New Report Finds Sweatshop Conditions at Wal-Mart Suppliers in Bangladesh
SweatFree Communities, an anti-sweatshop activist group, went undercover in Bangladesh to examine working conditions in Wal-Mart’s supplier factories. The resulting report (PDF) paints a heart-wrenching portrait of the poverty and abuse that make Wal-Mart’s low prices possible.
BusinessWeek’s article on SweatFree’s findings is equally troubling. The piece highlights problems at Wal-Mart that enable sweatshops: preannounced factory inspections mean managers can hide violations, and fewer corporate reports on the state of its supply chain means Wal-Mart executives are turning a blind eye. Wal-Mart also tried to suppress SweatFree’s report, alone a worrysome fact. SweatFree Communities Executive Director Bjorn Claeson is quoted in the article saying, “Wal-Mart has incredible economic muscle in that country. If it takes the leadership position as a retailer and works with other brands, there is no question that it can really have an impact.”
Wal-Mart Supplier Accused of Sweatshop Conditions [BusinessWeek]
The world’s largest retailer, Wal-Mart Stores (WMT), is being accused of buying school uniforms that were made under extreme sweatshop conditions at a factory in Bangladesh.
The JMS Garments Factory in Chittagong, Bangladesh, produces school uniforms that are sold in Wal-Mart stores under the Faded Glory brand name. A report from SweatFree Communities, an anti-sweatshop activist group based in Bangor (Me.), found that workers at the factory work up to 19-hour shifts to finish Wal-Mart’s orders under tight deadlines; are made to stand for hours as punishment for arriving late to work; and are frequently subject to verbal abuse and kicking or beatings. Some workers earn as little as $20 each month, the group says—even lower than the country’s legal minimum wage of $24 per month.
The report is based on interviews with more than 90 workers conducted away from the factory in workers’ homes by a Bangladeshi nongovernmental labor research organization on behalf of SweatFree Communities, a five-year-old nonprofit group funded by activist foundations such as the Solidago Foundation, CarEth Foundation, and Presbyterian Hunger Program. The group works to get commitments from schools, cities, and other employers to buy goods with employee rights in mind.
Wal-Mart Asked Group Not to Publish
In August, Wal-Mart received a draft of the report with information about the abuses. On Sept. 30 the company released a statement to BusinessWeek that said: “Consistent with our concern for the workers and their working conditions, we took immediate action when we received the SweatFree draft report. We visited the factory unannounced and then met with the principal factory owner and our suppliers to ascertain conditions. Additionally, we proposed using an independent third party to work with factory management over the next twelve months to monitor factory operations.”
Wal-Mart acknowledges that it urged SweatFree Communities several times not to publish its report. In its statement, Wal-Mart said it “offered to partner with them in addressing industrywide issues in Bangladesh.” The company pointed out that “there were at least five other brands and/or retailers using the same factory, and felt a collaborative approach partnering with all key stakeholders including governments, suppliers, and nongovernmental organizations would be the best approach to address labor standards in Bangladesh.”
SweatFree Communities Executive Director Bjorn Claeson felt that it was fair to single out Wal-Mart, since his group believes it is by far the factory’s largest customer. Claeson emphasizes that Bangladesh is known to have among the worst factory conditions in the world and that about 15% of the nearly $11 billion worth of garment orders annually exported from Bangladesh go to Wal-Mart, according to local press reports.
“Wal-Mart has incredible economic muscle in that country,” says Claeson. “If it takes the leadership position as a retailer and works with other brands, there is no question that it can really have an impact.”
Most Factory Inspections Preannounced
The group’s refusal to hold back the report drew support from other activist organizations. “People are not going to suppress reports, especially since one of the most important tools organizations like ours have is transparency,” says Bob Jeffcott, policy analyst at the Maquila Solidarity Network of Toronto, an activist group that works to improve conditions in factories that make products for multinational companies.
While allegations of sweatshop conditions in apparel factories that produce for Wal-Mart aren’t new, the latest report raises questions about the auditing process the chain has set up to monitor its suppliers, most in distant countries. On Aug. 15, 2007, Wal-Mart released its annual “ethical sourcing report” in which CEO H. Lee Scott contended that Wal-Mart conducts more factory working-condition audits than any other company in the world—as many as 16,700 audits at 8,873 factories.
