Sunday 11 September 2011

labour standards

I reckon that imposing international labour standards could, to certain degree, be realistic and benefitable for the economy and society.

The spread of globalization wealth seems to be uneven. Companies make more porfit, but some workers still earn next to nothing and work in unacceptable conditions. Lowering the day time work limit could actually be benefitial for the companies. That is because the workers would rest more and, therefore, be more efficient. Imposing or increasing the minimal wage might also have a positive impact on the efficiency, since the better rewarded stuff is more eager to work harder. From the macro-economical point of view, there are also some advantages of improving the labour standards. Better paid workers would spend more, consequently, the demand would increase and that would have positive result in the GDP growth. A certain level of improving the labour standards would also not necessarily make the companies to withdrawn, as long as it would be cheaper to pay the workers more than mooving the entire factory.  Also imposing some working standards might not have a negative impact on emplyment, since the mainly exported agricultural products are sold at "world prices" irrespective of the costs of production. It means that a slight increase in payment would not affect the global demand on certain products.

There are number of evidences which confirm the thesis, that imposing the labour standards could actually be a positive phenomenon. I think that nowadays governments should focus on solving that problem and change the current thinking patterns.

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