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82B09 1 enal

Multinational Enterprises Programme

Working Papers

Working Paper No. 15 (~ev.1982)

ILO research on multinational enterprises

and social policy: An overview

Second (revised) edition

by Hans Gunter

International Labour Office

Geneva, International Labour Office, 1982

Copyright ( c ) I n t e r n a t i o n a l Labour Organisation, 1982.

This i s one of the working papers r e l eased by the

I L O t s Mul t ina t ional en te rp r i ses programme. Respons ib i l i ty

f o r the opinions expressed i n I L O working papers r e s t s

s o l e l y with t h e i r authors; and the r e l e a s e of t h e working

papers does not c o n s t i t u t e an endorsement by the ILO of the

opinions expressed i n them. The working papers a r e intended

to provide elements f o r f u r t h e r d iscuss ion of the s u b j e c t s

t r e a t e d .

ILO RESEARCH ON MULTINATIONAL ENTERPRISES AND SOCIAL POLICY: AN OVERVIEW

CONTENTS

......... I. Objectives and characteristics

....................... 11. Sectoral studies

....... (i) Methodology and structure

(ii) Description and findings of the ................ sectoral studies

- Study on European metal trades .......................... MNEs

- Study on US-based metal trades .......................... MNEs

- Study on petroleum industry MNEs ..........................

- Study on textile (clothing and ....... footwear) industry MNEs

- Study on food and beverage ................. industry MNEs

111. Studies on employment effects of MNEs .. (i>

( ii)

(iii)

....... Methodology and structure

Description and findings of the ............... synthesis reports

- Employment effects of MNEs in ...... industrialised countries

- Employment effects of MNEs in .......... developing countries

Description and findings of the country, regional and thematic ...................... monographs

... - Country or regional studies - Study on indirect employment effects of MNEs in developing ..................... countries

- Study on technology choice of MNEs for maximum employment generation in developing ..................... countries

Paras.

1- 9

10-24

10-11

12-24

12-16

17-23

24

11

11

25-54

25-31

32-50

32-38

39-50

51-54

51-53

54

Page

1

3

3

4

4

5

7

(ii)

Paras. Page

IV. Studies on other areas of ILO competence .......................... 55-71 20

- Training practices of MNEs and their impact on development ....... 56-64 20

- Industrial relations experience in MNEs operating in Western Europe .. 65-67

- Wages and working conditions in MNEs .............................. 68-71

V. Studies connected with the ILO .............. Tripartite Declaration 72-76

(i) Legal studies: study on the usefulness and feasibility of international principles and guidelines on social policy ..................... for MNEs 72

(ii) Studies specifically relevant to areas covered by the Declaration .................. 73-75 - Information and consultation practices by MNEs concerning ............. manpower plans 74

- Transfer of information on safety and health by MNEs . . 75

(iii) Reports on follow-up to the .................. Declaration

ANNEX List of relevant ILO publications and working papers ......................

ILO RESEARCH ON MULTINATIONAL ENTERPRISES AND SOCIAL POLICY: AN OVERVIEW

I. Objectives and characteristics

1. The objective of ILO research in this area is to improve the factual knowledge about labour and social practices of multinational enterprises (MITES) the world over and to obtain indications on the labour and social effects of their operations in home and host countries. It can thus be expected to provide elements for the understanding of the complex and changing phenomenon of MNEs and for sound social policy decision-making, internationally and nationally.

2. Most of the ILO research projects are based on original research including surveys and interviews addressed to institutions and individuals within the ILO1s tripartite constituency (governments, employers1 and workers1 organisations and representatives, MNE management, etc.), as well as on inputs by academics and other specialists, with contributions, in some cases, by ILO experts serving in the field. In addition, relevant results of existing research are used.

3. The reports of major ILO research projects are published under ILO responsibility. On the other hand, certain component studies for research projects, some specialised technical papers and more generally, country or regional monographs, for which particular local expertise is required, are usually entrusted, throughout the world, to specialised outside institutions or individual researchers of high standing and extensive prior experience in the fields under study. These contributions are usually requested in line with a common ILO research design and out- line. To the greatest extent possible, institutions and individuals from developing countries are involved in ILO research because of their experience and with a view to strengthening local research capacity in an area of considerable importance to developing countries. Responsi- bility for the views expressed in these monographs which are released in the form of working papers,rests with their authors.

4. ILO research regarding MNEs relates to all areas of ILO competence within the UN system, and in particular to employment, trhining, conditions of work and life and industrial relations. The relevant research projects are approved by the ILO Governing Body and the International Labour Conference when they adopt the ILO's biennial programmes and budgets. Requests for specific research themes emanate from various ILO bodies but may also be suggested from outside. A particular role in establishing the initial research programme was played by a Tripartite

Meeting on the Relationship between MNEs and Social Policy (1972), for which a comprehensive survey of existing research results had been prepared ( see No .l of the annexed list1), and a Tripartite Advisory Meeting on MNEs and Social Policy (1976/77), both reporting to the ILO Governing Body. In addition, research requests may also come from the ILO's International Labour Conference, regional conferences, Industrial Committee meetings and the Governing Body with its committee^.^ In making specific programme proposals based on these requests, account is taken of research needs identified through the current monitoring of the areas in question and uncovered through co-operation with other UN organisations, especially the United Nations Centre on Transnational Corporations (UNCTC) .

5. Particular work arrangements may be made in this connection with other organisations. For instance, as regards employment research, an understanding has been concluded with the UNCTC that specific research on the topic of employment effects of MNEs will be carried out by the ILO, bearing in mind the needs of the Centre. The need for close co-operation with the UNCTC has been explicitly recognised in the ILOs Programme and Budget which notes that ILO research on MNEs has to If.. .take into account ... the need to furnish inputs into the work programme of the United Nations Centre on Transnational Corpora- tions in areas of ILO cornpetencell (programme and Budget for the biennium 1980/81, para. 100.54).

6. Two types of studies have emerged over the years as requiring permanent attention. The first type are studies on the labour and social practices of MNEs in various sectors of the economy. Constant requests have been made for such studies by the ILOfs Industrial Committee meetings. These studies can be considered, at least in part, also as a social complement to the industry studies undertaken by the UNCTC. Three sectors have been covered thus far by the ILO (metal trades, petroleum industry, textile industry (plus clothing and footwear)).

7. The second type of studies requiring permanent attention are those on the employment effects of MNEs, a particularly complicated and rapidly changing field. Continued research in this area has been requested in a Resolution of the International Labour Conference (1979).

8. While research on MNEs cannot be confused with the monitoring of the application of the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, for which special machinery exists, it can certainly provide valuable background information also in this connection.

This list contains relevant ILO publications and working papers (Nos. 1-46) as well as selected studies of the Inter- national Institute for Labour Studies, an education and research centre of the International Labour Organisation (NOS. 47-56).

* At its 214th (November 1980) Session, the Governing Body approved the establishment of a Standing Governing Body Committee on Multinational Enterprises which, in addition to other functions, is to provide guidance for further research.

Recognising this function of research, a recent Governing Body Committee meeting considering first reports received on the effect given to the ILO Declaration in member countries has recommended that the ILO should undertake research o certain themes specifically relevant to the Declaration. !?

9. ~es~onsibilit~ for ILO research on MNEs is entrusted, as a rule, to the ILO1s Bureau of Multinational Enterprises, which acts as the focal point on multinationals. However, co-operation of various forms is established, as appropriate, with other technical departments in the ILO. such as the Employment and ~evelopmht Department, the the Sectoral Activities Department and the For major projects outside specialists are a consultative capacity.

11. Sectoral studies

Training Department, Legal Department. also called upon in

(i) Methodology and structure

10. These are profile studies covering a sample of MNEs, in a given economic sector. They include a wide range of subject areas such as: corporate background information and structural data; relationships to subsidiaries; decision- making modalities; reasons for investing abroad; employment problems, trends and impact; consequences of transfers of operations; co-operation with public authorities, employerst and workers' organisations; income and job security; training practices and relations with local institutions; wages and conditions of work, including work organisation and provisions for health and safety. A prominent place is reserved for industrial relations questions, such as company- wide policies; structure of workersf representatives; arrangements for collective bargaining, consultation and information; industrial disputes and grievances procedures; participation arrangements; procedures for the handling of manpower planning, including cases of shut-down, changes in personnel, transfer of production and reduction of working time. Statistics on economic and social aspects covered are likewise provided.

11. Information for the sectoral studies is obtained mainly through questionnaires addressed to the management of MNEst headquarters and subsidiaries, workers' representatives in the enterprises and to governments and relevant employers1 and workers' organisations in industrialised and developing home and host countries. Where required, the questionnaire data are supplemented by interviews and appropriate information from published sources, Three studies have been published thus far, two for MNEs in the metal trades (one

Report of the Governing Body Committee to Consider Reports on the Effect given to the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (Geneva, 22-26 Sept. 1980)~ GB 214/6/?, para. 85.111.

relating to European-based enterprises (~0.5 of the attached list) and one relating to US-based enterprises (NO. 6) ) , and one for the petroleum industry (No.7). A study on the textiles1 industries MNEs of Xuropean, Canadian, Japanese and some Asian developing countries origin, including clothing and footwear enterprises, is currently under preparation (~0.8). It is envisaged to cover in turn, in the years to come, other sectors in line with requests made by ILO Industrial Committee meetings. The food and beverage industrv has been chosen as the next such sector.

(ii) Description and findings of the sectoral studies

12. The study on some European metal trades MNEs (NO. 5) concerned eleven enterprises. One general conclusion was that these enterprises-appear to be responding mainly to market considerations (safeguarding of markets and export opportunities) in their decision to invest abroad. The availability of qualified manpower was a significant factor for the location of foreign subsidiaries, together with manpower shortages experienced in the European home countries during the period under investigation. However, such manpower considerations were only one among many other factors prompting the decision to invest outside the home country.

