Question

In: Economics

based on what happened at Renna Plaza what obvious differences exist between employment laws in the...

based on what happened at Renna Plaza what obvious differences exist between employment laws in the US and those in developing countries where much of the merchandise sold in the US is manufactured?

Solutions

Expert Solution

Back ground:

On april 24.2013, rana plaza, an eight- story building ,in dhaka,bangladesh, collapsed, killing ,more than 1,100 garment workers. it brought international focus on portion of the global supply chain, h's also raised the issue of what might be done to improve working condition,es pecially for lower wage workers in developing countries arount the world.the day of building collapse workers arrived ad saw cracks in the outside of the building where trying to meet apparel products for (U.S) and (E.U) market

Reason for collapse:

Rana plaza was allegedly structurally un sound and poorly maintained for apparelproduction (Industry under threat or fire) and one where workersneed easy access to rapid escape routes issue relatting to workers inbility to effetively exercise their rights and work in a safe work place may have contributed to the tragedy.

U.S Trade preference programs:

One area congressional focus in supporting internationally recognized workers rights has been through provisions in U.S trade preference programs. these were first introduced in the generalized system of preferences(GSP) program in 1985 GSP provides unilatera U.S tarff preferences for certainproducts exported by developing countries,to support their economic development.under GSP,and later introduced in other trade preference programs.

  • The right of association;
  • The right to organize and bargain collectively;
  • A prohibition on the use of any form of forced or compulsory labor;
  • A minimum wage for the employment of childern; and protection against the worst forms of child labor,and
  • acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.

On the basis of these criteria ,effective september 3,2013, the obama administration suspended GSP status for bamgladesh,with no timeline for its possible reinstatement.

The much of U.S mercandise sold to Maxico($181B).


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