Multinationals offer best deal for workers
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.MULTINATIONALS operating in Britain offer better working conditions than their domestic competitors, according to an organisation of leading industrial nations. This casts doubt on claims that improving workers' rights would deter foreign investment.
The Organisation for Economic Co-operation and Development argued in its latest Employment Outlook that foreign multinationals paid higher wages, offered more stable jobs and were more likely to consult their workers on conditions of employment than British companies. The gap between high and low-paid workers, however, was greater in foreign multinationals than home-grown firms.
'There is no strong evidence that multinationals have sought to exploit the largely deregulated environment of labour markets in the UK,' the study concluded.
The study found little evidence that government regulation of labour standards had much impact on the economic performance of leading industrial nations. But it warned that such countries would be likely to try to boost competitiveness by cutting labour standards if Europe adopted a single currency so exchange rates could not adjust.
The Government has often argued that Britain is an attractive destination for foreign direct investment because labour costs, which include items such as employers' National Insurance contributions as well as wages, are relatively low. But the study found that Britain's ability to attract foreign investment was poor for a country with low labour costs.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments