Strategic Outsourcing: Sweatshop And Globalization

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Sweatshop and Globalization According to Lairson and Skidmore, globalization is a process of deepening and tightening of the interdependence among actors in the world economy such that the level and character of participation in international economic relations have increased exchange in significant ways. Globalization touches all aspects and affect anyone in this world. The times and technological developments are main factors that is the cause of the rapid globalization. The effects of globalization were diverse, some are positive and some are negative. After all, it can be said that globalization is unavoidable like it or not. One case related to globalization is this sweatshop. With globalization, the level of competition between companies…show more content…
Definition of outsourcing specifically defined by Maurice F Greaver II, in her book Strategic Outsourcing, A Structured Approach to Outsourcing: Decisions and Initiatives, "Strategic use of outside parties to perform activities, traditionally handled by internal staff and resources." According to that definition, Outsourcing is seen as an act of diverting some of the company 's activities and decision rights to outside providers, where these actions are bound in a contract of cooperation. In Indonesia, outsourcing regulated in Law Number 13 Year 2003 on Manpower (Ketenagakerjaan). Under article 66 of Law No.13 of 2003 outsourcing is allowed only to support activities, and activities that are not directly related to the production process. Namely cleaning service, catering, security / security units, business support services in the mining and oil, as well as the transportation business workers / laborers. But in fact the companies also apply to workers who perform outsourcing core business but did not get the treatment that according to the agreement. So that outsourcing be a bad thing for the workers as companies exploit their related or can be categorized sweatshop. I found someone statement about his experience being outsourced employees (a PC operator at Pertamina) where he…show more content…
In terms of human rights, sweatshops is bad impact and detrimental on the workers of their rights. Economically, they do not get welfare because the benefits or sallary are not obtained in accordance with the level of work that they do. However, the government has set certain laws which regulate this issue in such a way, but the company also has certain conditions that make them are not always in line with the applicable regulations. The government is in a difficult position because on the one hand they want to protect their people but on the other hand the State also requires these companies. In short, the government of the host country cannot as easy as it to intervene every activity of the company. If government intervene, the related companies will choose to locate elsewhere that have human resources that can be paid cheap. Surely it would be detrimental to the host country as the government requires revenue for national development in the form of taxes from these

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