SweatshopsSweatshops
David Lawson and David BuhrDavid Lawson and David Buhr
Fall 2006Fall 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!
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
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
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
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
““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
““Harm” of SweatshopsHarm” of Sweatshops
Neoliberal GlobalizationNeoliberal Globalization
Race to the bottomRace to the bottom
Workers Rights / ConditionsWorkers Rights / Conditions
Sweatshops and Wal-Sweatshops and Wal-MartMart
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
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
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
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
Sweatshops and Wal-Sweatshops and Wal-MartMart Not just ChinaNot just China
– Bangladesh Bangladesh – El SalvadorEl Salvador
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
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
Sweatshops and NikeSweatshops and Nike
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
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
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.
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
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
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
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