Paragraphs 24-28 of the Declaration
(1) What role do multinational enterprises play in promoting and providing stable and secure employment?
(2) In considering changes in operations that may have major employment effects, do multinational enterprises provide reasonable notice to: (a) those employees affected; (b) their organizations; and (c) to the appropriate organs?
(3) What have been the respective roles of government, multinational enterprises and national enterprises in providing income protection for workers whose employment has been terminated?
Antigua and Barbuda, Argentina, Australia, Bahamas, Bangladesh, Barbados, Belgium, Brazil, Cambodia, Canada, Chad, Chile, Colombia, Costa Rica, Czech Republic, Dominica, Ecuador, Egypt, Estonia, Ethiopia, Finland, France, Gabon, Greece, Grenada, Hungary, India, Ireland, Italy, Japan, Jordan, Kuwait, Luxembourg, Malaysia, Mauritania, Mauritius, Mexico, Netherlands, New Zealand, Nicaragua, Nigeria, Pakistan, Poland, Portugal, Romania, St. Vincent, Singapore, Slovakia, Spain, Sri Lanka, Swaziland, Switzerland, Syrian Arab Republic, Thailand, Trinidad and Tobago, Tunisia, Turkey, United Kingdom, United States, Venezuela, Zambia, Zimbabwe.
According to the Government, MNEs in Antigua and Barbuda operate within the parameters of the Labour Code and collective agreements, and the Government monitors the situation with regard to security of employment. Reasonable notice is given to workers and their organizations when changes in the operations of MNEs are to be made. By law, workers whose employment has been terminated are entitled to severance pay and pension benefits. Labour contracts also contain such provisions.
The Government of Argentina states that the information contained in its reply to the fifth survey is still applicable.
The Government of Australia believes that MNEs as well as other employers should endeavour to provide stable and secure employment. In a bid to encourage this, provisions prohibiting arbitrary and unfair dismissal were included in the 1988 Commonwealth Industrial Relations Act, on 30 March 1994. They supplement the state laws in force, which are based on ILO Convention No. 158. When considering changes in operations which may have major effects on employment, MNEs have to respect a number of requirements specified by the Commonwealth Industrial Relations Act, the Queensland Industrial Relations Act 1990, the Victoria Employees Relations Act 1992 as well as industrial awards made by the Australian Industrial Relations Commission. They all require that employers provide information about proposed changes to workers and their unions, notify affected workers about planned changes at the earliest feasible date and discuss the changes with a view to finding ways of mitigating their negative effects. By law, certified agreements (i.e. between an employer and the relevant unions) and enterprise flexibility agreements (i.e. between an employer and employees (directly)), must, unless otherwise agreed, provide for consultations on matters relating to changes in the enterprise or the performance of duties. According to the 1990 Australian Workplace Industrial Relations Survey, MNEs, as opposed to other enterprises, were more likely to inform workers and their organizations on a regular basis, about their marketing strategies, investment plans, corporate plans and financial position. They were, however, a little less likely to supply information about future staffing plans. There is no indication that these findings are not still valid. Dismissed workers in Australia receive social security payments under the non-contributory social security system. In order to continue getting those benefits, it must be shown that they are actively seeking employment, willing to accept reasonable job offers or acquiring approved education and training. Under the Industrial Relations Act of the Commonwealth, all employers must give advance notice of dismissal or pay compensation if this is not done, and the Australian Industrial Relations Commission can issue orders for the payment of severance benefits to those dismissed. Under many federal awards, employers must pay severance benefits to those dismissed for economic, structural or technological reasons. Government has developed adjustment packages for affected workers. They include vocational and preparatory training, wage subsidies for new employers providing jobs to those who have been made redundant and assistance for relocating to regions with better job opportunities. Three such packages for workers in the following industries were in operation between 1994 and 1995: textiles, clothing and footwear; passenger motor vehicles, and railways. Another, covering workers in industrial activities related to forestry, was announced in December 1995.
The Government of the Bahamas notes that MNEs set up business with a view to obtaining a fair share of the market. They provide retraining and exchange programmes to boost workers' productivity and the competitiveness of the enterprise. In cases where changes in operations were anticipated, reasonable notice was given to the workers, their organizations and the appropriate organs. There is evidence that MNEs seek to make acceptable severance payments to those who have been made redundant, and the Government, through the Department of Labour, ensures that a just settlement is reached. In some cases workers are redeployed.
The Government of Bangladesh reports that MNEs must comply with the national laws and regulations with regard to employment and conditions of service. Protection of the income of those jobseekers who lost their jobs as a result of structural change, is guaranteed by law. Violation of those legal provisions is a punishable offence. Labour laws with regard to termination of employment and social security payments apply to both national and multinational enterprises. The Bangladesh Employers' Association shares the Government's views.
The Government of Barbados points out that the ability of MNEs to contribute to stability and security of employment depends on market demand for their products and services. Experience has shown that the efforts made by MNEs to maintain or expand their operations, have a positive impact on employment. As regards changes in operations and their effects on employment, those MNEs in which workers are unionized are guided by the relevant provisions in collective agreements, which define "reasonable notice". The law stipulates the minimum notice required in cases of redundancy, while the Prices and Incomes Protocol encourages consultation. Income protection is provided for persons who are made redundant after at least two years of continuous employment under the Severance Payment Act Cap. 355A. Under the National Insurance Scheme and Social Security Regulations, all employers are required to contribute a percentage of their wage bill to the Unemployment and Severance Fund. Employers are responsible for paying severance benefits. However, the Government, through the National Insurance Scheme, may also make payments to the workers concerned if the enterprise can demonstrate its inability to do so. The Barbados Employers' Confederation states that MNEs play no particular role in providing stable and secure employment. In cases of redundancy all employers, including MNEs, are required by law to give a minimum period of notice, depending on the worker's length of service. Income protection is provided for under the Severance Payment Act and unemployment benefits are paid to all workers whose employment has been terminated, regardless of the ownership of the enterprises in which they worked. The Barbados Workers' Union states that MNEs do not play a special role in providing stable and secure employment. They do not give reasonable notice when considering changes in operations. The national social security legislation provides for the payment of severance and unemployment benefits to workers whose employment has been terminated. Both foreign and local employers contribute 1 per cent of the employee's insurable earnings to the Severance Fund and 0.5 per cent of that amount towards the unemployment benefit fund. Workers also contribute 0.5 per cent of their insurable earnings towards the latter. The Government has agreed to meet with the other social partners to discuss the inclusion of a clause in the Prices and Incomes Protocol in order to provide security of employment during the period that the Protocol is in force.
