Wednesday, November 28, 2012

The High Cost of Low Prices: The State of Working Conditions Internationally


This past Saturday, while many of us were enjoying a relaxing break after the insanity of Black Friday shopping, over 112 workers lost their lives in the Tarzeen Fashion factory fire in Dhaka, Bangladesh. On Cyber Monday, another factory fire broke out in the same city (Yardley). The Tarzeen fire is the largest in Bangladeshi history, another statistic in the country’s bleak safety record. Over 300 workers have died in factory accidents in Bangladesh in the last 6 years. The stories of these fires became even more heart wrenching as details were uncovered this week. Some survivors reported being locked in their workstations, others say that they were told to ignore the fire alarms and continue working (Wal-Mart). The New York Times included this description of the scene (Yardley):

“Workers leapt from the upper floors of the factory, trying to land on nearby rooftops and escape the smoke and flames. Others suffocated inside the factory building, as the blaze apparently rendered stairwells impassable.”

            These images are eerily identical to ones from a much less recent tragedy: The Triangle Shirtwaist Factory fire in New York City, 1911. William Shepherd, a witness of the event, published his accounts (Shepherd):

            I learned a new sound--a more horrible sound than description can picture. It was
            the thud of a speeding, living body on a stone sidewalk…The height was eighty
            feet. The first ten thud-deads shocked me. I looked up-saw that there were scores
            of girls at the windows. The flames from the floor below were beating in their
            faces. Somehow I knew that they, too, must come down, and something within
            me-something that I didn't know was there-steeled me.

After reading an account like this from over 100 years ago, one cannot help but ask how horrible violations of both worker and human rights such as these are still happening. It is not that a pro-labour international regime or transnational civil society does not exist. In fact, the Triangle Shirtwaist fire is considered to have been one of the major catalysts for the labor revolution in America and abroad. Even after this most recent disaster, groups and individuals have taken to the street in protest. The international struggle for workers’ rights has followed a cycle similar to that of the global prohibition regimes laid out by Nadelmann (Nadelmann). In this case, the crime would be worker abuse. Clearly in the wake of these recent events, the efforts have not been strong enough.
At the end of the 19th century and the industrial revolution, exploitation of labor was certainly a ubiquitous practice. There were weak unions, no minimum wage or child labor laws, and all employers were able to manipulate the efficiency of their employees to maximize profit. It was events like the Triangle Shirtwaist fire, along with investigative and exposing journalism by reformers like Upton Sinclair that forced working conditions to the front of policy agendas.
As a result, weak attempts at labor unions gained support domestically and internationally. Samuel Gompers’ American Federation of Labour became the model for The International Labour Organization, which was formed in 1919 as part of the League of Nations, and the first organization to advocate for better working conditions across state borders. The norms they established are still valued today, including but not limited to, “Regulation of the hours of work including the establishment of a maximum working day and week, Protection of the worker against sickness, disease and injury arising out of his employment, Protection of children, Provision for old age and injury, Protection of the interests of workers when employed in countries other than their own,” and, “Recognition of the principle of equal remuneration for work of equal value” (Origins). Today the ILO is a branch of the United Nations.
The AFL-CIO, which once only protected workers in America, now represents workers in Colombia, Panama, Vietnam, Malaysia, Georgia, Sri Lanka, and Bangladesh (International Labor Movement). Today, transnational civil society utilizes social media to expose inadequate working conditions in third world countries, and show how major brand names here in the States exploit workers overseas. This is the fourth step of Nadelmann’s model, an established, in fact many established, prohibition regimes have come into existence. Exploitive actions are illegal in many countries and there are a number of standards that factories are supposed to reach in order to continue to operate. In the case of the Bangladeshi fires, 3 people were arrested for locking the doors to stairwells, and the chief executive of the Worldwide Responsible Accredited Production organization, which is supposed to inspect factory safety standards, has come forth to say that the factory was never approved (Yardley).
These examples suggest that the problem lies not in the regimes themselves, which have succeeded in making exploitation criminal and have established a set of rules norms and practices to try to improve working conditions. In this case the problem is that the “regime leakage,” in the area of labor rights does not come from typical criminals. The actors finding their ways around international labor laws are rich and powerful corporations. The director of the Institute for the Global Labour and Human Rights, Charles Kernaghan, points out that, “nothing will change unless clothing companies protect workers as vigorously as they protect their brands,” and that, “The labels are legally protected but there are no similar laws to protect rights of the worker” (Wal-Mart).
Corporations can get away with breaking international labor laws because they have the support of the consumers. This is the layer of the issue that makes international prohibition of worker exploitation almost impossible. The Global Prohibition Regime against labor exploitation has been unable to reach the 5th step of eliminating or greatly reducing illegal acts because as Nadelmann points out, “criminal laws and international prohibition regimes are particularly ineffective in suppressing those activities which require limited and readily available resources, and no particular expertise to commit, those which are easily concealed, those which are unlikely to be reported to the authorities, and those for which the consumer demand is substantial, resilient, and not readily substituted for by alternative activities or products” (Nadelmann). This weekend’s fires occurred in factories that produce for some of the largest brand names with the largest consumer bases in the world, including Disney. While most Americans are against exploitation of workers, but they also enjoy their irreplaceable brand names, and enjoy them even more when their products are affordable. How do you make products affordable? You hire foreign workers, you work them long hours for low wages and spend as little money as possible on the upkeep of factories. And as a result, the market finds itself in the same tragic cycle, benefits to the developed world at the expense of the developing world. While few individuals will actually openly support unsatisfactory working conditions, their purchases act as permission to large companies to continue doing what they’re doing in places like Bangladesh.
In this country, Black Friday seems almost as celebrated as Thanksgiving, and it is certainly more advertised. But, the timing of the deadly fires in Dhaka should remind us all that we are not just American consumers. We are part of a much larger global society. As American consumers eagerly devoured the low prices last Friday, the people who labored over those same goods paid a much much higher price.

