changed its economic strategy to!ards liberalization and free
mar7et enterprise !ith the sole obCecti0e of attracting Foreign <irect
3n0estment 9F<3: into the country to generate the much needed
employment opportunities for the labour force and embraced the
concept of EPZs as a means to achie0e this obCecti0e 9nnual Reports,
Central 4an7 of #ri Lan7a:/
statutory body named the ;reater Colombo Economic Commission
9;CEC: !as established for the purpose of promoting and facilitating
foreign in0estments in the pri0ate sector of #ri Lan7a/ 3n +&&@ this
statutory authority !as ele0ated to the status of the 4oard of
3n0estment of #ri Lan7a 94(+: and it no!, promotes, appro0es and
facilitates industrial and commercial enterprises, both foreign, and local in
the EPZs and also outside the EPZs !ith the primary obCecti0e of
creating employment opportunities for the large number of unemployed
entering the labour mar7et e0ery year, #tatistics re0eal that in #ri
Lan7a around 2I,((( school lea0ers enter the labour mar7et e0ery
year 9nnual Reports, Central 4an7 of #ri Lan7a:/
@&
#ri Lan7a no! has four Export Processing Zones in operation/ =he first
EPZ !as established in +&25 at Matunaya7e 9MEPZ: Cust opposite the
premier airport in the country and the second EPZ at 4iyagama 94EPZ:
in +&5I/ =he Moggala EPZ 9M;EPZ: !as established in the #outhern
Region in +&&( and the fourth at Mandy 9M3P: in the Central Region in
+&&6/ =here are +I+ enterprises set up by in0estors from around 6(
countries in the four EPZs employing a !or7force of 5),+5@ as at
<ecember +&&) 94oard of 3n0estment of #ri Lan7a:/ 3n addition to the
traditional EPZs most countries allo! the establishment of EPZ
structures outside the zones/ =hese are 7no!n as licensed enterprises
or non'zone enterprises and they also enCoy the same pac7age of
benefits as the EPZ enterprises/ 3n #ri Lan7a there are )5) such
enterprises employing a !or7force of +II,255/ =hese include +)6
enterprises !hich come under a special ;arment Factory Programme
!hich employs 2),5@+ !or7ers/ =hus, there are 562 enterprises
employing @*+,&2( !or7ers 9as at the end of +&&): under the pur0ie!
of the 4oard of 3n0estment of #ri Lan7a !hich administers the EPZs/
=he employment opportunities created by the #ri Lan7a EPZs and
outside the zone licensed entreprises, are sho!n in =able 6/
@5
6(
=able 6
Employment by Location E#ex in EPZs " #ri Lan7a as at 6+/+@, +&&)
Location 1o of ProCects 1o/ of Employees
?ales Females =otal Percentage
to the Labour Force #ur0ey carried out by the <epartment of Census
and #tatistics/ =he most stri7ing feature 0isible in the structure of EPZ
employment is the rapid increase in the female participation rate/ Case
+5 countries prepared by the 3LO ' $1C=C ProCect 9+&5):
Matunaya7e
EPZ9MEPZ: &@ &I@) *525@ I56(5 @*O
4iyagama
MPZ94EPZ: *5 I((@ +2+I5 @@+)( &O
Moggala EPZ
9M;EPZ: ++ *&& I@+I I2+I @O
Mandy 3ndustrial
Par7 9M3P:
Licensed Ent/ I@6 66I6& *I*@5 25&)2 66O
;arment Factory
Program +)6 5(@@ )52&& 2)5@+ 6@O
562 I)I55 +5I65@ @*+&2(
9#ource " 4oard of 3n0estment of #ri Lan7a:
=he 3ndustrial relations system and employment in EPZs
n industrial relations system is largely influenced by the employment
situation pre0ailing in the country/ =raditionally the industrial relations
systems came into existence as there !as the need to safeguard the
!or7ers from the excesses and abuses committed by the employers,
Ho!e0er, labour relations ha0e de0eloped to such a degree o0er time, that
the present day obCecti0e of an industrial relations system is to create
and maintain industrial peace for the benefit of both social partners "
the employer and the employee/ Hence, in outlining the
industrial relations system in EPZs, the structure of employment in
EPZs has to be considered first/
3n #ri Lan7a the creation of EPZs resulted in bringing do!n the
unemployment rate considerably/ 3t came do!n from +5/2O in +&26
to +6/5O in +&&+ and to ++/6O in the first Duarter of +&&) acco rding
6+
studies in
ha0e sho!n that the rate of participation of !omen in labour force in EPZ
industries exceeds the rate of participation in the outside EPZ
manufacturing sector as indicated in =able */ 3n fi0e 9I: out of eighteen 9+5:
countries the participation has exceeded 5*O and it is only in t!o countries
that the rate had been belo! I(O/
=ableQ*
ge of EPZ !or7ers, and share of !omen in EPZ !or7force and in non'EPZ
manufacturing industries 9early +&5(s:
Country or
=he situation in #ri Lan7a EPZs also corresponds to this phenomenon/
ccording to the 3LO study the share of !omen in EPZ industries in #ri
Lan7a !as 55O as compared to +2/+O in 1on'EPZ manufacturing/
i
?exico
#in a ore
Republic of
Morea
Hong Mong
?alaysia
4razil
?acau
?auritius
=unisia
Phillippines
<ominican
Republic
ge of +2P2 i
!or7ers
25/IO
belo! age
@2
5IO
bet!een
@( and 6(
I 5 O 5I W
bet!een
@( and 6(
0erage age
@+/2 yrs
0erage age
@+/2
55E belo!
age @&
2(O belo!
