International enterprises and trade unions

Journal of Business Ethics 27 (1-2):117 - 123 (2000)
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Abstract

A shipping war has broken out between two friendly neighbouring countries: Estonia (a rather poor land; liberated of Soviet occupation in 1991), and Finland (a wealthy one; independent since 1918). Led by their trade union the Finnish dockers boycott Estonian ships demanding for Estonian sailors the salary in the same range as that is in wealthy West-European countries. Estonian Sailors'' Union finds that such a war is not for their better work-conditions but against their working possibilities: the cheap labour force is the only possibility for a poor country to entice foreign investments in it.No matter how the shipping war will be solved – the problem will remain. This is the problem of two opposites – cheap labour force of poor countries and expensive one of wealthy countries –, and international enterprises standing between them. Could such an enterprise survive without using the cheap labour force? And if it could, how could the poor countries survive then? Could there be found a clear unambiguous ethical solution? What ought to be the role of trade unions in such international business conflicts?

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