No Sweat: Fashion, Free Trade and the Rights of Garment Workers 1859841724, 9781859841723

Table of contents :
Frontmatter
Preface and Acknowledgments (page 1)
Testimony (Lina Rodriguez Meza, page 4)
Introduction (Andrew Ross, page 9)
The Global Resistance to Sweatshops (John Cavanagh, page 39)
From War Zone to Free Trade Zone (Kitty Krupat, page 51)
Paying to Lose Our Jobs (Charles Kernaghan, page 79)
An Appeal to Walt Disney (National Labor Committee, page 95)
The Myth of Nimble Fingers (Elinor Spielberg, page 113)
Rat‐Catching: An Interview with Bud Konheim (Sally Singer, page 123)
The Economics of the Sweatshop (Michael Piore, page 135)
El Monte Thai Garment Workers: Slave Sweatshops (Julie Su, page 143)
Labor, History, and Sweatshops in the New Global Economy (Alan Howard, page 151)
New York: Defending the Union Contract (Carl Proper, page 173)
"They Want to Kill Us for a Little Money" (Jo‐Ann Mort, page 193)
The Structure and Growth of the Los Angeles Garment Industry (Steve Nutter, page 199)
The Labor Behind the Label: Clean Clothes Campaigns in Europe (Linda Shaw, page 215)
Sweatshopping (Eyal Press, page 221)
Fashion as a Culture Industry (McKenzie Wark, page 227)
Tommy Hilfiger in the Age of Mass Customization (Paul Smith, page 249)
The Problem with Ugly Chic (Robin Givhan, page 263)
A New Kind of Rag Trade? (Angela McRobbie, page 275)
After the Year of the Sweatshop: Postscript (Andrew Ross, page 291)
No Sweat Fashion List, Department of Labor (page 298)
Notes (page 299)
Contributors (page 310)
Photo credits (page 312)

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© The Contributors 1997 : First published by Verso 1997

Reprinted (paperback) 1999

All rights reserved

Verso

UK: 6 Meard Street, London W1V 3HR USA: 180 Varick Street, New York, NY 10014 Verso is the imprint of New Left Books

paper ISBN 1 85984 172 4 cloth ISBN 1 85984 866 4 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library

design by parlour —

Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress

Printed in the U.S.A. by R.R. Donnelley & Sons Co.

Proceeds from the sale of this book will be used to fund the

documentation of contemporary labor struggles. )

fashion, free trade, and the rights of garment workers

edited by andrew ross

y. New York London

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testimony Lina Rodriguez Meza

44 | work at 265 West 40th Street, on the sixteenth floor, making 5 dresses. It looks like they're for the Jaclyn Smith label. | seem to have the luck of working for artists’ brands. [Here Lina is alluding to the fact that she worked previously for SEO Fashions, where clothing was made for

Kathie Lee Gifford’s line.] Teresa, the supervisor, guards the tags

carefully. I had to be very careful to take one. Last week we only worked for fifteen hours. And now we worked two days in a row, but it

seems like we're going to be off again. There’s very little work. It's | difficult because you earn so little, there’s almost no overtime and the small amount of money that you save you use little by little when there is no work. When it’s busy, we work up to sixty to sixty-three hours. The conditions in the factory are not very good. There's no air circulation. The bathrooms are outside on our floor. In the factory where | work almost everyone is from Ecuador. Those people work hard. And since they are very far from their land, they come and are afraid of losing their jobs, so they enslave themselves. Almost no one goes to the bathroom, they feel embarrassed. The bathroom is outside. You have to leave the factory, go to the hallway. It’s a bit

dangerous because anyone can enter the bathrooms. Also, there is a 7 part in the building that is unprotected. You can easily fall into that empty space. I came to the U.S. because the situation in my country is really bad right now. I’m a single mother, a widow. I have three children to take care of and the salary isn’t enough to sustain us. | don’t want to

no sweat

6 bring my children here. The environment here is bad for them. They are with my family, with my brothers and sisters, my father and my mother. The truth is my family raised them, since | had to work and could not attend to them.

| paid $900 cash up front to cross the border. Here in New York, | it’s not that much, but in my country, it’s a lot of money. You can

work for a year trying to gather that much money. ) It’s difficult to cross the border. Even our own people may attack us. When a person comes here, they risk their life because sometimes they’re traveling with criminals. Since you're crossing illegally, you ; can’t choose who to cross with. On a hill there are people waiting

to take the little you have, your jewelry, they even make you take off your clothes to make sure that you have nothing, not a penny. | think, rather than making laws against us, there should be a law to punish those people because they are criminals that have killed people.

And they cross the border like it’s a game, they come and go, they , cross the border, they make fun of the law. They have found bodies in the desert. With all my heart | would like to return. The bad part is, I see that it becomes harder every day. They are cutting off paths, choices.

They are attacking us like we're the plague. They are taking everything away from us to make us leave. | don’t know who writes the laws, but someone needs to speak to that person and tell them that we're not here because we want to be. If it were up to me, | would be in my country with my family. But unfortunately, as they

Testimony

J say, bad things start close to home. We cannot do anything against 7 A our government. They have the bull by the horns. So the only choice F left is to leave the country in search of work. We are small against ‘, our government. And also, you see, we want an opportunity here but q they also attack us, and | don’t know how we're going to end up. Immigration laws start to attack us, from the moment we enter at

| the border, they attack us. When you arrive here, you're denied work , because everyone wants your papers. They want you to be legal. But | how can you become legal if they don’t give you opportunities? In Mexico, there's a lot of talk about life here, but people don't believe it because many have returned. Some return with money, with a fortune, and many return in a bad condition, even crazy, sick. And there are people who don’t return. So people will always come here. Over there people have the idea that here one can lose it all, win or lose it all, but you have to take the risk when you have no

.. | wanted choice. to earn enough and then rest, be with my family, my

: children, be a mother. At that time I didn’t mind giving them up for a year to do this. But unfortunately, things are not that easy. And so the year is going by and | feel I have failed at almost everything. My

‘ daughter will turn seven this month. The boy will be six this November and my baby, my little one, turned three in July. | want to return to protect them. I know they’re at an age when they need a mother, but I cannot go back. I cannot go back without at least achieving some

8 of what I had planned. Otherwise, everything would be in vain, the sacrifice, the separation. I'd have no reason for having come. | did the same work in Mexico. I've been in the industry for

eighteen years. I started working when I was thirteen years old as a de-threader, what they call here floor work. | started at thirteen, when | was fifteen I started to work with machines. I come from a family of sewers, so we inherited our work from our mother. My sister finished the fourth grade, | finished the fifth grade, another brother finished elementary school and one finished secondary school, and then we ended up slowly on the streets. So | finished the fifth grade and it was enough for me to study on my own. | like to read books, be informed. I'm moved by books. Before coming here I wanted to join the auxiliary police because in my country they pay well, but they ask for a secondary school degree. So | did the secondary rapidly, | prepared for the entrance exam in three months and all | was missing to finish was the last part. But I didn’t have time because the opportunity to come here presented itself, and it was now or never. I decided it was better to come here. | couldn't risk any more. Also, people spoke poorly of the

police and it wasn’t something | wanted to do. So here I am. TL

384.9 914095°

ATTN $12.97

introduction Andrew Ross At the waning of a century that has seen the Square Deal, the New Deal, and the Fair Deal, few 9 could be faulted for thinking that they are now paying the price of a Raw Deal. As global free trade increasingly takes center stage, the income gap between the world’s rich and poor has accelerated, and is now twice as great as it was thirty years ago. In the U.S., income inequality has reverted to the levels of the 1920s, before the introduction of progressive taxation. The top

one percent of families now possess 42 percent of American wealth, and the economy is governed by corporations whose ratio of CEO salaries to workers’ wages is so astronomical as to mock any standard of fairness. While executive pay has swelled by 500 percent in the last fifteen years, factory pay has lagged behind inflation and actually fallen by a net 2 percent in

the last: five years. During the bull market year of 1995, when many large corporations

recorded capital growth of 35 percent, the bottom two-fifths of U.S. workers received an all- ; time low 12.5 percent of the national income, and the top one-fifth received a record 50

: percent. Worker termination rates escalated sharply, as did public resentment against the arrogance of layoff kings like AT&T’s Robert Allen, whose 1995 compensation was $5.8 million, and IBM’s Louis Gerstner, who hauled in $13.2 million.

In this context of staggering economic inequality, a revitalized labor movement has moved back onto the national stage, facing up to massive challenges at home and in the new

| global economy of outsourcing. The energies of progressives and activists, increasingly devoted to nongovernment coalitions between international labor, environmental, and social justice groups, are now driven as much by global inequities as by the shameful story told by

| : Statistics about the national distribution of wealth. The result is a distinct genre of moral | outrage reserved for the injustices created by offshore manufacturing. Public attention has | been drawn to the likes of basketball prince Michael Jordan, who earned more ($20 million) in 1992 for endorsing Nike’s running shoes than Nike’s entire 30,000-strong Indonesian work

| force did for making them. Or Disney’s CEO, Michael Eisner, who earned over $200 million

from salary and stock options in 1996, which, at $97,600 per hour, amounted to 325,000 times the hourly wage of the Haitian workers who made Pocahontas, Lion King, and Hunchback of Notre Dame T-shirts and pajamas, and who sewed on Mickey Mouse’s ears.

| no sweat COLOR = BLUE STYLE = -TKA7A

SIZE 3 TODDLER

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10 It is no coincidence that these two egregious examples are drawn from the garment trade. The textile and apparel industries are a showcase of horrors for the labor abuses sanctioned by the global free trade economy, where child labor, wage slavery, and employer cruelty are legion. Conditions reminiscent of the heyday of the sweatshop at the turn of the century are being brought to light. Big name retailers and manufacturers scramble to issue statements about their honorable labor codes, and overnight are shamed by exposés of slave factories producing their lines at home and abroad. Once again shoppers in search of guilt-free clothing are scrutinizing labels, and coming up short. Price tags provide vague clues, but even “Made in the USA” labels don’t tell us very much anymore, and are sometimes sewn on in Asia or Central America. For those looking for more information, the garment union UNITE’s consumer guide points out that “the care tag tells you how to treat the garment but not how the worker who made it was treated.” It is a widely held fiction that most citizens of the North, however much they themselves are hurting, are not known for their discomfort at evidence that Third World workers are

, suffering too, and more often than. not, on their behalf. On the contrary, public concern has been inflamed by revelations about labor exploitation in apparel factories in the U.S. and around the world, where workers are physically, sexually, and economically abused to save ten cents on the cost of a pricey item of clothing. This book seeks to explain how and why this has happened, and what can be done about it. The gruesome face of the new international division of labor is all too apparent in the apparel trade, as the corporate hunt for ever cheaper labor, akin to the quest for the Holy Grail, drives wages down in entire subcontinental regions where countries compete to attract foreign investment. But the explanation for these conditions also lies in the history and structure of the

garment industry, the nature of its products, and the volatility of its markets. Textile and apparel are traditionally where underdeveloped countries begin their industrialization process, since they require a minimum of capital investment—particularly in the labor-intensive sectors of sewing and assembly—and the raw materials are relatively common. Although there are many interlocking industries involved in this sector, U.S. retail giants who are in command of

the vast internal market call the shots globally, while cutthroat contractors, pursuing ever tighter profit margins, crack the whip in local enterprise zones and assembly platforms. So, too,

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a ca ee ee ee ee ee Pe ee ee Een ee a . the international mass consumer now wants the latest fashion posthaste, necessitating flexibility and turnaround at levels that disrupt all stable norms of industrial competition. Because these industries have seen some of the worst labor excesses, they have also been associated with historic victories for labor, and hold a prominent symbolic spot on the

landscape of labor iconography: from the Luddite weavers’ resistance to industrialists’ , introduction of power looms, to the mid-nineteenth-century protest of the “factory girls” in New England mills, the early twentieth-century garment workers’ strikes against conditions generated by the sweating system, the unions’ role in forging pioneer labor-capital accords, and the success of the industry’s labor-manufacturer bloc in winning exemption from GATT’s postwar free trade rules. In the public mind, the strongest association is with labor’s successes in “eradicating” the sweatshop in the first two decades of the century. Of course, it never disappeared. Severely restricted in its zone of operations, the sweatshop dropped out of view,

and lived on in the underground economy. But the repugnance attached to the term “sweatshop” commands a moral power, second only to slavery itself, to rouse public opinion into a collective spasm of abhorrence. The public will to eliminate sweatshop labor often designates a significant level of development on the part of a society, in contrast to others, less democratic in their attitudes toward the rights of workers.

no sweat | 12 The challenge to this claim of moral superiority on the part of developed nations is one reason why the recent return of the sweatshop to the domestic workplace and its flourishing in

all the offshore outposts of corporate production has provoked such revulsion in these countries. Few aspects of the corporate rollback of the postwar social contract have been greeted with the public outcry that followed revelations of sweatshops thriving at the heart of most major American cities, or that items of clothing on sale at family-brand stores like J. C.