The Government of Belgium states that its replies to previous surveys are still applicable. It emphasizes that all enterprises must comply with the rules relating to termination of labour contracts. These rules are governed by the 1978 Act on labour contracts. Attention is drawn to a particular problem of non-compliance by MNEs with Belgian law in cases of the transfer of an enterprise. The non-observance relates to collective dismissals, plant closure, as well as information and consultation with workers regarding employment or the maintenance of rights. The most recent case concerned the sudden shutdown of a plant (name given) in order to transfer the activities elsewhere under subcontracting arrangements. The possibility of negotiating a social plan or a restructuring arrangement after the decision has been taken, is even more difficult than the imposition of sanctions because of the multinational character of the group. Such plans have been the product of very difficult negotiations and public opinion has been marked by MNEs' decisions to restructure for the sole purpose of maximizing profits. The decisions taken by two enterprises -- one in the cosmetics industry and the other in the tobacco industry (names given) -- are examples of this. The National Labour Council notes that increases in the restructuring of enterprises and economic concentrations at the international level add to feelings of insecurity in employment. Furthermore, information and consultation procedures are not always respected in cases of closure or restructuring of MNEs in Belgium.
The Government states that MNEs in Brazil have created, and continue to create, considerable opportunities for high-quality direct and indirect jobs. They are at the forefront of the economic restructuring process. However, there are signs that technological innovation and the application of new management methods by MNEs in certain fields have resulted in the decline of direct employment and a rise in precarious forms of employment. In the absence of detailed studies on these developments it is not possible to assess their scope. It is not known with certainty whether MNEs inform those concerned about changes that are likely to affect employment. Practices vary across enterprises. Problems in this regard tend to get considerable publicity and eventually become subjects of discussion and negotiation in different bilateral and tripartite fora. The Government, through Decrees Nos. 2.284/86 and 92.608/86, has instituted an Unemployment Insurance Programme (Programa Seguro-Desempleo) which operates within the framework of the social security system. In 1994, some 4 million unemployed persons got temporary financial assistance under this Programme. The Single Central Organization of Workers notes that Convention No. 158 is not yet being applied in Brazil. There is no prior notice of dismissals and no possibility of holding discussions with a view to dissuading the enterprises from taking that course of action. There have been complaints and strikes by workers in certain enterprises. Nothing has been done with regard to income protection for workers who have been made redundant.
According to the Government of Cambodia, MNEs promote stable and secure employment by recruiting and training highly qualified persons and paying them reasonable wages. MNEs give prior notice to employees who are to be dismissed, in accordance with the provisions of the Labour Code. While regulations do not yet cover income protection for workers whose employment has been terminated, the enterprise concerned gives them compensation according to its means.
According to the Government of Canada the information provided in response to questions 13-20 also applies to this section. Its reports submitted to the ILO's Committee of Experts with respect to Conventions Nos. 88, 122 and 158 also contain information of relevance. Attached to its report is a copy of a text entitled "Termination of employment" which gives details of legal provisions in this regard. The Government of the Province of Quebec draws attention to its observations relating to paragraphs 13-20. It adds that MNEs can make use of government programmes under which committees for assisting enterprises to adapt to change are set up. Twelve per cent of MNEs which have unions envisage work sharing when jobs are threatened. In enterprises as a whole, 6.8 per cent consider that option. By law, employers must give the Ministry of Employment between two to four months' notice of collective dismissals, depending on the number of workers affected. In the case of individual dismissal, the law requires that the individual be given between one and eight weeks' notice, depending on the length of unbroken service. When it comes to collective dismissals, no MNE gives prior notice that exceeds the legal requirement. However, for individual dismissal, 19 per cent of them do give more advance notice than required by law. In addition to the statutory unemployment benefits, 56 per cent of collective agreements in MNEs as opposed to 26.7 per cent of those in other companies provide for termination benefits. Fourteen per cent of MNEs offer supplementary unemployment insurance, whereas only 5.7 per cent of other enterprises do.
The Government of Chad notes that MNEs do not play any special role in promoting and providing stable employment. Some MNEs give reasonable notice to employees and their organizations when considering changes in operations. However, only the labour inspectorate is sometimes consulted in this regard. In the event of termination of employment, both MNEs and local enterprises observe the laws governing the rights of workers.
The Government of Chile states that sections 159-178 (section V) of the Labour Code set out the justified causes for terminating employment and specify the compensation to be paid according to the number of years of service. Workers with trade union privileges can only be dismissed with prior authorization of the competent court. Workers made redundant are entitled to an allowance paid from a contributory fund. A Bill is being drafted to establish an income protection system for such workers. There already are retraining programmes, and both national and foreign enterprises participate in the planning and implementation of these activities. The openness of the domestic economy makes it susceptible to fluctuations in the global economy, which in some cases lead to the loss of jobs.
The Government of Colombia states that MNEs have created stable employment. According to Act 50 of 1990, all enterprises taking measures that affect employment (e.g. closure and suspension of activities) must seek the authorization of the Ministry of Labour and notify their workers. Two strategies have been put into place by the Government: the Comprehensive Labour Adjustment Service (SALI) and the Public Sector Labour Adjustment Service (SAL SP). The SALI is designed to support private enterprises which must restructure. It reduces the social cost of restructuring, prepares displaced workers for new job opportunities through training and retraining and/or encourages labour-management negotiation of alternatives to the closing of factories. The SAL SP was set up by Decree 2151 of 30 December 1992 to assist civil servants affected by administrative reforms, support workers in their efforts to enter other sectors of the labour market and to offer training which would enhance the skills of those wishing to set up their own business. According to the National Association of Manufacturers, the labour legislation prohibits the sudden closure of enterprises and this is enforced. Enterprises in Colombia must get the authorization of the Ministry of Labour and Social Security before ceasing operations, either partially or totally and for any period whatsoever. They must inform workers of their intention in writing except in cases of force majeure and their actions must have no adverse effect on benefits. Workers are entitled to one month's salary for each year of service, or proportionate to the part thereof. By law, enterprises which consider collective lay-offs to be necessary must seek prior authorization from the Ministry of Labour and inform workers in writing. The General Confederation of Democratic Workers is of the view that MNEs in Colombia do not play a role in promoting stable and secure employment. They provide employment according to the normal requirements of the enterprise. MNEs give reasonable notice concerning changes in operations, not after holding consultations with workers, but as a unilateral decision. MNEs and local enterprises have the same approach to dealing with workers' incomes: they try by all means to pay the least possible, without considering the situation of those concerned.
