Document Abstract
Published:
2007
Exploring the South African multinational corporations in Africa
Are South African multinational hotels following labour regulations?
This paper presents a number of case studies exploring working and employment conditions in a selection of South African Multinational Corporations (MNC’s) in sub-Saharan Africa comparing and contrasting their behaviour.
The paper argues that in most of the countries studied, the contribution of the hospitality sector to job creation and the Gross Domestic Product of the country are significant. However, since most companies continue to shift the burden of paying benefits by relying on the casual labour, temporary workers and brokers, this trend continues to perpetuate poverty. The behaviour of the MNC’a differs from country to country. There are dominant features which characterise the culture of the MNCs but what is common in most of the Southern African region is the relegation of the local people to junior positions with expatriates occupying managerial positions and huge wage disparities. In addition, unionised employees experience discrimination and are not considered for promotion, and in most cases are vulnerable to retrenchments and dismissals. Some multinational companies are more transparent than others. In most of the cases, few multinational corporations make their annual reports available. These financial reports cover mostly the main companies in the country of origin as opposed to the MNCs operating in other countries of the region.
Some key issues that are highlighted under each case study are:
Holiday inn- South Africa
The paper argues that in most of the countries studied, the contribution of the hospitality sector to job creation and the Gross Domestic Product of the country are significant. However, since most companies continue to shift the burden of paying benefits by relying on the casual labour, temporary workers and brokers, this trend continues to perpetuate poverty. The behaviour of the MNC’a differs from country to country. There are dominant features which characterise the culture of the MNCs but what is common in most of the Southern African region is the relegation of the local people to junior positions with expatriates occupying managerial positions and huge wage disparities. In addition, unionised employees experience discrimination and are not considered for promotion, and in most cases are vulnerable to retrenchments and dismissals. Some multinational companies are more transparent than others. In most of the cases, few multinational corporations make their annual reports available. These financial reports cover mostly the main companies in the country of origin as opposed to the MNCs operating in other countries of the region.
Some key issues that are highlighted under each case study are:
Holiday inn- South Africa
- broadly, the company complies with national legislations and other regulations. The company affords its permanent staff members with the minimum benefits
- in realising its intention to be a good corporate citizen, the company must engage more transparently with its workers and their representatives. It is fundamental that shop stewards and management meet regularly, hence the legislative requirement for workplace forums
- has a longstanding relationship with the trade union representing the majority of its workers and most conflicts were settled amicably through negotiations
- the company makes significant profits in Namibia and ploughs a portion of it back through study loans, soups for pensioners and donations to schools
- it is clear that pay levels and working conditions at Cresta Royale (Accra) are generally within the norms in the hospitality industry in Ghana. However, like many other companies in Ghana, there appear to be a lackadaisical attitude towards occupational health and safety
- In terms of social responsibility, the responses from the interviews carried out showed that the hotels have invested in a number of corporate responsibility initiatives and programmes
- Holiday Inn hotels needs to be commended for observing conditions stipulated in the Labour Act. However, the major challenge remains in uplifting the salaries of the workers, who through the statistics given illustrates that the majority of them are living below the poverty datum.
