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Bringing the Law to the Factory

Regulators can improve conditions by establishing fact-finding alliances with advocacy groups

MIT News
Wed, 08/28/2013 - 09:56
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Although factory labor rules are notoriously hard to enforce, a new study shows how some inspectors are able to uphold workplace standards.

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The recent factory collapse in Bangladesh has renewed attention to the global issue of workplace standards. In many countries, similar problems have arisen from a lack of enforcement for existing laws pertaining to safety, wages, and overtime, or an absence of labor contracts for workers.

These problems occur for a variety of reasons, including a lack of funding for regulators, difficulties acquiring solid information about potential problems in the first place, and corruption in the enforcement process.

“We have a huge problem with enforcement,” says Matthew Amengual, an assistant professor of management at the MIT Sloan School of Management, who has studied the issue in multiple countries.

 …

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