Penney, Sears, Wal-Mart, and Kmart were made by mothers and their teenage daughters

toiling in inhuman conditions. These disclosures Az | | | het iF

century workplaces—tenements, lofts, attics, stables “S| Giger oe. Fe —plagued by chronic health problems (tubercu-losis, 7 oi \j fee | 1 li } the and signature thehome sweatshop, TY‘Qing = pity,ee, 6 aR % hasscourge also made a return sickness of late), of and to theJ ff —— utless exploitation of greenhom immigrants. They ff i SQ TENN SMBS / Other Half Lives, or the social photography of Lewis Zaina? ie a a

Hine’s labor docu-mentaries, or Henry Mayhew’s_ § ae C . 7 a

profiles of the rag trade in London’s East End. ' | \ Nes 0 aS Sa _ - wr ) the home. To set up in the fly-by-night world of

lg By, , TO « m=. jrunaway shops required little more investment than ed. ” aad fr ; ee, ot an a was needed to rent a hole in the wall and a few

i ee = mm = sewing machines, plus ready access to a ghetto labor

machine’s foot pedal is still in business, no longer competing with steampower but with the CPU. Studies by the Bureau of Labor Statistics show that, with the exception of the fast food industry’s burger flippers (at $11,920), and apparel and accessory store employees (at $13,971), apparel and textile workers in the /egal/ sector earn the lowest average annual wage among U.S. industries, at $19,225. Ethnic entrepreneurship is as crucial as ever, with Asian and Latino immigrants, often undocumented, denied access to the mainstream labor economy through racial labor segmentation, and thereby forced into ethnic enclaves where all labor laws are routinely neglected.* Where patterns of family labor are relevant, the obligations of youth to the immigrant culture of apprenticeship and to patriarchal

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no sweat

44 Clothing Manufacturers Association of the USA. Ratified on October 1, 1993, it stipulated that all employers within the Clothing Manufacturers Association would agree to a detailed set of worker rights provisions for any outsourcing contracts. European unions and development organizations working with labor rights advocates primarily in Asia likewise have begun a Clean Clothes Campaign to press retailers and garment firms on working conditions in their supplier factories.”

The British organization Christian Aid, working with the London-based Fairtrade Foundation and contacts in developing countries, examined these and other codes and drafted a Model Code of Practice that addresses their weaknesses.° In July 1995, several European and Asian organizations responded to fires and exploitive work conditions in Asian toy factories with a call on toy firms to adopt their Charter on the Safe Production of Toys.’

As other citizen organizations have joined the code initiative, they have employed consumer pressure to persuade more firms to adopt them. In early 1995, a coalition including

the Guatemalan Labor Education Project induced Starbucks to draft a code governing conditions under which the coffee it sells is grown. In the early 1990s, citizen groups organized

a “toycott” against Toys “R” Us to protest the use of child labor in China, where some 40 percent of U.S. toys now originate. The company has now endorsed a code prohibiting the use of child or slave labor by its subcontractors.

But formal ratification of a set of guidelines by itself will not deter abuses, in part because corporations attempt to limit the scope of their code or resist independent enforcement of the code. To date, several such problems have been noted. First, a lack of consensus on which worker rights and environmental standards should be protected in the codes has resulted in some egregious oversights. For instance, the codes neglect the issue of sexual harassment, an especially serious one in the textile industry since most managers are men and most workers are women. Second, the codes do not address or promote compulsory enforcement mechanisms. There is now ample evidence confirming that even when firms adopt codes of conduct to advance worker rights in their supplier factories, they seldom enforce them. A survey of codes in Guatemala by the Wall Street Journal revealed that corporations made next to no effort to train or encourage their own inspectors to monitor violations by subcontractors.° Third, wage clauses are unclear and inadequate, typically

The Global Resistance to Sweatshops

requiring only the payment of a “legal wage,” which in most countries is far below the poverty 45 level. UNITE has been lobbying for a “livable wage” based on the market value of a basket of consumer goods. Corporations claim (or feign) ignorance: the Coalition for Justice in the Maquiladoras found that many global firms do not know how much their subcontractors pay workers. Finally, many of the codes cover only their subcontractors and not the paid employees of the company. Codes should protect both. Of these problems, the enforcement issue is perhaps the most difficult obstacle in the fight for effective codes. Corporations naturally prefer voluntary codes, but self-policing simply invites noncompliance. However, there are several avenues for advancing greater enforcement.

One strategy would be for unions to adopt the ACTWU-Clothing Manufacturers precedent and write codes into all new collective bargaining agreements. Another involves legislative pressure. Most governments offer firms incentives to invest overseas. In the United States, the Overseas Private Investment Corporation provides insurance for such ventures. A foreign tax credit allows U.S. firms to avoid paying U.S. taxes on their foreign subsidiaries’ activities if the subsidiaries pay taxes in the host country. Portions of the tariff code offer incentives for firms to set up factories overseas to process U.S.-made parts and send them back to the United States. As each of these programs comes before the U.S. Congress either for consideration or reauthorization, Congress could simply amend them to state that recipients of government resources must sign a statement agreeing to a corporate code. The code would be “voluntary” in the sense that firms could ignore it with impunity—and forfeit government benefits. Equivalent incentives exist in France, Germany, and other industrialized countries. Even with such incentives, the question remains as to who will monitor enforcement. Concerning the labor rights provisions of codes, the United Nations ILO can offer some assistance. Funds could be set aside by each firm to pay for independent inspectors to make unannounced factory visits. As mentioned earlier, this was a feature of the 1995 memorandum of understanding governing child labor in Bangladesh's clothing factories. Likewise, in the “statement of agreement” signed by the Gap and the National Labor Committee in December 1995, the Gap agreed to work with other groups “to explore the viability of an independent industry monitoring program in El Salvador.”

no sweat

46 Contemporary struggles to curb corporate abuses are rooted in a number of battles in the 1970s waged by both governments and citizen groups. A strong global movement for greater corporate accountability emerged in the wake of revelations about IT&T’s role in the Chilean coup of 1973. Spurred by pressure from Third World governments, the United Nations created a Commission on Transnational Corporations in 1975, which set out to negotiate a UN Code of Conduct on Transnational Corporations. The draft United Nations code prohibited bribery of public officials, required corporate disclosure of potential dangers of products and production ~ processes, banned the export of goods from factories deemed unsafe, and a number of other

measures. The Reagan administration vehemently opposed the effort, however, and negotiations collapsed. Citizen groups such as the International Organization of Consumer Unions (l1OCU) have worked hard to revive interest in the UN code or a similar set of guidelines and mechanisms on

foreign direct investment. A number of groups, meeting in Delhi in February 1994 for a conference on Fairplay in Global Business, likewise committed themselves to this task. Meanwhile, other agencies within the United Nations continued to generate blueprints for regulating corporate behavior. In 1977, the ILO adopted the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, a set of criteria for governments, firms, and workers covering industrial relations, employment, training, and labor conditions. Similarly,

in 1976, the developed country members of the United Nations used the Organization of Economic Cooperation and Development (OECD) to pass guidelines on_ international investment and multinational enterprises encompassing many of these same areas. In addition to these omnibus codes, the United Nations has developed rules governing

specific issues. The most celebrated concerns the marketing of infant formula. Jointly negotiated by the World Health Organization and UNICEF, the code prohibits transnational ;

infant formula producers from using deceptive marketing practices to sell baby food in developing countries. There have been movements to extend such marketing codes to pharmaceuticals, cigarettes, and alcohol as well.

Environmental groups spearheaded by Greenpeace launched a major campaign in the 1990s to convince governments to place restrictions on the international trade in

The Global Resistance to Sweatshops

hazardous waste products. This campaign culminated in sixty-five governments passing the 47 Basel Convention to ban all aspects of toxic wastes by the year 1998. Law professors Diane Orentlicher and Timothy Gelatt suggest that the Group of Seven

would be a good forum for a concerted effort at adherence to a set of global principles on transnational corporations.’ Since the overwhelming majority of the world’s TNCs originate in these seven countries, this might prove a more feasible arena than the United Nations.

A number of broad-based international citizen campaigns have forced changes in corporate behavior and/or created new international mechanisms to hold corporate power in check. Many of these were launched in the 1970s, a period of growing global concern about the abuses of TNCs in the Third World. During much of the 1970s and ‘80s, Northern and Southern religious and consumer groups collaborated to attack Nestlé and other companies for deceptive marketing practices which induced mothers to forego breastfeeding in favor of commercially produced infant formula. Since waterborne diseases are primary killers in the developing world, powdered milk mixed with untreated water posed a significant health risk to

children. Moreover, many poor families could ill-afford to spend their meager financial resources on a product that was available for free from mothers. These campaigns used the pressure of consumer boycotts which culminated in the World Health Organization/UNICEF marketing code. An equally impressive campaign to break corporate business ties to South Africa as a protest against the racist policy of apartheid was instigated in many countries through the

collective efforts of state and municipal officials, unions, religious groups, and others. Participants exploited myriad tactics and venues—selective investment, government procurement contracts, divestment—to pressure the apartheid regime to free Nelson Mandela from prison and to hold the country’s first universal elections. Similar initiatives have been launched against hundreds of firms in recent years, deploying the power of individuals as consumers, workers, shareholders, and depositors. A recent issue of Co-op America’s Boycott Action News documents campaigns against Philip Morris and fifty-seven other companies by citizen groups around the country." The Interfaith Center for Corporate Responsibility is a twenty-five-year-old association of

nearly 250 denominations. Each year, ICCR members submit hundreds of shareholder

no sweat

48 resolutions to press for corporate accountability on the environment, alcohol and tobacco, equal opportunity, militarism, maquiladoras, and other issues. ICCR is part of a larger social/ ethical investment movement which, through the power of large institutional shareholders, has the potential to exercise great influence in the corporate world. Like governments, citizen groups have initiated codes of conduct in specific arenas that are prompting corporations to change their behavior. After the enormous oil spill from the Exxon Valdez, a number of leading environmental and consumer groups came together in 1992 to draft the CERES Principles, a list of ten principles of environmentally sustainable behavior that requires signatory firms to submit annual reports attesting to their compliance. Firms as diverse as Ben & Jerry’s and General Motors have signed on. The Coalition for Justice in the Maquiladoras pulled together over a hundred environ-

mental, religious, community, labor, women’s, and Latino organizations to fight the horrendous working and environmental conditions in the 2,000-plus factories that dot the 2,000-mile U.S.-Mexico border. The Coalition drew on U.S., Mexican, and United Nations criteria to craft the Maquiladora Standards of Conduct, which spells out acceptable standards for firms on the environment, health and safety, worker rights, and community impact. These battles over the rules of trade and investment are transforming the conventional terms of political debate in the United States. For most of this century, big business and the Republican party fought for lower tariffs and fewer investment barriers; since what was good for General Motors was supposed to be good for the United States, their view was that GM should be encouraged to produce and trade anywhere in the world. Small business, labor, and many Democrats argued for nationalistic protections against imports.

Today, most Democratic and Republican presidential candidates and members of Congress preach free trade and lower investment barriers as the means to compete in a global economy. In the 1996 presidential primaries, only Pat Buchanan championed the protectionist position. His rhetoric, aimed at small business owners and workers, was anti-immigrant, racist, and intensely nationalistic. Xenophobia aside, his pronouncements were clear in naming trade agreements like NAFTA and the new World Trade Organization (WTO) as responsible for speeding up corporate globalization without any protections for workers, who have seen their wages and benefits eroded by mobile firms. Buchanan scored more political points among the

The Global Resistance to Sweatshops

“anxious class” of insecure workers by joining Ralph Nader in blasting a January 1996 WTO 49 decision which challenges U.S. regulations requiring stringent environmental standards on gasoline imported into the United States. Yet the debate is now much wider than Clinton and Dole’s free trade dogma versus Buchanan’s protectionism, thanks to the hundreds of efforts to press firms to abide by codes, and the move to attach labor and environmental conditions to trade agreements. Although it is a position that will rarely be featured on the nightly news, the emergence of a “third way” offers a path between the extremes of free trade and nationalistic protectionism. This third way includes three prominent and often overlapping currents. Closest to the Buchanan end of the spectrum are the radical environmentalists and localization advocates who say “no” to large corporations and globalization through campaigns to kick Kentucky

Fried Chicken out of India, liberate small-town America from Wal-Mart, and prevent pharmaceutical firms from patenting products derived from trees and other life forms. Another stream includes Ralph Nader and much of the anti-NAFTA and anti-WTO coalitions whose intent is to “slow down” globalization by defeating trade agreements that accelerate trade and investment by lowering barriers.

