ASSESSMENT OF FOREIGN DIRECT INVESTMENT PRACTICE IN RELATION TO EMPLOYEE LABOUR RIGHT: THE CASE OF HAWASSA INDUSTRIAL PARK

Abstract

xi ABSTRACT This study was conducted with the aim of assessing foreign direct investment (FDI) practices in relation to employee labor rights in the case of Hawassa Industrial Park (HIP). Employing a descriptive research method, a mixed research approach incorporating qualitative and quantitative methodologies was employed, with data gathered through surveys and interviews. 20,364 employees from the target population of the study (392 sample size) were included across eleven companies within the HIP. Purposeful and systematic sampling techniques were used for the representative data collection. The findings of the study revealed concerning Workers at the Hawassa Industrial Park faced significant problems, including low wages, unfavorable working hours, discrimination, and harassment, which led to labor rights violations among employees of the Hawassa Industrial Park. Ineffective enforcement of regulations exacerbated these issues, while weak foreign direct investment practice enabled exploitation by companies. Furthermore, inadequate governmental framework oversight was weak to adequately address labor rights violation problems. The findings of this study concluded that massive labor rights were violated by the practices of FDI companies and the government framework. Finally, it was recommended that FDI companies and the government follow these steps: enhancing the transparency of labor rights policies, reinforcing enforcement mechanisms, encouraging the formation of labor unions, providing proper payment to increase their monthly salaries, and providing comprehensive training programs. By implementing these, promote labor rights and respectful working conditions in the HIP.