Improving the Conditions of Workers Minimum Wage Legislation and Anti-Sweatshop Activism Harvard Case Solution & Analysis

Many argue that international labor standards are a means to address the poor working conditions and low wages in developing countries. Others have argued that attempts to impose a "living wage" and to improve working conditions in developing countries may lead to an increase in labor costs, which in turn can damage the employees of these movements seek to protect the inclusion of such workers is even worse, work or do not work at all. Many labor rights activists appealed to the public-relations campaigns and boycotts designed for multinational companies to pressure them to improve the conditions of their employees. In 1990, Indonesia - home to dozens of Nike, Reebok, Adidas and subcontractors - was the main goal for these activists. At the same time, the Indonesian government - request of the U.S. government - has significantly increased its minimum wage. These two different actions led to a doubling of wages for unskilled workers in Indonesia. Although the minimum wage increase was to lead to the loss of employment, this article talks about a study that shows that employment remained stable in textiles and clothing, the fact that the anti-sweatshop activity in Indonesia was a "win-win" situation. "Hide
by Ann Harrison, Jason Scorse Source: California Management Review 18 pages. Publication Date: February 1, 2006. Prod. #: CMR335-PDF-ENG

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