Or
2(O bleo!
a e @I
55O bleo!
age @&
56O belo!
a Re @)
G3,//rn ,/*
!omen
in EPZ
industrie
# ?
22
)(
2I
)(
5I
*5
2*
2&
&(
2*
)5
!omen in
non"EPZ
manufact
!ring
industries
9O:
@*I
**6
62I
*&6
6@&
@*5
*5+
+ +( (
*5+
*5+
'+2/)
industries/ #tatistics re0eal that bet!een +&2+ and +&5+ male
employment in #ri Lan7a rose by +*/*O, 4et!een +&5+ and +&&+ the
increase in male employment !as only +@/@O !hile female
employment increased by )5O 9<epartment of Census and #tatistics:/
=his steady rise in the female participation rate is attributed to the
opening up of EPZs and licensed enterprises under the 3n0estment
Programme/
=he female participation in EPZ labour force in #ri Lan7a as at
<ecember +&&) is sho!n in =able I/ 3n the #ri Lan7an experience the
reason for this increase is the higher le0el of manual dexterity
associated !ith the female employees andA/ their ability to adCust
themsel0es to the assembly line production system/ t the Matunaya7e
EPZ six enterprises !ho experimented found that the !or7ers dropped
out after a period of I to ) months/ t least in #ri Lan7a !ages did
not play a 0ital role in increasing female participation as both men and
!omen get eDual !ages for eDual !or7/
=able I
Female parcipation in Labour Force EPZZ ' #ri Lan7a
<ecember +&&) =otal Female O
56/2
#ri Lan7a
Egypt
3ndia
3ndonesia
Lamaica
=rinidad
and
=obago
4arbados
+
56O belo!
3ge@)
56O belo!
age @)
b 56O elo!
&& @)
56O bl!oe
age @)
0erage age
/Lay @(s
0erage age
early @(s
0erage age
early @(s
((
+2/+
)5
, +)I
5(
&I
&( *2&
&I +&(
+(
@5/+
&(
+@
MEPZ 9&@: I56(5 *525@
22/)
4EPZ 9*5: @@+)( +2+I5
M;EPZ 9++: I2+* I@+I &(/5
;rand =otal
9#ource " 4O3 #ri Lan7a:
=he high rate of female participation in EPZ industries also mean a lo!
rate of male participation/ =he non'a0ailability of adeDuate Cob'
opportunities in the EPZs for male Cob see7ers has had an ad0erse
effect on the industrial relations system in the EPZs of #ri Lan7a/ =he
tendency for unrest to gro! up!ard among male !or7ers had been
9#ource / Economic #ocial Effects of ?1Es in EPZs " +L(+&55:/
obser0ed/ <iscontentment among male !or7ers due to the nature of
Cobs a0ailable for them also has contributed to this situation/
6@ 66/
nother eminent feature in the labour relations scenario of EPZs is the8
relati0ely lo!8 age of !or7ers employed in EPZ industries/ =he 3LO '
$1C=C study 9=able *: has confirmed this finding in regard to many EPZs
in the !orld, sample sur0ey carried out by the sian Regional =eam for
Employment Promotion 9R=EP: in +&5I has re0ealed than in Phillipines
55O of EPZ !or7ers !ere under the age of @& years !hile in #ri Lan7a 56O
of EPZ !or7ers !ere belo! @) years of age/
3n ,#ri Lan7a, maCority of !or7ers in EPZ industries ha0e migrated from
rural areas and therefore are in employment for a span of I 2 y
#ri Lan7a has ta7en cognizance of these inherent characteristics of the
labour force in moulding its industrial relations system in the EPZs/
Factors contributing to effecti0e industrial relations e EPZs
#ri Lan7a experience
3ndustrial relations system in the EPZs has necessarily to be designed to
achie0e the goals of both social patners in production ' employees and
employers/
Operations in EPZs industries are directed to!ards8the8global mar7et/
!hen they lea0e for marriage or for better prospects or
ears
for
=he trend to!ards globalization !ill promote more competition and%
employment in the #tate sector/ 3t is also found that the maCority of Cob
see7ers in EPZ industries are the young school lea0ers !ho do not
proceed !ith higher studies/ sample sur0ey carried out in EPZs by the
4oard of 3n0estment of #ri Lan7a in +&&( re0ealed that 25O of EPZ
employees belonged to the age group of +5 @5 years/ ' =his also
corresponds to the high rate of participation of !or7ers in age groups of @(
' @& years in the 1ational Labour Force as indicated in =able )/
=able )
#ri Lan7a Labour Force Pa rF ticiati on a Rt e b y g e U #eS
pP Q =otal ?ale Female
ll age groupsQ/Q *&/@ )I/6 )I6
+(/ +*Jrs/ QQ// @/(/// @/( /Q'@/(Q///
+I ' +& Jrs/ @5,( 66/2' ' ' ' @@/*
@(/@* Jrs/ 2(/& 56/I I5/&
@I/@& Jrs/ 2@/I &6/& I@/I
6( 6* Jrs/ 2(/@ &I/6 *)/6
ors, 2@/( &2/( *5/5
*(/ " ** Jrs/ )5,) &)/)/ *(+*
*I '8*& Jrs/ ))/6 &@/( *+/&
I(/I* Jrs/ I&/* 5)/@ 6@/6
II " AI& Jrs// *&+ 26 0 @2,@
)( V Jrs/ @@/* 6)/) & (
Duality becomes a pre'reDuisite/ Hence, the performance, of/ the
employee becomes a crucial factor/ 3t is only through an effecti0e, and
participati0e industrial relations system that/ the/ employee8s
performance can be de0eloped to meet the needs of an export
oriented industry catering to the global mar7et and dependent hea0ily
on production schedules for target/ deli0ery dates/ Employee
in0ol0ement !ouldcontribute to higher morale, greater commitment/ and
increased producti0ity, Hence, good/ human relations respecting, the
fundamental rights of ,the !or7er should be promoted so that, heA and his
family are able to lead a, contented life/ =hus the industrial relations
system in EPZs should ser0e t!o purposes " achie0e the !ell'
being of the employee on the, one hand and facilitate industries to
satisfy its mar7et reDuirements on/the other hand/
#tatus of labour legislation in EPZs
=he status of EPZs industries relating to the application or exemption
from national8 labour la!s is a 7ey feature in the industrial relations
system in the EPZA 0ailable data indicate that in many countries the
EPZs industries ha0e been exempted from the operation of normal
labour la!s/ 4eing economic encla0es the EPZs are designed to
operate !ithout inter0ention from national agencies so that, such
climate !ould pro0ide an incenti0e for the attraction of FPl/
3n #ri Lan7a the national labour la!s in the country are applicable to all
EPZs industries as !ell, =he guidelines on labour relations issued to
9#ource " Labour Force/#ur0ey,+&&), <epartment of Census U #tatistics:
in0estors by the 4oard of 3n0estment of #ri Lan7a !hich administers/
+6 main
'the EPZs clearly state this position/ =here: are around
6*
enactments on labour applicable to the industrial sector designed to
regulate the employer ' employee relations for achie0ing industrialT
peace/ ppendix 9+: lists out these enactments and their obCecti0es/
=he <epartment of Labour super0ises the enforcement of the
pro0isions of these statutes and any !or7er in EPZ has the right to