MNEs have played a significant role in creating jobs, especially in the agricultural sector, reports the Government of Costa Rica. During the period under review, MNEs expanded their activities and there was increased demand for labour in the banana industry. There were no job cuts.
According to the Government of the Czech Republic, job security in MNEs is very high due to the economic strength of these companies. However, MNEs tend to prefer and implement more flexible and less traditional conditions of employment, in the forms of fixed-term and temporary job contracts. Under section 20 of the 1991 Employment Act, all employers must communicate to the competent authorities, operational changes that may have employment effects. MNEs have complied with section 60a of the Labour Code which provides for income protection, and in certain cases they have offered dismissal compensation that exceeds the statutory requirements. The Czech and Moravian Chamber of Trade Unions notes that MNEs respect the legal requirements. However, labour legislation is being "weakened", and the protection of workers is being undermined. MNEs generally give advance notice of changes that may have an adverse impact on employees, and they seek acceptable solutions to the problems, in accordance with the collective agreements. They cooperate with labour unions and the Government in this regard, and the separation payments made to affected employees generally exceed the legal requirement.
The Dominica Employers' Federation notes that it is difficult to identify the role played by MNEs with respect to security of employment, since many have been operating in the country for less than ten years. While MNEs generally provide reasonable notice when considering changes in operations that may have major employment effects, it is not uncommon for a multinational enterprise especially from a given country (named), to discontinue operations without informing any of the interested parties of the reasons for doing so. Income protection is provided for in the national legislation.
The Government of Ecuador states that it has a particular interest in carrying out studies and assessments of developments in the labour market. To this end, it works closely with the National Employment Institute (Instituto Nacional de Empleo). The country has a social policy designed to protect workers and guarantee stability of employment. It is very difficult to dismiss workers arbitrarily without having to pay heavy compensation. Workers who have been made redundant and are experiencing difficulties in finding a new job receive benefits, and collective agreements generally provide for the payment of adequate compensation to those who have lost their jobs. The Government attaches to its reply a copy of a collective agreement to which a large European MNE in the food and drink industry (name given) is party, as an example of the scope of the provisions of such agreements.
According to information given by the Federation of Egyptian Industries, certain enterprises in the pharmaceutical and metal trades (named) aim at ensuring stable employment through different measures, which include further training and attractive remuneration packages and benefits for staff. Some enterprises in the pharmaceutical industry and metal trades (named) give reasonable prior notice to all concerned when considering changes with major employment effects, whereas others (named) only provide such information to the employees affected.
The Government of Estonia indicates that MNEs have no special role in providing stable and secure employment and their influence with respect to employment policy is small. MNEs are interested only in developing their own operations and therefore their primary concerns relate to their workers. They have never sought to cooperate with workers' organizations. As regards the termination of employment, workers in MNEs have the same income protection as other workers. There are no major conflicts in this regard.
According to the Government of Ethiopia, the role played by MNEs in promoting and providing stable and secure employment basically depends on their performance and productivity. In the event of operational changes that may have major employment effects, the law requires that employers give reasonable notice to those employees who will be affected. Labour Proclamation No. 45/1993 obliges employers to pay severance to workers whose employment has been terminated. The competent authorities follow up the implementation of these requirements.
The Government of Finland, the Confederation of Finnish Industry and Employers and the Employers' Confederation of Service Industries state that their reply to the fifth survey is still applicable. The Central Organisation of Finnish Trade Unions (SAK), the Finnish Confederation of Salaried Employees (STTK) and the Confederation of Unions for Academic Professionals in Finland (AKAVA) note that reliable data on the employment effects of Finnish investment both at home and abroad are lacking. In their view, foreign enterprises entering Finland generally promote stable and secure employment. The same cannot be said of Finnish enterprises operating abroad. Research has demonstrated that while investment by Finnish enterprises in the Baltic States or the Russian Federation is not responsible for a net decrease in employment, it has resulted in job displacement. Unskilled and low-paid jobs in the textile and clothing industry have been lost, while new employment opportunities have been created in other industries. Those who have lost their jobs have not been able to move into the new ones. There have been cases in which workers learned of the enterprise's intention to invest overseas from the newspapers but were neither informed by management nor consulted on the employment effects.
The National Council of French Employers notes that when lay-offs are being considered, employers provide workers with information and hold extensive consultations with them. Industry-specific agreements generally contain provisions on advance notice in the event of changes in activities, likely to have an impact on employment.
The Government of Gabon indicates that on the whole, MNEs offer good working conditions -- e.g., high wages, vocational training as well as refresher training. With respect to decisions having a major impact on employment, MNEs are subject to section 56 of the Labour Code which stipulates that prior authorization is required from the labour inspectorate in cases of redundancies. Section 51 of the Labour Code also sets out the procedure to be used in cases of dismissal for personal reasons. The new provisions in the Labour Code (sections 70-74) constitute an improvement with regard to income protection upon termination of employment. In cases of dismissals, all enterprises, whether national or multinational, pay outstanding salaries and dismissal compensation. The Gabonese Confederation of Free Trade Unions is of the view that MNEs neither contribute to the promotion of employment nor provide reasonable notice when considering decisions likely to have a major impact on employment. Furthermore, there is no income protection for workers.
The Government of Greece indicates that within the framework of its policy for employment creation and income protection for workers who have lost their jobs, there is an entity responsible for carrying out specific programmes to provide subsidies to employers for the following: creation of new jobs; promotion of new professional positions; preservation of jobs in the hotel sector and recruitment of students from Technological Educational Institutes (Etablissements Technologiques d'enseignement). Under Act 1545 of 1985, workers who have lost their jobs and who have unemployment insurance coverage are entitled to unemployment benefits if they have worked for 125 days during the 14 months preceding termination of employment.
According to the Government, MNEs in Grenada provide career-long employment. The retirement age is 60 years. Employees and their organizations are given at least one month's notice in the event of workforce reductions, but information is not provided to the appropriate government authorities.