Work Cited

"International Labor Movement." AFL-CIO. N.p., n.d. Web. 28 Nov. 2012.

Nadelmann, Ethan. “Global prohibition regimes: the evolution of norms in international society.” International Organization 44. World Peace Foundation, 1990. 21 October 2012.

"Origins and History." Origins and History. N.p., n.d. Web. 28 Nov. 2012.

Shepherd, William. "Eyewitness at the Triangle." Milwaukee Journal [Milwaukee] 27 Mar. 1911: n. pag. Print.

"Wal-Mart, Disney, Sears Used Bangladesh Factory in Fire." USA Today. Gannett, n.d. Web. 28 Nov. 2012.

Yardley, Julfikar Ali Manik And Jim. "Garment Workers Stage Protest in Bangladesh After Deadly Fire." The New York Times. The New York Times, 27 Nov. 2012. Web. 28 Nov. 2012.

4 comments:

  1. Are there any countries without labor protection laws? If there are, then how can the international prohibition regime against labor exploitation be successful? Nadelmann says that an international prohibition regime is when state and non-state actors work together to abolish the regime, therefore if the state does not have laws against labor exploitation, then how can non-state actors successfully get ride of the regime?

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  2. Thanks for the comment Anwen

    As i kept researching the topic, I realized how extremely complicated the issue has become as a result of globalization and for just the reasons you have identified.

    Most states now have some kind of labor laws in place, but this does not necessarily mean that they are strict or enforced or that they benefit the employee. As for non state actors, there are a number of international labor unions and non-profit groups advocating for better working conditions around the globe. As for state actors, the US, UK, Canada have lead the global movement towards better working conditions, yet as I pointed out, American companies are able to get around these laws by paying billion of dollars to offshore labour in places where labor laws are less strict. The standard "international prohibition regime," between state and non-state actors exists, but this is not a standard case. In this case, it is not just the state and non-state actors that need to work towards eliminating corrupt practices. There is a third party involved;the for-profit corporations.

    Bangladesh has some of the worst working conditions yet they do have labor laws in place. The minimum age a child can work in Bangladesh is 12 with a work permit. They must be a minimum of 14 to work in a factory, and their hours may not exceed 5 a day. Furthermore, children can only work between the hours of 7 a.m. and 7 p.m. So basically just because laws are in place in almost every country does not mean that they are not corrupt. Safety standards are also just lower overall in South East Asia, and this makes workers in these areas more vulnerable towards exploitation by foreign employers.

    A solution to the problem that I did not discuss in the blog post is the WTO. The World Trade Organization boasts 157 member states out of the 193 total members of the United Nations. Almost all the countries in the world use the World Trade Organization as a vehicle through which negotiate trade agreements in an international forum and establish trade standards. Many have suggested that the WTO should use its power in the international trade market to push for fair labor practices. This would make it possible to impose trade barriers on countries that have corrupt labor practices. While some argue that this is the UN's responsibility to openly condemn violations of human rights everywhere in the world, others argue that it could actually make conditions worse for workers. Industries and thus workforces would suffer in countries where trade barriers were imposed and there would be no promise that working conditions would improve at all.

    I think that the reason that enough progress has not been made on this issue is because of the number of parties involved, specifically the corporations. We need more corporations to refuse to do business in corrupt factories, but unfortunately, this will not happen if the companies profit decreases as a result.

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