see7 redress for the 0iolation of any of these pro0isions8/ rbitraryT
termination of ser0ices'is regulated by the =ermination of Employmen of
>or7men 9#pecial Pro0isions: ct/ Labour =ribunals established
under the 3ndustrial <isputes ct also adCudicate on !rongful
termination of ser0ices,
=he 4oard of 8in0estment of #ri Lan7a !hich administers the EPZs8also has
its o!n administrati0e8 machinery8 to ad0ise and assist the EPZs
enterprises in regard to compliance !ith national ' labour la!s/
n effecti0e, machinery to monitor labour relations in/ EPZs
n effecti0e machinery to monitor all aspects of labour relations is a
prime reDuirement for the success of industrial relations in EPZs/ =he
co0erage of employees8 interest under national8 labour la!s, presence
of managements from different countries and the8 dependence of the
EPZ industries on tight production schedules for8global8mar7ets all lead
to the fact that the industrial relations system should function FeryT
smoothly/ On'coming problems ha0e to be, identified and correcti0e
action ta7en in ad0ance A =he endea0our should be to pre'empt
problems and not to !ait untilX they crop up/ #uch early action could
be ta7en only if the industrial relations acti0ities in EPZs are monitored/
0ery closely/ 8 =he #ri Lan7an EPZ, authority Y)(+:8 has its o!n
administrati0e8 machinery to monitor the labour relations8 aspects in
EPZs/ =he industrial Relations <epartment consisting of officers !ith
experience in industrial and human relations attend to8 this8tas7/ =his
Lan7an labour la!s/ #uch ad0ice is pro0ided through inter0ie!s,
meetings, seminars and pro0iding documented guidelines on labour
relations to the enterprises/
@/ to monitor the compliance !ith8 labour la!s regulations and
practices by enterprises and pro0ide + ad0ice to rectify any
shortcomings found/ Periodic inspections are carried out on labour
relations acti0ities of enterprises forthis purpose/
6/ attend to grie0ances of !or7ers 8 and help employees and
managements to resol0e their disputes/
*/ 8Promote effecti0e labour management relations bet!een the t!o
social partners through dialogue and, consultati0e practices 0is'a
0is, Employees Councils established in enterprises/
I/ to promote employee !elfare and safety/
Practices in the host country
3deally, the industrial relations system in practice in the host country
should be adhered to by the EPZ industries/ Foreign enterprises
should not be allo!ed to BimportB their o!n rules and regulations'in
labour relations if they come into conflict !ith the practices in the host:
country/ Expatriate staff sometimes are not able to understand the
type/ of life styles of !or7ers in the, host country and as a result
conflicts in/ !or7 culture !ill arise/' Further, social limitations in the/ host
country ha0e,to be accommodated !ithin the labour relations system
at, least to some degree/ dCustments in cultural/ conflicts ha0e to be
streamlined through e0ol0ing practices/ acceptable to both social
Partners/// #ri/ Lan7a during the early stages of EPZ de0elopment has
experienced suchproblems and made adCustments for the benefit of
good industrial relations/ =he shift system and night !or7 are t!o such
#ri Lan7a denounced its ratification of 3LO
administrati0e outfit !or7s in 0ery close liason !ith both8managements crucial areas/ 3n /+&56
5& on night !or7 for female employees to facilitate
and employees of EPZ enterprises and facilitate both parties to achie0e
industrial harmony/
=he main functions of the 3ndustrial Relations8 <epartment areA
+, to ad0ise in0estorsEenterprises on all aspects of industrial relations
especially the statutory/ obligations of employers T under the #ri
con0ention 1o/
continous/ production for EPZ industries/ Ho!e0er, night !or7, for
female employees ha0e 8 been allo!ed only subCect to stipulated
conditions and strict super0ision aimed at proctecting the8 health,/
!elfare and social obligations of female employees/ =hese8
6I
/6)
62
conditions are listed/belo!/
1ight !or7:
Employment of female !or7ers on night !or7 from
conditions/
+(,(( pm to )/(( am on the follo!ing
the particular industry/ Hence, e0ery EPZ enterprise has its o!n in'
house training centre to cater to this situation/ =raining programmes
at EPZs are based at the follo!ing le0els:
9+: !ritten consent of the !or7er to be a0ailable/
9@: the employer to obtain prior appro0al for night !or7,
96: payment of +/I times the daily rate of !ages for the normal night shift/
9*: maximum of ten days night !or7 per female !or7er in any one month/
9I: a !or7er employed bet!een )/(( am and )/(( pm not to be
a: ln"plant training:' =raining inputs at plant le0el are pro0ided by the
local and expatriate technical staff/
b: #7ills based training gi0en at #7ills <e0elopment Centres throughout
the country/ =hese centres are organized on a regional basis and
=raining / uthority, =he
employed on night shift on same day/
9): a !or7er employed on night !or7 to be allo!ed an adeDuate period of rest after
such !or7/
92: matronEfemale suder0isors to be present during the shift,
95: canteen, medical and rest room facilities to be made
a0ailable/
9&: transport facilities to be made a0ailable for use in an emergency/
9source / ;uidelines on labours standards and relations " 4O3E#ri Lan7a:/
Human resource de0elopment policy
=he concept of human resource de0elopment 9HR<: is based on the
dual conception that !hile the human factor plays a decisi0e role in the:
economic and social,/ progress the people are also the intended
beneficiaries of de0elopment/ Hence, an integrated frame !or7 for
examining the HR< resources in EPZs including manpo!er8
de0elopment, science and technology, Duality of !or7 life dimension
has to be established/ =he highly literate and easily trainable
!or7force is one of #ri Lan7a8s great assets/ =he EPZ authority 94O3:
assists the enterprises in the recruitment of employees through its
Employment Placement Centres : !hich facilitates the enterpises to
impro0e employment relations/
=raining of employees is an integrated part of the HR<88plan included in
the industrial relations system of EPZs/ ?aCority of recruits to EPZ
enterprises are school lea0ers and therefore ne! comers to their Cobs/
=he 9R=EP: sample sur0ey of +&5I has re0ealed that 2@O/ of EPZ
!or7ers in #ri Lan7a, I@O in ?alaysia and )*O/ in Philippines !ere ne!