The Government of Hungary notes that legislation concerning the obligations of foreign owners upon the acquisition of SOEs has been enacted. The law stipulates that the worker/employer relationship is not automatically terminated by the transfer of ownership. This has contributed to job security, particularly for workers in such enterprises. While MNEs normally offer labour contracts for undetermined periods, some have offered their employees fixed-term contracts. While this practice considerably erodes job security it has not led to major labour disputes because of the attractive remuneration associated with this type of contract. MNEs have contributed to stability of employment through investment and training. By law, workers, workers' organizations and employment agencies, must be notified of impending significant staff cuts and MNEs generally comply with these requirements. The State has primary responsibility for providing support to workers whose employment has been terminated. Employers must give "appropriate" advanced notice to workers who are to be laid off and make severance payments commensurate with the length of service. In some cases, MNEs have provided dismissal compensation exceeding the legal requirements, contributed to retraining, granted early retirement instead of laying off workers, and helped some people to start their own business. The National Confederation of Hungarian Trade Unions, the National Federation of Workers' Councils and the National Federation of Autonomous Trade Unions believe that the interests of workers are better served by collective agreements and that individual and/or fixed-term contracts of employment are only accepted by workers "for fear of losing their jobs".
The Government of India states that MNEs generally follow the laws of the country with regard to conditions of service, security of employment, change in working conditions, compensation procedure for retrenchments, etc. There is no specific information on whether or not MNEs provide adequate notice to staff whose employment may be affected due to changes in operations. However, MNEs follow the provisions of section 9A of the Industrial Disputes Act 1947, which requires employers to give notice to the workers before effecting any change. At present it is not possible for the Government to provide income protection for workers whose employment has been terminated. However, workers so affected receive compensation.
According to the Government, MNEs in Ireland have played their part in promoting stable and secure employment. When considering changes in operations that may have major effects on employment, MNEs give reasonable notice to the workers concerned, their organizations and the appropriate state authorities. There is an enlarged Social Insurance Fund which was formed in 1990 by combining the Redundancy and Employers' Insolvency Fund with the Occupational Injuries Fund and the Social Insurance Fund. An employer who makes a lump-sum payment under the Social Insurance Fund is entitled to a rebate -- i.e., 60 per cent of the lump-sum if the minimum period of two weeks' dismissal notice is given. The amount of the rebate may be reduced at the discretion of the Minister of Labour if the employer fails to comply with any provision concerning redundancy notice (information extracted from Guide to the Redundancy Payments Scheme, 1992, annexed to report). Workers are given income protection under a government scheme to which employers and workers contribute.
The Government of Italy reports that all enterprises abide by the law, particularly the Workers' Statute, and the collective agreements in force, when it comes to the protection of workers in cases of the restructuring of enterprises and also with respect to income protection for workers whose employment has been terminated. The General Confederation of Industry (Italy) concurs with the Government.
All enterprises in Japan, including MNEs, must report significant fluctuations in the size of the workforce to the relevant authorities, states the Government. They must also employ a certain percentage (unspecified) of persons with physical disabilities. Contributions to unemployment insurance are obligatory, and there is income protection for workers who have been made redundant.
The Government points out that given the small number of MNEs operating in Jordan, it is difficult to evaluate their role in providing and promoting stable and secure employment at this time. There have been no cases of changes in the operation of any enterprise that have had significant employment effects. However, in such circumstances, the law requires that employers notify the affected workers and the Ministry of Labour. If a worker does not get notice prior to the termination of employment, compensation in lieu thereof, must be paid. If a worker is temporarily suspended because of reasons "beyond the employer's control", then the latter is required to pay a percentage of the worker's wages. In the event of arbitrary termination of employment, the worker could seek redress from the court. Employers must pay an end-of-service allowance if the worker does not have social security coverage. There are proposals to strengthen these provisions in the new labour law which is being drafted. The Amman Chamber of Industry states that MNEs in Jordan help to provide job security and they contribute to the Social Security Fund. Employees whose services have been terminated receive social security benefits.
The Government of the Republic of Korea notes that MNEs contribute to job creation by hiring locals. Under the Labour-Management Council Law, councils, composed of workers' and employers' representatives, are set up in enterprises with at least 50 workers. Management must inform its employees of important decisions through these councils. The 1995 Employment Insurance Act provides for unemployment benefits. It also facilitates re-employment by providing other allowances -- e.g. a job competence development allowance, "wide-area" job-seeking expenses and relocation expenses. Income protection for workers whose employment has been terminated is provided for under the Labour Standards Law which must be respected by MNEs. The Korea Employers' Federation notes that MNEs play a significant role in promoting stable and secure employment, especially for highly skilled workers. They give reasonable notice to workers whose employment is affected by changes in operations. Income protection is provided under the mandatory national pension scheme and there is unemployment insurance. The Labour Standards Law enables all workers to receive, upon retirement or termination, a lump-sum payment of not less than 30 days' wages for each consecutive year of service.
According to the Government of Kuwait, workers in the public and private sectors are guaranteed stable and secure employment in accordance with national labour laws and practice. Under the laws in force, foreigners enjoy income protection upon termination of employment. They are given awards as well as other payments from savings funds. Nationals receive social security benefits and payments under a special savings scheme.
The Federation of Luxembourg Manufacturers reports that due to their large number MNEs play a considerable role in providing stable and secure employment. Arbitrary dismissals are avoided, and considerable efforts are made to enable those concerned to obtain other jobs or to take early retirement. The Confederation of Independent Trade Unions (OGB.L) states that MNEs play a very important role in the economy of a small country, such as Luxembourg. They, like other enterprises, generally comply with the legislation on employment, collective dismissals and information and consultation with workers. The OGB.L stresses that subsidiaries of MNEs often try to claim that their status and authority to act independently vary depending on the situation. They state that they act autonomously when dealing with labour matters, but not when it comes to financial and fiscal issues, because of the characteristics of the MNE and their relationship with other enterprises in the group. As a result, trade unions face practical problems in the implementation of industrial relations legislation with respect to information, consultation and codetermination, workers' representation and the conclusion of collective agreements. The OGB.L argues that there is a growing need to revise the relevant laws so that MNEs' practices regarding their legal status and authority would not compromise the application of these laws.
The Government of Malaysia reports that employers must notify workers of the employment effects of changes in the operations of a company. This is required by existing legislation, collective agreements or the Code of Conduct for Industrial Harmony. The 1955 Employment Act provides for the payment of termination benefits. Any employer, including MNEs, must pay such benefits to employees whose services have been terminated. In this regard, MNEs often include in collective agreements terms and conditions of income protection that are more favourable than those stipulated in the Act. The Malaysian Trades Union Congress states that MNEs do not provide stable and secure employment. In the event of any changes affecting employment, they "very seldom" give adequate notice to the workers concerned and "very rarely" are the workers informed of such changes. Under the legislation that deals with Termination and Lay-off Benefits, income protection for workers whose employment has been terminated is based on length of service (details of rates of benefits provided).