13. Direct host country employment creation has, nevertheless, been somewhat limited since relatively little labour-intensive production was apparently being set up, whether in the developed or developing countries. However, a number of positive indirect employment effects are also reported. Governments tend to recognise MNEs mainly as a medium for transfer of advanced technology. In the period covered (1969-73), employment increases were generally more marked abroad than in the home countries. Still, in the latter countries, the general employment effects appear to have been more often positive than negative. A certain amount of reorganisation, rationalisation and transfer of production has taken place; but this seems to have been a rather gradual process. Certain production jobs have been lost in home countries; but volume-wise they were compensated or over-compensated, by the creation of technical jobs, requiring higher qualifications,in the home entities of the ent erpri se s .

14. Systematic training efforts at all levels were noted among practically all the MNEs covered. Generally speaking, there was a marked preference for training people for the utilisation of available technologies rather than for an adaptation of technologies to the existing manpower structure.

15. The management of subsidiaries are largely autonomous in matters of wages and labour conditions, which are generally determined through collective bargaining. In industrialised countries there seems to be no major difference between remuneration and fringe benefits offered by comparable

local and MNE companies. In MNEs in developing countries these appear to be somewhat above the level of local industry. A favourable record for the MNEs is usually found also in the field of occupational safety and health. According to the study, major investment and financial decisions (with employment consequences) are ultimately taken by headquarters; but subsidiary management is, apparently, extensively consulted.

16. In the industrial relations field there is ample evidence that the management of MNEs (in headquarters and subsidiaries) co-operate actively in the relevant local employers' organisations and that this function is very decentralised. No major problems have been reported for the enterprises covered with respect to trade union recognition and freedom of association .although the trade unions indicated that they have experienced problems with some enterprises not included in the sample. Informal meetings between head- quarters1 management and international unions were reported for two enterprises. They are not rejected a priori by most companies as long as no transnational negotiations are intended. In a few enterprises, some problems of information disclosure were mentioned, with room for improvement as regards the social accountability of MNEs and information for unions1 bargaining.

17. The study onsome US-based metal trades MNEs (~0.6) related to six companies with subsidiaries located in America, Europe and Asia. A number of results were similar to those found in the study on European-based MNEs. Thus, market considerations were likewise reported to have been the main factor for investing abroad while manpower factors were also important, but not decisive. Stability of a host country and predictability of government policies were probably stressed more as being relevant for investment decisions than in the European study. Like the European-based companies, investments by US enterprises were capital- and technology-intensive; and the resultant direct and indirect employment implications were also similar. It was noted, however, that as the six sample enterprises are of considerable size, their direct employment contribution world-wide was corresponding to that scale of operation. They employed 1.2 million workers in 1975 to which indirect employment effects have to be added. The focus of corporate decision-making of subsidiaries varied widely from company to company but, as in the European enterprises, decision-making in labour matters was highly decentralised.

18. All the enterprises were involved in training of local employees in some form or other with some companies taking rather comprehensive approaches. Replacement of expatriates as a major training objective and a high degree of co-operation with local authorities was reported.

19. Like t h e i r European counterpar ts , t h e US e n t e r p r i s e s genera l ly seek t o remain a t t r a c t i v e i n terms of wages and f r i n g e b e n e f i t s and seem t o provide remuneration a t l e a s t comparable t o t h e l ead ing employers i n the indus t ry i r r e s p e c t i v e of the loca t ion . I n t h e union ' s eva lua t ion , wages and condi t ions of work do not i n genera l , d i f f e r appreciably from those of (comparablej l o c a l e n t e r p r i s e s ; they a r e b a s i c a l l y determined by l o c a l c o l l e c t i v e bargaining, i . e . t h e companies a c t by and l a r g e as l o c a l companies i n the r e spec t ive s e t t i n g .

20. I n t h e a reas of occupational s a f e t y and h e a l t h , t h e MNEs s t a t e d t h a t t h e i r po l i cy w a s t o meet at l e a s t t h e l o c a l requirements but t h a t they f requen t ly went beyond them, sometimes on t h e model of more s t r i n g e n t US standards.

21. Labour r e l a t i o n s mat ters a r e usual ly t r e a t e d l o c a l l y by the s u b s i d i a r i e s but seve ra l unions commented t h a t head- q u a r t e r s were very c l o s e l y involved i n some of these a c t i v i t i e s . While t h e unions a l s o acknowledged, f o r many cases , t h a t wi th r e spec t t o union recogni t ion the MNEs were a c t i n g respons ib ly , or were at l e a s t complying with the l a w , t h e r e were a l s o negat ive comments on other en te rp r i ses . The e n t e r p r i s e s themselves e i t h e r s t a t e d t h a t they were favourably disposed t o recogni t ion of unions o r s t r e s s e d t h a t t h i s mat ter w a s t he r e s p o n s i b i l i t y of l o c a l management which had t o take account of l o c a l p r a c t i c e s and requirements. Consis tent wi th t h e i r d e s c r i p t i o n of labour r e l a t i o n s as a l o c a l management func t ion , the s i x MNEs indica ted t h a t t h e r e w a s l i t t l e s i g n i f i c a n t i n t e r n a t i o n a l t r a n s f e r o f l abour r e l a t i o n s p r a c t i c e s wi th in the corpora t ions . The e n t e r p r i s e s opposed t h e concept of t r ans - na t iona l c o l l e c t i v e bargaining as t h e i r l o c a l e n t i t i e s ' p o l i c y i s i n t e g r a t i o n i n the r e spec t ive na t iona l s e t t i n g . The unions, on t h e o ther hand, were a l m o s t unanimously i n favour of such bargaining o r a t l e a s t mutual t r a d e union consu l t a t ion f o r concerted ac t ion .

22. A s regards information provis ion , MNEs have d i f f e r e n t views on t h e i r r e s p o n s i b i l i t i e s i n connection with c o l l e c t i v e bargaining. Some e n t e r p r i s e s f e e l t h a t only i n f o m a t i o n on what i s " c l e a r l y re levant" should be given and a minor i ty of e n t e r p r i s e s cons iders t h a t unions should be Ifas f u l l y informed as poss ib le" . Unions i n t h e US f e e l t h a t they rece ive considerable d a t a , o r a l l they d e s i r e , while e l se - where they o f t e n r e p o r t t h a t some reques t s remained u n s a t i s f i e d . These d i f f e r e n c e s seem t o stem mostly from d i f f e r e n c e s i n 1-ocal l e g a l requirements.

23. Dif ferences i n labour l a w s and i n n a t i o n a l customs and p r a c t i c e s seem t o account f o r wide v a r i a t i o n s i n procedures f o r handling shut-downs and t r a n s f e r s and reduct ions i n personnel , including the important ques t ion of t h e degree of unions and o the r workers1 r e p r e s e n t a t i v e s 1 consu l t a t ion , i n var ious ways and s t ages , i n such dec is ions .

24. The scope o f the study on ~ e t r o l e u m indus t rv MNEs ( ~ 0 . 7 ) d i f f e r s from t h e o ther two s t u d i e s i n as much as an attempt has been made t o ga ther information, on a s e l e c t i v e b a s i s , from coun t r i e s i n a l l r ec ions where MNE petroleum companies operate . Twenty-one petroleum companies a r e covered by t h e study. A s a consequence of i t s wider scope and c e r t a i n gaps i n responses, i t i s d i f f i c u l t t o draw up a complete l i s t of balanced conclusions on the labour and s o c i a l p r a c t i c e s of e n t e r p r i s e s i n the production and r e f i n i n g s e c t o r s of t h e petroleum indus t ry , t o which the survey w a s confined. The bulk of information received tends t o corrobate t h e view t h a t t h e petroleum indus t ry genera l ly , and t h e MNEs i n p a r t i c u l a r , hold a p o s i t i o n of leadership a t t h e n a t i o n a l and i n t e r - na t iona l l e v e l s i n comparison with o ther s e c t o r s of indus t ry , e s p e c i a l l y with r e spec t t o wages, f r i n g e b e n e f i t s and o the r condi t ions of employment, t r a i n i n g , occupational s a f e t y and hea l th . Repl ies received from workers1 o rgan i sa t ions genera l ly concur on these ma t t e r s with those from governments and management, a p a r t from some c r i t i c a l remarks on l i m i t a t i o n s of t r a d e union a c t i v i t y s a i d t o p r e v a i l i n some c o u n t r i e s and a reas of operat ion. The over-a l l p i c t u r e which emerges from the petroleum i n d u s t r y s tudy i s t h a t the s o c i a l and labour p r a c t i c e s of MNEs i n t h i s h ighly cap i t a l - in tens ive indus t ry , d e s p i t e the high degree of d e c e n t r a l i s a t i o n and adapta t ion t o l o c a l condi t ions , d i sp lay many common f e a t u r e s and genera l ly above-average labour s tandards.

