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Exposing The Corporate Gap Part II

by Nadine Mac Donald

In August of 1995, The National Retailers Federation called a meeting in Washington to discuss plans for damage control in the face of the National Labor Committee's campaign to expose violations of the human rights of the workers of the Mandarin maquiladora, which sews for The Gap. Most of the big names in the garment industry were invited. In November, Christmas Season memos issued forth to major retail outlets reading much like the following excerpt from J C Penney:

TO: All Unit Managers
FROM: Barger Tygart

During the Holiday shopping period, much increased focus is being put upon supplier sourcing of merchandise for the retail industry, both by the U. S. Dept. of Labor and by other labor organizations.
Use the News Release (attached) only in response to questions, as we are not trying to generate news coverage on this issue, only respond. If you get any news-media inquiries that are not satisfied by the News Release response, refer them to Hank Rusman, PR, here at the home office. (213) 431-1316.

Despite the opposition of the National Retailers Federation and other manufacturers, The Gap chose to listen to "we, the people" and accepted responsibility for the conditions under which its products are made. "People are not interested in wearing clothes made by exploited workers and children. This thing has touched a chord. . . . We need living wage standards as a condition for world trade." says Charles Kernaghan, Executive Director of the NLC. The Gap has agreed to use the Human Rights Ombudsman offices in El Salvador to monitor Mandarin compliance with their "Sourcing Principles and Guidelines." The Gap has agreed to work with the Interfaith Center for Corporate Responsibility and other groups in the creation of an independent industry monitoring program. No doubt about it-The Gap has become the first retailer to set a new standard for the protection of human rights. "Something of a watershed," said U. S. Secretary of Labor, Richard Reich, in an interview with Bob Herbert, the New York Times journalist who first broke the story. "This raises the question for other retailers who haven't moved in this direction: why not?"

"Unlike other countries blessed with a variety of natural resources or strategic location features, all Haiti has to offer is its human capital."
-Andrew Postal, Judy Bond Blouses


In Behind Closed Doors: U.S. Business Eyes Haiti, Charles Kernaghan examines the language of Free Trade in the New World Order. Corporations seek "favorable business climates" in setting up offshore operations. The search for the lowest wage and no labor monitoring is called a "competitive analysis." For instance, "development" in Honduras was encouraged because of the "good attitudes" of its Ministry of Labor. The USAID (U.S. Agency for International Development) found that in Honduras "Guards in private sectors (trade zones) routinely prohibit entry to union organizers and labor inspectors." Once the target country is chosen, it is just a matter of applying "scientific methods"-meaning that a Haitian apparel worker will attach 1,000 pairs of cuffs to 500 pairs of shirt sleeves for the 30¢-an-hour minimum wage rather than the $7.3l an hour paid in the U.S. This method allows for "special circumstances," however, to alter the quotas demanded. "These people, generally, their diet is not up to the standards of a U.S. diet. So... we may add a factor of 5 to l0 percent if the plant is a non-air-conditioned facility. If the work day is more than eight hours, we try to build in factors for a loss of productivity." Charles Kernaghan sums it up this way:

Once all human differences and considerations have been wiped out and we are all integrated into the global economy-where we are expected under management's "scientific methods" to produce the same the world over-then the corporate agenda literally tilts the entire playing field of production and trade to the lowest point in terms of wages, benefits and conditions.
For the corporations, the lowest point becomes the common denominator. For us, the people, we can then compete in a race to the bottom, competing over who will accept the lowest wages, the smallest benefits, and the least regulations placed over corporate prerogatives.

A Case in Point:
The Truth Behind Pocahontas

A small family in Haiti, in order to meet minimum basic needs, must spend approximately $24.20 a week. Working six days a week at 36 gourdes or $2.40 a day, the minimum wage in Haiti, a worker only earns $14.40 a week. Let's fast forward to an excerpt from the Disney publication Sharing the Magic:

I, Michael Eisner [who made $8,029,000.00 last year as CEO of Disney], believe Walt Disney, better than anyone else, understood the value of contributing to the community.
Our company's mission statement for community service is quite simple: We look for opportunities to initiate, develop, administer and implement diverse programs for the benefit of the community which also perpetuate the traditions and ideals of the Walt Disney Company... Our Disney team constantly reviews issues in the community to look for ways in which we can lend a helping hand. We are a partner, a neighbor, a contributor and a leader. We are building upon a legacy left to us by Walt Disney to create a better tomorrow...
It has been our priority to be responsible and caring, like a good neighbor should be.

Disney Corporation, which made $ 1,110,400,000 profit in l994, "shares the magic" in Haiti at the SONAPI Industrial Park where workers are paid about 7¢ for every $11.97 Pocahontas pajama they produce. The National Labor Committee asks:

Is there any reason Walt Disney cannot work with your contractors to double, triple or even quadruple the wages these workers are being paid in Haiti? If you were to quadruple the wages, these workers would still be earning only 28 cents for every pair of $ll.97 pajamas they produced. Disney and other companies involved would still keep $11.69-or 98% of the profit. Couldn't Walt Disney Company afford this? Wouldn't $ll.69 provide plenty of room for an adequate profit? Can you explain to us how the U.S. people can trade with Haitian people earning starvation wages?

Remember, your letters and calls helped turn around The Gap. To help the people of Haiti, write or call, Michael Eisner CEO, South Buena Vista Street, Burbank, CA 91521, Ph. (818) 560-1000.
For a list of Educational and Organizing Resources, write to: NATIONAL Labor CommitteE, 15 Union Square, New York, NY 10003, (212 ) 242-0700

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