sweatshops david lawson and david buhr fall 2006

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Sweatshops Sweatshops David Lawson and David David Lawson and David Buhr Buhr Fall 2006 Fall 2006

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Page 1: Sweatshops David Lawson and David Buhr Fall 2006

SweatshopsSweatshops

David Lawson and David BuhrDavid Lawson and David Buhr

Fall 2006Fall 2006

Page 2: Sweatshops David Lawson and David Buhr Fall 2006

Who’s wearing NIKES?Who’s wearing NIKES?

Please check your shoes to see if Please check your shoes to see if they were manufactured in they were manufactured in Vietnam, China, or IndonesiaVietnam, China, or Indonesia

If they were, they were produced If they were, they were produced in a sweatshop! in a sweatshop!

Page 3: Sweatshops David Lawson and David Buhr Fall 2006

SweatshopsSweatshops

Definition:Definition: A shop employing workers at low wages, for A shop employing workers at low wages, for

long hours, and under poor conditions.long hours, and under poor conditions.

Factory where workers do piecework for poor Factory where workers do piecework for poor pay and are prevented from forming unions; pay and are prevented from forming unions; common in the clothing industry  common in the clothing industry 

Page 4: Sweatshops David Lawson and David Buhr Fall 2006

OriginsOrigins

Began between 1830 and 1850Began between 1830 and 1850– Caused by industrial revolutionCaused by industrial revolution– Began in the Garment IndustryBegan in the Garment Industry– London, New York CityLondon, New York City

Sweating (1840’s)Sweating (1840’s)– Long HoursLong Hours– Low WagesLow Wages– Unsafe ConditionsUnsafe Conditions

Page 5: Sweatshops David Lawson and David Buhr Fall 2006

U.S. HistoryU.S. History

Began in the U.S. from Civil War need for UniformsBegan in the U.S. from Civil War need for Uniforms Between 1850 and 1900, sweatshops attracted the Between 1850 and 1900, sweatshops attracted the

rural poor to rapidly-growing cities rural poor to rapidly-growing cities In 1900, the In 1900, the

International Ladies' Garment Workers' UnionInternational Ladies' Garment Workers' Union was was founded in an effort to improve the condition of these founded in an effort to improve the condition of these workers. workers. – First real union for garment workersFirst real union for garment workers– Founded in New York CityFounded in New York City– ““Uprising of 20,000 in 1909”Uprising of 20,000 in 1909”– The ILGWU accepted an arbitrated settlement in The ILGWU accepted an arbitrated settlement in

February 1910 that improved workers' wages, February 1910 that improved workers' wages, conditions, and hours, but did not provide union conditions, and hours, but did not provide union recognition recognition

MuckrakersMuckrakers

Page 6: Sweatshops David Lawson and David Buhr Fall 2006

U.S. HistoryU.S. History

In 1910, the ILGWU led an even larger strike, later named In 1910, the ILGWU led an even larger strike, later named "The Great Revolt", of 60,000 cloak makers. "The Great Revolt", of 60,000 cloak makers. – Lasted MonthsLasted Months– It led to the Agreement known as the "Protocol of Peace".

In it, the ILGWU won union recognition and higher wages, as well as a rudimentary health benefits program.

Triangle Shirtwaist Factory Fire - 1911Triangle Shirtwaist Factory Fire - 1911– 146 of the 500 employees had died 146 of the 500 employees had died

While trade unions, minimum wage laws, fire safety codes, and labor laws have made sweatshops (in the original sense) rarer in the developed world, they did not eliminate them.

1994 Report

Page 7: Sweatshops David Lawson and David Buhr Fall 2006
Page 8: Sweatshops David Lawson and David Buhr Fall 2006

““Benefits” of Benefits” of SweatshopsSweatshops Comparative AdvantageComparative Advantage

– ““If sweatshop jobs did not improve their workers' If sweatshop jobs did not improve their workers' standard of livingstandard of living, those workers would not have , those workers would not have taken the jobs” – Free Market Advocatestaken the jobs” – Free Market Advocates