Finally, there is a wide array of citizen movements that are seeking to reshape globalization by rendering it more “socially and environmentally responsible.“ These include the mobilizations to add enforceable labor and environmental standards to trade agreements,

the pressure on Starbucks and other firms for tough corporate codes, and the growing alternative trading movement that bypasses large corporate channels to deliver products made under more humane and sustainable conditions from cooperatives directly to consumers. The overall message of these efforts to reshape globalization is that if you combine strong twenty-first-century global rights for corporations with weak twentieth-century national rights for labor and the environment, the result is a return to something more like the brutal capitalism of the nineteenth century. Hence, activists struggle both to curb the global rights of firms and to extend labor and environmental rights and standards to a global level. Despite some tensions, these various strains of a third way came together dramatically in North America in the grass-roots, cross-sectoral, and cross-border alliances that opposed NAFTA. Since the NAFTA fight, these forces have linked together with other citizen movements

no sweat

50 in Europe and parts of the Third World in venues like the International Forum on Globalization. Headquartered in San Francisco and including participants from nineteen countries, the Forum organized a teach-in on globalization in New York’s Riverside Church in November 1995 that drew 1,800 people. Similar strands came together that same weekend in Japan when more than 120 Asian citizen groups met to protest plans for a NAFTA-style free trade area in Asia.

These forces are united by an internationalist, anticorporate stance that counters Buchanan’s nationalistic populism. Canadian anti-NAFTA activist Tony Clarke is leading an International Forum on Globalization effort in several countries to bring together activists around the theme of “challenging corporate rule,” by which he means challenging not only corporate abuse of workers and the environment, but also their deepening purchase on political agendas worldwide.

The success of these citizen campaigns will depend in large part on moving beyond labor, environmental, and religious alliances to harness and organize consumer power. The United States still accounts for a quarter of the measured economic activity on the planet. Hence U.S. consumers hold the power to demand significant changes in the way goods are

produced. As yet, however, there is little experience in the kind of consumer-laborenvironmental-community coalitions that will be required for success. The future of efforts to transform trade and investment in a global economy will depend on innovations in organizing that break down traditional barriers among constituencies and across borders.

from war zone to free trade zone a history of the National Labor Committee

Kitty Krupat

The Child Behind the Label 51 August 1995, San Pedro Sula, Honduras—At 6:30 a.m., workers arrive at the gate of Orion Apparel, a Korean-owned factory in San Pedro Sula that produces Gitano shirts and sportswear for other American manufacturers. Each worker is searched as she goes through the door. Standing in line with them are Charles Kernaghan and Barbara Briggs of the National Labor Committee Education Fund in Support of Worker and Human Rights in Central America. Dressed as American business executives, they walk through the door unquestioned. With them is a camera crew, filming the line as it passes into the factory. Once inside, Kernaghan and Briggs begin asking questions: How old are the workers? What do they earn? How are they treated? One fifteen-year-old tells them she works till 8:30 most nights. She is the sole support of eight people in her family. She earns 38 cents an hour. “Es suficiente—ls it enough?” Briggs asks. The girl shakes her head and whispers, “No.” This same girl tells Briggs that supervisors yell at the girls and hit them. Another says workers are forced to take birth-control pills in the presence of plant supervisors. Later, the outraged owner of Orion is caught on video, shouting at Kernaghan. “This is a private company. What right do you have to come in here?” Kernaghan, who is executive director of the National Labor Committee (NLC), answers disingenuously, “The door was open.” In the war against sweatshops, the simple truth is NLC’s greatest weapon. That night, Kernaghan, Briggs, and their camera crew are escorted to a factory garbage dump by Lesly Rodriquez, a fourteen-year-old Orion worker. The camera surveys piles of garbage, zooming in on hundreds of aluminum packets that once contained birth-control pills. Kernaghan estimates that 500,000 people in the free trade zones of Central America and the Caribbean work in conditions like these, producing goods for U.S. markets. Most of them are women and young girls. The defense of their rights has become the mission of the NLC. “What that implies,” Kernaghan says, “is bringing the system out into the light of day. So many companies have fled the United States—set up this enormous low-wage export platform—and nobody knows a thing about it. An hour and a half from our border. Who's investigating it? We took a part of the global economy and put a human face on it.” In the final analysis, NLC operates on populist faith. “Our job is to make the system translucent. There’s something profoundly political about doing that,” Kernaghan says. “In

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a The issue of manufacturer responsibility in the apparel industry is not a new one. For o) mee eighty years or more, it has been a driving force of union organizing and contract enforcement

[18 —__ inthe garment centers of major American cities.’ Globalization has complicated the issue, at a =, _ time when the apparel industry is increasingly dominated by a few giant retailers, all of whom hg =~. ~—_ Consign production to independent, offshore contractors.* They do not own these companies

. RX or hire the workers. Motivated by the desire for cheap labor, they have been happy to rely on

_, 2 local wage standards and local labor law enforcement—though factory owners are often , unscrupulous, law enforcement is weak, and minimum wages (where applied) are | ——_ incommensurate with the standard of living. Like the Gap, some retailers have issued company codes of conduct to their offshore contractors and may send company representatives on occasional inspection tours. Until recently, they have felt secure enough to leave it there. In 1995, however, the Gap was made to confront the extent of human rights violations in a Salvadoran sweatshop where Gap merchandise was produced, and every other retailer felt the shock waves. In January 1995, NLC met a group of teenagers employed at Mandarin International, a factory in the San Marcos free enterprise zone of El Salvador. They were sewing garments for

the Gap, Liz Claiborne, J. C. Penney, Eddie Bauer, and J. Crew. At 56 cents an hour,’ they

ho sweat ip os = ee, a ee |

oA Magee

Honduras, 1995: Charles Kernaghan ; oe = (back row, center) and Barbara Briggs oe te with fourteen-year-old Orion worker, a

Lesly Rodriquez, and her mother. | ‘ worked eighteen hours a day, when orders from the U.S were heavy. They had to get a ticket to

go to the bathroom and were punished if they stayed too long. Under these conditions, the Mandarin workers were trying to organize a union. Management was retaliating swiftly.

Already many of the union activists had been fired. NLC recognized an opportunity to |

| dramatize the plight of these teenage workers by targeting the Gap, whose fortunes depended so heavily on American teenage consumers.

Briggs, Kernaghan, and NLC research associate David Cook discussed ideas for a | campaign against the Gap with Reverend David Dyson, the pastor of Lafayette Avenue | Church in Brooklyn. A trade unionist of long standing, Dyson had been an aide to Cesar Chavez of the United Farm Workers. Later, at the Amalgamated Clothing and Textile Workers’ Union, he had developed support campaigns for major organizing drives, including those at Farrah Pants and J. P. Stevens. One of NLC’s closest advisers, Dyson helped to bring a cadre of religious activists into the Gap campaign. In February, NLC issued an alert to its network of supporters, asking them to write letters

of protest to the Salvadoran labor ministry. One NLC bulletin followed another, as mass lockouts, firings, and physical violence continued.* By June, 200 were fired, and NLC decided to bring workers to the U.S. for a speaking tour. Their first stop was the founding convention of UNITE (Union of Needletrades, Industrial, and Textile Employees).? For the next sixty days, teenagers Judith Viera and Claudia Molina traveled from city to city, talking to local advocacy organizations, business and professional groups, students and journalists. UNITE members in Dallas, San Francisco, and New York turned out to support them at rallies in front of Gap offices and stores. American youth, in particular, responded with enthusiasm and, according to former

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An Appeal to Walt Disney

Model Letter for the Walt Disney Company 141 Date Michael Eisner, CEO Walt Disney Company 500 South Buena Vista Street Burbank, CA 91521 Dear Mr. Eisner:

We support Walt Disney’s decision to produce in Haiti. The Haitian people need jobs. However, we hope that the high level of unemployment and poverty is not used to exploit the workers.

Walt Disney Company has licensing agreements with two U.S. companies—L.V. Myles and H.H. Cutler—who in turn contract with several companies in Haiti to produce Mickey

Mouse and Pocahontas pajamas. Three of these companies—Quality Garments, National Sewing Contractors, and N.S. Mart Manufacturing—are openly violating Haiti’s wage laws, paying their employees as little as 12 cents per hour. We ask the Walt Disney Company to sign the attached pledge to respect Haiti's wage and benefit laws.

We also ask that you translate Walt Disney Company’s corporate code of conduct into Creole, to post it in your contractors’ plants, and distribute it to the workers. We ask you to agree that independent human rights observers will have access to your contractors’ plants to monitor compliance with your stated human rights concerns. Also, we know that Haitian women are being paid 7 cents for each pair of $11.97 Disney pajamas they make. This seems

unjust—even criminal—to us. Is there any reason Walt Disney cannot work with your contractors to double, triple, or even quadruple the wages these women are being paid in Haiti? If you were to quadruple the wage, the women would still be earning 28 cents for every pair of $11.97 Disney pajamas they produced. Disney and the other companies involved would

no sweat

112 still keep $11.69—or 98 percent of the sales price. Couldn’t the Walt Disney Company afford this? Wouldn’t the $11.69 provide plenty of room for an adequate profit? Lastly, can you explain to us how the U.S. people can trade with Haitian people earning

30 cents an hour? Of course, it is impossible. What do the U.S. people gain when U.S. companies pay such starvation wages in Haiti? Without fair social standards in international trade—linked to sustainable wages and human rights protections—the North American people cannot prosper, as we will be forced to compete for jobs in a race to the bottom over who will accept the lowest wages and the most miserable working conditions. As we are sure Walt Disney Company stands by its human rights principles and has nothing to hide, we look forward to your company’s promptly signing the attached Pledge. We await your response. Thank you. Sincerely,

Attachment: Pledge Walt Disney Company: Please Sign the Pledge We Pledge We, Walt Disney Company, pledge to immediately comply with all Haitian labor lawscovering all employees producing goods for our company, especially:

@ To pay at least the legal minimum wage of 30 cents an hour, including proper overtime rates; @ To pay all legal benefits, such as health, pension, sick days, and 7th day bonus pay;

@ To end sexual harassment; , @ To respect the workers’ right to organize and the right to a collective contract; @ To improve working conditions and to cease arbitrary and unfair production speedups; @ To translate our code of conduct into Creole, post it in our contractors’ plants, and distribute it to all employees; and @ To allow independent human rights observers to monitor our contractors’ compliance with our corporate code of conduct.

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There’s a saying among girls in the slums of Bangladesh: If you’re lucky, you'll be a prostitute— 113 if you’re unlucky, you'll be a garment worker. Pinky was both lucky and unlucky. She was sold into a brothel when she was eleven. At thirteen, she was living at a shelter for victimized women and girls in the capital city of Dhaka and working at Expo World-Wide Garments. Undernourished since birth, then fed according to

the nutritional standards of a pimp, the bird-boned girl stood on her feet for up to fourteen hours a day, six to seven days a week, for the equivalent of $12.50 a month. The foreman came on to her all the time. No doubt he could sniff out her background.

But that wouldn't have made a difference. No, not for a pretty one like that in a garment factory. Just threaten to fire them and they’re yours. A girl in the labor force means she’s unprotected: either her family has abandoned her, or the family men are too poor and desperate themselves to make trouble.

There are at least 10,000 children, many far younger than Pinky, working in the Bangladeshi garment industry, according to a survey done by an International Labor Organization inspection team. Pinky was, indeed, lucky to be under the protection of the Bangladesh National Women Lawyers Association (BNWLA), where | met her in 1994. This gave her the courage not only to talk about the foreman’s sexual advances, but actually reject them. Should it be necessary to set him straight, Salma Ali, director of the organization, would storm into the factory with her lawyer's briefcase and a temper as hot as the color of her sari. She had leveled her guns several times before, when Pinky’s salary was overdue. Village girls and women are easy to cheat. They have no concept of what an hour is; a workday is from sunrise to sunset. And the hand is quicker than the eye when the paymaster deals out their salary in cash—no check, no records of anything. His skim is business as usual. Pinky dreamed of “marrying a good man and raising a good, secure family,” which | took to mean financially immune to a daughter’s slipping into the hands of a brothel dealer. Her friend Shafia, another garment girl, dreamed not of marriage but of “being independent.” Perhaps the rickety girl was simply being realistic. A penniless girl turned out by her family could only win a decent groom with her beauty. As if following my thoughts, she pointed at her feet. “Look,” she said, “from standing all day at the factory.”

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Whatever early malnutrition had started doing to her chances of marriage, the garment

trade had finished off. The mind cannot register, in the first few seconds, that these appendages are attached to a creature that walks upright on the ground. They have flattened and spread out to such a degree they seem more suited to one that propels itself in water. Like fins. Like flounders, but curved in toward each other: bottom fish that got trapped, and grew, inside a kidney-shaped pan. The mind tries to grab hold of something more noble, something scientific, perhaps, to explain why a child, a child who is now admiring her new plastic bangles — and smoothing the hem of her best dress, has been cursed with feet like that on which to toil. Compensation: now that’s a scientific word. The bones of her feet were too weak to support the weight of the body, so they accommodated the floor. A voice breaks in. Shafia is saying something. “,..to be single, but with a good job, not a garment factory.” Salma Ali’s keys are © jangling as loud as a landlady’s in a Bengali film. She’s waiting for me in the hallway. She is taking me to meet three children who have just arrived.