111. Studies on employment e f f e c t s of MNEs

( i ) Methodology and s t r u c t u r e

25. This i s a complex and dynamic a r e a f o r research , of considerable i n t e r e s t t o the ILO const i tuency and o ther q u a r t e r s as well . Two types of s t u d i e s a r e produced by the ILO: (1 ) general o r syn thes i s r e p o r t s , analysing t h e g lobal e f f e c t s on employment of MNEs; and ( 2 ) monographs on p a r t i c u l a r coun t r i e s , reg ions and s p e c i f i c subjec t a reas usua l ly commissioned from outs ide authors o r i n s t i t u t i o n s , and used as component s t u d i e s f o r the l a r g e r r e spec t ive r e sea rch p r o j e c t s . These monographs a r e , the re fo re , r e f l e c t e d i n the general o r syn thes i s r e p o r t s . However, depending on t h e design of t h e underlying research pro j ec t , a v a r i e t y of a d d i t i o n a l o r i g i n a l i n p u t s a r e u t i l i s e d f o r t he major r epor t s . Thus, t h e r e p o r t s of the ILO research p ro jec t on t h e employment e f f e c t s , world- wide, of MNEs i n home and hos t coun t r i e s , s t a r t e d i n the 1978/79 biennium - and because of i t s complexity continued i n 1980/1981 - r e f l e c t a l s o the r e s u l t s of an enquiry undertaken among m a i n MNEs i n 1 2 home coun t r i e s on t h e i r fo re ign operat ions. It requested d a t a i n p a r t i c u l a r on aggregate, s e c t o r a l , r eg iona l and country employment of these e n t e r p r i s e s i n t h e i r s u b s i d i a r i e s a n d a f f i l i a t e s i n 40 d e v e l o p i n g coun t r i e s f o r t h e las t two decades approximately. Furthermore f o r t h i s r e sea rch , the governments of se lec ted d e v e l o p i n g coun t r i e s were a l s o asked t o provide r e l e v a n t e m p l o y m e n t

s t a t i s t i c s ; and the governments of 25 i n d u s t r i a l market economy coun t r i e s were requested t o fu rn i sh r e p o r t s on t h e sub jec t fol lowing a catalogue of i s s u e a reas prepared by t h e ILO. Likewise, r e l evan t employers1 and workers1 o rgan i sa t ions were approached f o r appropriate cont r ibut ions . F i n a l l y , as i n a l l o ther genera l s t u d i e s , a survey of l i t e r a t u r e on the sub jec t s w a s c a r r i e d out , inc luding s t a t i s t i c a l and o the r a n a l y t i c a l m a t e r i a l s published by i n t e r n a t i o n a l o rgan i sa t ions , such a s UNCTC, OECD and EEC. I n t h i s connection, s p e c i a l i s e d academic resea rch i n s t i t u t i o n s i n var ious c o u n t r i e s were contacted f o r r e l evan t m a t e r i a l s as ava i l ab le .

26. The monographs contr ibuted by outs ide i n s t i t u t i o n s / authors fo l low a common o u t l i n e e s t ab l i shed by t h e ILO s o a s t o enhance comparabili ty. For some o f these monographs the i n s t i tu t ions /authors were able to c a r r y out s p e c i a l enqu i r i e s among sample e n t e r p r i s e s . Other monographs c o n s t i t u t e a c r i t i c a l eva lua t ion of e x i s t i n g s t u d i e s together with unpublished mate r i a l s a t the authors ' disposa l . A l l i n s t i t u t i o n s / au thors chosen have considerable r e sea rch experience i n the a r e a of employment e f f e c t s of MNEs which was put t o use f o r the ILO papers. Some of them have recen t ly c a r r i e d out r e l e v a n t la rge- scale s t u d i e s f o r publ ic a u t h o r i t i e s which could be analysed bearing the s p e c i f i c ILO employment research i n t e r e s t s i n mind. The ILO-commissioned monographs, therefore , have given r i s e t o the pub l i ca t ion of a considerable body o f knowledge which might otherwise not have been ava i l ab le t o an i n t e r n a t i o n a l audience.

27. Both t h e general ILO r e p o r t s and the country o r reg ional monographs intend t o provide information on a v a r i e t y of a spec t s r e l e v a n t f o r t h e assessment of the employment e f f e c t s of MNEs. The sub jec t a reas covered include employment volume, s t r u c t u r e and t r e n d s i n MNEs; evolu t ion of MNE pene t ra t ion and concent ra t ion r a t i o s ; and comparisons between t h e evolu t ion of

MNE employment with t h e t o t a l employment performance i n manu- f a c t u r i n g and i n the r e spec t ive i n d u s t r i e s , together with an evalua t ion of the s ign i f i cance o f employment i n MNEs f o r t h e economies i n quest ion. To the extent t h a t r e l e v a n t r e sea rch i s a v a i l a b l e , i n d i c a t i o n s a r e a l so given on the i n d i r e c t employment e f f e c t s of M N E s (backward and forward input-output l inkages with l o c a l i n d u s t r i e s ; employment e f f e c t s o f income c r e a t i o n f o r the working populat ion and government budgets; removal of production bot t le-necks through import s u b s t i t u t i o n and completion of na t iona l production s t r u c t u r e through MNEs; export m u l t i p l i e r ; displacement of e x i s t i n g employment through t h e expmsion of MNEs, e t c . ) . However, as a r u l e , r e l i a b l e numerical assessments o f t hese i n d i r e c t e f f e c t s a r e ve ry d i f f i c u l t t o e s t a b l i s h given the e x i s t i n g resea rch methodology and d a t a a v a i l a b i l i t y . While these e f f e c t s have been t r e a t e d i n some d e t a i l i n a number of monographs, only incomplete r e fe rences o r rough es t imates have been made i n o thers .

28. The global research results of the 1978-81 research project on the employment effects of MNEs, which enlarge and update a preliminary study on the subject NO.^), have. for practical reasons been presented in two reports. One volume rela te s to MNE employ men t effects in industrialised countries and a second volume to such effects in developing countries. While the same general structure is followed, in principle, for both volumes using the research inputs outlined in the previous paragraph, the emphasis they give to certain areas is somewhat different depending on the context in which MNEs operate and the concerns of the ILO constituency. Thus the issue area of "job restructuring" and "job exports" has been particularly highlighted in the synthesis report on industrialised countries while the question of indirect employment effects and linkages with the domestic economies has been specifically focussed upon in the companion report for developing countries. Likewise, in this latter report a special chapter has been included on employment effects of MNEs in free-trade and export-processing zones.

29. In addition to the publications referred to above, selected monographs have been released on key areas in connection with the emplo.yment performance of MNEs. Among these is a special study on the indirect employment effects Gf MNEs in developing countries (No.18) analgsing, in particular, the aspect of input-output linkages, providing numerical assessments through illustrative examples and evaluating the importance of enterprise and government policies respectively for a maximisation of indirect employment contributions by MNEs. Another study (~0.28) provides a case examination of two MNEs home-based in Sweden. It examines the likely effects of alternative economic strategies of these enterprises on domestic employment. Starting with the actual policy of investment abroad over the last couple of years, hypothetic domestic employment results are estimated (in the short and long run) assuming that the enterprises had opted for a partial, or complete, export of their products rather than their production in foreign locations. The assumptions made in this connection include export possibilities in line with the competitive situation in major markets, the policies of other suppliers, demand elasticities, available production capacities in the domestic plants of the enterprises, etc. While the numerical results of this study cannot be easily generalised, it highlights important factors for corporate decision-making and employment effects which are more widely relevant for the question of alternative policy options.

30. The studies thus far undertaken clearly show that despite the presence of a common phenomenon, viz. the world- wide operating MNE, the actual employment implications of their activities depend to a great extent on factors particular to the countries and industries involved, such as the type of MNE activity, penetration ratios, etc., and also on general local employment, manpower and economic conditions, as well as on government policies regarding employment, training, re training and income protection for workers. This has clearly demonstrated

the need to continue and to complement by specific studies the country and regional monographs so as to obtain a more reliable picture of the variety of existing situations and problems and to update the findings of earlier-research. The variety of existing situations was also reflected in a series of earlier ILO monographs, commissioned mostly from outside experts in connection with the ILO World Employment Conference and other research requirements of the ILO1s World Employment Programme (NOS. 34-46) .

31. A new research project was started in the 1980/81 biennium which will continue into 1982/83. at least. It focuses on the appropriate, economically viable, technology choice of MNEs for maximum employment generation, directly and indirectly, in developing countries. A methodological study has been prepared (No. 28) to be used as a technical background paper for the project. Research institutions in developing regions have been approached to study systematically cases of such appropriate technology choice by subsidiaries of MNEs. In,the case studies, the factors making this choice possible have been analysed as well as factors that would allow an emulation of the experience by enterprises elsewhere. In the same way, limiting elements for the wider application of technology choice uncovered by the cases studies are likewise scrutinised. A variety of experineces from different situations (type of enterprise, industry, product-mix, location, market and government policies) are studied, which should provide the basis for an analytical ILO report. Its findings are hoped to be useful for the promotion of employment generating technology choice by MNEs and possibly other enterprises as well. Several MNEs have already been studied in case examinations relating to three developing countries (NOS. 30, 31 and 32). Others will follow.

(ii) Description and findings of the synthesis reports

32. The synthesis report on Employment effects of - - . multinational enterprises in industrialised countries (No. 10) notes - that in ~racticallv anmajor industrialised market economy countriei (which are usually both host and home countries bf multinationals), MNEs hold a significant share of employment, especially in manufacturing, but increasingly also in the service sector. Great variations exist, however, in the importance of employment furnished by the subsidiaries of foreign multinationals (fully or partly foreign owned). They accounted in the mid-1970s for a low of less than two per cent of manufacturing employment in Japan and up to 15 per cent in the Federal Republic of Germany, but correspond to one-third in Belgium and to over 40 per cent in Canada. Not surprisingly, the interest in foreign enterprises as contributors to public employment policy goals, and also concern over the employment repercussion of their investment policies, are clearly correlated with this share. Not included in these figures,

and frequently overlooked, is the employment impact of multinationals in their home countries. In many of the countries considered, the employment share of domestic multinationals exceeds considerably that of the foreign multinationals and is, therefore, determinant as regards the general employment effects of MNEs. If all manufacturing MNEs (domestic and foreign) are taken into account,even under a conservative definition (regarding, for example, the minimum number of foreign production subsidiary enterprises required) they appear to account for over 40 per cent of industrial employment in 9 out of the 12 wealthiest industrialised nations. Cautious estimates for the mid-1970s would therefore place employment in MNEs in the manufacturing industry at some 25 to 30 million in the industrialised market economy countries (defined for this purpose as the OECD countries). To this can be added approximately another 10 million if one were to estimate employment in multinational service industries, such as banking, insurance, hotel and retailing chains and advertising agencies.

