Labor Exploitation: Global Case Studies

• Exploitation in labor is about fairness and power, not just having a job.
• Working long hours in unsafe conditions for minimal wages traps workers in poverty.

Global Labor Exploitation

• Workers in factories in countries like Bangladesh and Vietnam often earn $2–$3 a day, which falls well below a living wage.
• Billion-dollar corporations outsource labor to countries with weak labor laws to maximize profit while paying workers the absolute minimum.
• Workers lack the power to negotiate for better wages or conditions, perpetuating a cycle of poverty.

Rana Plaza Collapse (Bangladesh, 2013)

• A garment factory building collapsed, resulting in over 1,100 deaths and more than 2,500 injuries.
• Workers were forced to work despite noticing large cracks in the building, under threat of losing their jobs.
• The demand for fast fashion from brands like Walmart, Primark, and H&M drives the need for cheap labor.
• Garment workers in Bangladesh earn approximately $75 a month, while the estimated living wage is $200–$250.
• Approximately 85% of workers in global garment production are women, who face frequent harassment, discrimination, and unsafe conditions.

Impact on American Workers

• Global outsourcing takes away potential job opportunities for American workers,
• Companies moving production overseas for cheaper labor undercuts wages and job opportunities for workers in the U.S.
• Factory closures result in suffering communities.
• Since 2000, the U.S. has lost over 5 million manufacturing jobs due to companies relocating to countries with cheaper labor.
• The Midwest, including Minnesota, was significantly affected by outsourcing, with factory shutdowns in towns like Duluth and St. Cloud.
• From 1998 to 2010, U.S. clothing manufacturing employment decreased drastically by 82%.
• Wages for American manufacturing workers have stagnated or decreased in industries with common outsourcing practices.

Global Competition

• Prioritizing the cheapest labor pressures all workers globally to accept worse conditions and lower pay.
• Companies move production to countries with the weakest labor laws, such as factories shifting from China to Bangladesh, Cambodia, and Ethiopia.
• Global competition lowers wage standards and weakens job security for workers everywhere, even in developed countries.
• Approximately 8% of the global workforce is in manufacturing, many under exploitative conditions.

Fairness and Gratitude

• The mere presence of gratitude does not make labour practices fair.
• Exploiting desperation is not justified, even if someone is grateful for a job.

Cambodian Garment Workers Protests (2014)

• Workers protested for a living wage increase from $100 to $160 per month.
• The Cambodian government responded with violent crackdowns, resulting in deaths and injuries.
• Workers were punished for demanding fair wages and safer working conditions.
• Many garment workers in Asia earn less than half of a living wage.

Real Economic Development

• True economic development includes providing education, fair wages, and opportunities to improve lives.
• Global systems often perpetuate poverty in poor countries, with corporations extracting cheap labor and resources without investing in local infrastructure, schools, or healthcare..
• Countries could build systems beneficial to their own people if they had more control over their own economies.

Fair Trade

• Fair trade organizations work directly with communities to ensure fair wages and access to healthcare and education.
• Fair trade factories in the textile industry in India pay workers living wages and offer educational programs for their children.
• Workers in fair trade-certified factories report improved health, education, and living conditions, compared to conventional sweatshops.

Early U.S. Factory Exploitation

• In the early 1900s, American workers faced similar exploitation, working 12-16 hour days in dangerous conditions.
• The Triangle Shirtwaist Factory Fire (1911) in New York resulted in the deaths of 146 garment workers due to being locked in during their shifts.
• Labor reforms following this tragedy proved that having a job does not equate to being treated fairly.
• Before labor laws improved, the average factory worker in the U.S. worked over 60 hours a week with little pay or protections.

Explore labor exploitation through global case studies. The collapse of Rana Plaza is discussed. Understand the power dynamics involved in labor exploitation.