recruits/ 3n 0ie! of this situation it becomes incumbent on the
enterprises to pro0ide them !ith s7ills and methodology reDuired for
are managed, by the 1ational 3ndustrial
Focational =raining uthority and the <epartment of Labour,:
9c: 1et!or7 of =echnical Colleges !here training at Certificate and
<iploma le0els are8 conducted/
9d: Professional institutes such as 3nstitute of Engineers, 3nstitute of
Chartered ccounts, 1ational 3nstitute of 4usiness ?anagement, =extile
=echnology =raining 3nstitute/
$pgrading of s7ills and career de0elopment are common features in
EPZ industries/ round )IO8 of middle management posts are through
promotion of employees from lo!er le0els and there are also personnel !ho
ha0e remained in the trade to 8achie0e top management posts especially
in the production field/
#ettlement of disputes
Conflict is the conseDuences of disagreement/ Employer'employee
conflict in industry !ill remain as long as/ there/ are employees/and
employers/ >hen industrial conflict gets out of control it does not help both/
social partners/ n effecti0e strategy for pre0enting and resol0ing conflicts
depend largely on consultation and collecti0e, bargaining, Creating,
industrial harmony in EPZs !ill lead to in0estor confidence and employee !ell'
being/
3n #ri Lan7a the 3ndustrial <isputes ct pro0ides the machinery for
settlement of industrial disputes through'
Conciliation by the Commisioner of Labour///
@/ Foluntary arbitration/
6/ Compulsory arbitration/
*(
65
6&
*/ 3ndustrial Courts
=he EPZ industries are a part of the national system and the dispute
settlement machinery operates in the enterprises/ =he EPZ authority
also assists the employees and managements to arri0e at amicable
settlement of their problems/
Guality of life
3mpro0ement of Duality of life of employees is 0ital in any strategy for
the re0italization and de0elopment of the economy/ Conditions
affecting the employee both, at his !or7ing en0ironment and the socio'
economic conditions outside the !or7 place ha0e to be impro0ed Aso
that the industry !ill ha0e a contented group of employees/
#tandards relating to !or7ing conditions8 in EPZ enterprises are
stipulated in #ri Lan7a, Construction of factories are: allo!ed only
!hen it conforms to the statutory reDuirements laid do!n in the
Factories Ordinance/ in relation to pro0ision of !elfare facilities to
#uitable and adeDuate li0ing accommodation in :the periphery area of
the Matunaya7e EPZ !hich pro0ides employment to around )(,(((
!or7ers has become a crucial problem to the EPZ authorities/
sur0ey carried out re0ealed that around )(O of the !or7er population
li0e out of their homes in boarding houses !ithin a radius of @(
7ilometres from the zone/ Hence, steps ha0e been ta7en to impro0e
and ,increase the accommodation facilities in the area by the rele0ant
go0ernment authorities and also to non"go0ernment organizations/
Ho!e0er much has to be done in this field as the periphery area has a high
concentration of !or7ers/
=ransport facilities in the area alsp haye to be impro0ed toy cater, for
the needs of the/increasing !or7force/ =here are enterprises !ho
pro0ide transport to their o!n !or7ers// Ho!e0er, the ,!or7er
population as !ell as the ci0ilian population of the area /has increased and
therefore further impro0ements in transport are necessary/
=rade unions
=rade unions had been the traditional form of organizing labour/
$1C=C in EPZs ha0e indicated a lo! rate/ of
!or7ers such as meal room, sanitary con0eniences, changing, rooms,
adeDuate !or7 space, 0entilation, temperature, medical facilities,
safety measures and en0ironmental norms and standard remuneration
pac7age/ >or7ing conditions, industrial safety and health are subCect to
strict super0ision by the rele0ant authorities and endea0ours are made
to promote them in EPZ industries,8 Enterprises also offer
numerous fringe benefits to the !or7ers/ 3ncenti0es for production
performance, good attendance, free brea7fast, free or subsidized
meals, free medical attention,, annual bonus, distress loans and funeral
assistance are some of the popular fringe beneflts offered to
employees by enterprises/ Health and counseling ser0ices are
pro0ided by the medical centres of the EPZs, =hese include out'door
and in'door treatment, specialist ser0ices, pre'and post'natal maternity care,
nutrition and family health,
Guality of life outside the !or7place depends mainly on the socio'
economic conditions in the country/ 3nfrastructure in regard to
common amenities for the large concentration of industrial !or7ers
ha0e to be pro0ided/
#tudies by 3LO
unionization in many EPZs/ lthough comprehensi0e information/ is not
a0ailable, the sur0eys ha0e :sho!n, the follo!ing rates for some
countries/
?alaysia
philipplnes
lnaip/
China
3n #ri Lan7a, approximately 6(O of the formal sector is unionized and
of these members the maCority consists of the plantation and public
sector !or7ers/ ?aCority of unions are affiliated to political parties in the
country and therefore unionization and politics go together/ $nder the
pro0isions of the =rade $nion Ordinance, any 2, employees can get together
and form a trade union/
3n the EPZs, there are no legal restrictions against forming trade
unions/ =he managements had not sho!n a fa0ourable response: to
unionization in the present context/ =hey ha0e sho!n agreement to in'
*@
*+
house unions !ithout office bearers from outside the industry/
Ho!e0er, it has been obser0ed that unions are gaining ground e0en
though the process is Duite slo!,
8 EPZs are8 national/ proCects based on economic and social reDuirements
of the host country/ Hence, it is necessary for trade unions to act !ith
utmost responsibility and follo!, a constructi0e approach to acti0ities in
