Study Abroad in Panama July 2011 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Study Abroad in Panama Coordinated by Dr. Tulio Sulbaran Tel: Ce THE UNIVERSITY OF SOUTHERN MISSISSIPPI Jul 2012 A CASE STUDY OF EMPLOYMENT LAW FOR PROCTER & GAMBLE – UNITED STATES VS PANAMA Presented by: Jeana O. Rich Tel: Center for Logistics, Trade and Transportation and College of Business

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Video Preamble VIDEO NOT AVAILABLE Presentation and interview with P&G was canceled.

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Outline 1- Introduction 2- Information/Data Collection Approach 3- Case Study 4- Results and Results Impact Similarities Differences 5- Summary

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Introduction Employment law consists of legal rights of & restrictions on employees & employers Applies to broad area of topics, including hiring, wages, work hours, time off, child labor, and safety Enacted to protect workers from abusive employment practices Applies to former, current & potential employees

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Introduction Panama serves as international commercial & financial center GDP for $50.25 billion Per Capita GDP - $13,600 Labor force of 1.57 million Shortage of skilled labor Ranked 61 on World Bank’s 2012 “Ease of Doing Business Index” Improving infrastructure

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Introduction This case study compares certain aspects of the employment laws in Panama to those in the US. Specifically, the following items were compared: Minimum wage requirements Overtime pay requirements Working hours Mandatory paid time off

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Information/ Data Collection Approach The first part of the data collection approach consisted of extensive internet research. Two main search engines were used (Google & Bing). Government databases were also utilized.

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Information/ Data Collection Approach Data collected through the internet research consisted of information on the following items: Business environment in Panama & US P&G’s operations in Panama & US Panama’s Labor Code of 1971 (Code) US’s Fair Labor Standards Act (FLSA)

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Information/ Data Collection Approach The second part of the data collection approach would have been an on-site visit and personal interview with a representative from P&G in Panama. Unfortunately, these meetings were canceled by P&G.

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Case Study P&G is a multinational company that markets over 250 consumer products. In 2007, P&G relocated its Latin American Regional HQ to Panama. It is the largest consumer goods company in Latin America, with regional sales of $6 billion and employing more than 14,000 people across 14 countries. The region includes 19 manufacturing sites, 12 distribution centers, and a service center.

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Case Study P&G was founded in the US in Its North American Regional HQ and corporate offices are located in Cincinnati, OH. Forty-two percent of total company sales in 2011 were generated in the US. P&G employs 138,000 people worldwide, with approximately 35,000 employees in the US.

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Results and Results Impact This case study compared the employment laws applicable to P&G in Panama to those of the United States. Because employment law is a broad area, the following specific items were compared: Minimum Wage Requirements Overtime Pay Requirements Working Hours Mandatory Paid Time Off

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Results and Results Impact Table of Similarities

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Results and Results Impact Table of Differences

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Results and Results Impact An analysis of the similarities and differences quickly highlights that the employment laws in the two countries are significantly different. As Panama continues to make itself an attractive destination for multinational businesses, US companies need to be aware of additional labor costs that will be incurred due to the requirements of Panama’s labor code. Additionally, noncompliance can lead to fines.

Study Abroad in Panama July 2012 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business Summary P&G has locations in both the US and Panama Required to comply with different employment laws Only two similarities exist Panama imposes maximum working hours and mandatory paid time off Panama’s additional requirements can increase labor related costs Noncompliance can lead to penalties

Study Abroad in Panama July 2011 THE UNIVERSITY OF SOUTHERN MISSISSIPPI Center for Logistics, Trade and Transportation And College of Business THE UNIVERSITY OF SOUTHERN MISSISSIPPI founded in 1910 Thanks! Center for Logistics, Trade and Transportation and College of Business