Statistics

In 2000, 51 of the 100 largest economies in the world were companies not countries. The combined sales of the world's largest 200 MNCs are equivalent to one quarter of world GDP. This is larger than the combined economies of all countries except the largest 10 and is 18 times the combined annual income of the poorest 1.2 billion people.

MNCs and Trade Rules

This is an area where it is said that there are no rules where there ought to be rules. As governments step back from trade and industry, companies take their place and wield much power both within countries and internationally. For companies, profit maximisation can take precedence over providing workers with good conditions and wages, protecting the environment and promoting sustainable development.

Labour Standards

Multinational companies based in the West source many of their products at an incredibly cheap rate in order that their profits can be maximised. This comes at the expense of workers livelihoods. Many workers are treated incredibly badly with often virtually impossible demands placed upon them in terms of their output ability, forced to work in unacceptable conditions

One such example is in 30 garment workers in a factory in Swaziland where 450 pairs of jeans are made every day. These are produced for a British company. For this they receive around £12 for a weeks work - 12-16 hour days. To earn enough to buy back just one pair of jeans they had made at the selling price they would have to work over a whole month.

Health and Safety standards in garment factories are often very low. For example, Often employees in these factories suffer from health problems such as lower back and joint ache, respiratory problems, and urinary tract infections as they are often refused permission to go the toilet. Although the big MNCs who contract work to different factories may adopt voluntary codes of conduct for their subsidiaries, it is unlikely that the workers in factories will be aware of these or have any contact with monitors.

Race to the Bottom

Many poor countries end up in a situation referred to as the ?race to the bottom?, as they compete for the lowest labour and environmental standards in their efforts to attract MNC investment. Because there are no legally binding WTO rules controlling MNC conduct, there is nothing to protect workers and the environment.

Further information:

• Clean Clothes
• Labour Behind The Label
• Tear Fund - Campaigning
• No Sweat
• People and Planet
• Ethical Matters
• Oxfam UK

Information On The Garment Industry

Multinational Corporations

Now listen, you rich people, weep and wail because of the misery that is coming upon you. Your wealth has rotted, and moths have eaten your clothes. Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter. You have condemned and murdered innocent men, who were not opposing you 
James 5: 1- 6