The General Confederation of Employers of Mauritania reports that Recommendation No. 119 is not taken into account. The few MNEs operating in Mauritania play no role in promoting and providing stable and secure employment. When considering changes with important effects on employment, MNEs are required by law to give reasonable prior notice to the workers concerned, trade unions and labour administration (sections 15 and 43 of Title V, sections 20 and 27 of Title I of the Labour Code). In accordance with the General Collective Agreement, workers whose employment has been terminated as a result of cutbacks are given priority over other jobseekers to work in their former enterprise. The Free Confederation of Workers of Mauritania (CLTM) is of the view that MNEs play no role in promoting job security as they resort to subcontracting arrangements under which workers are hired either on a temporary basis or with renewable labour contracts. In cases of changes with major employment implications, MNEs sometimes provide reasonable notice, which, in the absence of national standards, is not based on national law, nor on international standards. The CLTM further draws attention to the problem of unionized workers and their representatives being subject to pressures. These workers are deprived of rights and their trade unions are often not accepted. Labour inspectors often turn a blind eye to these problems. The question of income protection for workers whose employment has been terminated is not accorded importance.
The Government of Mauritius reports that since the setting up of the Mauritius Export Processing Zone, MNEs have played a crucial role in employment creation in the industrial sector. A multinational enterprise employing no less than ten workers and not operating in the EPZ sector, is required under the provisions of the Labour Act to notify and explain to the Minister its intentions, if there is to be a reduction in the number of its employees either temporarily or permanently. According to the Labour Act, any worker whose employment has been terminated is entitled, except in cases of misconduct, to severance allowance. Furthermore the protection of workers, in the case of termination of employment following the insolvency of an enterprise (whether multinational or national), is guaranteed by the Code Napoléon which gives workers' claims the same consideration as that accorded to investment loans by banks and other authorized institutions.
Security of employment in MNEs depends on the economic conjuncture, states the Government of Mexico. It cannot be said that these enterprises guaranteed permanent and stable jobs between 1992 and 1995. None the less, section 5(V) of the Regulation relating to the Act to Promote Mexican Investment and Regulate Foreign Investment calls on enterprises to provide, inter alia, permanent jobs. The Federal Labour Act sets out the procedure to be followed in the event of collective disputes, including those arising from changes in staffing levels or working conditions. By law, workers who have been dismissed are entitled to compensation. In cases of temporary staff reductions, the Federal Conciliation and Arbitration Board (JFCA) determines the compensation to be paid to workers and, if conditions do not change, it holds consultations every six months with the trade union to review the situation. If the situation does change, workers must be reintegrated under the previous conditions, within 30 days. The authorization of the JFCA is required in the case of permanent staff cuts, closure of an enterprise or lay-offs as a result of the introduction of new machinery or production processes. If the enterprise resumes operations or a new company is set up, the employer must recruit those persons who had been laid off. Protection against arbitrary dismissal is guaranteed by law and those who are victims of such dismissal can submit their complaints to the Conciliation and Arbitration Boards, which are tripartite in structure. For the most part, labour disputes in Mexico are settled by means of conciliation. According to the Mexican Confederation of Chambers of Industry, recent external economic developments have had adverse effects on employment. The Government has collaborated with the most representative workers' and employers' organizations in an effort to attenuate these effects. Tripartite consultations were also held at the national level, as evidenced by the conclusion of the Agreement for Economic Recovery. Some MNEs, faced with economic difficulties as a result of developments in the world economy, have attempted to avoid redundancies by taking the following measures: work stoppages for technical reasons; advancement of vacation periods; or short-time working (in terms of hours or days). The Confederation of Mexican Workers agrees with the Government.
The report submitted for the last survey is still applicable, states the Government of the Netherlands. The Federation of Netherlands Industry and Employers agrees with the Government.
The reply of the Government of New Zealand to the last survey is still valid. While the law does not prescribe any minimum advance notice to be given in the event of changes in operations which may affect employment, this may be provided for in labour contracts. Over the years, the courts have made it clear that if no advance notice period is agreed to, then "reasonable notice" must be given. The company's contractual requirements and the circumstances of each case would determine to whom the notice must be given. Information on the Government's role as regards the provision of income support for persons who have been made redundant, can be found in New Zealand's report to the ILO on the application of Convention No. 158 for the period ending 30 June 1994. Separation payments are subject to negotiation between employers and workers, or their representatives. This applies to both local and multinational enterprises, which are also obliged to give "fair and reasonable treatment" to all employees, including those who have been made redundant. Except in "very exceptional circumstances" the provisions of a contract concerning compensation will apply. However, the Government notes that during the period under review, there was a case in which the Court of Appeal held that an employer may be required to pay compensation even where there are no contractual agreements to do so. In such cases, the courts will consider factors such as the reasons for the redundancy, length of service, period of notice provided and the means of the employer to pay. The New Zealand Employers' Federation supports the Government's statement.
According to the Government, MNEs in Nicaragua play a positive role in the country's economic development by creating permanent jobs and providing training and opportunities for the advancement of nationals. They inform the competent authorities of changes which may result in unemployment. Where this is the case, they notify the workers after obtaining approval from the authorities concerned. They pay benefits and severance pay, depending on the years of service of the employees concerned. The Government ensures that all statutory benefits are paid to workers who have been made redundant.
In the opinion of the Government of Nigeria, MNEs play a very important role in promoting and providing stable and secure employment through comprehensive remuneration policies and employee welfare programmes, manpower training and development, and good industrial relations. In the event of operational changes, such as restructuring and downsizing, which can have major effects on employment, MNEs, in line with national policies, are required to hold discussions with the union. Management must therefore give reasonable notice of its intention to workers and their organizations which may be involved either in negotiating redundancy benefits or in ensuring that sickness benefits are paid. The legal requirements governing income protection are therefore respected. The Nigeria Employers' Consultative Association shares the Government's point of view. According to the Nigeria Labour Congress, MNEs' practices with respect to security of employment conform with the statutory provisions. In carrying out changes that may have major employment effects, reasonable notice is given to the employees concerned and, occasionally, also to the central labour organization. The provision of income protection to workers who have lost their jobs is in line with ILO Recommendation No. 119. The law provides for workers to be given notice of termination of employment or payment in lieu thereof. MNEs and national enterprises often respect these requirements.
