Multinational Corporations’ Obligation for the Right to Fair Wages; the Case of Industrial Parks in Ethiopia
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Date
2020-06
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Addis Ababa University,
Abstract
The study was conducted with the objective of assessing multinational corporations operating in
industrial parks compliance with fair wage requirement. Even though international human right
instruments and soft laws has recognized fair wage requirements on the state and business
entities the legal instruments fail to provide follow up and implementation procedures. Based on
empirical evidence, the wages paid at industrial parks are not living wages that suffice to cover
basic human needs. To measure whether the wages are living wages and suggest probable living
wage Anker methodology was utilized. According to this methodology, the ILO conventions and
FDRE labour law the benefits and allowances are not considered as elements of fair wages. The
study found that the absence of minimum wages regulation in Ethiopia is a barrier to the
realization of Multinational Corporation‟s obligation to fair wages after doing due analysis.