33. A very differentiated distribution pattern emerges, on closer examination, as regards employment in foreign and domestic MNEs. Firstly, there is that group of countries in which employment in foreign-owned subsidiaries is a large and significant factor in manufacturing employment of the particular country. Countries such as Austria, Belgium and Canada are examples. On the other hand, there is that group of countries where employment in home country MNEs is much mDre substantial than that in foreign-owned MNEs. Predominant here is the situation of the United States (nearly 7 million in domestic MNEs vs. an estimated 650,000 employees in foreign-owned enterprises), followed by the Federal Republic of Germany (1.5 million in German MNEs vs. 473,000 in the larger foreign-owned enterprises), the United Kingdom (2.5 million vs. 926,000) and Sweden (316,000 vs. 100,000 in foreign-owned MNES). An extreme situation is found in Luxembourg where the bulk of manufacturing employment is accounted for by one large Luxembourg-headquartered MNE, and some 38 per cent by foreign-based MNEs. It can be estimated that a third or more of manufacturing employment in the United States, Switzerland, the Netherlands, the United Kingdom and Sweden is in the home- country operations of MNEs. Canada, usually thought of mainly as a host country, has nevertheless nearly 30 per cent of its manufacturing employment in Canadian MNEs. Thus, almost three- quarters of Canadian industrial employment appears to be in home and host MNEs combined. Lastly, there is a grou of countries (overlapping with the two earlier groupings 7 where (according to data for 1975 approximately) the MNEs home-based there employed at least the same or a greater number of employees in foreign operations as compared to operations in the home country. This is the case for example in Switzerland (with 460,000 abroad and only 214,000 at home in the 35 largest enterprises) and Belgium (with 182,000 abroad vs. 163,000 at home). In another case for which data is available, employment at home and abroad is almost at the same level (in Sweden's MNES) or the levels are fairly close to each other, such as in the case of Canada (i.e. with 540,000 at home in its own MNEs and some 360,000 abroad). Finally, the opposite observation

can be made for a number of other countries. Thus, in the cases of the United States, the United Kingdom and the Federal Republic of Germany, employment at home in their domestic MNEs is rather very much larger than employment in the subsidiaries of such MNEs abroad (i.e. 6.7 vs. 3.3 million, 2.5 vs. 1 million, and 1.5 vs 500,000, respectively). h he data usually refers to the mid-1970s. )

34. Available data, including those from a special survey undertaken for the ILO research among MNEs in 12 major home countries has shown that, in general, employment in foreign operations tended to increase more in the last 10-15 years than in the home countries, with this increase being greatest in the developing countries. At the same time, it has been found, where such information was available, that over the same period the employment performance of MNEs, globally speaking, in their home countries was much in line with the general manufacturing (or industry) trends (the United States, Federal Republic of Germany, Be1 ium, United Kingdom, Switzerland and Sweden are some examples f . As foreign employment expansion was not accompanied, therefore, during the longer-term period of the last 10-15 years by a decrease in the volume of employment in the home country operation, the hypothesis of large- scale flemployment exportsIf by MNEs (defined in the limited sense of a shrinking of the domestic MNE employment volume correlated with the expansion of foreign employment) in such cases is not supported by the study. However, this does not contradict evidence of transfers of production lines to other industrialised and developing countries and other industrial restructuring undertaken by MNEs and related "job exportsft; and the social problems connected with these cannot be belittled despite the uncovered global trends.

35. Available research findings on the question of Ifjob exportsf1 and "employment exportsf1 in manufacturing are provided in the body of the report and usually point to a certain loss of manual jobs in home countries of MNEs and an often by and large corresponding increase in white-collar jobs. While these results somewhat depend on the methodology used, it can thus be said that these job developments have usually had relatively small effects on total employment volumes. But they have undoubtedly created problems of adjustment (and sometimes unemployment) for segments of the MNE labour force. It must also be added that the question of what would have happened job-wise in the home countries had MNEs not expanded, or expanded less, in foreign countries is not researched in all situations and involves assumptions on which consensus is difficult to establish.

36. Factors explaining employment behaviour of MNEs in the long-run include economic restructuring of the primary, secondary and tertiary sectors, usually conceptualised as the maturing of industrial societies and their passage to a post- industrial stage. This process and the proper dynamic of multinationals have become interwoven in recent years with the

effects of recession on industrial employment. In this process manufacturing has tended to become less important in relative and sometimes absolute terms. Both with respect to the longer- term global employment trend in manufacturing and with regard to the effect of the recession, MNEs appear to have displayed in various countries a somewhat greater employment increase than the rest of manufacturing or resisted better recessionary employment decline (in particular in Belgium and the United Kingdom). One explanatory factor for the longer-term trend mentioned in government memoranda received for the study is the rapid growth of MNEs during the 1960s, especially in connection with new economic opportunities in industrialised countries. This reason is particularly valid for the rapid expansion of both European and US-based MNEs in the then six- member European Economic Community. On the other hand, it must be added that according to the same memoranda a substantial portion of the very recent employment growth in MNEs, in the present climate of relative economic stagnation, appears in certain countries to be accounted for by acquisitions.

37. MNEs have been found to constitute a particularly high proportion of activity in industries relatively intensive in the use of technology (as measured by research and development expenditures as a percentage of sales, or scientific and technical personnel as a proportion of total employment), marketing know-how (advertising and marketing expenditures as a percentage of sales revenue), and capital. Thus, MNEs loom large in industries such as chemicals, pharmaceuticals, petroleum refining, electrical and non-electrical machinery and transport equipment, especially autos and parts. Food, drink and tobacco is also a sector of important MNE activity, especially for firms home-based in the United States and the United Kingdom. That the multinationals are concentratedin sueh growth sectors may not just be a matter of cha.nce. There is some evidence that this concentration reflects deliberate choice and adaptation; and that in some cases, at least, there was a withdrawal from declining sectors at an earlier stage of developments. Such adjustment policy by MNEs may in part reflect their specific multinational character, i.e. their greater flexibility in resource allocation than that of purely nationally operating enterpris es . On the other hand, MNE concentration is relatively low in certain manufacturing sectors with considerable structural problems at present, such as clothing and steel or shipbuilding. As MNEs are increasingly found in capital- intensive sectors, their future growth potential for employment will be necessarily affected by this condition. It is a fact that in virtually every country case for which the necessary indicators are available, the weight of foreign-owned enterprises (to which most statistics relate) in developed host countries is higher as a proportion of manufacturing sales, value-added, wages and salaries paid, and total investment or gross capital formation, than it is in employment.

38. It is clear, in particular in times of slowgrowth, that employment effects of MNEs resulting from their major economic decisions need to be carefully examined. The recommendation of the ILO Tripartite Declaration on Multinational Enterprises and Social Policy that these enterprises should, whenever appropriate, consult the competent authorities and the national employers' and workers1 organisations in order to keep their manpower plans, as far as practicable in harmony with national social development policies (para. 171, and to provide reasonable notice of changes in operations to government authorities and the workers in their employment and their organisations (para. 26) will certainly remain principles of great social importance in the years to come.

39. The synthesis report on Employment effects of MNEs in developing countries (No. 11) notes that,-.'globally speaking, foreign direct investments, and MNE activities together with their employment effects; are much smaller in tge developing countries than in the industrialised countries. Thus by 1975, the FDI stock in developing countries accounted for only a quarter of the total FDI stock. Similarly, the volume of direct employment associated with MNEs in the developing countries is dwarfed by that in the industrialised market economy countries. It can be estimated that by 1980 the employment directly provided by MNEs was about 4 million in developing countries (using a broad definition of MNEs), as against 35-40 million in the industrialised market economy countries. This means that MNE employment in developing countries taken as a whole corresponds to some 0.5 per cent of the labour force and approximately 10 per cent of total world-wide MNE employment. However, since the industrial structure in the developing countries is in a process of dynamic change, the presence of the MNEs can have a notable impact on employment perspectives, especially in those countries in which the presence of MNE is more significant.

40. It has to be stressed in this connection, that MNE employment (just like MNE investment) is largely concentrated in a relatively small number of developing countries and sectors of their economies, although there has been a tendency over the last decades towards more geographical and sectoral diversification. Significant employment tends to be found primarily in the relatively more advanced and I1newly i n d ~ s t r i a l i s i n g ~ ~ c o u n t r i e s where larger potential markets exist, and which sometimes serve as export platforms, as well as in countries with an internationally important natural resource base. MNEs are more strongly represented and in part increasingly concentrated in the capital and research intensive branches of manufacturing which is not unlike the pattern in the industrialised countries. This includes not only industries such as chemicals, pharmaceuticals, metal and automobiles but also the agro-industries for example. In many developing countries MNEs hold a dominant position in some of these industries.

41. In the over-all analysis it would appear that MNEs cannot be expected to play a major role in the provision of direct employment opportunities for the bulk of the work force in the Third World. This is because of MNEs' limited global employment volume, their uneven spread over countries and economic sectors (including their concentration in large-scale manufacture, a sector of restricted labour absorption) and their relative decline in agriculture. In this connection it has to be remembered that in many developing countries agriculture still accounts for 40 to 60 per cent of the labour force. Indeed, taking into consideration the comparative advantages of MNEs over local enterprises, developing country governments often seem to ascribe more an economic modernisation role to MNEs rather than a large-scale direct employment generation one in their efforts to promote development and to cope, in the long-term perspective, with the existing huge unemployment and underemployment problems. However, MNEs, nearly everywhere they operate, contribute to the growth and formation of a modern industrial workforce in high technology industries; and their total employment impact cannot be evaluated without taking into account their varied indirect effects on employment.