EPZs/ Commitment and co'operation of both8 social partners is an
essential feature for8the success of industrial relations in EPZs/
Formation of Employee Councils as a consultati0e process also has
been promoted in #ri Lan7a EPZ enterprises/ ?embers of the councils are
elected by the employees through secret ballot/ =he councils ta7e up
8any issues affecting the !or7ers !ith the management/ =he EPZ
authority assist the councils and managements to resol0e8, i their
problems amicably/
Commitment of Employers
Commitment and co'operation of employers to ensure the !ell being of
!or7ers is also essential for the success of industrial relation8s in EPZs/
References
Central 4an7 of #ri Lan7a,rmualQReports '
BEconomic5s #oc(i E,ffeQcR o?ltiPatioraLEn 't rpses i EPZsB/ 3LO 9+&55:
Q%E/mRLoymelltQe dQ?ultinatiorlalsin s/ianEPZsB 9R=EP: 3LO +&5I/ Legislati0e
Enactments of #ri Lan7a/
Melleher, =homas 9+&2): BHard 4oo7 on EPZB
l aG$//Force//#ueys,/' <epartment of Census U #tatistics #ri Lan7a
#tatistics/UQlnfor/Zrietio/G " 4oard of 3n0estment of #ri Lan7a/
B>orld Export Processing Zones ssociationB 9>EPZ: 3ntO(Qt/i&Q7L
<r//ectoe[
ppendix +
?ain enactments on labour, industrial sector in #ri Lan7a/
+/ Factories Ordinance
Pro0ide for the safety and !elfare of !or7ers in factories
9c:8 ccident Procedure/
EPZ authority in #ri Lan7a ta7es/ numerous steps to create a!areness
on industrial relations !ith the EPZ employers/ ?eetings and seminars on
HR< are held for this purpose/ ;uidelines on these obligations on labour
relations and labour standards are issued to them e0en before the
enterprises are set up to help them to get in0ol0ed in the industrial
relations process/ =he summary of contents of such guidelines is at
ppendix @/ continuous dialogue is maintained !ith the employers to get
their commitment to loo7 after the employees in their enterprises/ =he EPZ
Employers ssociation also ad0ise their members on the need to be model
employers/
9a: Health U !elfare facilities 9b: 3ndustrial #afety
@/ #hop U Office Employees ct
Pro0ide for the regulation of employment, hours of !or7 remuneration and
connected matters of employees in offices and shops, 9a: >ages 9b: Others terms
and conditions 9c: Holidays/
6/ Employment of >omen, Joung Persons and Children ct/
Regulate the employment of !omen, young persons and children 9a:
Employment of children 9b: 1ight !or7 for female !or7ers/
*/ 3ndustrial <ispute ct
Pro0ide for the pre0ention, in0estigation and settlement of industrial disputes and
9a: Conciliation of disputes 9b: rbitration on disputes 9c:
Conclusion
3n conclusion, it has to be stated that the success of industrial relations in
Export Processing Zones depend on the commitment8 and the co,B
operation extended by the social partners the8 employee and
matters connected,
Labour =ribunals 9d: Collecti0e 4argaining/
I/ =ermination of Employment of >or7men ct
?a7e special pro0isions in respect of the termination of the ser0ices of !or7men
9b: Retrenchment 9c:
employer and the effecti0eness of the monitoring machinery follo!ed to
implement the system of industrial relations in EPZs/
for non'disciplinary reasons/
Lay'off/
9a: =ermination or Closure
)/ Employees Holidays ct
Pro0ide for holidays to the Public #ector and Pri0ate #ector employees/
2/ ?aternity 4enefits Ordinance
Pro0ide for granting maternity lea0e, ma7ing payments 9a: ?aternity Lea0e 9b:
Payments 9c: 1ursing inter0als/
5/ >or7mens8 Compensation Ordinance
Payment of compensation to !or7men for inCury in the course of employment/ 9a:
ccident Lea0e 9b: Compensation for inCury 9c: Occupational diseases/
&/ >ages 4oards Ordinance
Regulation of !ages and other emoluments of persons engaged in 0arious trades
9a: =erms U Conditions of Employment 9b: Establishment of >ages 4oards/
+(/ =rade $nions Ordinance
Pro0ide for the establishment and functioning of trade unions/ 9a: Formation 9b:
Registration 9c: Entryto enterprises/
++/ Employees Pro0ident Fund ct
Pro0ide contributory social #ecurity benefits/ 9a: 5O of total earnings by
employees 9b: +@O of total earnings by employer/
+@/ Employees =rust Fund ct
Pro0ides non'contributory social security benefits, 9a: 6O of total earnings by
employer 9b: 1o contribution from employee/
+6/ Payment of ;ratuity ct
9a: 'Half month8s salary for e0ery year of ser0ice for I years and abo0e,
pp,en l /@/
Contents
9+: Employment
9@: 1ormal >or7ing <ay and 1ight,>or7 @
96: Payment of Remuneration 6
9*:/ Holidays */
9I:8 Lea0e I8
9): #uperannuating 4enefits )
92: <isciplinary Code 2
95: Health U >elfare
9&: 3ndustrial #afety &
9+(: Employment 3nCury +(
9++: =ermination of #er0ices +(
9+@: 3ndustrial <isputes
++
9+6: Loint Consultati0e Councils ++
9+*: Role of the 4O3 +@
*6
**
Chapter Fi0e
*&
*)
Protecting >or7ers8 Rights in the Export Processing Zones 9EPZs::
Challenges for the Labour ?o0ement
by
<r/ Funmi de!umi
ProCect ?anager,
Friedrich Ebert Foundation, Lagos/
3ntroduction
#ince the establishment of the first Free =rade Zone 9Export
Processing Zone: by the 3rish in +&I& around the #hannon 3nternational
irport 93LO, +&55:, the idea has spread !orld!ide, especially among
de0eloping countries !ho !ere made to belie0e that this option is a
Duic7'fix to the de0elopment problem/ 3n actual fact, in the de0eloping
!orld the EPZ model is 0ie!ed as the 7ey instrument of export'oriented or
dri0en industrialization, a de0elopment strategy that !as embraced in place
of the import'substitution model that !as adopted soon after the attainment
of political independence/
One maCor feature of the EPZ scheme is that the de0elopment of such a
zone is intimately dependent upon, and perhaps, is conditioned by the
presence of foreign firms 93LO, +&55:@:/ s a matter of fact, it