1997 1997 UNICEFUNICEF study study – 5,000 to 7,000 Nepalese children turned to 5,000 to 7,000 Nepalese children turned to

prostitution after the US banned that country's prostitution after the US banned that country's carpet exports in the 1990scarpet exports in the 1990s

Page 9: Sweatshops David Lawson and David Buhr Fall 2006

““Harm” of SweatshopsHarm” of Sweatshops

Neoliberal GlobalizationNeoliberal Globalization

Race to the bottomRace to the bottom

Workers Rights / ConditionsWorkers Rights / Conditions

Page 10: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and Wal-Sweatshops and Wal-MartMart

Page 11: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and Wal-Sweatshops and Wal-MartMart Wal-Mart productsWal-Mart products

– Produced in 48 different countriesProduced in 48 different countries– Products mainly from Asian and Products mainly from Asian and

Central American factoriesCentral American factories– Produced using sweatshop laborProduced using sweatshop labor

Page 12: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and Wal-Sweatshops and Wal-MartMart Wal-Mart as an importerWal-Mart as an importer

– 10% of all Chinese imports are imported by 10% of all Chinese imports are imported by Wal-Mart Wal-Mart

– Own global procurement division Own global procurement division

The Wal-Mart SqueezeThe Wal-Mart Squeeze – Endless quest to squeeze countries for lower Endless quest to squeeze countries for lower

wages and cheaper goodswages and cheaper goods– Lowering working standards where ever Lowering working standards where ever

they gothey go

Page 13: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and Wal-Sweatshops and Wal-MartMart Textiles and Wal-MartTextiles and Wal-Mart

– Produced by young women 17 to 25 Produced by young women 17 to 25 years old years old

– Forced to work seven days a week Forced to work seven days a week – 12 to 28 cents an hour 12 to 28 cents an hour – No benefits No benefits – Housed in crowded and dirty Housed in crowded and dirty

dormitoriesdormitories– 24-hour-a-day surveillance 24-hour-a-day surveillance

Page 14: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and Wal-Sweatshops and Wal-MartMart ““Toys of Misery” and Wal-MartToys of Misery” and Wal-Mart

– Seventy-one percent of the toys sold in the Seventy-one percent of the toys sold in the U.S. come from China U.S. come from China

– 13- to 16-hour days molding, assembling, 13- to 16-hour days molding, assembling, and spray-painting toys and spray-painting toys

– 20-hour shifts in peak season (Christmas)20-hour shifts in peak season (Christmas)– Seven days a weekSeven days a week– Paid as low as 13 cents an hour Paid as low as 13 cents an hour – Live in Shacks or DormsLive in Shacks or Dorms– No medical care or safety equipmentNo medical care or safety equipment– Poor ConditionsPoor Conditions

Page 15: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and Wal-Sweatshops and Wal-MartMart Not just ChinaNot just China

– Bangladesh Bangladesh – El SalvadorEl Salvador

Page 16: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and Wal-Sweatshops and Wal-MartMart Some of the common abuses in the Some of the common abuses in the

sweatshopssweatshops– Forced overtime Forced overtime – Locked bathrooms Locked bathrooms – Starvation wages Starvation wages – Pregnancy tests Pregnancy tests – Denial of access to health care Denial of access to health care – Workers fired and blacklisted Workers fired and blacklisted – Occasional beatings Occasional beatings – Withheld wages Withheld wages

Page 17: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and Wal-Sweatshops and Wal-MartMart Not just over seas Not just over seas

– US labor law violationsUS labor law violations Violating child labor laws Violating child labor laws Employees forced to work off the clock Employees forced to work off the clock Locking employees into stores overnight Locking employees into stores overnight Undocumented workers Undocumented workers

Page 18: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and NikeSweatshops and Nike

Page 19: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and NikeSweatshops and Nike

Indonesia, China, and Vietnam produce Nike Indonesia, China, and Vietnam produce Nike productsproducts

Why these 3 countries?Why these 3 countries?– Labor laws are poorly enforced Labor laws are poorly enforced – Cheap labor is abundant Cheap labor is abundant – Local laws prohibit workers from forming Local laws prohibit workers from forming

independent trade unionsindependent trade unions

Nike’s ExcuseNike’s Excuse– Don’t own factoriesDon’t own factories– They only market shoesThey only market shoes

