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from Chapter 12 New Clothes? No Sweat! by Jim Hightower Is sweatshop labor a necessary evil of the garment industry? If you talk to some U.S.-based analysts, you might be led to that conclusion. But close inspection of the economics paints a much different picture: a portrait of corporate greed, plain and simple. Let's do the numbers.
It takes an efficient worker about two and a half minutes to produce a t-shirt. Dividing this rate of production into the going wage in various parts of the world, here¹s the wage-cost of a t-shirt that you might buy at a Wal-Mart or Talbots or anywhere:
Asia 1¢ Latin America 4¢ Los Angeles sweatshop 16¢ U.S minimum wage 21¢
Let¹s go with the high figure of 21¢. That¹s what a U.S. minimum-wage worker gets out of a t-shirt that you¹ll pay somewhere between 10 and 20 bucks to buy. Working a year at minimum wage adds up to barely $10,000 gross pay poverty.
So here¹s a question: What if that wage was doubled? Or even more? What if the workers were paid not 21¢ per shirt, but what the hey, let¹s go crazy and throw in a whole extra quarter paid 46¢ per shirt. This would mean the workers would be getting more than $20,000 a year! It¹s not a fortune, but it gets you out of abject povertyŠ it¹s a liveable level of pay. And that extra quarter, which would mean so much to the workers and their families, would have no impact at all on your and my clothing budget.
Thus was born: TeamX. It¹s a new garment factory in Los Angeles, financed with an initial $1.2 million from the Hot Fudge venture capital fund of Ben Cohen. But this company is new in ways much more significant than its air-conditioned building and state-of-the-art equipment. It¹s new in approach. Its mission statement declares: "TeamX seeks to change the lives of garment workers, both those that it directly employs, as wll as the hundreds of thousands of other workers in this global industry a sustainable model that can be replicated worldwide."
How different is it from your run-of-the-mill garment business? * It¹s a union shop, organized by UNITE. * It¹s a co-op, owned by the workers themselves (five of the seven board seats are reserved for workers). * It pays a living wage, starting at $8.50 an hour, plus good health care, a pension, profit-sharing, and vacation days ("I¹ve been working in clothing for 20 years, and I never had a paid holiday before this," says Ana Acevedo, a Salvadoran immigrant and one of the founding co-op employees). * It operates on the "solidarity ratio," which means that no executive can be paid more than eight times the pay of production workers.
There¹s one way, however, in which TeamX is just like any other garment business: It¹s out to make money. This is no little froufrou exercise in good works, but a profit-making enterprise that has drawn a small group of experienced managers and an exceptionally skilled and motivated workforce. TeamX cranked up its operation in March of 2002 with eight employees, a vision, a plan, and a prayer: "We aim to put the lie to the myth that it¹s impossible to produce clothing at a competitive price and have a good quality of worklife," says Cohen. "Will we succeed? All I can say is, we¹ll see."
They have. With its snappy "SweatX" brand, the company was generating a profit by the end of its first year, and it now has 55 production workers turning out a stylish, top-quality line of everything from t-shirts to fleece jackets, baseball caps to blankets, sweatshirts to fashion tops. Yes, but how can it keep up, how can it possibly compete with the morally bankrupt firms that are still using sweatshop labor? For one thing, TeamX pays its workers instead of paying celebrity endorsers (Nike is paying Tiger Woods $20 million a year for five years), for example. That¹s good money that could go toward fair pay and improved conditions for its sweatshop workers. This would give Nike¹s swoosh a good scrubbing, put the company in a newly-positive light with young people, create a global marketing windfall based on conscience, and eliminate any need to try hiding its corporate smarminess with costly celebrity masks. If you know anyone who knows Phil Knight, let the Nike honcho know that I¹ll let him have this marketing idea for free).
In fact, it¹s this "market of conscience" that TeamX is reaching out to a huge and virtually untapped market of people (meŠ and you?) who¹ll gladly go for any brand that can assure us, without equivocation, that it contains no sweat (not to mention blood and tears), even if the no-sweat brand costs a few pennies more. TeamX doesn¹t have to sink itself with the huge weight of tv advertising, for a substantial part of the conscience market comes conveniently organized, reachable through such established networks as churches, campuses, and groups focused on environmental, women¹s, racial and other issues.
Plus, unions. Oh, I hear people moan despairingly in my travels, Unions are so weak, only 13 million or so of the American population. I look at the moaners in disbelief and say, You¹re whining about that? Only 13 million? Sure it ought to be more, and more people these days are thinking union, but get real that¹s a lot of folks! It¹s more than most religious organizations can count as members, way more than the number of corporate executives and millionaires, and more than the supposedly "powerful number" of people tuning in today to the gaseous leaf-blower of the airwaves, Rush Limbaugh. Add in their families, neighbors, and friends, and you have truly a powerful number.
Also (here¹s the savvy of TeamX marketing), union members buy and wear far more t-shirts than, say, your average country club member. Go into any union hall, peek into the storeroom and closets, and you¹ll find boxes upon boxes filled with T-shirts, knit shirts, sweatshirts, and others. They put their union logos and slogans on them for rallies, organizing drives, conventions or just to wear to work or around the house. It¹s a real market and it¹s loving SweatX.
TeamX is only one company, but a lot of good has been done in this old world by some one standing up to the B.S. of conventional wisdom and saying: That can¹t be right, there has to be a better way. As this first factory succeeds, TeamX will expand to others, including an intention to open factories abroad, in the face of global garment giants who claim they "must" treat labor abysmally in order to be competitive. Competitive with whom? With each other, all of whom are sweatshop bastards. TeamX offers some real competition.
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** COMING AUGUST 18!! "Thieves In High Places - They've Stolen Our Country And It's Time To Take It Back!" -- the explosive new book by Jim Hightower
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