Labour Relations Law in Ethiopia

Labour relation is one of the areas where economic and social dimensions are manifestly visible. Since labour relation is mainly capital and labour interaction, capital is interested on the attainment of economic goals through profit maximization by focusing on economic dimension. Conversely, labour for its part, expects a fair share of the benefit that may be generated by the interaction of capital and labour. This is where the social dimension in the form of better working condition kicks in. The contributions in this volume are informed by this analytical framework. The contributors to this volume have laboured to address the capital and labour equation from different perspectives but for a common goal. Bereket in his piece titled “Foreign Direct Investment vis-à-vis Labour Law in Ethiopia: Is Race to the Bottom an Existing, Impending or Illusory Menace?” analyzed the efforts of the Ethiopian government to attract and retain foreign direct investment within its territory. With a view towards attracting investment, Ethiopian authorities offered fiscal and regulatory incentives. Although regulatory incentives have had the benefit of easing burden in doing business, they had chilling effect in implementing labour rights in Ethiopia.

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