How would flexibility in labour laws help companies?
Flexibility in labour laws helps companies in the following ways:
Firstly, it allows companies to reduce the cost of labour. Instead of hiring workers on a regular basis, companies can hire workers 'flexibly' for short periods when there is intense pressure of work. This means they do not have to pay workers for the whole year.
Secondly, flexibility in labour laws helps attract foreign investment. Companies can ignore many rules that aim to protect workers' rights, which allows them to cut costs and compete better in the market.
Explanation
The textbook clearly states that flexibility in labour laws helps companies reduce labour costs by allowing them to hire workers temporarily rather than permanently. It also mentions that this flexibility is intended to attract foreign investment. The context explains that companies hire workers only for short periods during peak work pressure, avoiding year-round payment obligations.