!ould appear that EPZs are set up to attract the subsidiaries of foreign
multinational enterprises !ith the hope that such firms !ould generate
a large number of ne! Cobs and contribute signficantly to increasing
the host countries exports of manufactured goods/ 3n order to achie0e
these /obCecti0es, host countries usually bend o0er bac7!ards to offer
Cuicy incenti0es such as 9in the case of 1igeria:A total foreign o!nership
of enterprise, tax holiday, unrestricted remittance of profits and
di0idends, among others to attract foreign in0estors/ 3t is largely
based on this o0erindulgence of foreign in0estors that !or7ers and
their allies ha0e expressed fears about the social conditions in the
EPZs/ =his is especially so gi0en the 0ery peculiar nature of EPZ
industries and notably their physical insulation from the rest of the local
economy and their legally conceeded immunity 0isa'0is customs la!s,
foreign exchange regulations 93LO, +&55: and' con0entional labour
practices and legislations/ i
3n 1igeria, for instance, one of the conditions of employment dra!n88up by
the 1igerian Export Processing Zone uthority 91EPZ: is that
B!or7ers employed by companies operating in the EPZ !ould not go on
stri7e =his is apart from the moratorium of +( years placed on the
formation of trade unions/ 3n the absence of trade unions and the right to
stri7e,8 ho! !ould !or7ers protect 8their interests in the employment
situationP ?ore importantly, !hy should !or7ers8 rights be circumscribed
in the name of export promotion or economic de0elopment !hich may
only benefit a fe! members of societyP
=hese Duestion8s become germane gi0en the experience of !or7ers
!ithin the larger economy in !hich they are exposed to myriads of
abuses and depri0ations, in spite of the existence of protecti0e
legislations, both domestic and international/ 3t is against this
bac7drop that this chapter explores !hat can be done to protect
!or7ers8 rights in the EPZ encla0es/ 3t is the contention of this author
that the rights of employees must be respected in the !orld of !or7 no
matter the temptation to do other!ise and in the peculiar circumstance
of the EPZs members of the labour mo0ement and the human rights
community should empo!er !or7ers in these encla0es to insist on the
obser0ance of basic rights as !ell as be ready to ta7e some
affirmati0e,/ actions in this direction/ Ho!e0er, before examining these
in detail, it is necessary to highlight !hat constitutes !or7ers8 rights/
Components of !or7ers8 rights/
O0er the years through a combination of struggles and appeals to the
conscience, of the ci0ilized !orld !or7ers, acting largely through their
organizations, ha0e been able to secure for themsel0es a body of
rights/ =hese rights are complemented by some constitutional
pro0isions !hich confer certain rights on !or7ers as citizens of gi0en
naton states/
*2
3n a most general sense !or7ers and trade union rights are those legal
pro0isions !hich are meant to protect !or7ers not Cust as producers of
national !ealth, but also as free citizens/ #uch rights are confered on
@/ =!o of these, Con0entions 52 and &5 !ill be further highlighted
here, long !ith a number of local legislations and constitutional
pro
!or7ers, and/ their organizations ta7ing into consideration their special,
role and the need to protect them from extreme abuse and exploitation
0isions, they constitute part of !or7ers8 rights,
Con0ention 52 addresses the issue of freedom of association !hile
Con0ention
in the hands of profit'conscious employers/
3n the course of this century both national and international instruments
ha0e been de0ised to gi0e effect to the 0arious pro0isions on !or7ers8
rights and to compel national go0ernments and, indi0idual employers to
respect these rights/ #ince its establishment in +&+&, the 3nternational
Labour Organization/ 93LO: has played a maCor roleA in ensuring that
!or7ers, indi0idually and collecti0ely,/ enCoy certain minimum rights/
=hese ha0e come, in the forms of Con0entions and Recommendations
!hich member countries are expected to comply !ith/ >hile some of
the 3LO Con0entions ha0e prompted national go0ernments to enact
similar legislations, it is important to, stress that !or7ers8, struggles,
based on the need to secure certain measures of dignity for !or7ers,
ha0e also assisted in conceeding some rights to !or7ers, =he need
for these rights !ere also reinforced by rticle @6 of the $nited/
1ations $ni0ersal <eclaration of Human Rights of +&*5/ 3t says:
E0erybody has the right to !or7, to free choice of employment, to, Cust
and fa0ourable conditions of !or7 and to protection against
unemployment/ E0eryone, !ithout discriminations, has the right to88
eDual pay for eDual !or7/ E0eryone !ho !or7s has the right to Cust and
fa0ourable remuneration ensuring for himself and his family an existence
!orthy of human dignity, and supplemented if necessary by other
means of social protection/ E0eryone has the right to form and Coin
trade unions for8the protection of rights 9cited in C<HR +&&), nnual
ReportA ++6:/
it is Cust enough to say for no! that !or7ers8 struggles re0ol0e around
the need to enforce these rights/ From the foregoing, it can be argued
that !or7ers and union rights are encapsulated in a number of bilateral,8
multilateral and general agreements !hich extend throughout the
!orld and predicated on a fe! uni0ersal principles/ of social philosophy
and Custice/
number of international instruments !hich are meant to protect
!or7ers in the employment relationship ha0e been discussed in chapter
&5 focuses on the right to organise and collecti0e
bargaining/ #ome specific pro0isions of these con0entions are !orth
highlighting/ rticle ++ of Con0ention 52 pro0ides that Beach member of the