There’s something wrong right away when Salma Ali opens the door. Not the room , itself, which is no more spartan and monsoon-stained than any room in South Asia. What's wrong is that it’s so quiet. Three children have been shut into a room together and have not become a hundred monkeys. They are sitting still in a way that suggests they haven’t budged or talked for hours. Certainly not the girl sitting on the edge of the bed, wrapped up like a cocoon in this heat, whose face | can see only by peeling back the woolen blanket. She looks

The Myth of Nimble Fingers

about twelve or thirteen. Her eyes are glazed over. “She is mourning her family and her village. 115 She will never see them again because she brought shame upon them,” Salma Ali said, rolling her eyes—“bringing shame” meant some man forced his way inside her. “Even when parents of girls like these are willing to take them back, the village won’t. They will chase her out, throw rocks.” She, too, will eventually find work in a garment factory. | hold out a piece of bubblegum to the boy. He looks slowly at my face, at my hand. He is extremely confused. Perhaps the seven-year-old thinks | am buying him from Salma Ali. | stroke open his clenched hand, put the gum on his palm, and stand back. Very slow, his jaw drops open, and his tongue slips out when he finally realizes that he has been given something. My own understanding took a little longer. | was going on the premise that the boy, like any kid, would anticipate a gift for himself when a grown-up is giving out treats in the room. But it’s obvious now: He did not even have the sense of self to think that. This child, too, will wind up in the labor force. The thin, leggy girl sitting on the floor in the corner is certainly filled with anticipation, holding out both wrists for the perfume | brought along. She certainly knows about perfume, this lively one. After | dab her wrists, she turns her neck to expose one ear. Then the other. But what is it about her motions? They are stiff, jerky. And why is she still sticking out her wrists? The reason hits home. God, the assumptions we make! That even a five-year-old knows how to put on perfume like mommy. Or that a girl sold as cheaply as this could afford to buy perfume for herself. All along, she’d been observing me anoint the girl in the stupor and is just imitating her movements. She smiles when | put her wrists to her nose, and looks up at me for approval. When | stroke her hair, she presses her head against my legs and holds my hand. | think of Shafia, motherless, then rejected by her stepmother. Stabbed in the biceps by her father and left in the river. Some fishermen found her. From the hands of her father to fishermen to the police, to BNWLA to the hands of a factory foreman. From this little dormitory room, her future does not

look much better than her past. The place starts feeling like a cross between a home for battered children and a nightmare employment agency: Girlpower, Inc. Yes, this is the labor pool from which garment manufacturers recruit.

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116 One prays that these girls will find their way into the Bangladesh Independent Garment Workers Union, whose founding convention | had attended a week earlier. A thousand seamstresses had stood on line for hours despite two bomb explosions, compliments of industry thugs, earlier in the day, and filed into an enormous tent to ratify their constitution and elect their officers. The temperature inside was hardly kinder than the Bengali sun. The women of

BIGU are among approximately one million garment workers laboring in Bangladeshi sweatshops, or under grueling conditions in the “formal sector”: big factories represented by government-controlled unions that are hardly democratic and do not have workers’ interests at heart. These BIGU women, largely illiterate, whose self-assertion is frowned upon by their own

community let alone their employers, who have withstood brutal beatings, arson, sexual attacks, and sadistic intimidation, had finally launched their own, independent union.

To those of us in countries where we return from rallies in one piece, unionists in countries like Bangladesh are heroic. On November 22, 1995, the BIGU office was attacked by

over twenty well-dressed men armed with pipe bombs, guns, and Molotov cocktails. The goons announced they were there “to stop the union’s work.” They poured gasoline on staff lawyer Fawzia Karim Feroze and throughout her office. Fortunately, the match landed in another room. They beat people up to the degree that several had to be hospitalized. Windows were smashed, files destroyed, shots fired into the air, a bullet promised to anyone who dared speak. It is not only these activists, who must face attacks like this from time to time, who seem to be made of stronger stuff. So, too, do the regular workers—members of BIGU, active or not,

the unorganized and the child laborers—for whom simply waking up in the morning and facing the workday is an act of courage. At UNITE’s founding convention in June 1995, firsttime delegates as well as longtime activists reached into their pockets and raised $5,000 to help build a school for liberated carpet children in a faraway Pakistani village. They had just heard about the Iqbal Masih Project, launched by elementary school children in Massachusetts, to carry out the dream of a twelve-year-old former carpet boy and activist, murdered that year.

Union members and other consumers have also been supporting the Rugmark Campaign, run by the Child Labor Coalition in Washington, D.C., initiated by the South Asian Coalition on Child Servitude in New Delhi. While SACCS director Kailash Satyarthi continues to

The Myth of Nimble Fingers

free children sold into India’s carpet-weaving industry, Rugmark activists in the U.S. continue to 117 boycott carpets made by such children. The alternative offered to consumers is to buy carpets from factories approved by the fledgling Rugmark inspection team. Oriental rugs with the new, child-free label are already on the market. The Rugmark Campaign also lobbies for the Harkin Bill, which would ban goods made by children from entering the U.S. market, and has many enemies in Congress.

Such elaborate, hand-knotted carpets, with or without the child-free label, are too expensive for the average person to buy. But that has not stopped even low-wage earners from

supporting a campaign that seeks to eradicate child labor. Nor is there a handmade rug industry in the U.S. in which workers could lose out to overseas competition. The reasons why this fight is the human thing to do are not very complicated, after all. One reason can be found in Iqbal Masih’s death. The small twelve-year-old boy, bent over the loom since age four, won his freedom through the Bonded Labour Liberation Front of Lahore, Pakistan. He had since learned how to read and write, freed hundreds of other children, spoken at government hearings in Europe and America, won the Reebok Youth Action Award, and received a standing offer for a scholarship from Brandeis University. He planned to become a lawyer much like Ehsan Ullah Khan, the man who heads BLLF and freed him. On Easter Sunday in 1995, during a visit with his mother in their village of Muridke, thirteen bullets from a sawed-off shotgun were fired into Iqbal’s stomach, chest, and head, while riding his bicycle. “| used to be afraid of the master,” Iqbal was fond of saying at rallies. “Now the master is afraid of me.”

Other reasons can be found seared on the bodies of glass-factory boys, branded for life from working without gloves, goggles, shoes, or even long trousers. Or in the lungs and eyes of the tannery children. In the stunted growth and hunched-up posture of the loom children. In

the erect, graceful posture of toddlers—balancing baskets of rocks on their heads in the quarries. In a saying among girls in Bangladesh. In the shape of Shafia’s feet, or in the workroughened, enlarged, laborer’s hands that dangle incongruously from the arms of the carpet children—hands crisscrossed with ugly, permanent scars, often as gnarled as an old arthritic’s. It is a myth that small children are employed because of their “nimble fingers.” Anyone who remembers idolizing their first-grade teacher because she knew how to use scissors can

118 Aa

Iqbal Masih, Pakistani Child Activist. figure that out. In fact, children are used only in the production of low-end rugs, meaning less

, than 250 knots, usually single, per square inch: “The more expensive carpets are made by adults because of the strength it takes to press down a high number of double knots,” said a Pakistani rug dealer who asked to remain anonymous. He has seen hundreds of children in the cheaper rug loom houses. These children cut themselves with shears all the time, and are rubbed raw by taut woolen yarn. When they bleed, matchstick powder is poured into the open wounds and lit, often by the master himself. Contrary to the legitimizing myth that they are prized for their deft hands, children are hired because they are the most exploitable work force in the world. Adults can organize, oxen can kick, and donkeys balk. If children resist in the mildest way, they are physically punished. | know of one situation in which a boy was beaten for the offense of crying for his mother. Iqbal used to talk about the beatings, about being chained to his loom and, on several occasions, being hung upside down by the feet for the entire day. Nor are the fingers of Asian children any more agile than the fingers of other children. The often heard statement, “but things are different over there,” as if certain workers have a special capacity for suffering, is just another rationalization for child labor, promoted by businessmen. Yet another is that child labor is a result of poverty, and until nations develop economically, it is just an unfortunate fact of life. People like Kailash Satyarthi of SACCS in India,

and Ehsan Ullah Khan of Pakistan’s BLLF, see it differently, arguing that child labor is a cause, not an effect, of poverty. For every child working, who earns a third or less than the market wage, one or more adults are unemployed.

The Myth of Nimble Fingers

As horrific as it is for children to be robbed of their childhood and health, what happens 119 to their minds is worse. Satyarthi once liberated a twenty-year-old man bonded since early childhood who “did not know what money was, or even the name of the country he lives in.” . If this is the generation to participate in a nation’s economic advancement, what are the real chances of leaving child labor behind? Satyarthi and Khan have seen countless numbers of enslaved adults and children like this young man. | will never forget the day | saw the face of a slave for the first time. There was not

even sorrow in his eyes. They seem dead, their limbs animated by an unearthly force. , Both Satyarthi and Khan have been midwife to the miracle of such faces becoming human again. Bonded children and adults have won their freedom solely through labor groups like theirs. Without their organizing campaigns, the nations of South Asia would not advance, either economically or in the field of human rights. Not until those governments enforce the laws against the ingrained practices of peshgi, or generational debt, and the dowry. Asian labor coalitions cannot afford to wait. How many decades will that take? Especially in countries like Pakistan, where even Prime Minister Benazir Bhutto employs children on her estate? Although “Benazir does say hello,” according to one little boy interviewed on video by BLLF, “she does not know my name or ask if | go to school.” Peshgi is the curse of entire families in South Asia. Most bonded children throughout the world are handed over to their employers as a means to pay off longstanding family debts, by

parents who are desperately poor, illiterate, and often indentured themselves. “Often the parents do not even know which ancestor owed money, to whom it was originally owed, or that person’s relation to the current master,” Satyarthi says. He adds that the masters sell them

off to other masters, which contributes to the confusion. The new or extended loan that parents get in exchange for their child multiplies rapidly by trumped-up fees, such as the cost of mistakes made by unpracticed hands. On top of that are usurious interest rates. So the loan

is virtually impossible to pay off and passes to the next generation. The master takes his payment in hours. This is why the twenty-year-old man, bonded since childhood, did not know what money was. Marrying off a daughter is a major reason for a family to borrow money. Not only must the bride’s parents pay for the wedding, they must pay a dowry, in the form of cash or goods,

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120 to the groom’s family. A daughter signifies money leaving the family, a son means money coming in. For poor families, the dowry is a stranglehold. This is why thousands of girls are turned out, like Shafia, and wind up in garment factories. Compared with the life of children enslaved by peshgi, the garment girls in Bangladesh don’t seem to have it so bad. Many of them over the legal working age of fourteen are being organized by BIGU, and younger ones are released into schools established for them by the union. At least they get wages and are not isolated from society. And because they make products for North American and European export, the powers of publicity and boycott are on their side. Those who are not producing goods for export are invisible. They, and often their whole families, making bricks or matches or Asian garments or tilling the fields, are kept hidden from public view. How can slaves who are the children of slaves, and surrounded by slaves, even conceptualize freedom? Labor coalitions like BLLF and SACCS are showing them the way out of hell.

When you enter the wrought iron gates of Mukti Ashram outside of New Delhi—the small, Gandhian oasis Satyarthi created for children rescued from bonded labor—you notice tame little rabbits darting around the well-laid gardens. They are, actually, rather necessary staft members. When children first arrive, they are afraid to be touched by adults. Hence the bunnysurrogates, which they love to hold. Bonded children are terrified after they are freed from slavery. | watched a videotape of one factory raid, when Satyarthi found dozens of children hidden high up in the trees by their master. These masters threaten to shoot them and their families if they run away. One boy Satyarthi rescued pretended not to know his own father when the man went to release him. No matter how often Satyarthi tells these children they are being taken to freedom, they don’t believe it. A man putting himself to all that trouble could only be a new master. At Mukti Ashram, the children get medical and nutritional attention. All castes must eat, wash, and live together. They are taught self-sufficient labor skills. In pleasant wooden sheds surrounding the main garden and the gazebolike Hindu shrine, children were in workshops learning carpentry, cobbling, electrical wiring, and other trades. This is to help them from slipping right back into bondage or into factories after returning to their villages. They also get an education. Both native and international labor coalitions know that it is not enough to

The Myth of Nimble Fingers

simply free children from labor. They may wind up on the street in even worse situations, 121 selling drugs or their bodies. Education is the single most important way to break the cycle.