However, at Bangladesh’s JMS Garments Factory, workers say that the visits are always preannounced. Managers prepare them for the auditors’ visits and threaten to fire them if they tell the truth, employees told the labor research group. One worker, Ritu, is quoted in the SweatFree Communities report as saying: “The day when the Wal-Mart representative comes to visit, everything changes in the factory.”
Fewer Ethical Sourcing Reports
Wal-Mart spokesman Richard Coyle said the company uses its own staff of 200 people to conduct audits and also supplements that with independent audits. Wal-Mart wouldn’t provide any names of third-party groups that conduct its audits.
The retailer’s own Web site says that only 26% of its auditors’ visits are unannounced. Critics say that reflects an incomplete commitment to improve labor conditions in its supply chain.
“Wal-Mart has taken positive steps on environmental and sustainable issues, but when it comes to working on issues that question its purchasing practices or where its way of doing business would have to change, that’s where things hit a wall,” says Ruth Rosenbaum, executive director of CREA, a Hartford-based socioeconomic research center that focuses on human and labor rights. Rosenbaum has advised Wal-Mart as part of a group of activists who were invited to be in a Transparency Advisory Committee.
This year, Wal-Mart decided to stop issuing ethical sourcing reports annually, as it had done every year since 2004. Wal-Mart said it now will issue one every two years and will post quarterly progress updates on its Web site. BusinessWeek asked Wal-Mart to point to any updates since last year, but the company didn’t provide any. A visit to the company’s Web site seems to show that since last year’s publication, Wal-Mart has not updated the information on ethical sourcing and its progress.
Posted by Alex Goldschmidt on Friday, October 10, 2008
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COMMENTS
Is there anyone out there, in their right mind or not, willing to defend the concept of ‘Preannounced Inspections’?
I have always maintained that slavery was the ultimate goal of the globalized race to the bottom. Labor is just too damned expensive, no matter what it costs.
The Walmart mentality propagates the idea that more crap will make us happy. ~ Phil Butler
Ken V in Texas
Saturday, October 11 at 06:16 AM
Ken V: Aren’t “preannounced inspections” akin to de-regulation?
ddrb in
Saturday, October 11 at 04:06 PM
P.S. : With toy season right around the corner, I just wonder how many lead-laden toys and trinkets will be flooding the market -because of,and in part,due to ,pre-announced inspections,which theoretically give the factories time to “put up a good front ,temporarily,by using non-lead paint. Then after the so called inspections, go back to leaded paint on toys and miscellaneous goods for export. And what about the hazards to the factory workers,themselves,and THEIR health and environment,after repeated exposure?
ddrb in
Saturday, October 11 at 04:47 PM
Is There Any Way to Stop Wal-Mart & Co. from Sweatshop Profiteering?
By T. A. Frank, Washington Monthly. Posted April 29, 2008.
The major challenge of inspections was simply staying ahead of the factories we monitored. False time cards and payroll records, whole days spent coaching employees on how to lie during interviews, and even renaming certain factory buildings in order to create a smaller Potemkin village—all of these were techniques used by contractors to try to fool us. We were able to detect some of them. A collection of crisp time cards that showed every employee arriving within seconds of the next was easy to spot as having been punched by a single worker standing alone at the time clock. An employee whose recollection of hours worked differed markedly from her time sheet was another indication of shady bookkeeping. But others were hard to defeat. Employee coaching deserves special attention for its crude effectiveness. Now, anyone in the business knows that when inspections uncover safety violations or wage underpayment more than once or twice—let alone five times—it’s a sign that bigger problems are lurking beneath. Companies rarely get bamboozled about this sort of thing unless they want to.
And many prefer to be bamboozled, because it’s cheaper. While companies like to boast of having an ethical sourcing program, such programs make it harder to hire the lowest bidder. Because many companies still want to hire the lowest bidder, “ethical sourcing” often becomes a game. For the half-assed company there are also half-assed monitoring firms. These specialize in performing as many brief, understaffed inspections as they can fit in a day in order to maximize their own profits. That gives their clients plausible deniability: problems undiscovered are problems avoided, and any later trouble can be blamed on the compliance monitors. It is a cozy understanding between client, monitoring company, and supplier that manages to benefit everyone but the workers.