The Government of Pakistan states that the national employment policy clearly requires that workers be provided with stable employment and employment protection. Efforts are made to ensure that the terms and conditions of employment and benefits are regulated. "Free" and "cordial" collective bargain-ing takes place according to the labour laws in force. The 1968 West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance governs the closure of enterprises. Cases of violations in this regard may be taken to the Labour Courts. Arbitrary dismissal is prohibited and in the event that it does take place, there are different procedures through which workers may seek redress. The Employers' Federation of Pakistan notes that MNEs' activities are regulated by the same laws as national enterprises. The Government of Pakistan is planning to amend its Labour Policy to provide better protection for contract and part-time workers. Under the existing legislation, these workers are entitled to social security benefits and compensation in case of work-related accidents, provided that the contracting enterprise operates within the framework of the relevant laws in force. MNEs must respect the laws governing termination of employment and workers can submit grievances if these procedures are not respected. Each year, there are many cases of workers being reinstated with full or partial pay and benefits. Income protection, in cases of termination of employment, injury or disability, is provided for, under the social security scheme.
According to the Government of Poland, foreign investors in privatized SOEs play a role in providing stable and secure employment by concluding agreements with workers' organizations, guaranteeing that existing employment levels will be maintained for between one and a half years and two years after the change of ownership. According to the Independent Self-Governing Trade Union "Solidarno" (Poland), policies and practices relating to job security are favourable in large MNEs, which tend to attach great importance to their reputation. Income protection for those whose employment has been terminated is provided for under the Employment and Unemployment Act of 1991.
MNEs, like other enterprises in Portugal, must respect the standards governing dismissals, and unjustified dismissals are prohibited, reports the Government. Workers may be dismissed for economic or technological reasons. The individual concerned and the workers' representative are given prior notice of the reasons for dismissal and can make known their views on the matter. The final decision must be communicated to the worker with at least 60 days' prior notice and there is the right to compensation amounting to at least one month's basic pay for each year of service, with at least three months' remuneration. If the dismissal is unjustified or the correct procedures were not followed, the decision may be declared null and there is the possibility of being reintegrated into the enterprise. Social insurance is financed by workers' and employers' contributions, and workers who have been made redundant are entitled to unemployment benefits. Those over 55 years can agree with the employer to apply the previous system, under which the employment contract is not terminated and the enterprise continues to pay a stipend that is not less than 25 per cent of, but not more than, the last remuneration. The General Union of Workers is of the view that the stability of jobs created by MNEs depends on the medium-term and long-term interests and strategies of enterprises. By law, advance notice must be given in the event of changes with major employment effects. Trade unions in Portugal are not usually notified unless the leaders themselves are involved. Dismissed workers receive compensation depending on age, last wages and length of service.
The Government of Romania states that while the role of MNEs with regard to promoting and providing job security is still quite modest, it is not negligible. Furthermore, as an incentive for MNEs to create jobs, the Foreign Investment Act provides tax rebates for investors creating a minimum of 50 jobs either through new investment or by developing existing investment. When considering changes which may have major effects on employment, MNEs may provide reasonable prior notice to workers but not to their organizations. Under the Act concerning the social protection of unemployed persons, benefits are given to those who are registered, for a period of nine months. Thereafter, additional income support allowance may be provided for a maximum of 27 months. The 1995 national Collective Agreement obliges employers to provide compensation equivalent to 50 per cent of the average salary to those individuals who have been dismissed, when this dismissal is not for reasons attributable to the employee concerned. All other outstanding benefits must also be paid. Collective agreements concluded at the enterprise or sectoral level have similar provisions which must be at least equal to those contained in the national Collective Agreement. Income-related matters in MNEs are determined by agreement.
According to the St. Vincent Employers' Federation MNEs help to promote stable and secure employment by organizing internal seminars, workshops and apprenticeship programmes for the workers. In a few cases scholarships are awarded for study at secondary and tertiary institutions both within and outside the region. There are now provisional arrangements for MNEs to give prior notice of changes in operations that may have major effects on employment. However, up to three years ago, certain enterprises left without arranging for workers to receive holiday and severance payments. There now exist proper arrangements to protect workers against "any form of exploitation".
The Singapore National Employers' Federation points out that the restructuring of the economy with an emphasis on higher value-added activities has led to a decline in the number of redundancies -- 8,800 workers in 1995 compared to 9,444 in 1994. Most of these workers were in MNEs in the manufacturing sector. Through the granting of separation benefits and other forms of assistance such as outplacement services, these enterprises greatly helped the workers concerned. The low unemployment rate and strong employment creation has enabled these displaced workers to find new jobs in less than two months.
According to the Government, the activities of MNEs in Slovakia have contributed to the implementation of its labour market policy to a considerable degree.
The Government of Spain notes that measures have been taken to reduce the cost of social protection and encourage unemployed persons to seek employment. Act 22/93 of 29 December aims to balance the granting of adequate benefits to unemployed persons with the exigencies of keeping costs in line with budgetary constraints. The Government provides detailed information concerning eligibility for receiving unemployment benefits and the basis for calculating benefits. The General Union of Workers (UGT) reports that MNEs in Spain play a key role in creating employment in many sectors of the economy. Large enterprises generally offer more stable employment than SMEs and the public administration. The high incidence of temporary job contracts (35 per cent of the economically active population) has become possible because of the lack of vigilance of the labour inspection services and the lack of sanctions against such practices by the labour courts. The Workers' Statute requires that employers inform and consult with workers' representatives with respect to measures which will have repercussions on employment. The Freedom of Association Act also provides for such information and consultation within enterprises. As regards changes in enterprises, MNEs generally comply with the requirements for giving reasonable advance notice to workers and they try to mitigate the effects of such changes on the workforce by offering possibilities for early retirement and other incentives for premature departures. Unions are generally in a weak bargaining position, particularly when enterprises are to be restructured. In such cases the employers generally have the full support of the public authorities, with which prior consultations are usually held. Workers of between 54 and 55 years who accept early retirement receive unemployment benefits from the State and a complementary sum agreed between management and the workers' representatives. This sum is paid by the enterprise up until the normal retirement age. The benefits paid by Government, together with the sum paid by the employer, are supposed to amount to a sum close to the last salary. The UGT states that workers in this situation face serious disadvantages, because under the national social security system the pensions of those who do not make contributions in the last years of their working life or who take early retirement (i.e. before age 65), are considerably reduced.
