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Are Sweatshops Good or Bad?

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Introduction
Working conditions vary all over the world. Some countries have strict rules on the conditions that people can work in and other countries have limited to no rules on the working conditions of people. The difference in working conditions has caused people to form groups to make standards for every country. These groups are fighting against sweatshops and fighting for labor right on behaves of the poor. A couple of the larger groups are, The Institute for Global Labour and Human Rights, The International Labor Rights Forum formally non-as the National Labor Committee. While there are people fighting against sweatshops, there are also people fighting for sweatshops and educating people on the impact that they have in the communities and in the countries. So what is a sweatshop? According to Global Exchange (2015) sweatshops can defined in many different ways: “The US Department of Labor, a sweatshop is any factory that violates more than one of the fundamental US labor laws, which include paying a minimum wage and keeping a time card, paying overtime, and paying on time. The Union of Needle trades Industrial and Textile Employees (UNITE), the US garment workers union, says any factory that does not respect workers’ right to organize an independent union is a sweatshop. Global Exchange and other corporate accountability groups in the anti-sweatshop movement would add to this definition any factory that does not pay its workers a living wage—that is, a wage that can support the basic needs of a small family.”
What countries and companies are being affected by these anti-sweatshop groups and what is considered a “living wage”? A few of the countries that are affected are: Thailand, the Philippines, Cambodia, China, Ski Lanka, Bangladesh, Haiti, Honduras, and this is just a few. Each of these countries have there own major issues for instance according to Wong and Schorr (2013) Minimum wage for Thailand, the Philippines, and China a lot lower than the United States. “The federal minimum wage per hour in the United States is currently at 7.25 dollars, while it is 1.48 dollars in Thailand, 69 cents in the Philippines, and 67 cents in China.” Also Wong and Schorr (2013) goes on to write “minimum wage regulations are applicable in Cambodia only to the garment and shoe-sewing sector, and in Sri Lanka only to over 35 industrial trades.” Even though these laws are in place there is lack of effectiveness in enforcing these laws. Some companies that use sweatshop are (ITGLWF 2011):

Nike Adidas
Reebok GAP
Liz Claiborne Wal-mart
Ralph Lauren North Face
JC Penny Macy
Express Adidas
Forever 21 Levi’s
Old Navy NEXT

The Fight Against Sweatshop Many of the anti-sweatshop groups focus on the point about minimum wage or a living wage that needs to be put in place so big corporation can not exploit people from other countries. Another issue with sweatshops, that these groups are fighting against is the hours that the corporations make the people work and the condition that they are working in, weather it a building that made poorly to fire hazard issues or working long hours while pregnant. Also each organization has its own idea for how the rules should be set so the companies can’t take advantage of people. “Charles Kernaghan testified in congress on a legislation saying:
Once passed, this legislation will reward decent U.S. companies, which are striving to adhere to the law. Worker rights standards in China, Bangladesh and other countries across the world will be raised, improving conditions for tens of millions of working people. Your legislation will for the first time also create a level playing field for American workers to compete fairly in the global economy.”
When you think about raising standards for the people in the sweatshops like giving them a higher pay or making a standard for hours worked you are also raising the price of the goods that are being produced to a price that people are not willing to pay. When you raise the price of the goods it will cause people to stop buying the products and then the companies will close the sweatshops. This will cause people who worked in the shops to lose their jobs and have to go back to doing much worse alternatives. These groups are trying to do something that is helpful for the people in the communities, but is it helping or is it hurting?

“Sweat is Good”
While there are people who are fighting for better wages and the end of sweatshops they forget the good that sweatshops bring to the poorer countries. In a news story by John Stossel (2004) the economist that he interviewed said “He did not understand the expression sweatshop. Sweat is good, and it is what most people in the developing world do.” Working in the sweatshops is a better paying option than doing the normally work that these countries have to offer. During the news story John Stossel (2004) goes on to say, “In poor countries the Nike sweatshops pay twice what local factories pay and pay triple what most people make doing much harder and more dangerous work in the field.” An article published by Benjamin Powell and David Skarbek (2004) shows a graph of the average appeal industry wage as a percentage of the average national wage.

As you can see from the chart eight out the ten countries that where used in the article paid an above average rate for work in the sweatshops in a forty-hour week. Also, because most sweatshop workers normally work longer hours, when you look at the people who are working seventy-hour workweeks, you see that they are making more than double the average pay. Also doing this news story he goes on to say that “most sweatshops are allowed people in now thriving places like South Korea, Taiwan, and Hong Kong to pull them selves out of poverty. People started in the sweatshops and moved on to better jobs.” By having these sweatshops it is allowing the people in the poor countries to have the opportunities to learn skills that they normally would not have the opportunities to learn and then one day go off and start there own business or go and work for a better company. Also, the anti-sweatshops are fighting for better working conditions; these better conditions in the eyes of the companies are part of there compensation. Powell (2008) says, “Compensation can be paid in wages or in benefits, which may include health, safety, comfort, longer breaks, and fewer working hours.” Since these other forms of compensation do not directly increase productivity they do will not increase profit and these other forms of compensation could be just like wages.

Conclusion Sweatshops are a better alternative for workers in poorer countries and will eventually raise the standard of living in these countries. The sweatshops bring new jobs and new technology to the countries. With the new jobs comes the opportunities for people to learn new skills that would not have learned otherwise. Also the more sweatshops that open the “more alternatives are available to workers raising the amount a firm must bid to hire them.”(Powell 2008) If the process of sweatshops is not being affect by these anti-sweatshop groups, the development of the poor countries can happen pretty quickly and sweatshop pay will increase rapidly and working conditions will improve tremendously.

References
1. Sweatfree FAQs | Global Exchange. (n.d.). Retrieved September 29, 2015, from http://www.globalexchange.org/fairtrade/sweatfree/faq
2. Wong, A., & Schorr, B. (2013, May 1). Two Faces of Economic Development: The Ethical Controversy Surrounding U.S.-Related Sweatshops in Developing Asian Countries. Retrieved September 29, 2015, from http://www.globalethicsnetwork.org/profiles/blogs/two-faces-of-economic-development-the-ethical-controversy
3. An Overview of Working Conditions in Sportswear Factories in Indonesia, Sri Lanka & the Philippines. (2001, April 11). Retrieved September 29, 2015.
4. ABC News - Give Me a Break [Radio broadcast]. (2004, January 1). John Stossel.
5. Benjamin Powell. "In Defense of "Sweatshops"." June 2, 2008. Library of Economics and Liberty. Retrieved September 29, 2015 from: http://www.econlib.org/library/Columns/y2008/Powellsweatshops.html
6. Powell, B., & Sharbek, D. (2004, September 27). Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat? Retrieved September 29, 2015, from https://www.independent.org/pdf/working_papers/53_sweatshop.pdf

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