iFoxconn: The Corporation’s Role and the “Harder Problem” of Wages – Part II
This is Part II of a two part series. Part I was published on Wednesday. This is a cross post with the Fordham Corporate Law Forum.
Questions arise as to whether to use all American laws, such as Fair Labor Standards Act of 1938, which includes rules about the minimum wage and guaranteed overtime, as standards to judge U.S. corporations that use suppliers in Asia for cheaper labor. Bringing these laws into the calculus may be going too far. Jagdish Bhagwati, a professor at Columbia Law, argued that “full Western-style protections are not affordable in poor countries which generally lack many of the protections that have come gradually with development.” Bhagwati qualified “that there are many low-cost protections which are well within reach and which every society today owes to its workers and citizens.” Read more