How far is too far to when cutting operation costs? Sweat shops How far is too far to when cutting operation costs?

What is a Sweatshop? A sweatshop is a workplace where workers are subject to Extreme Exploitation (Child Labor) Low Salary Little or no Benefits Poor Working Conditions Harsh or Arbitrary discipline, such as verbal and physical abuse

How the US Government Defines a Sweatshop The US Department of Labor defines a sweatshop as any factory that violates two or more labor laws The government is working hard on the surface to combat these operations, but sweatshops are big business and lobbyists are winning right now NAFTA and America territories being exempt from labor laws makes it easy for America companies to use sweatshop labor

Child Labor The worst type of sweatshop utilizes child labor 250 million children (5-15 years old) are forced to work under these conditions Many are forced to live in the workspace

Monitoring Issue Many Times the Industry pays the inspectors Salary Visits are often also arranged ahead of time, so the business has notice Two Independent Firms Rugmark Verite Companies Shift operations to more profitable regions

Shifting of Sweatshops During the 1990s many companies shifted operations to Mexico due to NAFTA As cost of labor decreased in many Asian countries, companies began to pull out of Mexico and into the cheaper regions In the early 2000s the US- Jordan Free Trade Agreement, caused many sweatshops to be opened in this new region

What Types of Products are Produced? Shoes (particularly athletic shoes) Cloths Rugs Toys Chocolate Bananas Coffee

Are you Supporting Sweatshops and/or Child Labor? You will be surprised at what companies have looked the other way in the name of profits

Nike With one exception in Canada, none of Nike’s North American stores, which employ over 23,000 people, is unionized. Nike’s garment supplier factories overseas have repeatedly squashed union activity, harassed and intimidated active union leaders, and threatened violence against union organizers. These factories enforce compulsory and unpaid overtime, insufficient wages, illegal discrimination, lack of benefit rights for workers, and obligatory pregnancy tests. Reports of physical, sexual, and verbal abuse are widespread and workers frequently report non-payment of back-wages owed to them. Workers are paid, on average, less than three tenths of one percent of the retail price for every jersey they sew Many products produced in these factories have been found to contain toxic chemicals, such as TBT, which have been linked to birth defects, sterility and respiratory problems

Disney 9 Sweatshops are currently recognized by the Chinese Government Employees of Tianyu Toys (only business is Disney), rioted after not being paid for 45 days in October 2007 and have yet to be paid. Employees of Hong Kong Disneyland rioted in early 2006, complaining of excessive and unpaid overtime as well as pay well under Chinese minimum wage.

Proctor and Gamble (Gillette, Braun) Labor rights organizations have accused Procter & Gamble's Guangzhou factory of forcing "temporary" employees to work 12 hour days The company is also actively lobbying against a new law that would establish minimal labor standards in China

Wal-Mart Due to low wages and negligible benefits, thousands of Wal-Mart employees are dependent on public assistance to meet their basic needs, and American taxpayers eventually subsidize Wal-Mart's low prices. A recent investigation by the AFL-CIO affiliated Solidarity Center found that Wal-Mart is sourcing shrimp from plants in Thailand and Bangladesh where workers as young as 8 years old are subject to sweatshop conditions. Wal-Mart has been repeatedly accused of union busting in the US and Canada, and of using a "Labor Relations Team" that stops Wal-Mart workers from unionizing.

Do your own research GreenAmerica.org is a great place to research the companies you currently use. Get involved and vote against inhumane treatment of workers with the only thing these businesses truly care about….YOUR $$$$! http://www.greenamerica.org/programs/responsibleshopp er/index.cfm

Myths and Common Misperceptions Are you furthering the problem due to a misperception?

Are Sweatshops Necessary? Reporting for Dollars and Sense magazine in 2006, sweatshop expert John Miller explained how paying decent wages to workers at the beginning of the supply chain has little effect on a company’s competiveness. “In Mexico’s apparel industry, economists from the Political Economy Research Institute found that doubling the pay of nonsupervisory workers would add just $1.80 to the cost of a $100 men’s sports jacket” Would having to pay an extra $1.80 for a $100 jacket really decrease sales?

Are sweatshops a necessary first step to economic freedom in developing countries ? Sweatshops trap workers in dead in jobs Low wages prevent any type of savings and eliminate the ability to get out of poverty Often children are forced into the job at a young age and due to poor education are not able to get out

Would monitoring add to the cost of the end product? No for large scale operations For companies like Nike or Wal-Mart, a representative already visits the factory to ensure product quality Going the extra step of making the visit unplanned and checking out factory conditions would not add to the bottom line

Sweatshops do not exist in the USA….. False, a made in the USA tag does not ensure the product was not manufactured in a sweatshop The US Labor Department has uncovered many sweatshops within our borders Note: US territories are exempt for the US labor laws, but are still able to place the “Made in the USA” sticker on products Saipan is an excellent example although the CNMI has worked to improve conditions over the last 10 years

There is nothing I can do to eliminate the use of child labor and sweatshops…. You are the only person that you control and therefore you control if you contribute to the issue or are a part of the solution. Stop sending the message you are okay with abuse as long as your product is cheap If you read this presentation you can no longer use the excuse of ignorance, as I did prior to doing this research. Make a change however small: I am no longer loyal to the Nike brand and will personally reduce there athletic sales by 2 pairs of shoes a year. Not a lot, but I will sleep peacefully tonight with that decision.

References http://www.veganpeace.com/sweatshops/sweatshops_and_ child_labor.htm http://www.greenamerica.org/programs/sweatshops/what toknow.cfm http://www.globalexchange.org/campaigns/sweatshops/sw eatshopsfaq.html http://www.fundamentalfinance.com/blogs/sweatshops- child-labor.php http://www.greenamerica.org/programs/responsibleshopp er/industry/athleticwear.cfm