http://www.bigleaguebaseballs.com/main/baseballs-how-its-made/

• In 1969, Rawlings moved its baseball-manufacturing plant from Puerto Rico to Haiti to take advantage of lower labor costs - workers earned a whopping $0.09 per ball.

• After the fall of Jean-Claude Duvalier’s dictatorship in 1986, Rawlings made the decision to exit the country, and it opened a plant in Turrialba, Costa Rica the following year.

Better educated, Disciplined dedicated & motivated Average annual salary $4,200Unemployment rate 6.7%Data for the year 2004

The Rawlings plant in Turrialba pays no:no corporate, province, city, or sales taxes, and is exempt from all import and export taxes.

CLAIM: In 2004 New Your Times, accused Rawlings plant in Costa Rica: • Workers are underpaid and work in unhealthy

environment• 90% of employees experienced pain from the work

from minor cuts and disabling injuries. • Mirabel Alezondo, 7 years: was diagnosed Carpal tunnel syndrome – due

to repetitive nature of the work and had to stop working.

The Costa Rican Investment and Trade Development Board boasts of a “highly educated, versatile, and productive work force at only $1.40 per hour fully loaded.”

This must be at least partially why companies like Motorola (MOT), Acer America, Panasonic (PC), Hitachi (HIT), Siemens (SI), Merck (MRK), Pfizer (PFE), Hanes (HBI), and Intel (INTC) choose Costa Rica as a manufacturing hub.

Does Rawlings exploit its Costa Rican employees?

Each worker sews 3826 balls/year

Annual poduction: 2.2 million baseballs -> 1.8 going to Major League Baseball.

Plant employs 575 workers

There are 108 double stitches on a baseball (which some people call 216 stitches). The first and last stitches are completely hidden. They are sewn by hand, using 88 inches of waxed red thread.

Does Rawlings exploit its Costa Rican employees?

$1.21/h + 67cents an hour in benefits = 30 cents/ball, year 2004

14 % above the Costa Rican min. wage, year 2004

11 holidays + 2weeks vacation + Christmas bonus equal to one month’s pay, retirement and medical plan + 4 month maternity leave

Alan Casante, 8 years: “we can live on that, we would never make that working in the fields”

Ken West, plant manager: “the best thing is the pay, we are good place to work”

What laws GOV - employer/employee relations?

• Costa Rica’s Labor Code, Law No. 2 of August 26, 1943, as amended, is the primary legal source and reference for employment and labor issues.

• Anti-discrimination and Harassment; Child and Youth Labor; Statutory Cash Bonus;

• Workplace Safety; Social Security and Insurance; Taxes; Pensions; Immigration; Association and Union; Confidentiality/Non-Disclosure of Information.

Safety Standards• 10 < workers required to establish a Commission of

Occupational Health and Safety (investigate the causes for occupational risks and hazards).

• < 50 employees, required to form a Department of Occupational Health and Safety (achieve a safe and healthy environment, in order to prevent labor accidents and diseases).

• Labor Code - system of insurance (worker’s compensation)• Employers must comply with legal provisions regarding the

training of employees in occupational health and safety matters.

• Provide personal protection equipment and clothing for all employees.

Shifts

• Day Shift (5 a.m.-7 p.m.): 48 h/w, 8 h/d, 10 h/d if work is not dangerous or unhealthy and does not exceed 48 h/w

• Night Shift (7 p.m.-5 a.m.): 36 h/w, 6 h/sh. • Split Shift (includes day and night shifts): > 3.5 h after 7 p.m.,

shift - regarded as night shift: 42 h/w, 7 h/d, 8 h/sh if work is not dangerous or unhealthy and does not exceed 48 hours per week.

Source: Guide to Doing Business in Costa Rica, December 2004

The National Wage Council stipulates the basic minimum wage twice a year, in November or December (effective on January 1) and in June (effective on July 1).

International Labour Organization (ILO) Elimination of Child Labour, known as IPEC,UN workers for Fair Labour

So what do you think now?