Iqbal Masih’s murder, which BLLF believes was carried out by order of the carpet manufacturers, has never been solved. International statements by Bhutto’s government on the subject proved to be a joke. The “culprit,” they announced, had been taken into custody: he had found Iqbal sodomizing a donkey and had shot him out of moral outrage. Then the story changed. The man himself was sodomizing the donkey, was discovered by Iqbal, and shot him. “Pakistanis had a good laugh when those stories came on the news,” said a friend of mine in Lahore. “Even we didn’t believe them.”

So new accusations abounded. Iqbal was not a stunted carpet child, but a dwarf dressed

up as one, paraded around by Khan to enrich himself with foreign contributions to his cause. Then, jealous of Iqbal’s international fame, and wanting to get his hands on the $15,000 Reebok award, Khan murdered his Frankenstein and took off for Sweden. | cannot imagine the exiled man’s desolation when learning he was accused of Iqbal’s murder. The only consolation in Iqbal Masih’s death is that it galvanized the movement against child labor. Since his murder, Pakistani rug imports to North America and Europe have dropped by more than $10 million. There are now preliminary meetings and a growing interest in the Rugmark label in that country. Still, the forces against these children are overwhelming. So is

their number: at least 200 million worldwide—most of whom will not be reached in our lifetime. But the people fighting for these children carry on. People like Sister Rosaline Costa, a

Bangladeshi human rights activist working with BIGU, who must travel with bodyguards. Pictures of the former nun were plastered all over Dhaka with the word “whore” printed boldly beneath. Or her colleague Father Timm, also part of the labor movement. A tall, energetic, handsome man in his seventies with sandaled feet as tough as any native’s, who speaks fluent

Bengali and “stopped peddling Christianity years ago,” he was denied overseas travel for desperately needed eye surgery. “The government is happy to let me out, but not back in,” he said, clapping his helmet on his head and starting up his motorbike. It took years of pressure from international labor groups to guarantee a round-trip for Father Timm. There are people like Craig Kielburger of Canada who, at age twelve, read a newspaper article about Iqbal Masih’s death in 1995, began researching child labor, and founded Free the

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as , (oo Craig Kielburger, Canadian Child Activist. Children. A year later, he was able to travel through South Asia on a fact-finding mission. Canadian prime minister Jean Chretien happened to be there at the same time, promoting free trade. Kielburger met with Chretien for fifteen minutes and got child exploitation put on the official agenda of the trade discussions. He spoke so movingly before the Ontario Federation of Labor, that delegates, among them UNITE workers, raised $150,000 for his organization, which he operates out of the den in

his parents’ house. It has since grown and become international. Kielburger convinced Toronto’s officials to ban fireworks made by children, appeared on CBS’ “60 Minutes,” and went to Washington to tell Congress about the horrors of bonded child workers. The Canadian government has pledged $700,000 for the International Labor Organization’s campaign against child labor and is funding a study on independent monitoring of factories which would bolster the Rugmark Campaign. In a speech at the Canadian labor convention, he quoted then foreign minister Andre Ouellet’s remark that “Canadians can’t be Boy Scouts” about the world’s human rights abuses. “Well, I’m a Boy Scout,” Kielburger said, “and this just means we the children will have to work all the harder to end exploitation of Third World children.” Like all of those in the movement against child labor, Kielburger will not wait for government leaders to see the light. “Because childhood does not wait,” says Satyarthi.

_

rat-catching: an interview with Bud Konheim Sally Singer Nicole Miller, Inc., a manufacturer of women’s apparel with a $100 million turnover and an 123 annual growth of 20 percent, is one company that emerged with special credit from the Kathie Lee Gifford scandal. Founded in 1982 by Nicole Miller, a carrot-topped designer with a special talent for cocktail dresses, and Bud Konheim, a feisty businessman from a garment-making dynasty, it is the company put forward by UNITE as the model for how to run a clean, no-sweat operation. What has set Nicole Miller, Inc. apart from its neighbors on Seventh Avenue is that

its line of women’s wear—brightly colored, fashionable sportswear and slinky evening dresses—is produced entirely in New York and not in some distant corner of the globe. It is also an all-union operation, from the CEO, Konheim, to the pressers. Its own employees (as distinct

from the contract labor in the factories) receive an exemplary package: free education, transport vouchers, free cooked lunches, and generous maternity leave. Konheim’s business philosophy, in which employees are treated as members of an extended family and productivity is linked to worker contentment, has old-fashioned noblesse oblige origins. Raised in a twenty-three-room house run by a mother who breakfasted only in

bed, Konheim observed his parents’ respectful treatment of domestic staff and company employees and learned the social and commercial benefits that flowed from this. He also gratefully acknowledges the debt he owes to the English designer Jeff Banks, from whom he borrowed many of his management strategies. The success of Nicole Miller, Inc., however, is not solely the result of this homespun, family-firm approach. The name has been licensed—for leather goods, accessories, and such novelty items as the Nicole Miller Barbie—and these goods are primarily produced in Hong Kong and China. Currently, the licensees account for 40 percent of the annual turnover. The company, then, is not exempt from the commercial pressures and aspirations that affect others in the industry. Nevertheless, Konheim became a pivotal figure in the U.S. Department of Labor’s

campaign to publicize and eliminate abusive labor practices. At the “fashion summits” organized by Labor Secretary Robert Reich in the wake of the Kathie Lee revelations, Konheim argued forcefully that industry self-regulation is essential to eradicating sweatshops in the U.S. Occupying the ground between the mass producers (the “major perps,” as he calls them) and the antisweatshop activists, he has criticized both for failing to realistically address what he

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124 considers to be the essentially soluble problem of unethical production in the U.S. In his view, the perps are involved in a destructive, blinkered price war, while the activists are preoccupied with mounting a misdirected and overambitious global campaign. What Konheim argues for is

nothing less than ethical capitalism, whereby the gratification of consumer needs, the fair treatment of the work force, and the satisfaction of stockholders go hand in hand. At once hardheaded and idealistic, his vision merits close inspection. In the fall of 1986, | interviewed Konheim at his offices on Seventh Avenue. He is outspoken and unpious, prone

to offering—and yet suspicious of—anecdotal evidence to back up his opinions. What | discovered was a man wedded to business and to his social conscience, who is attempting to ally these uneasy partners.

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| know that you worked with Nicole Miller on another garment line ae! / \ | j \ | ; De

in the 1970s for which production was based abroad. When you el | iV | iwsac/) id founded Nicole Miller, Inc. in 1982, why did you choose to return ‘iy 2.

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.o ud konheim — . . 4 A) [ j \ | \] | | i | begin with, Nicole and | were the first people to seriously 1, Ut | \ { ty | \(! a manufacture in the Orient in the early 1970s. In the beginning, "| \ ca \ ky alia of course, there was a price incentive to go to the Far East, A ‘ \ | aN \ AN \ \\\

and the expertise and quality were good. However, as time ° N ; - | i } | 4 \ went on, prices went up. There was nothing unusual about r \ \ | Me \ | \ NN | | that—it happened here too. But prices continued to go up, //V iie “ye \\ iA IN}

freight went up, and suddenly we were looking at costs that 4 ( if, { ( i HM i ny uf | were not dramatically different from what we could do in the i "if V7 Aly \ | | \I: hn; | Ve | er

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Ui alia new york los angeles ss That was why, in 1982, you returned to New York? ee ee bk No, that was not the clincher. We moved back because of a bunch of dramatic changes. Here’s what happened. Everybody was going to the Orient and projecting long deliveries—three months, six months—because that is what you have to do when you're that far away from your factories. And everybody was overprojecting their quantities, because you cannot just go back and get more. The result was that the marketplace became saturated with product, and the extra product that landed had to go somewhere. It was

dumped on jobbers who quickly sold it into discount stores— |

Loehmann’s, T. J. Maxx, you name it. And that started a round-robin of phony business. The department stores were not blind, and they demanded a rebate so that they could mark down the merchandise to keep the customers happy. So we gave the rebate. What happened next was unprecedented in the industry: everybody anticipated that the stores would ask for a rebate, and to hedge against this, the manufacturers started raising their prices, which put the merchandise further out of reach of price-conscious consumers. We decided that the way to sell merchandise is either by design or by winning the pricing competition—a competition we did not want to be in since we are not interested in selling

no sweat

— designed merchandise cannot be made where you have to

| Cl right across the street from the office. It worked. Since we

|, ee customer. What happened over time was that stores realized

| | Weg | buying it in without feeling pressured to put it on sale within

” ee was our story, and it became very, very efficient to work across

7.ali |$sZi Does the consumer benef rom any ofthis | aa bk Of course. Our retail prices actually end up lower than those

| . a manufacturers are now scurrying around to countries you — control is proportionate to how close the manufacturing is to o oo ee | : production person is at the factory in one minute. ss So American workers do not make goods of better quality. It is just aoe:hea :their proximity to the designer.

| , bk | am new in the business. | have only been in this for forty-one years. In my lifetime | have manufactured products from

a Irkutsk to Israel, and | can tell you that the workers of

. oS Scranton, Pennsylvania, or of Latin America are only as good

a oe ee his descendant in New York. This is the greatest myth in

ee the world.

Rat-Catching

cre .

ee ss How do you organize your work force? oo. UO bk We have seventy-five employees, but our labor is all contract

bass os pl labor, and all union. We believe that labor price is not 127

i, important. The downside of the business is not the cost of sd labor, or even the initial cost of the fabric: the downside is —_—_ missing delivery dates or making bad merchandise that people wa | want to take back. We work routinely in about ten factories, j ~ a and have about 450 people working there. Every factory is in

j New York, within two blocks of each other.

| ss But Nicole Miller products—the bags and umbrellas, for

| example—are made in other countries. How can you ensure

| ° & that there is no unethical production when you are producing

! | subcontracted? ! . bk You cannot. Across the street | can guarantee our product is in China and Hong Kong? How do you know it is not being

- = | , not made in a sweatshop. Now let us take Yung Sin province,

| a 4 city which none of us have heard of. If you are manufacturing in

Yung Sin and have got a worker in chains at four o’clock in the

| | , morning and are putting amphetamines under his nose to || || |by wake up, can to be made thathim worker? It isyou notexpect going atobeautiful happen. design Good products are , oF made by good people with good materials. Our guarantee is | | that we have the best factory in whatever country in which po _. our licensees operate because we want the best product.

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o_ £- ss But is the quality of a garment a satisfactory indicator of the labor

™_ ,4 conditions in which it was made? Why not send an inspector to Yung Sin?

bk It is not productive to send an inspector on a human rights mission through Yung Sin province, south of Wang Nan, east of Win Chu, to see whether there are any abuses going on on the day he arrives. By the time he gets to Wang Nan, someone will know that some honky from America is headed for Yung

Sin, east of Win Chu. The moment the guy gets off the train in

Yung Sin, the whole town is abuzz. “Where is this guy going? I’ve never seen a guy like this, he’s headed for the factory.” So he walks into the factory, and everything is wonderful. He goes back with a report, “Everything is wonderful at that factory.” As soon as he’s gone, the girls go back in chains.

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128

SS Could you define what a sweatshop is, or what you consider a sweatshop to be, both in the States and abroad, if you think there is a distinction?

: bk | know what a sweatshop is in the U.S. A sweatshop goes into business when you ask your main contractor to make a thousand dresses by Friday. Although he is too busy, he takes the work and subcontracts it to a factory that has nothing to do. Why is this factory not busy? Because it is a sweatshop. It is not a sweatshop because it has low labor costs or abuses immigrant workers, but because it makes bad things. By the time the goods come back, the seams are wrong, the fit is not quite right—either that, or | never get the garments because the operation has been closed down for unpaid taxes or violations of fire regulations. | lose out.

ss And what does a sweatshop abroad look like?

bk | have been to factories all over the Pacific Rim—Korea, Japan, Hong Kong, Szechwan, Singapore. | have seen workers in all kinds of situations but have never seen what | would call hazardous or abusive conditions. But the issue is complicated. Take child labor. Child labor is child labor: it is disgusting. |

ia — went to Morocco and saw seven-year-olds working in the j a kilim factories. In Morocco, that is not against the law, that is a = fine for them. | found it disturbing and could not buy a kilim.

—_— .s /. However, nobody in Morocco is picketing the streets about ‘ ny @ their daughters working in a rug factory. It is not slavery and ¥--—lUlr the families have donated the girls to do this kind of work.

: Little boys working in leather-dyeing are running around in |,yy tanning acid; it cannot be good for them, but this is what they Ei - a do. So am | going to rewrite the social conduct of Morocco? It

a _. | _ on the States, where at least there seems to be some measure of

a i agreement about what a sweatshop is?

4 _ | _ bk Absolutely. The U.S. has the laws. We have the Standard a | _ Minimum Wage Act, which is a piece of federal legislation. Fair

; - al _ labor is an issue of national morality.

