International Labor Law Final - Paper- Draft_2

International Labor Law Final - Paper- Draft_2 -...

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International Labor Law Final ILR IC 634 Professor Compa
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What Problems might arise now or in the foreseeable future in light of  development in international labor law? General Power Corporation’s decision to pursue the current opportunity for  development, installation and operation of energy infrastructure in Devinco to support  companies in the EPZ should be made with full consideration of the implications of  international labor law and how they may bear upon the company. I will begin with an  overview of the situation as I understand it. This will be followed by a listing of key factors  which may bear upon GPC’s decision to pursue a bid and recommendations for winning  and limiting potential liabilities if the decision is made to go forward.   Overview:   As a developer and operator of energy infrastructure, GPC’s served market is  dominated by regions of the world with the highest rates of economic development.  Global sourcing of manufactured goods by developed nations from lower-cost  jurisdictions is the economic model of the foreseeable future, making these the ones with  the highest rates of infrastructure growth. The lowest cost jurisdictions are generally those  with the lowest total cost for manufacturers. These include costs associated with delivery  of raw materials and component parts, power, labor, transportation and regulation. 
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Principal among these is the cost of labor, which if low enough, will be sufficient to deter  manufacturing in the consuming country, another more developed nation or a competing  low-cost jurisdiction. The low cost of labor in developing nations arises from the transition  of labor from a very-low cost agricultural base into the manufacturing sector, combined  with low added costs associated with worker safety and labor standards thought to be  reasonable in the more developed world. Competition among developing nations for  foreign investment in manufacturing facilities is fierce, as producers from the US, EU,  Japan, Korea and the Asian Tigers have demonstrated a continuing willingness to migrate  production to the lowest cost jurisdictions as may be required to meet severe cost-based  competition in their home markets. Therefore domestic and foreign operators and  governments in developing nations resist adoption of labor practices which will undermine  their low labor cost, unless and until the social and economic benefits become evident as  a natural part of the nation’s eventual transition to a more developed nation. Indeed, 
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