Showing posts with label sweatshops. Show all posts
Showing posts with label sweatshops. Show all posts

Monday, June 02, 2008

Sweatshop? Or economic development in emerging industrial countries?

Here is the link to the proposed Lucas County sweatshop policy and note that it does not include the budget impact nor the statutory authority/Ohio Revised Code reference that details where the Commissioners get the authority to implement such a rule.

And be sure to read the whole thing. It is outrageous to expect that a local vendor can certify that their wholesaler's foreign factories will be available for inspection by independent monitors of the sweatshop policy.

Further, this is just a backdoor way to implement 'living wages' in certain county contracts - a provision that they have no authority to do outright. Is it any wonder that this initiative's primary supporters are unions?

And since when do Ohio county commissioners have the ability to dictate employment provisions like vacation, holidays, work hours and overtime provisions in foreign countries???

John Stossel has some interesting things to say about sweatshops, indicating that 'sweatshop' to American unions and union-backed student protesters are 'economic development' to emerging industrial countries:

We caught up with an economist and several policy analysts on their way to the World Trade Organization Meeting in Cancun. Bibek DeBroy, an economist who lives in India, said he wishes the protesters would "think with their brains rather than with their hearts." DeBroy said, "I don't understand the expression sweatshops. There's nothing wrong with sweat. Sweat is good. Sweat is what people in the developing world, including India, do all the time."

Doesn't the United States have the responsibility to stop companies from exploiting people in countries like India?

Kenya's June Arunga, who studies trade policy, doesn't think so. She said nobody in her country thinks about companies exploiting them. "When there's a new company opening a factory people are excited about it," she said.

Arunga and DeBroy point out that in poor countries, the Nike factories that rich American students call sweatshops routinely pay twice what local factories pay, and more than triple what people earn doing much harder and more dangerous work in the fields. Arunga says people in Kenya would volunteer to work in sweatshops for free, just to have access to clean running water and electricity without carrying firewood. "I wish we would have more sweatshops, quote unquote, in my country," Arunga told me.

Most economists agree that "sweatshops" are what allowed people in now-thriving places like South Korea, Taiwan, Hong Kong, and Singapore to work their way out of poverty.

Arunga said, "People get jobs in these places, their generation lives better than their parents lived. Most of them work for these companies for a while, go off and start their own businesses, it's a win-win situation for everyone," she said.

And that, she says, is why the students who protest are ignorant and clueless.

"They're comparing that to what they have in their rich homes," she said, "They're people who are very wealthy. They have no idea what they're talking about."
...
But Bibek DeBroy said if these students get their way, it won't help people in the developing world. "It would mean fewer jobs, lower incomes, more people in poverty," he said. Arunga agreed, saying, "By passing laws trying to improve the jobs by force, they will get rid of the jobs."


So when the Lucas County Commissioners pass their resolution tomorrow (which I'm sure they'll do even if they don't have any legal authority to do so - after all, who but me is questioning THAT point?) what impact will it really have? Vendors who are unsure about their subcontractors or wholesalers won't bid anymore. Vendors who don't want the hassle of agreeing to be 'inspected' won't bid anymore. If the County gets any vendors at all, they certainly won't get the lowest possible prices for the goods. And other businesses will be concerned that if they can get away with such a policy for clothes, what other product will be next?

This is not business (or taxpayer) friendly ... and the moral superiority they're invoking with this policy can have serious negative and 'immoral' unintended consequences for the people they claim they're trying to help.

Besides, absent clear authority to implement such a policy, it shouldn't even be under consideration. But this is Lucas County, so don't expect such common sense. It will certainly be overruled by emotions and 'feel-good' intentions.

Afterthought: Any speculation as to why this new policy was announced today with a vote scheduled for tomorrow? Is it possible (or probable) that the timing was intentional in order to prevent any opposition? Or am I just being a cynical constituent?

Does Lucas County need a 'sweatshop apparel' policy?

According to today's paper, our commissioners have nothing better to do than to outlaw the purchase of products made in sweatshop conditions with taxpayer money.

Is the County actually purchasing products made under such conditions? Well, they don't know for sure.

Lucas County spent $40,000 on prisoner uniforms, socks, and slippers in the last five years, much of it bought from contractors suspected of using sweatshop labor, Mr. Konop said.

Don't you think you'd find out for sure if you were so concerned with the possibility?

Corrections Administrator Jim O'Neal said he hadn't heard any concerns about the labor practices of the jail's contractors until plans for Mr. Konop's policy were brought to his attention.

He said he's concerned about a possible increase in the cost of corrections system apparel.

"As long as we can find another supplier, and as long as [the commissioners] give us the funds to pay the extra cost, it will have no impact on us," Mr. O'Neal said.

"Ultimately, the effect will be on the county budget," he said.

But the actual cost of the goods won't be the only cost taxpayers will incur:

As a member of the consortium, the county eventually would have to pay 1 percent of its annual apparel budget to the coalition for its enforcement costs.

Although Mr. Konop said he didn't know exactly how much the county would need to spend in future years, he estimated that the enforcement payment wouldn't amount to more than a few hundred dollars a year.

Konop doesn't know ... don't you think he should? Isn't it prudent to know how much a new policy is going to cost the taxpayers before you even suggest it?

There are a lot of problems with this policy, but here's the biggest one:

Under Ohio law, counties have limited authority. If state law says a county must do something, it must. If state law says a county may do something, there is an ability for a county to decide yes or no. If state law is silent on an issue, counties have no authority and are prohibited from acting. This is because counties are, technically, an arm of state government and not subject to 'home rule authority' like cities and villages in Ohio.

Because of this limited authority, counties cannot embark upon 'set-aside' policies for minority contractors, they cannot order the dog warden to address feral cats and they can't create laws. Additionally, the bidding and procurement process is clearly defined and doesn't allow for 'social engineering' as a criteria.

With this mind, I sent an email to John Borell, an assistant county prosecutor in the civil division who often handles commissioner issues, to ask where in the Ohio Revised Code (ORC) the commissioners get the authority for such a prohibition.

I presume, perhaps mistakenly, that if they are to the point of introducing such a resolution and saying publicly that they support it, they've already checked to be sure they have the legal authority to do it. And that legal authority will be clearly identified in the ORC.

When I was a commissioner, I got tired of asking where, in the ORC, we got the authority for many things and asked that our resolutions include the applicable ORC reference. If the commissioners put their agenda on line more than one day prior to the meeting, I'd be able to check to see if this resolution had such a citation. However, in checking resolutions over the past several months, it appears this line is often left blank. So even if the resolution is listed on the agenda when it is finally published, it may not include the ORC reference, so I sent the email to Mr. Borell.

I'll keep you posted as to the answer, when received. In the meantime, share your thoughts with the commissioners:

Tina Skeldon Wozniak: twozniak@co.lucas.oh.us
Pete Gerken: pgerken@co.lucas.oh.us
Ben Konop: bkonop@co.lucas.oh.us
Phone number: 419-213-4500
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