42. These general considerations, however, need modifi- cation and qualification when individual developing countries are examined. MNE employment in individual developing countries varies greatly and can assume significant proportions in varies sectors, especially in the most important sector of MNE activity - the manufacturing industry. Thus the share of foreign MNEs in total manufacturing employment, for instance in Thailand and the Philippines, two countries were the labour force is still essentially rural, was estimated for mid-1970 at approximately 2 and 7 per cent respectively. In more industrialised cauntries such as Argentina and the Republic of Korea, their share was some 10 per cent. In Brazil and Mexico, two major countries of MNE implantation, their share in manufacturing employment was some 20 per cent; i.e., here too, the majority of industrial employment was in domestic enterprises. In Kenya, a country with rapidly evolving industrial production, the MNE share was 30-35 per cent. Finally, in Singapore a newly industrialising country, where the Government has promoted industrial development largely through foreign investment and exports, MNEs (including joint ventures) accounted for nearly 70 per cent of manufacturing employment.

43. A striking fact is the substantial growth, in percentage terms, of MNE employment over the last two decades or so in the developing regions. This exceeded in many cases the over-all employment increase in the respective developing host countries and, by far, the MNE employment increases in the MNEsf industrialised home countries. Thus, according to an ILO Special Survey, the total employment in the affiliates of an all-industry sample of (Australian, Canadian, European and ~apanese) MNEs operating in 40 developing countries in Africa, Asia and Latin America, increased between 1960 and 1977 by more

than two and a half times (this includes both newly created and acquired affiliates). Information received in connection with this survey indicates that most of the affiliates set up during this period were newly formed and not acquired. On the other hand, it is reported in studies for certain developing countries that MNEs tend to increase their rate of acquisitions over time.

44. Multinational enterprises from countries which are relative newcomers to the foreign investment scene, such as the Federal Republic of Germany and Japan, showed above average employment growth rates since 1960. This is due to the fact that enterprises newly entering developing countries tend to set up a proportionately larger number of new affiliates than established enterprises. For these reasons, it can be assumed that the employment growth in the United States enterprises (not covered by the ILO survey), many of which being long established in developing countries, was lower than the one calculated for the ILO sample. Nevertheless, the bulk of MNE employment in developing countries is still provided by enterprises from the "traditionalu FDI source countries, in particular from the United States and the United Kingdom.

45. According to the ILO Special Survey, the greatest employment growth from 1960 to 1977 occurred in enterprises in the proportionately still small MNE sector of commerce and services (including banking), followed by manufacturing enterprises. MNEs in manufacturing embrace by far the largest, and apparently an increasing share (some 87 per cent for the ILO sample of enterprises in 1977) in total MNE employment in the developing countries. Lower employment growth rates were found for enterprises in the extractive sector and, in particular, in agriculture where the growth rate was the smallest.

46. In terms of geographic location, Latin America has the biggest share of direct MNE employment in the Third World (more than 60 per cent as for the ILO sample enterprises in 1977 for which such data were available); the region also registered the largest employment increase from 1960 to 1977. Asia, the second most important developing region for MNE employment (some 30 per cent), had nearly the same rate of increase from 1960 to 1977 as Latin America. Finally, Africa was found to be a minor region in terms of MNE em loyment volume in the Third World (not even reaching 10 per cent 7 ; and the increase of MNE employment there (1960-1977) was less than half of the average for all developing countries taken together. As the ILO Special Survey relates only to a sample of MNEs, the sectoral and geographic shares and the growth rates indicated are not necessarily representative of the total MNE phenomenon in the developing countries. But they undoubtedly suggest some orders of magnitude also in this respect.

47. As regards their employment structure, evidence mainly gleaned from another ILO inquirey undertaken within the context of the present study (and which covered several selected developing countries) suggested that the bulk of the MNE workforce there (some 60 to 75 per cent approximately) was in the category of

production workers. This proportion has, in general, tended to drop over time so that the employment in the higher skill categories (technical, professional and managerial staff) increased proportionately more in the last two decades, in some cases with considerable speed. There is some spotty evidence (which cannot be generalised) that in a number of countries MNEs tend to employ proportionately more persons in the higher skill categories than the average local manufacturing enterprises in particular industrial branches or production lines. Finally, localisation of MNE staff in the technical, professional and managerial staff categories has considerably progressed everywhere in the last two decades, probably chiefly as a result of government policies aimed at progressively limiting the employment of expatriates, an objective which has been supported by national and MNE training programmes and which seem consistent with the corporate strategies of most MNEs.

48. While MNEs in many countries have increasingly been associated with policies of import substitution and MNE production for the local market has assumed an important dimension,the enterprises' role in exports has likewise been growing in many cases. Exports have been promoted since the mid-1960s through the establishment of Free Trade Zones and similar sites in which MNEs tend to dominate, not only in countries noted for the export orientation of their manufacturing (such as Hong Kong, Singapore and the Republic of ~orea) but also in a rapidly increasing number of other developing countries. As a rule, MNEs undertake there relatively low-skilled assembly or processing activities (for electric and electronic products, textiles and clothing, or miscellaneous light manufacture) using to a great degree materials and parts imported from the parent enterprises. This form of MNE manufacturing, which is only one stage of the total production process, has offered appreciable scope for a rapid employment expansion mainly for new segments of the labour force, especially young and low-skilled female workers. Still, although Free Trade Zone manufacturing activities are spreading, in the over-all erspective the proportion of workers involved remains small ? usually below 2 per cent of the total employment of the country concerned); and there are limits to the further expansion of such activities for reasons of market saturation and labour cost developments. This changes the attractiveness of the locations and can pose problems for employment stability in Free Trade Zones and workers1 permanent integration in the local labour market. As regards the indirect employment effects of Free Trade Zone manufacture, these are small as a rule, because of the usually low linkages of MNEs operating there with the rest of the host country economy. In addition, a number of problems connected with labour conditions and trade union rights have been reported in some of these zones.

49. Of considerable importance for developing countries are the various indirect employment effects of multinational enterprises although most of these cannot be measured exactly. A special role is played, in this connection, by the different types of linkages which MNEs establish with the local industries

and enterprises. This is explained by the fact that the developing economies are in most cases still incomplete and in need of better inter-industry integration. The vertical production linkages established by MNEs, which can be assessed (although imprefectly) by input/output matrixes, are of considerable importance in this respect. They have been the main target of public policy aiming at increasing the potential contribution of MNEs to the local economies especially through the encouragement of local sourcing(backward and forward linkages of MNEs). However, there are also important other types of linkages (such as transfer of technology, skills, finance, etc.) through which MNEs can create a web of employment-relevant inter-relationships with other enterprises. And certain horizontal linkages (influence of MNEs on the production and market behaviour of other enterprises in the same industry, or on the management system in a country as well as on government policies, etc.) are likewise relevant. Finally, there is the macro-economic impact of MNEs in the developing host countr (on government revenues, incomes, consumption patters, etc. 3 which have an indirect bearing on employment. On the other hand, the displacement of existing employment, and the limita- tion of employment growth in local activities, is likewise a possible result of MNE activity and market domination as has been found in a number of studies.

50. Apart from the question of a statistical measurement of indirect effects, the assessment of the total net employment implications of MNEs, both direct and indirect, is hampered unfortunately by the difficulty of isolating the effects of MNEs from those of broader economic trends, such as industrialisation and modernisation. Finally, it is impossible to evaluate globally in a satisfactory way, the "alternative situationf1, i.e. the employment situation which would have prevailed .without MNEs in the developing countries and industries concerned. Despite these manifold methodological and practical difficulties, a review of the existing relevant studies suggests that the indirect employment effects of MNEs in developing countries are probably significant in many cases. (~hus a study on the Republic of Korea concluded that the indirect employment created by MNEs through their input/output linkages with local enterprises was some 60 per cent of their direct employment volume.) It is evident, at the same time, that the indirect employment effects of MNEs can be, and need to be, improved in many cases. Three policy considerations seem to be important in this connection, viz.

(1) to ensure that MNE activities are efficient, not highly protected against international competition, and geared to sectors where there is a relative advantage of MNEs over local enterprises;

(2) to promote such MNE activities which do not suppress viable local enterprise but rather encourage local innovation and efficient scales of production;

(3) to encourage local purchase of supplies by MNEs thus favouring industrial diversification but without thereby creating internationally non-competitive production structures.

(iii) Description and findings of the country, regional and thematic monographs

51. Leaving aside the earlier working papers prepared in connection with the ILO's World Employment Programme, 17 more recent monographs, contributed generally by outside institutions/ specialists have been released under the ILO1s Multinational enterprise programme (MULTI) (NOS. 16 - 32). It is not possible within the summary to review them individually. Still, a few highlights of findings may be provided.

52- A general impression conveyed by these papers is the diverse strength and nature of MNE employment impact the world over, for reasons referred to earlier. Thus the employment impact of MNEs in a small industrialised country, like Belgium for instance, which has a heavy concentration of foreign MNEs in the manufacturing sector (NO. 16), differs from that in a major industrialised country, like the Federal Republic of Germany, which has a much lower penetration rate of foreign MNEs, an important proportion of domestic MNEs and a highly developed labour market and income protection policy (No. 17). The situation is again different in a country such as the United Kingdom, where the foreign enterprise penetration has increased at a steady rate during the last 10-15 years in an environment of a rising unemployment and rapid industrial change (NO. 20). On the other hand, in a country like Nigeria (No. 25), where as in other developing countries, much dis uised unemployment exists, public efforts for employment creation 7 while mostly in the small-scale industries) have had a decisive influence also on the employment performance of MNEs. Still, it can be safely concluded that in all countries where multinationals have established affiliates, industrialised and developing, MNEs have acted as elements of dynamic change, affecting in various ways and measures employment, but also social concerns connected with change.