~~. ewer = =©——— bkReich is involved in enforcing the Fair Labor Standards Act

a lfc )lU of 1938, and in accordance with that act he is labeling “hot 129

££ a ‘al (CO € ot Ne Z a a . goods” and busting high-profile manufacturers like Kathie Lee

a rll Gifford, Kathy Ireland, Guess Jeans, and the Gap, who were

: 8 28 2 pee & be. 22g : a. a ee aed producing in illegal shops. Of course, every one of those

a eee lll manufacturers has professed ignorance that their stuff was — Be gg being made in sweatshop conditions. It is probably true—they

a) hr probably never gave it a thought. After the busts, though, hcl eee Ve people are thinking. Now everybody sends out denials: “This 0 cannot be. This is not corporate policy.” Everyone wants to be ae “=e perceived as clean in the States. Reich is responsible: he

OO alerted everyone to the issue.

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New York: Defending the Union Contract

with the union’s previously extensive control over the flow of work battered by decades of 175 global and domestic nonunion competition, the number of contractors covered by agreements with the largest New York UNITE local has increased in the 1990s, as the amount of available work from union manufacturers has fallen off.* In economic terms, the “excess supply” of labor leads to reduced wages. In fact, loss of union power has resulted in “excess competition,” a concept unknown to economists but familiar to garment workers and to many other stressedout or downsized Americans. “We were very united” in earlier days, Mei Lin explains. “If we didn’t like the piece rate,

anyone could shut off their machine and call on everyone else to shut down. We would go shopping, or do anything else until the contractor set a fair rate.” This Norma Rae scenario is less common today. While Chinatown garment workers still join the union for the family health benefits (most husbands work in nonunion restaurants, shops, and other small businesses), as well as immigration, education, and child-care programs, they are sometimes too discouraged to raise objections to unfair wages. “My boss tells us the rate before we start to work,” says Mei Lin, “but in some shops you don’t know the rate until you see your pay.” From the perspective of new UNITE member Rosa Hernandez, a Dominican immigrant employed since 1992 by Corona Fashions’ in Queens, the union glass is at least half full today. Until her factory was organized by the union in 1994, it was a sweatshop by any definition. The union contract brought with it many important changes—better pay, benefits, more work— and the growth of social communication and a decline in fear. “We're like a family here now,” she says. “The boss is a good person, too.” When Corona owner Jose Ramos first opened his factory in a two-family home in a residential area of Queens around 1990 (locating the pressing department in the garage), relationships were less friendly. Ramos paid no benefits, no holidays, no vacation, and all payments were in cash on a straight piecework basis—that is, when a sewer’s piecework tickets totaled three dollars an hour, that’s how she was paid. There were no taxes, no books. Given the inefficiency of the shop and prevailing market conditions, he would have had difficulty paying much more, while still supporting his own eight children from the labor of twenty-five marginally skilled employees. Like most of his workers, Ramos was an immigrant from the Dominican Republic. At $300 to $400 apiece for ancient Singer single-needle machines,

no sweat

176 $1,000 apiece for used multithread overlock machines, $10,000 for a boiler, and a few thousand dollars for electrical wiring, he was in business for $30,000. Ramos built his factory just ten minutes’ walk from the Mets’ home at Shea Stadium,

and the workers came. With real unemployment in the city at 12 to 15 percent, and unemployment for high school dropouts at 25 to 30 percent,* working-class immigrant women, including some (by no means all) without a green card, have no better option. When a unionized manufacturer on Long Island became Corona’s principal source of

work, UNITE Local 155 manager Joe Lombardo applied a contract provision requiring placement of union work with union contractors and, with some persuasion, Corona and one other contractor came into the union. The next step necessarily included improving the small firm’s performance to the point where Ramos could afford to stay in business.

Lombardo turned to professional staff at the union-initiated Garment Industry Development Corporation (GIDC) to play midwife. Shimmy Cohen, an immigrant from Israel with a degree in textile engineering and an MBA from Philadelphia College of Textiles, spent days tutoring Ramos on the basics of work-flow management, product costing, overhead cost

control—and business law. Ana Perez, former garment worker and supervisor, set about training the operators in better sewing methods that led to greater output—and piece-rate earnings—for the same effort. (“She found a way to help them sew easier, faster, and with quality,” says Ramos.) Antiquated machines were upgraded with specialized attachments. An experienced production manager, recommended by Perez, briefly took over sewing supervision.

Annual wage increases, health insurance, vacations, and holidays were instituted. Equally important to many of the workers, improved performance led to more work from the manufacturer, in spite of higher labor rates. With steady, year-round work (not always available in the garment industry), annual earnings took a turn for the better.

A decline in fear and the development of labor unity were also part of the union package. The new supervisor, recommended and trained by GIDC, was technically competent but deficient in “people skills,” and rubbed the newly unionized workers the wrong way. One day they stopped work altogether, until the supervisor went home, never to return. Corona employee Rosa Hernandez now earns $60 to $70 on a good day, significantly better than her previous rate. She has also found a reason for hope outside the workplace. Her

New York: Defending the Union Contract

daughter, in her first year at New York University, hopes to be a psychologist. A merit-based 177 NYU scholarship covers most of the cost—twice Rosa’s annual income—and a Local 155 scholarship pays for $1,000 in books and supplies. The American dream, along with harsh economic realities from the turn of the century, is still alive for her.

Does It Matter? While the horrors (real enough) of the sweatshop economy have recently begun to receive the attention they merit, the strengths of the legitimate apparel industry—indeed, its reason for existing at all in our developed “first world” economy—are not always perceived. Why, after thirty years of government-backed (ours as well as theirs) competition from every low-wage nation, has this most labor-intensive of all manufacturing industries survived? And would it matter if it disappeared?

One reason for the industry’s survival—there are still 800,000 apparel workers nationwide—is often unnoticed outside the industry. Labor costs account for a small part of the price that consumers pay for apparel. As the chart on “your clothing dollar” shows (fig. 1), raw

material costs (mainly fabric), manufacturing management overhead and profit, and retail markup all take more of the consumer’s dollar than garment workers and contractors. Thus, savings on transportation, inventory, reduced retail markdowns and stock-outs, and other factors can outweigh wage differentials and make domestic production competitive. For instance, strategies such as “quick response” to changing consumer taste focus on reducing nonlabor costs, such as costs for shipping and losses based on not having the right styles, colors, and sizes in the store when the consumer is ready to buy. Virtually all manufacturers, even heavy importers, maintain a share of domestic manufacturing in order to respond quickly to an unpredictable market. Why the industry matters to New York seems clear enough. The “value added” by New York's apparel industry—the difference between the cost of materials and the selling price— was last measured by the U.S. Bureau of the Census at $4.4 billion in 1992,° and presumably approaches $5 billion today. Eighty-four thousand workers are officially employed in 4,000

establishments within the five boroughs in apparel and knitwear manufacturing, with underground operations possibly bringing the total to 100,000 workers.° Apparel buyers,

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figure 1 figure 2 Where Your Clothing Dollar Goes NYC Share of US Employment; Consumer Dollar Shares/Domestic Apparel 1958-1992 ,

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182 numbering 125,000, make multiple trips to New York showrooms every year, leaving behind $100 million spent on hotels, restaurants, taxis, and entertainment. Names like Oscar de la Renta and Donna Karan, Calvin Klein and Anne Klein add luster and glamour to New York's cultural scene—and contractors like Good Luck and Corona Fashions provide jobs as they did one hundred years ago to tens of thousands of otherwise unemployable immigrants (more than one-fourth of the city’s population), some of whose children and grandchildren, like Colin Powell and Mayor Rudy Giuliani, reach the heights of American society. Major institutions of

higher learning, such as the Fashion Institute of Technology and Parsons College, are embedded in the industry, as are New York-based advertising, retailing, and labor unions. Indeed, the decline of apparel manufacturing in New York—from 350,000 jobs in the 1950s (fig. 2)—has paralleled the loss of power and prestige of the New York economy overall. The world’s tallest towers are now in Malaysia, and will soon be in Shanghai, built, no doubt, with income from our imported shirts and blouses. But although the apparel industry has shrunk in New York, it has not been fully displaced, still accounting for one-third of the city’s manufacturing base. Importantly, in spite of overall job loss, New York’s share of a key “fashion” niche, domestic women’s outerwear production, has stabilized and even grown slightly since the mid-1970s.’ What are the characteristics that have enabled this industry to survive in New York, while more technologically advanced industries, as well as apparel jobs in the more technically advanced and less unionized Southeast, have disappeared or fallen still further behind? Virtual Corporations, Corporate Irresponsibility Figure 3 portrays the manufacturing network maintained by a real New York women’s apparel

manufacturer doing about $15 million of business. In structure, it is typical of hundreds of other such businesses.°

At the core is a small company, the “jobber,” with only twenty to thirty direct employees, all earning a middle-class standard of living or better, and none engaged in the actual manufacture of apparel for the market. The pedigree of this player deserves mention. “Outsourcing” or “contracting out” of production functions began around 1915 in the New York garment industry as a way of avoiding the union and playing one legally “independent”

contractor (really a glorified labor foreman) against another to get the lowest possible price. A .

New York: Defending the Union Contract

commission named by then New York governor Al Smith described the origins of the 183 jobbing/outsourcing system as early as 1926: A decade ago the industry had risen out of the old sweatshop conditions in which much of

the actual work had been done in tenement-house homes. Manufacturing had become concentrated in large “inside” shops under employers who were directly responsible both for manufacturing and for marketing the product. Since that time, however, there has been a gradual displacement of inside manufacturers by so-called jobbers. This system has grown

up partly as a device to escape labor responsibilities and partly as an adaptation to the newer methods of retail buying.”

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UNITE members from New York t ti rt of Peerless workers in Cana a, .

New York: Defending the Union Contract

The New York Niche 189

While the typical New York City contractor is hardly at the cutting edge of technological innovation (even a typewriter and a bookkeeper would be steps ahead for Corona Fashions), the city has maintained an important market presence in fashion-driven apparel, particularly in

women’s dresses and sportswear. New York jobbers typically are on-line with their retail customers (at the retailer’s insistence), as well as occasionally with their suppliers and even contractors. But while apparel contractors and manufacturers in rural and small-city America have competed based on investment in new production technology and systems, including “flexible” manufacturing of relatively small batches with greater product variety, New York and other urban immigrant centers have found they can provide far greater flexibility, along with quick response to customer demand, by the old expedient of an excess supply of labor willing to work long hours when available and endure short time or joblessness when work is slow. The dress industry—the most uncertain market in the business—is New York’s specialty, with more than a quarter of all U.S.-made dresses produced in the city.'* (New York also specializes in rnore formal apparel than its major U.S. competitor, casual Los Angeles.) New York’s share of domestically produced dresses and women’s sportswear increased substantially

from 1975 to 1990, while declining in more predictable sectors. In addition to union avoidance, the inherent unpredictability of fashion—and the choice to relegate seasonal layoffs outside the corporate walls—has always been a prime motivator for contracting out. (Thus, the more stable and predictable men’s wear industry has until recently been built around “inside,” manufacturer-owned factories.) Many garment workers have come to accept forty, or even thirty weeks of work each year—or fifty to sixty hours of work in a busy week—as tolerably satisfactory. For the jaast sixty years, union women’s wear contracts have adapted to the instability of

the industry by making benefits portable from one union shop to another, and by issuing vacation and holiday payments from a multi-employer fund. Vacation checks can go out even if the original employer is no longer in business. While Chrysler can “retool” its Minivan factory once a year, and Levi Strauss can produce Dockers with minor variations year after year, Corona Fashion’s jobber must come up with

many new sty'es each season to stay in business. Corona typically completes work on one

no sweat

190 style—1,000 skirts and 1,000 matching shirt-jackets—each week. Similarly, in the Good Luck garment factory where Mei Lin is employed, three or four styles in a variety of fabrics and colors, for several different union jobbers, are all in process at the same time, with normal delivery in two to three weeks. Production lots are small, only a few dozen or a few hundred

tailored jackets apiece, instead of the thousands of similar garments out-of-business , manufacturer Evan Picone once provided. By the time the best method for sewing one style is mastered, the style is gone. Women in the shop joke about the difference between the “soy chop suey” (easy and good) work they used to have and the less tasty “pork bones” they work on today. Aside from sewing machines with electronic needle-positioners and undertrimmers ($1,700 to $2,000 for a new single-needle machine), most advanced technology is of little use in factories like Good Luck or Corona. Better technology is usually too specialized for businesses handling a continuously changing flow of styles. Basic single-needle and “Merrow” or overlock machines are more flexible. The computer-driven “Unit Production Systems” that are common in Pennsylvania at around $5,000 per station, are unknown in New York, and the “modular” or “team” manufacturing systems spreading in other parts of the industry are quite rare. With twenty to fifty multiskilled workers, small work teams sometimes seem beside the point.'* The difficult jobs give New York—and America’s urban garment workers generally—a reason to come to work. While the big lots and relatively predictable sellers are more often

contracted months in advance to overseas factories, the small lots and one- or two-week deliveries must be produced at home. In the face of ferocious global and domestic competition, however, some New York contractors have still been able to develop a steady flow of work from one or a few regular jobbers. In these favorable circumstances, the union contract is more readily enforced. To cite one example, Tech Sew, with 350 well-paid employees assembling beautifully tailored jackets for Anne Klein and Liz Claiborne, is often cited as the “best” shop in the city. Owner Shunyen Siu, an engineer who spends most of his waking hours in the shop and purchases the best new equipment at trade shows in Germany, likes to say that his shop is “not a Chinatown shop. I’m in Soho.” Over the past two years, Siu has developed a completely new line of work, producing 50,000 women’s uniform jackets a year for the U.S. Air Force. Normally, contractors are advised