Page 20: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and NikeSweatshops and Nike

Vietnam and NikeVietnam and Nike– There are about 35,000 workers at five Vietnamese There are about 35,000 workers at five Vietnamese

plants plants – More than 90 percent of them are young women More than 90 percent of them are young women – 12-hour days making Nike shoes 12-hour days making Nike shoes – Produce shoes in an unhealthy environment full of toxic Produce shoes in an unhealthy environment full of toxic

chemicals chemicals – Recipients of beatings and withheld wagesRecipients of beatings and withheld wages– Employees are making 20 cents an hour Employees are making 20 cents an hour – Earn $2.40 a day - only slightly more than the $2 or so Earn $2.40 a day - only slightly more than the $2 or so

it costs to buy three healthy meals a dayit costs to buy three healthy meals a day– Not allowed to use the bathroom more than once in an Not allowed to use the bathroom more than once in an

8-hour shift 8-hour shift – Allowed to drink water only twice per shift Allowed to drink water only twice per shift

Page 21: Sweatshops David Lawson and David Buhr Fall 2006

Sweatshops and NikeSweatshops and Nike

Fun FactsFun Facts– In many cases, employees are actually In many cases, employees are actually

spending more just to live and work at the spending more just to live and work at the factories than they actually make.factories than they actually make.

– Michael Jordan was given a shoe contract for Michael Jordan was given a shoe contract for $20 million dollars in the mid 1990’s. At the $20 million dollars in the mid 1990’s. At the same time Nike and the factories paid the same time Nike and the factories paid the entire 35000 contracted Vietnamese entire 35000 contracted Vietnamese employees only 30.5 million dollars for their employees only 30.5 million dollars for their work for the entire year.work for the entire year.

– Total labor costs for the shoes amount to less Total labor costs for the shoes amount to less than $2 a pair; the shoes retail for up to $180 than $2 a pair; the shoes retail for up to $180 in the United States.in the United States.

Page 22: Sweatshops David Lawson and David Buhr Fall 2006

Current EventsCurrent Events as of November as of November 20062006

Any changes in the last 10 years?Any changes in the last 10 years?– Not manyNot many

Codes of conduct and on-site monitoringCodes of conduct and on-site monitoring New laws New laws

– Little changeLittle change– No enforcementNo enforcement– CorruptionCorruption

PayoffsPayoffs Double BooksDouble Books Hidden ProductionHidden Production Scripted responsesScripted responses

Page 23: Sweatshops David Lawson and David Buhr Fall 2006

Companies Supporting Companies Supporting Sweatshop FactoriesSweatshop Factories

GAPGAP OLD NAVYOLD NAVY Banana RepublicBanana Republic ReebokReebok AdidasAdidas BridgestoneBridgestone FirestoneFirestone UniroyalUniroyal StarbucksStarbucks SearsSears

Mattel Mattel DellDell Hewlett PackardHewlett Packard Motorola Motorola G.E.G.E. Walt DisneyWalt Disney TargetTarget Home DepotHome Depot J.C. PennyJ.C. Penny + others+ others

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Sources: Sources: Business WeekBusiness Weekhttp://www.businessweek.com/magazine/content/06_48/b4011001.htmhttp://www.businessweek.com/magazine/content/06_48/b4011001.htm

Business Research YearbookBusiness Research Yearbookhttp://cbae.nmsu.edu/mgt/handout/boje/bnike/index.htmlhttp://cbae.nmsu.edu/mgt/handout/boje/bnike/index.html

MCSpotlightMCSpotlighthttp://www.mcspotlight.org/beyond/companies/antiwalmart.htmlhttp://www.mcspotlight.org/beyond/companies/antiwalmart.html

Labor RightsLabor Rights http://www.laborrights.org/projects/corporate/walmart/index.htmlhttp://www.laborrights.org/projects/corporate/walmart/index.html

United Food and Commercial WorkersUnited Food and Commercial Workershttp://www.ufcw.org/press_room/fact_sheets_and_backgrounder/http://www.ufcw.org/press_room/fact_sheets_and_backgrounder/walmart/sweat_shops.cfmwalmart/sweat_shops.cfm