While private monitoring can be misused, however, when it’s done right it can really produce positive change. I’ve seen it. When companies make a genuine effort, the results can be impressive: safe factories that pay legal wages.
As for those who feel especially strongly about the issue and kick up a (peaceful) fuss about sweatshops, I think they’re doing a valuable thing. Boycotts, protests, letters to Congress, saber-rattling lawmakers, media exposes—they do have an impact. And just imagine if members of Congress or the executive branch made an effort to praise or shame companies for their records with foreign suppliers and to encourage transparent monitoring in the private sector. I suspect it would do more for international labor standards in months than the most intricate trade agreements could do in years.
One final thought: In an era of globalization. We are, like it or not, profoundly affected by the labor standards of our trading partners. If their standards are low, they exert a downward pressure on our own. That’s why monitoring and enforcement have such an important role to play. We don’t expect developing nations to match us in what their workers earn. (A few dollars a day is a fortune in many nations.) But when a Chinese factory saves money by making its employees breathe hazardous fumes and, by doing so, closes down a U.S. factory that spends money on proper ventilation and masks, that’s wrong. It’s wrong by any measure. And that’s what we can do something about if we try. It’s the challenge we face as the walls come down, the dolls, pajamas, and televisions come in, and, increasingly, the future of our workers here is tied to that of workers who are oceans away.
T.A. Frank is a writer in Los Angeles.~~~~~~~~~~~~~~NOTE: Mr. Frank is a former factory inspector.
ddrb in
Saturday, October 11 at 05:05 PM
By GARDINER HARRIS
Published: January 25, 2008-New York Times
WASHINGTON — The Food and Drug Administration intends to post inspectors to embassies and consulates throughout the developing world in HOPES of improving the quality of the food and medicines increasingly flowing to the United States, a top official said Thursday.
The agency’s commissioner, Dr. Andrew C. von Eschenbach, said that he wanted to have “boots on the ground” in nations like India and China and regions like Central and South America and the Middle East.
The agency already sends inspectors to dozens of countries each year to inspect pharmaceutical plants and clinical trial sites. But Dr. von Eschenbach said in a briefing with reporters that he wanted the agency’s presence abroad to be on an “ongoing and CONTINUOUS BASIS rather than episodic and periodic.”
“Right now, we come, we leave,” he said.
The inspectors would primarily “build capacity and bring others in to do inspections that are certified,” Dr. von Eschenbach said.
The agency has long helped to train foreign food and drug inspectors and even advise in the writing of legislation to empower foreign versions of the F.D.A.
In recent years, as more food and drugs have been produced abroad for sale in America, the F.D.A. has been lLESS ABLE to ensure the products’ safety. The agency inspects LESS than 1 percent of imported foods.
Some on Capitol Hill have called for a large increase in the agency’s budget to improve such inspections. The Bush administration, however, has NOT endorsed those calls. Instead, F.D.A. officials have sought to bolster the aggressiveness and effectiveness of foreign health regulators, HOPING to prevent unsafe items from being brought to American docks in the first place.
Dr. von Eschenbach said that his plan to post inspectors abroad was still in its infancy. He was not sure whether he would ask for additional financing from Congress for the inspectors or find money in his present budget for them, he said.
He also said that he had yet to work out with the State Department how such inspectors might interact with other parts of the federal government. In addition, host nations would HAVE TO REQUEST their presence, he said.
In December, the United States and China agreed to a greater American role in certifying and inspecting Chinese food products, including an increased presence of American officials at Chinese production plants.~~~~~~~~~~~~~~~NOTE: I see a lot of wishing and hoping in regard to the safety of foods and pharmaceuticals, but little actual EFFORT at maintaining quality control of foods and meds exports. Has anyone told the FDA that you can’t substitute a wishbone for a backbone?(Psst ,lobbyists already know that. They have been making their clients wishes come true for eight years now, thanks to spineless Federal agencies like the FDA,USDA,and CSC[Consumer Safety Commission] ).
ddrb in
Sunday, October 12 at 09:16 AM
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