53. These general effects may be somewhat surprising as, in a majority of the developing countries at least, MNEs provide only a fraction of total employment, concentrated very much in manufacturing. This penetration rate is often rather important, however, in the most dynamic industries whether Asian (Nos. 21, 24 and 26), African (NOS. 23 and 25) or Latin American countries (Nos. 19 and 22) are involved; and the indirect effect of MNEs both employment-wise and for the traditional social structures are felt everywhere. Such aspects are critically analysed in particular in the study on MNEs in the Latin American agro- industry (No. 19) .

54. Ths special study on indirect employment effects of countries (No. 18) concludes that these are countries, and in most situations probably

important, although it seems often impossible to measure them in exact quantitative terms. Notwithstanding this problem of measurement, the study holds that policies can be formulated

to maximise indirect effects. Government policies as well as policies by MNEs - and their acceptance of employment goals in host countries - are considered essential in the context; and these views are supported by practical examples referred to in the study.

IV Studies on other areas of ILO competence, e.g. : Training practices; industrial relations; wages and labour conditions in MNEs; (and other labour matters)

55. These studies are carried out at less regular intervals than the sectoral MNE studies and the research on employment effects of MNEs. This lower frequency is not, however, an indication that the subjects covered are of lesser importance than employment and sectoral studies. It can be assumed, however, that the structural features uncovered in these areas are changing less rapidly than in the employment field. In addition, the lower frequency of these studies reflects an option that had to be made under the imperatives of limited resources. Finally, it has to be noted that some of the research approaches which need to be followed in studies on areas specifically relevant to the ILO Declaration are rather time and resource consuming. Thus, interview techniques have to be used to a greater degree than in most of the other studies.

56. Following an earlier preliminary research report by the ILO (Nos. 2), a comprehensive survey on the training practices of multinational enterprises and their impact on development was completed in 1981 (No. 9). This study uses new, more varied and detailed information, such as documents on world-wide training programmes received from some 15 major MNEs; a survey among ILO training advisors in selected developing countries and field missions in its support; and three case studies by outside experts (~razil, India, Nigeria), focussing in particular on the question of co-operation of MNEs with local training institutes and the relevance of MNE training for the wider goals of development. As in most of the other ILO studies, a review of relevant existing literature is likewise undertaken. - The following major findings result from the study:

57. There is clear evidence that MNEs undertake a considerable amount of training in developing countries. Most of this training, as well as training at headquarters, is conducted to satisfy staffing requirements essential for the functioning of the enterprise and is of a rather specialised nature. Such training does, therefore, not always explicitly take into account

the wider m d more diverse national manpower priorities of the various developing countries in which MNEs are established. Still, since many of the activities of MNEs in developing countries are in sectors important for industrial modernisation and technological growth, much of their present formal and informal training efforts certainly make a contribution to development not only in terms of economic growth but also in terms of skills required for development.

58. On the other hand, training efforts of MNEs are uneven and emphasize the categories thought to be of particular interest to the operations of the enterprises in a foreign environment. Thus in practically all of the enterprises surveyed a particular emphasis is given (in terms of training resources used) to training programmes for higher- and mediwn- level managerial staff and for technical "cadresn considered to be the key personnel for the optimal functioning of the enterprise. The training for manual workers (especially un- and semi-skilled) is usually less developed although in terms of numbers it represents the bulk of MNE training efforts. Much of the training for these production workers seems to be brief and geared towards complementing existing skills as required for the immediate performance of a specific production- line function in the enterprise. It is usually more specific than in local enterprises and sometimes of limited use in the wider national labour market. The training of skilled workers, which is normally only provided for a small portion of the labour force, appears to be generally of high calibre and also of considerable value in the national labour market. The same applies for apprenticeship training.

59. Although the training programmes of MNEs are complementary to the local-ly-dispensed training and thus influenced by the availability of the various categories of locally-trained personnel (the quantity and quality of which generally seems to be increasing over time in most of the developing countries where MNEs are established), this apparently has not led to a slowdown of MNE training efforts. Still, the availability of well-trained workers, and by implication of appropriate local training institutions (e.g. for general education, management development or vocational training), is in some circumstances an important element of MNEs' investment decisions.

60. One of the reported areas of concern for MNEs has been a fear of excessive staff turnover to other enterprises or to government and the consequential loss of considerable training investments. Additionally, former trainees often set up their own business, certainly a positive factor for the countries1 overall development. The combination of training and career planning, an area not fully discussed in the sources used, could reduce the turnover phenomenon. But MNEs will also find, in their own long-term self-interest, as well as in the development of interest of the countries of implantation, that it is not desirable to create an independent labour market.

6 MNE t r a i n i n g programmes have o f t e n been s p e c i f i c a l l y designed to f a c i l i t a t e the l o c a l i s a t i o n o f personnel; and t h e progress made i n the pas t decade o r so with t h e replacement of e x p a t r i a t e s , i n t h e MNEs f o r which re l evan t d a t a a r e a v a i l a b l e , has been on t h e whole q u i t e impressive. On t h e o the r hand, the e n t e r p r i s e s a r e s t i l l c r i t i c i s e d i n some developing coun t r i e s f o r not making quicker progress with t h e l o c a l i s a t i o n of personnel; and t h e r e seems t o be a perceived need i n many ins tances f o r t h e continued use of a c e r t a i n number of e x p a t r i a t e s , p a r t l y i n connection with t h e in t roduc t ion of technological innovat ions and t r a i n i n g requirements. These inc reas ing ly inc lude , however, according t o e n t e r p r i s e r e p o r t s , persons from o the r developing count r ies . P o s i t i v e as t h i s evolu t ion may be from some viewpoints, i t a l s o needs t o be considered under the aspect of "brain-drain1' from these count r ies .

62. A s mentioned i n seve ra l of t h e sources, a c e r t a i n pre- d i s p o s i t i o n of MNEs t o model, a t l e a s t i n i t i a l l y , t h e i r t r a i n i n g a c t i v i t i e s i n developing coun t r i e s a f t e r concepts employed i n the home country of the pasent (perhaps seen as b e s t f i t t i n g t h e e n t e r p r i s e world-wide) may be p o t e n t i a l l y nonfunctional f o r t h e relevance of t h e t r a i n i n g i n the developing hos t country. The a b i l i t y , perceived need and wi l l ingness t o adapt t r a i n i n g t o l o c a l s i t u a t i o n s va r i e s . Clear ly , appropr ia te adapta t ion i s not only i n t h e i n t e r e s t of l o c a l development but a l s o a cons idera t ion f o r t h e long-term v i a b i l i t y o f t h e e n t e r p r i s e s themselves i n t h e fo re ign context . This has l e d i n some e n t e r p r i s e s t o headquarters1 t r a i n i n g s imulat ions of the p a r t i c u l a r condi t ions i n c e r t a i n developing count r ies . A connected po in t i s the u n f a m i l i a r i t y , at l e a s t i n e a r l y phases, of some MNEs with t h e l o c a l t r a i n i n g system and labour markets, r e s u l t i n g at t imes i n non-recognition, o r downgrading, of l o c a l diplomas o r t h e i r equivalent . I n add i t ion , some MNEs do not seem t o i s s u e prof ic iency c e r t i f i c a t e s o r these may only be recognised by o the r s u b s i d i a r i e s of t h e group s ince t h e na tu re of t h e t r a i n i n g w a s too enterpr i se-or iented . A l s o r e l e v a n t f o r t h e ques t ion o f MNEsldevelopment con t r ibu t ion i s , obviously, t h e e n t i r e complex of in-plant t r a i n i n g (favoured by MNEs) versus t r a i n i n g by c e n t r a l i n s t i t u t i o n s which, as a r u l e , d e l i v e r more generally-recognised t r a i n i n g and c e r t i f i c a t e s .

63. These cons idera t ions point, t o t he need f o r i n t e n s i f i e d t r a i n i n g co-operation between l o c d t r a i n i n g i n s t i t u t i o n s o f t he developing hos t count r ies and MNEs i n conjunct ion, where appropr ia te , with employers1 and workers1 o rgan i sa t ions , as c r i t i c a l f a c t o r s t o increase mutual benef i t s . Be t t e r knowledge of l o c a l t r a i n i n g f a c i l i t i e s can be a help f o r MNEs t o modify t h e i r own s p e c i f i c t r a i n i n g programmes; conversely t h e l o c a l i n s t i t u t i o n s can f i n d out i n g r e a t e r d e t a i l about t h e s p e c i f i c con t r ibu t ions t h a t can be expected from t h e MNEs. It i s known f r o m the m a t e r i a l s examined t h a t such co-operation a l ready e x i s t s i n var ious f o r m s ; but i t i s a l s o known t h a t many e n t e r p r i s e s have not ye t f u l l y developed t h e i r r e l a t i o n s wi th l o c a l i n s t i t u t i o n s .

64. The question of co-operation with MNEs in developing countries seems presently to be left very much to individual initiatives taken by local subsidiaries of MNEs on the one hand and local training institutions on the other. Since this matter is, thus, usually not the object of general policies at the government or enterprise level, there is much variation in the type and scope of such co-operation. Greater involvement of MNE headquarters and of national-level authorities in training co-operation appears, therefore, desirable. Similarly, as greater co-operation in training is a world-wide challenge, MNEs should assess their over-all training activities at all levels in developing countries as a concern for the company as a whole, not only for the purpose of training to meet immediate company needs (which are determined at subsidiary level), but also for establishing a long-term policy by which the positive effects of MNE activities will be increasingly judged. Naturally, discretion of subsidiary management regarding modalities should be maintained and full consideration given to its evaluations.