According to the Government, while some MNEs in Sri Lanka have entered into collective agreements with trade unions, in general, they do not provide stable and secure employment. MNEs do not give reasonable notice to workers or their organizations in the event of changes in operations that may affect employment. Dismissals, with little or no notice, occur especially in the EPZs. Appeals, in such cases, can be brought before the Labour Tribunal. However, sometimes, the foreign owners of MNEs leave the country and their workers are left "high and dry". When Government's efforts to negotiate a settlement between MNEs and the workers concerned are not successful, workers can bring their case before the Labour Tribunal or to the special division of the Department of Labour which deals with the termination of employment.
The Government of Swaziland confirms that MNEs play a significant role in providing stable and secure employment. They take measures to deal with unemployment and the impact of changes in the labour market. They make sure that labour laws are respected in order to protect employment. In considering changes in operations that may have major employment effects, MNEs provide reasonable notice. In the event of collective redundancy, the law requires that written notice be given to the Commissioner of Labour and to the workers and their organizations within specified time-limits. The appropriate organizations are the Swaziland Federation of Trade Unions and the Swaziland Federation of Labour. So far, the Government, MNEs and national enterprises do not provide income protection for workers whose employment has been terminated. However, in the event of unfair termination of employment, the law enables employees to claim compensation from their employers.
The Government of Switzerland reports that job security in MNEs depends on competitiveness and conditions in the international economy. Since the 1990-91 economic crisis, the Swiss economy has become particularly vulnerable to the relocation of MNEs, with the result that an increasing number of jobs are created in other countries with large supplies of skilled workers and lower labour costs. MNEs' practices and attitudes vary considerably as regards changes in operations which may have an important bearing on employment. They must, however, comply with the standards on dismissals. The Central Union of Swiss Employers' Associations refers to its reply under paragraphs 13-20. In cases of collective dismissals all enterprises must give advance notice to the Cantonal Labour Office. Workers whose employment has been terminated receive unemployment benefits which are among the highest in the world. The Federation of Commerce, Transport and Food Industries Workers' Union states that MNEs in Switzerland with which they have concluded collective agreements, provide timely information on any changes in operations which have a bearing on employment.
The Government of the Syrian Arab Republic states that all companies operating in the country comply with the social legislation in force, and that national and multinational enterprises play the same role in promoting stable and secure employment. MNEs give reasonable prior notice to those concerned when considering changes with major employment effects. Special income protection measures for workers whose employment has been terminated are provided for, by Statutory Order No. 49 of 1962 and its subsequent amendments. The statement made by the Chamber of Industry (Syrian Arab Republic) is the same as the Government's.
The Government of Thailand reports that MNEs and national enterprises are regulated by the same laws regarding income protection for workers whose employment has been terminated. National labour inspection authorities ensure that there is compliance with the provisions of this legislation.
The Government of Trinidad and Tobago reports that MNEs are governed by the provisions of the Industrial Relations Act and the 1985 Retrenchment and Severance Benefits Act. These laws are generally respected. Under the Retrenchment and Severance Benefits Act, MNEs must notify the Government within a period of 45 days prior to actual retrenchment, where five or more workers are involved. Individual agreements stipulate that prior notice, or payment in lieu thereof, should be given to employees. Individual contracts stipulate the amount and type of income security to be provided. The Retrenchment and Severance Benefits Act, as well as the Industrial Relations Act, outline the procedures for implementing the provisions of such agreements. The Ministry of Labour and Cooperatives plays a conciliatory role, while the Industrial Court acts as the compulsory arbitrator. The Employers' Consultative Association of Trinidad and Tobago states that MNEs provide stable and secure employment depending on their capacity to do so. In considering changes in operations that may have major employment effects, MNEs provide reasonable notice to the employees affected, their organizations and the relevant authorities. The provision of alternative employment to workers who have been made redundant constitutes the main form of assistance.
The Government reports that there are 2,000 MNEs in Tunisia, half of which have some degree of foreign participation. Those in the services sector account for 45 per cent of the total value of FDI and 44 per cent of total employment in MNEs. They facilitate the transfer of technology and know-how, thereby contributing to the country's economic and social development. MNEs follow the example of national enterprises by having sound HRD planning, offering stable employment and fulfilling their obligations as regards job security and social security coverage. There are special legal provisions governing situations in which enterprises envisage making changes, including restructuring, which may have an impact on employment. The competent authorities must be notified of all such changes. New measures for providing income protection to workers made redundant for technical reasons have been introduced. Workers whose employment has been terminated should continue to receive social benefits for a specified period. According to the Tunisian Confederation of Industry, Trade and Handicrafts, MNEs promote and provide job security. Like local enterprises, they inform the labour inspection services when considering changes in operations due to economic and financial difficulties, or in the case of transfer of activities.
The Government of Turkey states that the rights of employees in all enterprises are protected by labour legislation and collective agreements. Dismissals and lay-offs due to commercial and socio-economic circumstances must comply with the legal requirements. The Labour Act provides for advance notification and severance pay, depending on years of service. There are attempts to protect employees from arbitrary dismissals. The Turkish Confederation of Employer Associations (TISK) notes that MNEs play a positive role in providing stable and guaranteed employment. Security of employment depends, to some extent, on the activities and economic viability of these enterprises. Compensation is given to workers whose employment has been terminated, with the minimum being 30 days' wages for each year's service. This system of compensation based on "seniority" also provides for compensation in lieu of notice, and it applies to all MNEs. The TISK believes that this requirement could have a negative effect on the overall capacity of MNEs to provide stable and secure employment. According to the Confederation of Turkish Trade Unions, MNEs do not play a positive role in promoting and providing stable and secure employment because the threat of relocation is always present. MNEs comply with the legislation in force which has not yet been brought into line with Convention No. 158 which Turkey ratified in 1995. No steps have been taken to provide income protection (e.g. unemployment benefits) for workers whose employment has been terminated.
