“Low labour cost, along with flexibility in labour use, has become a key source of competitive advantage for firms. As external competition intensifies, the domestic industry has come under great pressure to restructure itself, to become more competitive and to adopt flexible policies with regard to production and labour. With a view to increasing global competitiveness, investors are moving more towards countries that either have low labour costs, or are shifting to informal employment arrangements. These changes create an entirely different political-economic environment for workers around the world. Greater international mobility of capital relative to labour puts workers from a given location at an immediate disadvantage, both in terms of bargaining power with the owners of capital (whose threat to move gains greater credibility) and with respect to the State<!--(Milberg 2004)-->. Thus the removal of domestic entry barriers and movement of capital to areas of cheap labour have caused intensification of domestic competition in many developing countries— especially those with surplus labour supply and those where labour is a major factor of production. This has been accentuated by potential investors citing the lack of flexibility in hiring and laying off workers as a concern, while targeting a developing country in which to invest.”