65. A major ILO study, based on extensive field work, is concerned with-the industrial relations experience with and of multinationals operating in western Xurope (No.4). For the most past, subsidiaries of multinationals operating in the region have adapted, or had to adapt, to host country industrial relations practices, but with some variations and exceptions which are seen by the trade unions as significant. A frequent union concern is in the area of employment security and company investment and employment policies in respect of which the unions fear their lack of influence on headquarters1 decisions made abroad. The extent of adaptation, the study finds, depends to a certain extent on a number of factors: e.g. whether the substance and structure of industrial relations are largely legally regulated or are of a more voluntaristic nature; the size of a given host country; and the technology involved. Furthermore, it appears that multinationals newly-established in host countries tend to utilise their home countries practices more than those companies which have long been operating in the host country. However, in long-established companies also there seems frequently to be a continued influence of certain labour relations practices in the country or origin of the company.

66. Several of these features and a pronounced degree of identification of management and many levels of employees with the company, often found in multinationals, make at times, in the eyes of certain trade unionists, for difficult relationships with these companies. Most European trade unionists see no pressing need for the development of full-scale transnational negotiations, although many national trade union leaders endorse some proposals for transnational consultations with multinationals (e. g. through the international trade secretariats). An overwhelming number of unions favour action which would give them a greater voice with central management of multinationals on critical employment and production decisions, and greater access to information. Employers by and large were unfavourable towards the development of transnationalst collective bargaining, but some were less opposed to certain forms of transnational consultation with unions.

67. Only a few cases of t r ansna t iona l production t r a n s f e r s were mentioned by un ion i s t s . The take over of a n a t i o n a l company's production f a c i l i t i e s by a mul t ina t iona l w a s repor ted at times as a source of d i f f i c u l t y i n labour r e l a t i o n s . In genera l , however, mul t ina t ional e n t e r p r i s e s appear t o observe i n the i n d u s t r i a l r e l a t i o n s a r e a s tandards not l e s s favourable and sometimes b e t t e r than comparable l o c a l employers.

68. The s tudy on wages and working condi t ions i n mult i - na t iona l e n t e r p r i s e s (No.?) i s based on a cons iderable , y e t somewhat fragmentary, q u a n t i t y of e x i s t i n g published and unpublished sources. Frequently, the a v a i l a b l e information does not d i s t i n g u i s h between mul t ina t iona l s and o the r en ter - p r i s e s . This i s t r -ue, i n p a r t i c u l a r , f o r o f f i c i a l s t a t i s t i c s on the s u b j e c t s covered by t h e ILO study. But even where r e l evan t ma te r i a l i s a v a i l a b l e , i t i s f requen t ly d i f f i c u l t t o f i n d comparable mul t ina t ional and na t iona l companies.

69. These q u a l i f i c a t i o n s being made, the s tudy does tend t o support t h e t h e s i s t h a t i n i n d u s t r i a l i s e d hos t coun t r i e s , when MNEs dev ia te from preva i l ing p a t t e r n s and l e v e l s of remunera- t i o n , t h i s dev ia t ion i s more o f t e n than not i n the d i r e c t i o n of b e t t e r r a t e s . However, these d i f f e r e n t i a l s tend t o shr ink when comparisons a r e made on an indus t ry b a s i s r a t h e r than f o r the manufacturing s e c t o r g loba l ly , s ince MNEs a r e u s u a l l y found i n t h e higher paying i n d u s t r i e s .

70. I n t h e developing coun t r i e s , t h e average l e v e l of earnings of employees i n MNEs exceeds by f a r those of n a t i o n a l f i rms. To a l a r g e measure these d i f fe rences can be t r aced back, however, t o the l a r g e r p lan t s i z e , higher c a p i t a l i n t e n s i t y , labour p roduc t iv i ty and p r o f i t s i n MNEs, and d i f fe rences i n t h e ski l l -mix i n comparison t o the average domestic f i rms. The l a t t e r o f t e n include a l a r g e number o f very s m a l l f i rms paying low wages and with comparatively l e s s s k i l l e d workers. A a i n , i f comparable MNEs and n a t i o n a l e n t e r p r i s e s a r e compared f although t h e l a t t e r sometimes do n o t e x i s t ) the d i f f e r e n t i a l s tend t o diminish .

71. Somewhat s i m i l a r p a t t e r n s seem t o e x i s t with regard t o t h e working condi t ions p r a c t i c e s . I n m o s t s i t u a t i o n s the mul t ina t iona l s adapt t o the p r a c t i c e s i n the c o u n t r i e s o f operat ion, which means t h a t t h e i r condi t ions a r e i n l i n e o r compare favourably with those of l a r g e n a t i o n a l employers. Differences i n p r a c t i c e s between n a t i o n a l and mul t ina t iona l e n t e r p r i s e s a r e most pronounced i n developing count r ies . Some of t h e favourable condi t ions i n mul t ina t ional e n t e r p r i s e s , i . e . i n terms of ca ree r p o s s i b i l i t i e s and o the r personnel p r a c t i c e s , r e s u l t from a tendency of the f i rms t o export some of t h e i r employment p r a c t i c e s i n t h e home count r ies . A t t h e same time, i n a number of ins t ances , t h e tendency t o t r a n s f e r abroad home country p r a c t i c e s has been a t t h e r o o t of problems, e.g. the implementation of wage payment systems no t i n accordance wi th l o c a l h a b i t s , o r a r e s i s t a n c e of e n t e r p r i s e s regarding demands f o r c e r t a i n types of f r i n g e b e n e f i t s not normal i n t h e home country.

V. Studies connected with the ILO Tripartite Declaration

72. Studies connected with the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy are of three kinds: (i) legal studies, (ii) studies on the labour practices of multinational enterprises specifically relevant to areas covered by the Declaration and (iii) reports on its follow-up. An example of the first category is the study on the usefulness and- feasibility of international principles and guidelines on social ~olicv for multinational enter rises (No. 12), which was one of the documents considered h a r a t i o n of the ILO Declaration. It noted the exist - body of-international labour standards, many of which have implications for the operations of multinationals. Had these standards been ratified by all countries in which multinationals operate (which is not the case), these countries would be formally bound and many questions otherwise raised in this regard would be resolved. The study considered that a separate international convention bringing together relevant provisions from existing standards might prove too rigid; it would of necessity be addressed only to governments and would be either redundant or unlikely of ratification by those countries that had abstained from ratifying conventions from which the relevant provisions were taken. This approach could also have the effect of creating a double standard (unequal treatment under the law) as between multinationally and nationally operating companies. Therefore, the orientation suggested by the study was more towards the formulation of non-mandatory guidelines and of principles worked out on a tripartite basis, an approach indeed followed when the ILO Declaration was prepared.

the ILO Declaration have been

reports on the effect given-to the Declaration (September 1980). Areas suggested tentatively for such research include: manpower plans of multinationals and information and consultation with workers1 representatives and with authorities; transfer of information on safety and health by those enterprises; special investment incentives favouring the enterprises and observance of international labour standards; and decision- making structures within the enterprises. While these studies, cannot be confused with the follow-up reporting by governments (after consultation with employers1 and workersf organisations) it is evident that they can provide valuable background information for assessing practices and problems of relevance to the acceptance of the ILOfs normative text.

74. A study on information and consultation practices b multinational enterprises concerning their manpower plans - h j e c t dealt with in paras. 17 and 20 of the ~eclaration) has been initiated in 1981. It will be completed in 1982/83. The objective of the study is to examine the form and the scope of such information and consultation practices of MNEs (both foreign and domestic) vis-8-vis governments, employersf and workersf organisations and other workersf representatives

respectively, on the one hand before starting operations and, on the other during the course of their activities. Special emphasis is given in this connection to changes in operations which would have major employment effects. In order to obtain a balanced view of these practices, questionnaires have been sent to governments as well as to the most representative organisations of employers and workers in some sixty main home and host countries of multinational enterprises in the industrialised and in the developing parts of the world. Another important part of this survey consists of in-depth interviews with management and workers1 representation for a small sample of MNEs (six to ten), headquarters or subsidiaries, implanted in different countries and sectors.

75. It is intended to undertake in a next phase a study on the transfer of information on safety and health by multi-- national enterprises to the competent authorities and the employers1 and workers1 organisations in the various countries they operate, bearing in mind their relevant experience within the enterprise as a whole. This will include information on special hazards and related protective measures associated with their products and processes (matters referred to in para. 37 of the ~eclaration). The methodology for the study will be similar to the one described in para. 74(above).

7 6 . Information on the labour and social practices of MNEs (and the other addressees of the Declaration) regarding all the provisions of the ILO Declaration is found in two ILO papers prepared for the aforementioned committee considering first reports on the effect given to the Declaration, namely in a working document summarising government reports from 52 countries, which also includes information received from employers1 and workers1 organisations (No. 14); and an informal analytical review based on the replies (No. 15). Similar papers will be m e d in connection with later follow-up surveys. The next one decided upon will cover the years 1980-82. As the first survey, it will consist of government reports on the effect given tothe Declaration to be established after full consultation of employers1 and workers' organisations. The Declaration and its follow-up is described in a working paper (No. 33) ,

MULTINATIONAL ENTERPRISES AND SOCIAL POLICY ILO PUBLICATIONS AND WORKING PAPERS

BOOKS AND BROCHURES

Mul t ina t ional e n t e r p r i s e s and s o c i a l po l i cy , S tudies and r e p o r t s , New s e r i e s No. 79 ( ~ e n e v a , ILO, 1973, -2nd impr. 1973) 182 PP. ISBN 92-2-101003-1 ( a l s o a v a i l a b l e i n French and Spanish)

( a l so ava i l ab le i n French and Spanish)

Wages and working condi t ions i n mul t ina t iona l e n t e r p r i s e s (Geneva, ILO, 1976, 2nd impr. 19781, 50 pp. ISBN 92-2-101475-4 ( a l s o a v a i l a b l e i n French and Spanish)