3LO for !hich this Con0ention is in force underta7es to 8 ta7e all necessary
and appropriate measures to ensure that !or7ers and employers may
exercise freely the right to organiseB/
rticle +8 of Con0ention &5 pro0ides that B!or7ers shall enCoy adeDuate
protection against acts of entire union discrimination in respect of their
employment8 rticle * insists that:
measures appropriate to national conditions shall be ta7en !here
necessary to encourage and promote the full de0elopment and
utilization of machinery for 0oluntary negotiation bet!een employers or
employers8 organisations and employees !ith a 0ie! to the regulation of
terms and conditions of employment by / means of collecti0e
agreements/
s mentioned earlier some local' 91igerian: legislations confer certain
rights, on !or7ers/ =he =rade $nion ct of +&26, =he Labour ct of
+&2* and the >ages 4oard and 3ndustrial Councils ct of, +&26
0ariously recognise the right to organise, the right to collecti0e
bargaining as !ell as the right of unions to act on behalf of their
members/ dded to these are =he Factories ct and >or7men8s
Compensation ct, both of +&52, !hich see7 to protect !or7ers from
!or7'related hazards and diseases as !ell as ma7ing pro0isions for
compensation for inCuries or disabilities suffered in the course of
employment/ #ection 62 of the +&2& Constitution 9!hich is presently
in force: recognises the freedom'of association by8 1igerian citizens
!hile the constitution recognises the right to life 9a position that can be
in0o7ed against employers !ho endanger the li0es of !or7ers under
their employment:/
=he pro0isions of all the instruments mentioned abo0e can be in0o7ed
to ensure that !or7ers in the EPZ encla0e are protected from abuse by
their employers/ 3t also :follo!s that all efforts to circum0ent !or7ers8
*&
rights on the altar of economic de0elopment expediency ha0e no basis
in la! and morality/ =he international community that came up !ith all these
standards recognise them as the 0ery minimum reDuired to ensure
humane and decent !or7 en0ironment for !or7ers/ =he Duestion
that follo!s is !hat can be done to protect !or7ers8 rights in EPZs/ 3t is
this Duestion that is addressed in the next section/
Protecting >or7ers8rights in EPZs tas7 for all
3t !ould appear that those !ho clamour for an abridgement of !or7ers8 rights
proceed from the !rong premise that B indulgingB !or7ers !ould impede
production acti0ities, and in turn slo! do!n economic
de0elopment 9see Panford, +&&* for an elaboration of such 0ie!s:/
Counterposed against this 0ie! is the position of scholars li7e,Claire
9+&22: that !or7ers8 rights !ere not only compatible !ith, but also
necessary for, sustained social progress 9see Panford, +&&*:&:/ long
this line, our point of departure is that gi0en the exploitati0e character
of capitalist !or7 relations, all hand must be on dec7 to protect the
!or7er from extreme abuses and mitigate the ad0erse conseDuences
of the employment relationship/ =his is certainly a tas7 for all/
ConseDuently, the go0ernment, !or7ers themsel0es, trade unions and
similar machinery can be set up by go0ernment in respect of 0arious
labour legislations subsisting in the country/ 3f this machinery is
properly put into use it !ill go a long !ay in curbing the excesses of
employers !ho are mainly dri0en by the profit'moti0e,
Lea0ing the/ protection of !or7ers8 rights to, go0ernment alone,
especially in a capitalist society, amounts to a / lac7 of interest in
protecting such rights in, the first/ place/ ;i0en the philosophy behind
the establishment of EPZs and the commitment of the state to pri0ate
property, and going by !hat obtains !ithin the polity, the 1igerian state
only pays lip'ser0ice to the protection of basic rights, including those of
!or7ers/ s such, other groups of people should be interested in,
protecting !or7ers8 rights/ One of such groups is the collecti0ity of
!or7ers/
>or7ers themsel0es ha0e an important role to play in defending their
o!n rights/ Labour history all o0er the !orld sho!s that rights and
concessions are not !on on a platter of gold/ Experience has also
sho!n that the capitalist state is not too !illing to grant basic rights to
!or7ers, 3n light of this, !or7ers/
non'go0ernmental organizations 9especially those interested in human
rights: should !or7 to!ards ensuring the obser0ance and protection of
human rights in the EPZs/
;o0ernment is generally touted as the custodian of public good and8
are such, irrespecti0e of the sphere of national life in !hich they are,
go0ernment has a basic duty to ,protect, and ensure for the citizenry a
humane existence/ 3f the 1igerian go0ernment must li0e up to this
expectation, it must do e0erything possible to ensure/ that/ employers in
the EPZs obser0e basic minimum standards and !or7ing conditions,
!ith or !ithout union presence in the 0arious !or7 establishments/
=his can be done through increased labour inspection ser0ices,/ =he
+LO had argued in respect of its con0entions that:
ma7ing !or7 more humane and promoting conditions in !hich !or7
respects the !or7er8s life and health, reDuires creating a machinery to
o0ersee and super0ise 3mplementation of Con0entions adopted in the
first instance to humanise !or7 9LO, +&5*: @*:/
9because they bear the
conseDuences of breaches of !or7ers8 rights: should be ready to fight
for the obser0ance of their rights, =hey should fight acts of employers
that are, in contra0ention of, both local legislations and international
labour standards/ =he absence of/ trade unions should not be a
deterrent,in this regard/ =his is moreso gi0en the fact that some of
these 3ggislations recognise the right of !or7ers as indi0idual
employees/ 3f it,becomes difficult to see7 enforcement of !or7ers8
