1. Sweatshops David Lawson and David Buhr Fall 2006

2. Who’s wearing NIKES? Please check your shoes to see if they were manufactured in Vietnam, China, or Indonesia Please check your shoes to see if they were manufactured in Vietnam, China, or Indonesia If they were, they were produced in a sweatshop! If they were, they were produced in a sweatshop!

3. Sweatshops Definition: A shop employing workers at low wages, for long hours, and under poor conditions. A shop employing workers at low wages, for long hours, and under poor conditions. Factory where workers do piecework for poor pay and are prevented from forming unions; common in the clothing industry Factory where workers do piecework for poor pay and are prevented from forming unions; common in the clothing industry

4. Origins Began between 1830 and 1850 Began between 1830 and 1850 –Caused by industrial revolution –Began in the Garment Industry –London, New York City Sweating (1840’s) Sweating (1840’s) –Long Hours –Low Wages –Unsafe Conditions

5. U.S. History Began in the U.S. from Civil War need for Uniforms Began in the U.S. from Civil War need for Uniforms Between 1850 and 1900, sweatshops attracted the rural poor to rapidly-growing cities Between 1850 and 1900, sweatshops attracted the rural poor to rapidly-growing cities In 1900, the International Ladies' Garment Workers' Union was founded in an effort to improve the condition of these workers. In 1900, the International Ladies' Garment Workers' Union was founded in an effort to improve the condition of these workers.International Ladies' Garment Workers' UnionInternational Ladies' Garment Workers' Union –First real union for garment workers –Founded in New York City –“Uprising of 20,000 in 1909” –The ILGWU accepted an arbitrated settlement in February 1910 that improved workers' wages, conditions, and hours, but did not provide union recognition Muckrakers Muckrakers

6. U.S. History In 1910, the ILGWU led an even larger strike, later named "The Great Revolt", of 60,000 cloak makers. In 1910, the ILGWU led an even larger strike, later named "The Great Revolt", of 60,000 cloak makers. –Lasted 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.Protocol of Peace Triangle Shirtwaist Factory Fire - 1911 Triangle Shirtwaist Factory Fire - 1911 –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.minimum wagefire safety developed world 1994 Report

8. “Benefits” of Sweatshops Comparative Advantage Comparative Advantage –“If sweatshop jobs did not improve their workers' standard of living, those workers would not have taken the jobs” – Free Market Advocates standard of livingstandard of living 1997 UNICEF study 1997 UNICEF studyUNICEF –5,000 to 7,000 Nepalese children turned to prostitution after the US banned that country's carpet exports in the 1990s

9. “Harm” of Sweatshops Neoliberal Globalization Neoliberal Globalization Race to the bottom Race to the bottom Workers Rights / Conditions Workers Rights / Conditions

10. Sweatshops and Wal-Mart

11. Wal-Mart products Wal-Mart products –Produced in 48 different countries –Products mainly from Asian and Central American factories –Produced using sweatshop labor

12. Sweatshops and Wal- Mart Wal-Mart as an importer Wal-Mart as an importer –10% of all Chinese imports are imported by Wal- Mart –Own global procurement division The Wal-Mart Squeeze The Wal-Mart Squeeze –Endless quest to squeeze countries for lower wages and cheaper goods –Lowering working standards where ever they go

13. Sweatshops and Wal- Mart Textiles and Wal-Mart Textiles and Wal-Mart –Produced by young women 17 to 25 years old –Forced to work seven days a week –12 to 28 cents an hour –No benefits –Housed in crowded and dirty dormitories – 24-hour-a-day surveillance

14. Sweatshops and Wal- Mart “Toys of Misery” and Wal-Mart “Toys of Misery” and Wal-Mart –Seventy-one percent of the toys sold in the U.S. come from China –13- to 16-hour days molding, assembling, and spray-painting toys –20-hour shifts in peak season (Christmas) –Seven days a week –Paid as low as 13 cents an hour –Live in Shacks or Dorms –No medical care or safety equipment –Poor Conditions

15. Sweatshops and Wal- Mart Not just China Not just China –Bangladesh –El Salvador

16. Sweatshops and Wal- Mart Some of the common abuses in the sweatshops Some of the common abuses in the sweatshops –Forced overtime –Locked bathrooms –Starvation wages –Pregnancy tests –Denial of access to health care –Workers fired and blacklisted –Occasional beatings –Withheld wages

17. Sweatshops and Wal- Mart Not just over seas Not just over seas –US 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

18. Sweatshops and Nike

19. Indonesia, China, and Vietnam produce Nike products Indonesia, China, and Vietnam produce Nike products Why these 3 countries? Why these 3 countries? –Labor laws are poorly enforced –Cheap labor is abundant –Local laws prohibit workers from forming independent trade unions Nike’s Excuse Nike’s Excuse –Don’t own factories –They only market shoes

20. Sweatshops and Nike Vietnam and Nike Vietnam and Nike –There are about 35,000 workers at five Vietnamese plants –More than 90 percent of them are young women –12-hour days making Nike shoes –Produce shoes in an unhealthy environment full of toxic chemicals –Recipients of beatings and withheld wages –Employees are making 20 cents an hour –Earn $2.40 a day - only slightly more than the $2 or so it costs to buy three healthy meals a day –Not allowed to use the bathroom more than once in an 8- hour shift –Allowed to drink water only twice per shift

21. Sweatshops and Nike Fun Facts Fun Facts –In many cases, employees are actually spending more just to live and work at the factories than they actually make. –Michael Jordan was given a shoe contract for $20 million dollars in the mid 1990’s. At the same time Nike and the factories paid the entire 35000 contracted Vietnamese employees only 30.5 million dollars for their work for the entire year. –Total labor costs for the shoes amount to less than $2 a pair; the shoes retail for up to $180 in the United States.

22. Current Events as of November 2006 Any changes in the last 10 years? Any changes in the last 10 years? –Not many Codes of conduct and on-site monitoring Codes of conduct and on-site monitoring New laws New laws –Little change –No enforcement –Corruption Payoffs Payoffs Double Books Double Books Hidden Production Hidden Production Scripted responses Scripted responses

23. Companies Supporting Sweatshop Factories GAP GAP OLD NAVY OLD NAVY Banana Republic Banana Republic Reebok Reebok Adidas Adidas Bridgestone Bridgestone Firestone Firestone Uniroyal Uniroyal Starbucks Starbucks Sears Sears Mattel Mattel Dell Dell Hewlett Packard Hewlett Packard Motorola Motorola G.E. G.E. Walt Disney Walt Disney Target Target Home Depot Home Depot J.C. Penny J.C. Penny + others + others

27. Sources: Business Week http://www.businessweek.com/magazine/content/06_48/b4011001.htm Business Research Yearbook http://cbae.nmsu.edu/mgt/handout/boje/bnike/index.html MCSpotlight http://www.mcspotlight.org/beyond/companies/antiwalmart.html Labor Rights Labor Rights http://www.laborrights.org/projects/corporate/walmart/index.html http://www.laborrights.org/projects/corporate/walmart/index.htmlhttp://www.laborrights.org/projects/corporate/walmart/index.html United Food and Commercial Workers http://www.ufcw.org/press_room/fact_sheets_and_backgrounder/walmart/sw eat_shops.cfm