Mul t ina t iona l s i n Western Europe: The i n d u s t r i a l r e l a t i o n s experience (Geneva, ILO, 1976), 72 pp. ISBN 92-2-101476-2 ( a l s o a v a i l a b l e i n French)

Socia l and labour p r a c t i c e s of some Xuropean-based mul t ina t iona l s i n t h e metal t r a d e s (Geneva, ILO, 2nd impr.'1981), 43 pp.

t SBN 92-2T10184077 a l s o available I n ~ r e n c h )

Socia l and labour p r a c t i c e s of some US-based mul t ina t iona l s i n the metal t r a d e s (Geneva, ILO, 1977) , 172 pp. ISBN 92-2-101840-7

Soc ia l and labour p r a c t i c e s of mul t ina t iona l e n t e r p r i s e s i n t h e petroleum indus t ry (Geneva, ILO, 1977), 99 pp. ISBN 92-2-101806-7

Soc ia l and labour p r a c t i c e s of some European, Canadian and Asian-based mul t ina t iona l s i n the t e x t i l e indus t ry ( p l u s c lo th ing and footwear) , re l iminary t i t l e , (Geneva, ILO, forthcoming f) Mul t ina t iona l s ' t r a i n i n g p r a c t i c e s and develo ment (Geneva, ILO, 1981), 138 pp. 6 0 2 5 6 9 - 1

10. Employment e f f e c t s of mul t ina t iona l e n t e r p r i s e s i n i n d u s t r i a l i s e d coun t r i e s (Geneva. ILO. 1981)

11. Employment e f f e c t s of mul t ina t iona l e n t e r p r i s e s i n developing coun t r i e s (Geneva, ILO, 1981) ISBN 92-2-102278-1

12. I n t e r n a t i o n a l p r i n c i p l e s and gu ide l ines on s o c i a l po l i cy f o r mul t ina t iona l en te rp r i ses : Their use fu lness and f e a s i b i l i t y (Geneva, ILO, 1976), 25 pp. ISBN 92-2-101477-0 ( a l s o ava i l ab le i n French)

13. T r i p a r t i t e Declara t ion of P r i n c i p l e s concerning Mult inat ional En te rp r i ses and Soc ia l Po l i cy (Geneva, ILO, 1977), 1 4 pp. ISBN 92-2-101896-2 ( a l s o a v a i l a b l e i n French, Spanish, German, Russian, Arabic, Danish, Dutch, I taliaan, Japanese, Swedish and ~ u r k i s h )

Summary of the r e p o r t s on t h e e f f e c t g iven t o the T r i p a r t i t e Declara t ion of P r i n c i p l e s concerning Mul t ina t ional Xnte rp r i ses and Soc ia l Pol icy GB/MNE/1980/D. 1, 120 pp. ( a l s o a v a i l a b l e i n French, Spanish and

15. Analy t ica l review of government r e p o r t s on t h e Declara t ion , ILO/MULTI/S - - ep t .l98O, 1 5 PP* ( a l s o ava i l ab le i n French and ~ ~ a n i s h )

WORKING PAPERS ON EMPLOYMENT EFFECTS OF MXLTINATIONAL ENTERPRISES

MULTI - Working Papers* Employment effects of multinational enterprises: A Belgian case study (Working Paper 1) by D. Van Den Bulcke and E. Halsberghe ISBN 92-2-102265-X (~eneva, ILO, 1979)

Employment effects of multinational enterprises: A survey of relevant studies relating to the Federal Republic of Germany (Working Paper 2) by P. Bailey ISBN 92-2-162266-8 (~eneva, ILO, 1979)

The indirect employment effects of multinational enterprises in developing countries (uorking Paper 3) by S. La11 I ~ B N 92-2-102280- 3 (Geneva, ILO, 1979)

L1impact des firmes multinationales agro-alimentaires s w llemploi en Amerique Latine (Working Paper 4) by G. Arroyo, S. Gomes de Almeida, J.M. Von der Weid ISBN 92-2-202268-8 (~eneva, ILO, 1980)

Employment effects of multinational enterprises in the United Kingdom (Working Paper 5 by J.M. Stopford (GenLa, ILO, 1979) ISBN 92-2-102269-2

Employment effects of foreign direct investments in ASEAN countries (Working Paper 6) by Yasuo Kuwahara, Teruo Harada, Yoshihiro Mizuno ISBN 92-2-102270-6 (~eneva, ILO, 1979)

Employment effects of multinational enterprises in Brazil (Working Paper 7) by M.L. Possas ISBN 92-2-102271-4 (Geneva, ILO, 1979)

Employment effects of multinational enterprises: a case study of Kenya (Working Paper 8) by R. Kaplinsky ISBN 92-2-102272-2 (Geneva, ILO, 1979)

The effects of multinational enterprises on employment in Lndia (Working Paper 9) by U. Dar ISBN 92-2-102277-3 (~eneva, ILO, 1979)

Employment effects of multinational enterprises in Nigeria (Working Pa er 10) by 0. Iyanda and J. . Bello ISBN 92-2-102274-9

1 (Geneva, ILO, 1979)

Working papers contributed to the Mu1 tinational enterprises programme (MULTI).

Res onsibility for the opinions expressed in working papers resfs with their authors.

Employment effects of multinational enterprises in the Philippines (Working Paper 11) by C. Tanchoco-Subido ISBN 92-2-102278-1 (Geneva, ILO, 1979)

Employment effects of multinational enterprises: the case of the United States (Working Paper 12) by D. Kujawa ISBN 92-2-102276-5 (Geneva, ILO, 1980)

Domestic employment effects of direct investment abroad by two Swedish multinationals (Working Paper 13) by G.L. Jordan and J.-E. Vahlne ISBN 92-2-102267-6 (~eneva, ILO, 1981)

Multinational enterprises and employment-oriented "appropriate" technologies in development countries morking Paper 14) by S. Watanabe ISBN 92-2-102573-X (Geneva, ILO, 1980)

Technology choice and employment creation: A case study of three multinational enterprises in Singapore (Working Paper No. 16) by ~inda ~ i h and pang. Eng Fong ISBN 92-2-102838-0 (Geneva, ILO, 1981)

kpropriate technolow choice and employment creation by two multinational enterprises in Nigeria (Working Paper No. 17) by- J.A. el lo and 0. Iyanda ISBN 92-2-102898-4 (Geneva, ILO, 1981)

Technology choice and employment generation: A case study of three multinational enterprises in Brazil (Working Pa~er No. 19) - - -- - - -

& M. ~outiho and M ~ L . Possas (Geneva, ILO, forthcom

The Tripartite Declaration of principles concerning Multinational Enterprises and Social Policy T h i p with relevant instruments of other organisations) (Working Paper No. 18) by H. GEnter ISBN 92-2-102909-3 (Geneva, ILO, 1981)

WEP - Working Papers* The impact of multinational firms on emplo.yment and incomes in the developing countries Methodological note (Working Paper 1) by Y. Sabolo and ~ a c l Trajtenberg, February 1975

Multinational firms, employment and incomes, record of the First Meeting of the Steering Group (14-15 Peb. 1975) (Working Paper 2)

Multinational enterprise, the international division of labour in manufactures and the developing countries 7working Paper 4) by L.G. Franko, October 1975

The multinational companies and the new international division of labour (Working Paper 5) by Charles-Alber t Michalet, November 1975

The impact of multinational corporations on employment and incomes (Working Paper 6) by Y. Sabolo, R. Trajtenberg and J.P. Sajhau, Dec.1975

'he impact of transnational enterprises on employment and income: the case of Argentina (Working Paper 7) by Juan V. Sourrouille, April 1976

The impact of multinational enterprises on employment and income in Jamaica - Preliminary report 7Working Paper 8) by N. Girvan, April 1976

The impact of multinational firms on employment and incomes: A case study of phosphates in Senegal (Working Paper 9) by Bernard Founou-Tchuigoua, June 1976

Foreign firms and the transfer of technology to the Algerian economy (Working Paper 10) by A. Benachenhou, October 1976

" Working papers contributed to the World Employment Programme (WEP) (restricted distribution).

Responsibility for the opinions expressed in working papers rests with their authors.

43. Employment problems and transnational enterprises in developing countries: distortions and inequality (with particular reference to Andean Pact countries) (Working Pa~er 11)

44. The impact of multinational firms on emplo.yment and incomes: the case study of South Korea (Working Paper 12)

45. Multinational enterprises and employment in Iran Working Paper 14) iy F. Daftary and M. Borghey, December 1976

46. Transnational enterprises and the cheap labour force in less-developed countries (Working Paper 15) by R. Trajtenberg, in collaboration with J.P. ~ajhau, ~ecember 1976.

International Institute for Labour Studies (IILS): Selected publications and working papers

Gunter, Hans (ed) : Transnational industrial relations: The impact of mul-t;inationaIl corporations and economic regionalism on industrial relations (MacMillan, London, 1972)

Gunter, Hans: Multinational corporations and labour: A prospective view, International Educational Materials Exchange 1056 (Geneva, IILS, 1973)

IILS: A selected and annotated bibliography, MCL/~, ~re~ared for a research meeting on multinational L L

corporations and labour 5-7 ~ e c . 1975 (~eneva, 1973)

Gunter, Hans: Some observations on the bibliography by the IILS and research covered, MCL/10 (Geneva, IILS, 1973)

McCrea, Nigel: ort on research findings relating to Great Britai CL/5 (Geneva, IILS, 1973)

Bergmann, Leopold: Multinational corporations and labour in the EEC: A survey of research and developments, MCL/6 (Geneva, IILS, 1973).

Bolivar-Vglez, R.: Report on research findings relating to Latin America, MCL/7 (Geneva, IILS, 1973)

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82b09 1 enal - international labour organization · 2014. 6. 9. · 82b09 1 enal multinational...

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