New York: Defending the Union Contract

to completely segregate military work (built to volumes of specifications instead of sketches) 191 from commercial production, but Siu finds both kinds of work “basically the same. I’m still the contractor. They’re the jobber.” At the union’s initiative, a Tech Sew executive is now part of a “channel partnership” study team including representatives from Anne Klein, Saks Fifth Avenue, and Burlington Mills, which may lead to a better model for successful domestic production. New York is resistant to, but not totally immune from, modern manufacturing methods.'°

Traditional good labor-management relations also obtain at Jordan Fashions, where another exceptional businessman, Ned Giordano, has found success as a manufacturer and exporter of bridal and bridesmaid’s gowns, produced in his inside shop and by a select network of trusted and well-treated contractors. Though barely known outside the industry, he provides almost as many union jobs in the city as Anne Klein or Donna Karan, who are primarily importers like most large jobbers. Other contract employers have found a measure of success by expanding their control over a variety of contractors (from two to two dozen), enabling them to fill large and small orders, and even bid directly on private-label work from retailers, going around the usual jobbers. But while this particular type of consolidation brings a degree of business success, it shows little sign of improving the condition of garment workers. Standing Against the Tide: The Union in New York City

Once the dominant player in the women’s division of the nation’s largest manufacturing industry, the International Ladies’ Garment Workers’ Union was remarkably effective in giving structure to an industry made up of thousands of small, mostly immigrant-owned businesses. Now merged into the Union of Needletrades, Industrial, and Textile Employees (UNITE), the union must find ways to organize the oncoming generation of global jobbers, to extend “best practice” from shops like Tech Sew to less sophisticated contractors, and ultimately to compel

the new dominant powers—giant retailers and a few major jobbers—to offer an American standard of living for their indirect as well as direct employees. To achieve this, government at

all levels will need to be an ally, not just a neutral party, in the unequal labor-management struggle, or else the long decline to conditions of an earlier century will continue. It is

no sweat

192 inconceivable that a small number of government inspectors could ever regulate an ethnic, small-business industry including 10,000 contractors with no public reputation to lose—but neither can the union do the job fully without fair judicial enforcement of labor rights. As for GIDC, it is pushing ahead with a successful export program (Fashion Exports/New York was nominated for a U.S. Department of Commerce export award in 1996) that has brought tens of millions of dollars and a new mindset to previously landlocked New York

jobbers. It has also developed a sophisticated package of other useful services for manufacturers and contractors, including its Technology and Training Extension Service, Statistical Process Control, on-line market listings, courses for workers in whole-garment sewing and English as a second language, and courses for contractors in sewing machine maintenance and repair. With a tripartite labor-management-city board of directors, GIDC has relied until now on industry support, through a negotiated labor-management development fund, and on matching city and state funding. Despite broad cutbacks in most state and city assistance programs, GIDC has been able to expand its budget to around $2 million per year. As its capabilities and reputation grow, a potential step up to federal funding and to the provision of services to a truly significant number of New York members and their employers is becoming an active possibility.

Because of New York’s prominence as almost the last major urban and unionized apparel , industry center, near-term organizing success may be necessary to prevent the unchallenged

slide of the fashion end of the industry (not including the larger scale, more advanced technology industry of rural America) into domestic sweatshops and imports. But someone has to take responsibility for paying the benefits and assuring fair wages for contractor employees (provided, under ILGWU/UNITE contracts, by the jobber, not the contractor), and enforcing decent conditions. Only the retailers—and a few very large manufacturers or jobbers—have the full resources to take on this role successfully. Only the workers in the industry, represented by a union that takes away their fear of speaking up, have the knowledge and motivation to identify and fix the problem. “Why do you allow so much nonunion work?” is the question most asked by Good Luck employees of their union representatives. They may be ready to march again to defend the contract, but as the global economy comes home, only a powerful social movement can give them and their union the strength it needs to restore humane standards for garment workers.

“they want to kill us for a little money”

sweatshop workers speak out Jo-Ann Mort Conservatives complain that if immigrants want to live in this country, they should know the 193 language. But for Aracely, who has worked in the sweatshops of Los Angeles’ garment industry for thirteen years, language instruction is a luxury. Aracely is a presser, working on her feet more than twelve hours a day, seven days a week, pushing an industrial iron. “I’ve no time to learn English,” she tells me as | sit with her and Leticia in the headquarters of UNITE, the garment union, on MacArthur Park just a few blocks from what has emerged as the nation’s largest garment center. Aracely’s kids speak English, but she isn’t home enough during their waking hours to learn the language from them. She and her children communicate only in their native Spanish. They live in the heart of South Central, a tough, low-income neighborhood, but even there her average weekly earnings of $80 can’t be stretched into a living wage. She shows me the callouses on her palms, and the purple scars on her fingers from burns that weren’t treated properly. There is no first aid available in her sewing shop. The bathroom is wretched. “You want to get out of there as quick as possible,” she says through a translator, as she describes the stench and filth. For six years, Aracely worked for the Thai owners of the El Monte slave factories. In one of these shops, the Latino workers were assigned the day shift and the Thai workers sewed and pressed at night. A company driver picked up workers from South Central at 6 a.m. for the trek to El Monte, where they worked until 9 p.m. If the driver was in a foul temper, he would abuse the workers. Sometimes his girlfriend came along and they would fight in front of the workers, in which case he drove like a mad-man. “We had to pay the consequences of his bad mood,” Aracely said.

At the end of each week, they were paid in cash for each finished garment by a Salvadoran supervisor who collected the goods for the Thai owners. The supervisor routinely skimmed a cut from their meager earnings. Holidays are also a luxury in Aracely’s world. She works the Fourth of July, Christmas, and

Good Friday. The Mexicans are very religious, but under these conditions rarely have time to observe their faith. When Aracely and her co-workers asked for time off on Good Friday to attend church, the owner snapped back: “Does God give you money? If you don’t want to work, just tell me. | will find others.”

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“They tell us, ‘You come to this country to work. If you want to live like the rich, go back

to your country.’” Aracely has numerous health problems. She underwent a C-section, after which the doctor recommended a six-month hiatus. She returned to work in eight days. She would have been fired otherwise. Another operation was necessary to stop internal bleeding, brought on by lack of rest. The boss called the hospital to make sure that she wasn’t lying about her illness. Once again, she was back after eight days—and now, she bleeds often. She is fatigued by her surgery and the purple veins bursting out of her legs make it difficult to stand. A doctor has given her a prescription to ease her sleep. With no health insurance, she is

dependent on the profoundly overcrowded L.A. County General Hospital. Her kids have , Medicaid because they were born here, though congressional action could jeopardize their coverage in the future. “| suffer a lot,” she says. “I don’t know how much longer | can do this.” | ask her if she still has hopes and dreams and wonder, as | ask, if this sounds cruel. She tells me that she has nightmares and worries that she is heading for a nervous breakdown. “I don’t know,” she says again, shaking her head, “if | can make it.” She is thirty-five years old. Her husband also works

in a sweatshop. The owner of his shop wants the workers to clock in two hours after they actually start working, so that the company can steal two hours of the workers’ time. (This way,

They Want to Kill Us for a Little Money

left: Aracely and her son.

when they record that they are paying minimum wage, no one will know that the legal hourly 195 wage has been stretched with all this free labor.) Aracely’s husband refused, and the owner, buoyed by his bogus record-keeping, had the police throw him out of the shop. He is now fighting for back wages through the Justice Center. | ask her what she wants for the future. “I want better treatment from employers to ensure at least the minimum wage. | feel like I’m killing myself. Every day I’m working harder and harder and making less, and it seems to me I’m running out of strength. Everyday | get up at 4 o’clock in the morning. At 6:30, I’m dropping off my kids at school. | pay someone to pick them up in the afternoon. My worst nightmare is when a teacher wants to talk to me or | have to be at school at 3 o’clock and the employer wants his work done.” “We come here and they treat us like dogs. I’m always scared. The supervisor yells and screams at me and | start remembering the others who were worse. I’m traumatized when | see them yelling and screaming. When the woman raises her voice, | immediately start shaking because | am very scared. Sometimes | get very, very desperate, but | know | have to keep up the struggle because | have children. We suffer a lot in this country, too much. We will continue to struggle, see if we can get ahead.” How does she keep herself going day after day? “I keep on struggling so my kids will have a better life and won’t end up like me as a presser. That’s all | want.” Aracely has two children in the United States, eight and ten years old. Her daughter hopes to be a lawyer, her son a policeman. Another child lives in Mexico and attends high school. She plans to go to college and become a doctor. But Aracely can’t afford college for her daughter in Mexico because, even though university is free, all the extras—including books— are beyond her economic means. Without documents, however, Aracely’s job prospects are limited to sweatshop labor. Once she tried to get documents, spending precious time and money in the process, but was eventually rejected. She can’t afford to try again. Like thousands of others, Aracely is trapped in a never-never land of economic servitude. Letitia is a bit luckier. A thirty-three-year-old sewing machine operator, she has been in Los Angeles for nine years. Leticia was a secretary in Mexico, but here has worked only in garment shops because she doesn’t speak English.

no sweat

196 Why did she come to the U.S. if she had a secretarial job in Mexico City? “Because I’m married and my husband came here,” she explains. “He was already here for three years, so

| had to follow him. He’s a garment worker, like in Mexico—all his family worked in the garment industry.” She has three children—two born in Mexico and one here—ages thirteen, ten, and four. Leticia is documented. “Last year, there was an immigration raid at the place where |

work. They arrested us. | asked for a hearing to stop deportation. The union Justice Center helped and now | do have my papers. | live in East L.A., very close to my work.” “They want to kill us for a little money,” she says. “We don’t have a guarantee even for a minimum wage. It’s piecework rate. The owner, a woman, tries to cut the wages. We make reports every day of all the work we did and she'll look at our report and go, ‘I already paid for this work,’ or ‘This isn’t finished,’ or ‘It’s not done well.’ Sometimes we'll work thirty-five to forty hours and get paid for twenty hours. We give as much as we can, but they always want more.” “| went to a union shop the other day.” Her eyes light up. “I couldn’t believe it. | would love to work there. The union shop is like a dream shop. Even the bathrooms are so beautiful, you could eat there. We don’t even have toilet paper, you have to bring it from home.” “There is no space to walk in the shop. Everything is on top of you. When it rains, you have to cover yourself because the roof has a lot of holes. Rats come out. But the pressure is the worst. They won't even let you go to the bathroom—'I need this work and | need it now,’ they say.” Leticia sews clothes for a label called Little Children. On the label are the words Made in USA. The children’s suits, dresses, and tuxedos sell for about $65. They are found in specialty stores where the large Los Angeles Mexican community buy clothes for their children’s first communions, baptisms, and Quincianeree (a special Mexican celebration held when a child turns fifteen). Though she works nine to five, Leticia also brings work home. Her kids don’t help, but her husband does homework. Her daughter wants to be a pediatrician and the boy wants to be an engineer. “My kids can make it because they are very smart and we are trying our best— working in the factory and doing homework to have food on the table and pay the bills. We hope we can provide for them because they have the intelligence.”

~ _ They Want to Kill Us for a Little Money

ye é ™ Aracely and Leticia. Leticia goes to school to learn English every day after work from 6 to 8 p.m. After school,

she sews her industrial homework until 10 to 11 at night. She has managed to save enough money to buy a car. “Little by little, | have set goals and met them,” she explains. “My dream is

to learn English and work as a secretary. | hope my kids do well and have their dreams realized.” The Los Angeles garment industry is largely nonunion. It is like a sponge that soaks up all

available labor and thrives especially on illegal immigrants who—in this anti-immigrant climate—are more dependent on their bosses. They produce the goods in what has become a $13.3 billion-plus industry in Southern California. Virtually none of the legislation either to tighten or to discourage illegal immigration will do anything for the tens of thousands of illegal

, immigrants who already work in the Los Angeles area garment shops. About two-thirds of the sewing shops in L.A. are sweatshops, many operating in full view of anyone who cares to look, especially in the downtown garment district in the shadow of the Convention Center.

