The following effects on the jobs of the workers are observed
(i) There is no permanent employment, but workers are employed only when needed, i.e. they are ‘flexible workers’. In the slack season, they are out of work with no compensation.
(ii) Due to increased competition between companies, the MNC’s main objective is to lower costs. Here, the axe falls on the ‘labour costs’in which, besides temporary employment, the workers may be given lower wages or they may have to work on per day basis.
(iii) Workers may have to work longer hours without any overtime payment at peak season time and be laid off from work without any compensation during the slack season.