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The purpose of this paper is to provide managers in multinational construction firms with a comparison between American and Honduran safety approaches, specifically, differences between the Honduran Labor Code and the U.S. Occupational Safety and Health Act. This research involved an extensive review of the safety laws in both countries and interviews with managers in the Honduran construction industry. Several differences in the safety approaches were identified. It was discovered that the Honduran Labor Code does not protect a large percentage of the construction workforce because most workers are considered temporary. Benefit compensation is low for permanently impaired workers who are covered under the workers' compensation program. Also, worker insurance compensation costs are evenly distributed among different industries; this means that safer industries pay for accidents of high‐risk industries, and safer employers are penalized by having to pay for accidents caused by careless employers. Recommendations are provided to managers in multinational construction companies who are considering project work in Honduras and to the Honduran government for improving the labor regulations pertaining to safety. The findings of the present study may be applicable to other developing countries with similar laws related to worker safety.
Suazo et al. (1993) studied this question.