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ICFTU:
Behind the Wire
 

 
WEPZA:
Comments and Questions
 

301. Employment practices.

We will only deal with partners where workers work of their own free well, are not subject to physical risks, receive decent compensation, have the right to associate freely, and are not exploited in any way.

301.
302. Moreover, these partners must abide by the following code of conduct: 302.
303. Wages and benefits

We will only deal with partners who provide wages and benefits in line with all current legislation or equal to local practices in the manufacturing or finishing industry. We favour partners who share our desire to contribute to the improvement of conditions in their community.

303.
304. Working time

While allowing for flexible working time, we will identify the local situation in terms of working hours and seek partners who do not exceed these except by paying for overtime in an appropriate manner.

304.
305. Child labour

The use of child labour is not acceptable. By "child" we mean a person under 14 years or below the school leaving age. We will not use partners who use child labour in any of their plants. We support the development of legitimate apprenticeship programmes to help train young people.

305.
306. Disciplinary practices

We will not employ partners who use corporal punishment or any other form of mental or physical coercion."

306. All statements in ICFTU paragraphs 297-306 show that the multinational is a responsible employer, not at all the type of company portrayed by most of this article. If the ICFTU really cared about the workers in developing countries they should be extolling the virtues of EPZs and multinationals, and the benefits they bring.
D. Glossary
307. Swallow company:

Empresa golondrina, the nickname given to enterprises situated in the export processing zones because of the ease with which they can "fly" away from the country to set up their operations elsewhere or reappear under a different name.

307. Nobody in Mexico ever used this term; it must be an invention of Central America (under Union auspices?).
308. Maquiladora:

An assembly factory set up within the framework of the border industrialisation programme introduced by the Mexican government in 1965. This programme allows for the importation of products assembled outside the EPZ, with customs tariffs being levied only on the value added during assembly and not on the total value of the product. This word is now applied to all assembly enterprises in the EPZs in the Caribbean region and elsewhere in Latin America.

308. Again the confusion between EPZs and Maquila is evident. The definition is not correct. The customs regulations are part of the US tariff code not the Mexican customs code, and date back to at least the mid 1930s. The regulations encourage the use of US workers by allowing parts produced in the US to be temporarily exported for assembly or processing into a product in a foreign country and be returned to the US without being considered of foreign origin. Since they are of US origin it is a sound customs provision. The value added to the product in the foreign country is charged duty at the normal rate.
309. APRO:

Asian and Pacific Regional Organisation

309.
310. ORIT:

InterAmerican Regional Organisation of Workers

310.
311. Relocation: moving to a low wage country the production of goods destined for export to a country with a high level of purchasing power 311. It means to change location. No overtones implied. But since ICFTU has given it overtones, how about trying these: "It means to change to areas within the same country with more skills, a more pleasant life style, lower taxes or where more appropriate facilities exist."
312. Newly Industrialised Country (NIC): Those countries which have recently succeeded in developing their economies or which are involved in a development strategy usually based on the export of industrial goods. The list of these countries is fairly disparate and can cover many different situations. These include the four Asian "dragons" (South Korea, Hong Kong, Singapore, Taiwan) and the "tigers" (China, Malaysia, Philippines, Pakistan, Sri Lanka, Thailand). There are also NICs in Latin America (Chile, Brazil, Mexico, Dominican Republic) and Africa (Mauritius, Morocco, Tunisia). 312. It is not a coincidence that each of the NIC countries listed has EPZs, and in all but Brazil they are quite extensive. Brazil has had a domestic-related free zone at Manaus for some time, but only recently has it planned to create a large number of EPZs. The improvements in the lives of people in all these countries are well documented, and show the fallacy of the ICFTU arguments.

THE CORRECT CONCLUSION IS: IF A COUNTRY WANTS TO BE IN THE NEXT WAVE OF NEWLY INDUSTRIALIZED COUNTRIES, IT SHOULD START ITS EPZ NOW!

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