rights, under the existing labour legislations, !or7ers can institute ci0il
actions against their employers in order to see7 restitution/ >or7ers
can, informally support aggrie0ed indi0iduals in doing this/ =he fact of
common employment and a common predicament should, ma7e this
attracti0e/
3n spite of the indi0idual remedial measures suggested abo0e, !or7ers
should still8insist on their right to freedom/ of association, =here, is no
one'to'one relationship bet!een the denial of the right csf asso)i*tion
and the idea of EPZ, s an interim measure, !or7ers can :constit
themsel0es into committees or other informal structures to/ad e : t e ' \
I(
I+
specific issues as they relate to the rights and/ interests of !or7ers,/
Lin7s should also be established !ith groups outside the, !or7 places/, that
are interested in addressing !or7ers8 plight/
3n order to realise some of the options suggested abo0e, !or7ers in the
EPZs should enCoy the support of the trade unions and the 0arious human
rights groups in the country/ =he trade unions should 8 insist/ op their right
to organise !or7ers irrespecti0e of the sector of the economy in
!hich they find themsel0es/ 3f this struggle fails, they 9unions: should
establish8 informal lin7s !ith EPZ !or7ers 8 in their respecti0e
industries, !ith a8 0ie! to assisting them in their struggles for fair and
humane !or7ing conditions/ =his position recognises the present sorry
state of the unions in 1igeria but it is hoped that sooner than later, the
unions !ill o0ercome their predicament and become more rele0ant to
the aspirations of 1igerian !or7ers/
>ith respect to the 1;Os, it is heart!arming to note that already some
of them, notablyA the Committee for the <efence of Human Rights
9C<HR:, the 1ational ssociation of <emocratic La!yers 91<L: and
the Ci0il Liberties Organization 9CLO: ha0e started addressing the issue8
of !or7ers8 rights/ =his is being done both at the le0el of ad0ocacyA8
litigation and human rights education/ 3t can only be added that these
should be extended/ to !or7ers in the EPZs, especially gi0en the
absence of unions/ =he role of humane rights groups in promoting
!or7ers8 rights is Duite important gi0en the !ide net!or7s of contracts
and support enCoyed by them !hich ma7es it possible for them to dra!
the attention of local and international communities to the 0iolation of
!or7ers8 rights/ Organisations of the labour mo0ement should eDually
be in0ol0ed in addressing the Duestion of !or7ers8 rights/ =hey should
readily fill the 0acuum created by the absence of trade unions in the
EPZ encla0e/ For the 1;Os to succeed in8the tas7 being imposed on8
them, !or7ers themsel0es, it must be stressed, should be !illing to coA
operate !ith the 1;Os in protecting and defending their rights/ =hey8
should report cases of infringements of rights to the 1;Os and be
prepared to go the distance in see7ing restitution/ >ithout, the
preparedness of !or7ers to do this, there is 8 a limit to !hat the 1;Os,
alone can do,
3n all these, education has role to play in the protection and defence of
!or7ers8 rights/ >or7ers need to be/ a!are of the 0arious rights of
!or7ers and their !ell'being as !or7ers/ =his calls for a 8constant
programme of education for !or7ers/ 3t is only !hen !or7ers ' are
a!are of these rights: that they can rise up to their defence/ >or7ers
should, /bear it in, mind that both education and political acti0ity are
necessary to ensure compliance !ith !or7ers8 rights/
Conclusion
=he dictates8of capitalist political ecohoriy8mean that employers and
the state !ould be 8 rea8dy to trample an the rights , of !or7ers as this
!ould further engender the exploitation of the labouring class/ 3n, 0ie!
of this, the tas7 of defending !or7ers and8tradel/+ union rights cannot be
left on the shoulders of !or7ers and their unions alone, Public spirited
organizations such as 1;Os that are interested in !idening the scope
of human rights should be in0ol0ed/ =his is particularly so gi0en the
pre0ailing circumstances in !hich 1igerian !or7ers and trade unions find
themsel0es today/ >e ha0e gone past the stage at !hich the state and pri0ate
employers appeal to some base 8national8 sentiments as Custifications for
abridgement of !or7ers8 rights/ 3f the society truly 0alues the
contribution of !or7ers to the economic de0elopment process, such
should be ac7no!ledged by according them basic human dignity
and adeDuate compensation for their efforts in generating the
common!ealth/ =his should be reflected in a regime of humane and fair
conditions of !or7 and terms of employment/ nything short of this
amounts to begging the issue/
References
Committee for the <efence of Human Rights 9+&&): nnual/// ///Reports on the,C'lurnan/
Rights #ituation in 1igeria, Lagos: C<HR/
Federal ;o0ernment of 1igeria, 9+&26: =rade $nion ct,/QLagos: Federal
;o0ernment Press/
9+&26:/ >ages//4eard/Qandlndustria// CouncilsQ ct, Lagos: Federal
;o0ernment Press/
9+&2*:/ Labour/ct, Lagos: Federal ;o0ernment Press,
9+&52:/ Factories ct, Lagos: Federal ;o0ernment Press/
C?
I6
, 9+&52:, lyorfte ]R C
Press,/
omp nsatiop/Gc], Lagos: Federal ;o0ernment
3nternational Labour Organisation, 9+&*5:QCo0QeionQ5/2Q,/ Fr/dom/ Gf//+Rgiation/
an'd P/rotegtiGn/ of,ihe Right to/Organis ,;ene0a: 3LO/
//, 9+&*&:/ Co Q0Qen]iorQ&5,,QRighfi to/ organise ndQ/;ohe 0e 4 rgai ng,
;ene0a: 3LO,
9+&5*:/ =h/Q3LQOQ aad the F'ori of >or7,/ ;ene0a: 3LO/
and $nited 1ations Centre on =ransnational CorporatiDns 9+&55://
E o c m 7 Q a m d L 3 ? Effects/Qof>tim(on t3 nti rprises in ]beQ ,xport
Processin/g Zones, ;ene0a: 3LO/
Panford, M/, 9+&&*:/ frican Labour/ Relations and >or7ers Rights, ssessing the
Role8of the 3nternational Labour Organization, Connecticut U London
;reen!ood Press/
I*
t i rO