Aracely explains that she keeps track of garments made in her shop by taking labels home, an increasingly common practice among sweatshop workers. With the assistance of UNITE and KIWA, the Korean Immigrant Workers Advocates, groups of sweatshop workers have begun visiting stores, searching for garments made in their factories. The strategy is to pressure

retailers to discontinue goods made under illegal conditions. These workers know that only when the stores insist that goods be made in legal shops will their misery end. As | say goodbye, Aracely tells me that workers must unite to stop the abuse. But in the present climate, it will take more courage than even these two brave women can muster. It

requires increased unionization, government intervention, and a change in public attitudes which demonize immigrant workers who have made and continue to make a contribution to the economy of this country. It will also take outraged consumers to hold the garment industry

| accountable for the economic servitude upon which many retailers and manufacturers make their profits.

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A 9 year old boy works in a garment factory in September 1992.

Mexicans comprise 75 percent of workers in L.A.’s apparel industry, and continue to

migrate north for jobs in increasing numbers. NAFTA has spurred rather than slowed immigration, with rebellion in Chiapas, plant closures by trade losers, and the huge devaluation of the peso which effectively cut Mexican wages by more than a third. About 10 percent of the immigrant work force in Los Angeles comes from Central America, the first groups fleeing civil war and now entering as economic refugees. Salvadorans and Guatemalans come to the city in hopes of making ten or twenty times the wages offered in garment factories back home, where jobs are scarce. Another 15 percent come from Asia, primarily China and Vietnam. Asians play a greater role elsewhere in the region. Most garment workers in the San

Francisco/Oakland area are Chinese immigrants, and in Orange County there are high concentrations of Southeast Asians. The majority of immigrants working in L.A.’s industry today arrived in the last fifteen

years, and are undocumented. Contractors have largely avoided being fined under federal immigration law for hiring undocumented workers by filling out the forms required by law and asking workers to produce proof of their status. The INS occasionally investigates the larger

Aree Stel ee

no sweat — _ thousands of undocumented workers laboring in LA. | Je i the 1986 Immigration Reform and Control Act (IRCA) i a | _, © @ have failed to stop immigration and have aggravated - "hh

factories underground. In fact, IRCA has become such | “ & -— 4 —

a handy weapon for employers, wielded against fe [| A oe

desperate and vulnerable immigrants, that some shops : -— ~

now prefer to hire undocumented workers. ‘ _ o

Work is frequently assigned on the basis of prs “As ae

gender. Cutting is almost exclusively performed by - | |

men, as is heavy pressing. While most sewing machine )

operators are women, increasing numbers of men are now working as operators, especially on denim, which requires greater physical strength to handle the fabric. Almost all training is done on the job, paid at straight piece rates, and subminimum wages are the norm. Nearly eradicated by union organizing, sweatshops began to reappear in Los Angeles with the growth of the industry in the 1960s. The efforts of workers to fight the problem through union organization have continually met with stiff resistance. Accelerating waves of immigration, the growth of casual sportswear, ineffective government regulation, and the increasing use of subcontracting have encouraged sweatshop growth. While the El Monte Thai slavery case shocked the nation, what is most startling about labor and human rights abuses in Los Angeles is just how routine they are. Often located in high-rise buildings that do not meet current codes, L.A.’s garment shops are typically fire traps: blocked or locked exits, aisles jammed with bundled fabric or finished goods, electrical wiring violations, and defunct fire extinguishers are common. A few years ago, garment workers

The Structure and Growth of the Los Angeles Garment Industry

narrowly escaped a fire in their shop when they were rescued by helicopter from the roof. 209 Numerous other safety violations abound, including lack of handguards on machines, poor ventilation, excessive heat, and filth. Medical attention is rare; seamstresses putting needles through their fingers have been forced to apply a band-aid and keep working. Workers are habitually subjected to physical and verbal abuse and other indignities. Sexual harassment of women Is an everyday event in many shops. With few exceptions, workers are paid by the piece and not by the hour. Although such an incentive system can force the pace of work to extreme limits, it is legal provided the workers are guaranteed payment of at least the minimum hourly wage. Factory owners circumvent this law by manipulating time cards, adjusting the time worked to the wages earned under the piece-rate system—using computers to assist with calculations. Constant style changes make it difficult for workers in most shops to build up speed by learning shortcuts. Frequent factory closings leave workers stranded, owed weeks of wages. It is not uncommon to find that the same factory has reopened in another neighborhood under a different name, doing work for the same manufacturer. For workers, getting paid can be a shell game. Long shifts are routine, as retailers demand fast delivery. Some shops will work all night to finish a job, and overtime is not voluntary. Many shops have workers who labor all day in a

factory, then take work home to finish with their children at night. Although California mandates payment of overtime premiums after eight hours per day in manufacturing, and federal law requires payment after forty hours per week, most factories continue to pay only piece-rate earnings with nothing extra for overtime.

Unfair competition and abuses by sweatshops take other forms as well. Many factories fail to carry workers’ compensation coverage, or underreport the work force. Workers are often | threatened to prevent them from applying for unemployment benefits. Payment for work after an eight-hour day is frequently made in cash to conceal the overtime and avoid payroll taxes. In many cases, employers will deduct the payroll taxes and pocket them. Garment workers also cannot depend on regular work because production is seasonal. Employment peaks in March of each year, declining in the summer (July and August), picking up in early winter (September to December), falling off again in January, and accelerating

no sweat

210 in February. With different seasons for different garments, workers often must switch shops to stay employed.

In 1994, the U.S. Department of Labor (DOL) and California state labor officials conducted a survey of conditions in garment shops, randomly selecting for inspection sixtynine factories from a list of thousands of California garment firms that had paid state payroll taxes. Of course, by neglecting to include factories that did not pay taxes (which may comprise 20 percent of the total), the survey understated the problems checked. Even so, the results were shocking. Violations of law were found in 98 percent of the sample firms, including health and safety infractions (92.8 percent), deficient or false records (72.5 percent), failure to pay overtime (68.1 percent) or the minimum wage (50.7 percent), cash payments (30.4 percent), failure to register with the state (11 percent), and illegal homework (14.5 percent).

A second state-federal survey was undertaken in 1996, this time focusing on five counties in Southern California, including Los Angeles. As before, only factories paying state payroll taxes were examined. This time seventy-six were drawn from the list and inspected. This time 99 percent of the shops surveyed had violations. Health and safety violations were found , in 96 percent of the firms; in 72 percent of these, conditions were dangerous enough that an accident could lead to a “substantial probability of death or serious physical harm.” These included blocked fire exits, electrical problems, equipment lacking protective guards, and violations involving guns used to attach tags to clothing which can cause the spread of diseases like AIDS and hepatitis. Other common violations included failure to pay overtime (55 percent) and the minimum wage (43 percent), cash payments (33 percent), and failure to register with the state (33 percent). Declining rates in some categories may not be significant, given the small size of the sample, increased efforts to conceal violations, and the failure to include underground shops in the survey.

The low rate of compliance found by government inspectors reflects ineffective | enforcement tools, inadequate staffing, and the need for organized worker participation. While

the industry in California grew by a third from 1980 to 1992, state field enforcement staff , declined by a third in the same period. Annual factory inspections have dropped from more

than 2,000 to about 600. The state enforcement strategy has been to conduct periodic

The Structure and Growth of the Los Angeles Garment Industry

“sweeps” of the industry, checking many factories in a single area over a few days and 211

imposing fines on violators. In this way, the state hopes to terrorize the industry into compliance. But since state agents only inspect about 10 percent of the factories in any year, contractors treat penalties as a cost of doing business, and often cheat their employees further to pay off fines and the cost of fighting them. Workers cheated typically do not complain until they have been fired or quit, and then must beat their boss and his “cooked books” with only their memories of hours worked and wages not paid. The DOL Wage and Hour Division has for years suffered cutbacks in inspectors nationally for all investigations. Additional cuts were imposed by Congress in 1996. Beginning in 1989, the DOL in L.A. began to use an old “top down” enforcement weapon: the New Deal era “hot goods” provision of the Fair Labor Standards Act (FLSA), which bars interstate shipment of goods made in violation of the FLSA minimum wage and overtime laws. By threatening to get court orders blocking manufacturers from shipping their finished products to retailers, the Los

Angeles DOL began to secure new settlement agreements from manufacturers caught breaking the law. These agreements, first signed by Guess and later by Chorus Line, Carole Little, Z Cavaricci, and others (about forty in all), obligate manufacturers to monitor their contractors’ wage and hour compliance and to assume responsibility for any such violations by their contractors committed while working on their garments. Recent surveys conducted by

the DOL suggest that manufacturer monitoring of contractors improves compliance somewhat, but still leaves violations at very high rates. The summer 1996 discovery of Guess clothing being made in a string of illegal industrial homework operations, a lawsuit filed by employees of Guess contractors alleging FLSA violations in many sewing shops used by the firm, and the DOL removal of Guess from its “Trendsetter list” of sweatshop busters, highlight

the importance of active worker involvement in exposing violators and of independent monitoring by community organizations.

For more than twenty years, there have been attempts to organize the various sectors in the Los Angeles market, including swimwear, sportswear, denim, lingerie, knitting,

embroidery, finishing, dyeing, and warehousing, with limited success. Employers have retaliated by browbeating or firing employees, reporting undocumented workers to the INS,

no sweat

212 engaging in bad-faith bargaining, provoking strikes, and even closing down. Seldom has the National Labor Relations Board moved swiftly enough or with much effect to vindicate workers’ rights in such cases. Guess responded to UNITE’s recent campaign by holding captive-audience meetings of its workers, threatening to close or move its operations, and shutting off work to the factories of contractors where workers dared to voice complaints about sweatshop conditions. Guess had

promised the DOL, in a 1992 sweatshop agreement, to work with its contractors to correct abuses. In 1996, at Kelly Sportswear in El Monte, a Guess contractor for years, factory workers blew the whistle on an illegal homework operation and wage violations in their own shop, and found themselves on the street when Guess stopped sending Kelly new work and their boss removed the machines and closed the factory. In January 1997, Guess announced that it was moving 70 percent of its production to Mexico (see postscript). The message: stand up for your rights and lose your job. UNITE has established Worker Centers in the L.A. garment district and San Francisco’s

Chinatown to educate, assist, organize, and activate nonunion workers in the fight against sweatshops. Center staff have attended teach-ins, testified at public hearings, picketed shops to

demand unpaid wages, and brought legal actions. As a result, millions in back wages have been collected. UNITE also fought sweatshops on the legislative front, winning a state ban on industrial homework in 1975 and a mandatory state licensing system in 1980. Following a new

round of sweatshop exposés in 1990, a labor-community coalition drafted legislation, introduced by state assemblyman Tom Hayden, which would make manufacturers jointly liable for wage and hour violations committed by their contractors while making their clothes. The bill cleared the state legislature and was vetoed by Republican governor George Deukmejian. In 1992, the same legislation passed both houses of the legislature and was again vetoed by Republican governor Pete Wilson. Finally, in 1994 three separate pieces of antisweatshop legislation, including the joint liability bill (carried by Assemblywoman Hilda Solis), were passed by the legislature with the backing of a labor-community coalition. All three were vetoed by Governor Wilson. When the El Monte scandal raised public awareness, Hilda Solis, now a state senator, reintroduced the joint liability legislation, but it was blocked by the Republicancontrolled Assembly.

The Structure and Growth of the Los Angeles Garment Industry

Los Angeles and its surrounding region are now the battleground where community, 213 religious, civil rights, feminist, and labor activists are mobilizing on many fronts to force manufacturers and retailers to clean up the sweatshops and share enough of the wealth that workers can live in dignity. The obstacles are formidable. The current prosperity of L.A.’s garment industry rests in large part on the vicious exploitation of workers and the successful evasion of regulatory mechanisms. It is not likely that the system’s beneficiaries will submit voluntarily to measures that curb their profiteering. It will take massive union organizing, mandated retailer and manufacturer responsibility, and public support to bring this monster to its knees.

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1996 Fashion Trendsetters List—U.S. Department of Labor

The retailers and manufacturers listed below have all pledged to help eradicate | sweatshops in America and to try to ensure that their shelves are stocked with |

PAS hs} only “NO SWEAT” garments.

This list is based on the voluntary efforts of the listed companies. They have agreed to: demonstrate a commitment to labor laws; cooperate with law enforcement agencies when violations of the law are found; and monitor working qorare|it(olahyancelat=>.¢-1an) ®)(-yan ©) ee) al ane etal nem \yieam ie] 6) e)| (oe Mi aremanlelalicel mae alue-@ke) KS

or by conducting supplier site visits. (Companies not on this list may also follow these practices.)

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