The Government of the United Kingdom reports that the amended Trade Union and Labour Relations (Consolidation) Act 1992, requires all employers to inform and consult workers' representatives "in good time" about proposed collective redundancies, with a view to avoiding dismissals, reducing the numbers to be dismissed and mitigating the consequences of dismissals. Employers must notify the Department of Trade and Industry of collective redundancies (i.e., 20 or more dismissals within a 90-day period). Of particular relevance to MNEs is the fact that employers cannot escape the notification requirements by arguing that the controlling undertaking (regardless of its location) either did not inform them at all about its plans or did not inform them in time. Since 1993, the law imposes heavier sanctions for non-compliance with these requirements. The law protects workers in all enterprises against arbitrary and unfair dismissal. Those made redundant may be entitled to unemployment and other benefits provided by the State and those with at least two years' service with a given employer may be also entitled to benefits from the employer. Surveys have shown that up to two-thirds of all employers, and on the whole, larger enterprises (which include MNEs), are more likely to pay more than the amounts required by law. The Sunday Trading Act, 1994, guarantees shop workers the right not to be dismissed, selected for redundancy or to suffer any other prejudice (e.g. denial of overtime, promotion or training) for refusing to work on Sundays. Under the Deregulation and Contracting Out Act, 1994, employers are required to "act reasonably" in selecting workers for redundancy. Those who believe that such selection was unfair have the right to submit a complaint to an Industrial Tribunal. The Trade Union Reform and Employment Rights Act, 1993, guarantees workers the right not to be dismissed or victimized for taking specified types of action on health and safety grounds and the right not to be dismissed for seeking to assert a statutory employment right. It also enhances rights relating to entitlements to receive written details concerning employment and, also, itemized pay statements. According to the Confederation of British Industry, MNEs take fully into account the legislation concerning dismissals and in cases of unavoidable redundancies many seek to pay compensation above the statutory requirements.
Referring to paragraph 24 of the Tripartite Declaration, the Government of the United States reports that during the period under review two studies on the impact of MNEs on employment and wages were carried out under the sponsorship of the Labor Department: Foreign-owned firms and US wages and Multinational corporations, outsourcing and American wage divergence. The enactment of the Worker Adjustment and Retraining Notification Act in 1988, has led to "widespread cooperation" and voluntary notification by domestic and foreign enterprises (including MNEs) as regards plant closures and mass lay-offs. The Act requires that employers with a workforce of 100 or more persons give affected employees and local government 60 days' advance notice of the closure of a plant or mass lay-off. The Act provides for limited exceptions. Employers who violate the requirements are liable for back pay and related fringe benefits to each affected employee for each day of violation and for certain compensation to local governments. While most local foreign enterprises, including MNEs, comply with the Act, there is evidence that "a significant percentage may be failing to meet their obligations". Under the law, state and local governments have the authority and financial resources to coordinate efforts to provide retraining and readjustment services to the affected workers. However, under US law, domestic enterprises and MNEs generally have no obligation to provide additional information to public authorities concerning changes in operations which could have major employment effects. The extent to which enterprises must provide such information to workers' representatives is also covered. It may also be prescribed by state law (Maine and Wisconsin) or specified in collective agreements. While only a small percentage of collective agreements contain provisions in this regard, about 30 per cent of them provide for severance pay in the event of plant closures. US law does however require enterprises to bargain upon request with workers' representatives concerning the impact that changes in operations may have on wages and other specific terms of employment. The representative must be provided with all relevant information necessary to bargain in good faith. Many enterprises notify employees of changes in operations likely to have a major effect on employment after the decision has been reached. This practice may be either a matter of company policy or determined by collective agreements. At the time that notification is given to employees, enterprises usually publish such information for dissemination to the general public and others, including the public authorities, especially if such decisions would affect the activities of the enterprise considerably. Arbitrary dismissal by enterprises, either national or multinational, is not a major problem in the US due to public and private safeguards. Until the 1960s, US employment law largely left the question of dismissal to the employer's discretion. Today, under federal and state legislation, employers are prohibited from dismissing workers because of union activity or for reasons based on race, colour, sex, national origin, religion, disability or other reasons (e.g. identification of OSH violations). In addition, under common law, most state courts prohibit dismissals that are in violation of public policy. Finally, dismissals are also regulated under collective agreements as well as public and private employment contracts. When private grievance procedures are exhausted, judicial recourse is available. There is income protection for workers whose employment has been terminated, under state unemployment insurance programmes and a variety of other public and private compensation programmes. Many of these are funded by employers. Approximately 47 per cent of American workers are in jobs covered by unemployment insurance. State rules differ as to the eligibility and levels of compensation, but workers whose employment has been terminated and who fulfil the requirements can generally receive about half of their previous wages, up to the maximum benefit amount -- e.g. 26 times their weekly benefit. In some cases federal legislation provides for more generous assistance to special groups, including workers in the railroad and transit industries, and workers adversely affected by imports. Severance pay based on length of service is often provided by employers to workers who have been made redundant. Almost 40 per cent of workers covered by major collective agreements are eligible for severance pay. There are also employer-financed supplementary unemployment benefits which provide for high levels of replacement of lost wages in several major industries.
The Venezuelan Federation of Chambers of Commerce and Manufacturers' Associations states that, except for the last three years during which the economic situation in the country worsened, MNEs have always sought to provide stable and secure employment. They invest in HRD with the aim of upgrading the skills of their staff, and they also develop career plans. In the event of changes in their operations which may have significant effects on employment, they give enough advance notice to the workers concerned and usually reach an agreement with workers' organizations as regards the changes to be made. They discuss the consequences of their actions with the competent authorities, which are also given advance notice of changes. Workers and employers contribute to the unemployment insurance scheme, under which benefits are given to workers who have been made redundant.
According to the Government of Zambia, MNEs recruit on the local market whenever qualified manpower is available. This practice is in line with established procedures and the provisions of collective agreements. Where employees, for one reason or another, are not unionized, termination of employment is carried out according to the statutory provisions. The strict adherence to these regulations by the majority of MNEs operating in the country has gone a long way towards promoting and providing stable and secure employment.
The Government of Zimbabwe states that MNEs play a role in promoting and providing stable and secure employment by creating employment opportunities, and by following the separation procedures laid down in the relevant legislation. In considering changes in operations that may have major employment effects, MNEs are guided by the regulations on retrenchment, contained in Statutory Instrument 404 of 1990, and by the employment codes of conduct concerning lay-offs and dismissals. As regards workers whose employment has been terminated, MNEs are required to comply with section 13 of this Act concerning wages and benefits. The Employers' Confederation of Zimbabwe points out that MNEs promote and provide stable and secure employment by recruiting employees on a permanent basis, contributing to HRD, and by providing social security benefits. In considering changes in operation that may have major employment effects, MNEs give reasonable notice to the affected employees, their organizations and to the appropriate organs. The role of the Government in providing income protection for workers is to set the legal and policy framework, and to participate in the legal procedures for the settlement of disputes relating to the termination of employment.