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Labor Day and the USA

9/5/2016

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As we celebrate Labor Day in the US with BBQs, pool outings and sales, we can also take the time to think about labor rights in other countries.  We are fortunate to live in a society where, after long-fought battles over the past century, workers are guaranteed a level of safety and protection in the workplace.  Many others around the world are not so fortunate.  In this article, I highlight one such place, clothing factories in Bangladesh, and discuss the actions of the US Government in protecting the safety of overseas factories. 
 
Bangladesh gained its independence in 1971, after years of political turmoil, poverty and bloody war.  Today, over forty years later, political upheaval continues and the economic condition is bleak with nearly 1/3 of the population living below the poverty line.  According to the US State Department, there continues to be significant human rights issues, including poor working conditions, protection of labor rights and safety conditions at many workplaces. But, because of high unemployment and inadequate enforcement of laws, workers who demanded action and change risk losing much needed employment. 
 
One of the major industries there is the garment trade which employs over four million people, most of them women and girls, and accounts for 80% of the country’s exports.  Brand name products produced in Bangladesh include H&M, C&A, Nike, Reebok, GAP, JCPenney, Walmart, Kmart, Wrangler, Dockers, Tommy Hilfiger, Adidas, Eddie Bauer, Eagle, and American Eagle.
 
It was against this political backdrop that on December 17, 2012, a fire at the Taazreen Fashions Limited killed 112 workers and on April 24, 2013, that 1000 individuals were killed in the collapse of a garment factory.  These tragedies spurred domestic and international outrage.  In response, the US took the following actions.
 
Almost immediately, President Obama convened a call with the US Departments of State and Labor, the USTR and US corporate retailers and strongly urged them to coordinate with each other, the government of Bangladesh, and labor groups to:
Help pay for independent safety & fire inspectors Communicate to the government of Bangladesh their concerns over labor conditions and Urge immediate passage of labor law amendments to lay the basis for the establishment of an ILO/World Bank Better Work Program.  
In addition, the President took the unilateral action of suspending the Generalized System of Preferences (GSP), the US program that helps the poorest countries to use trade to grow their economies by eliminating duties on 5000 products.  However, this program cannot be utilized by countries that are not providing internationally recognized workers’ rights.  The suspension for Bangladesh after the fire was largely symbolic since garments are not included in GSP but the action sent a clear message about US tolerance for flagrant violations of workers’ rights.  Following suspension of GSP, the US Trade Representative (USTR) developed a plan for a possible reinstatement which included: government inspections, labor law reforms, protection of unions from anti-union discrimination and extension of freedom of association.  To date, these targets have not been met and GSP has not been re-instated. 
 
The US Departments of Labor and State, along with USAID, developed programs to provide technical & financial assistance to help the government of Bangladesh better enforce fire & building safety standards; strengthen the capacity of unions to recruit new members and help women to become active, and fight human trafficking and help the migrant population. 
 
Congress was also involved through hearings, reports and legislation.  The House and Senate have had a long-standing interest in supporting internationally recognized workers’ rights in developing countries.  After these tragedies in Bangladesh, the Senate Foreign Relations Committee and the Asia and Pacific subcommittee of the House International Relations Committee, traveled to Bangladesh, held hearings and convened stakeholder meetings in Washington.  The committees recognized the need for the US to provide support for organizations that protect workers, the importance of consumers’ cognizance of the effect of their consumption choices, and the awareness of the role Bangladesh has played as a moderate voice in the region and a security partner to fight terrorism. 
 
Looming on the political landscape is possible adoption on the Trans Pacific Partnership (TPP).  This major trade deal signed in February would bind 12 signatories which comprise 40% of the world’s GDP: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, US, and Vietnam.  The Labor Chapter re-iterates that all members should adopt and maintain labor rights, end child and forced labor, establish a minimum wage and have health & safety standards.  However, it does not specify how to achieve any of these goals.
 
It has been over three years since the building collapse, which was the deadliest accident in the history of apparel industry. Have the actions by the US government been helpful to improve conditions for workers in Bangladesh?  I think it is safe to say that the jury is still out.  So, while history and the court of public opinion deliberates, what should the US do going forward? Should TPP be enacted so that there will be stronger and enforceable international labor protections?  Or, do we run the risk that government actions that limit trade may not improve labor rights violations, but instead in the long-run hurt some vulnerable sections of society – i.e. women working in the garment factories?  Should the US government take steps to encourage domestic production for goods, particularly in the fashion retail space such as the Congressional Made in the US program or NYC Mayor de Blasio’s Made in NYC initiative?
 
The US had a long battle to secure worker protections here.  Perhaps there are lessons from our history that can be applied overseas? As we recognize and celebrate workers in the US today, we should remember the struggle continues abroad for those who make the swimsuit, or shorts, or t-shirts you are wearing on this holiday weekend right now. 
 
If you would like to learn more on this issue, check back here and also look to the following sites:
www.congress.gov
www.whitehouse.gov www.usa.gov/Agencies/Federal/Executive.shtmlthomas.loc.gov/home/LegislativeData.php?&n=Record www.federalregister.gov

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Made in the USA and Team USA

8/22/2016

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​ 
 
Made in the USA
 
 
As the XXXI Olympiad drew to a close yesterday in Rio, we look back at the medals won, the sportsmanship displayed and the records broken.  But, we can also take note of what the athletes wore.  What the athletes wear has become an important part of the spectacle that is the opening and closing ceremonies.  Many will remember Olympic great Simone Biles last night walking into the arena holding the US flag decked out in her crisp Ralph Lauren Team USA button down shirt and shorts outfit. (In a show of particularly good teamwork, fellow gymnast and roommate Laurie Hernandez reportedly ironed Simone’s clothes before the big entrance.)
 
But, equally important now in the US is not just how the clothes look, but where the clothes were made. In 2012, iconic American designer Ralph Lauren took a public relations hit when it was revealed the outfits he designed for Team USA, were in fact made by a team in China.  The backlash in the media and on Capitol Hill was brutal. Then-Senate Majority Leader Harry Reid even called for the clothes to be burned. 
 
Since then, Ralph Lauren has announced all the Team USA clothes would be made in the USA. But, what does it really mean to be Made in the USA? 
 
According to the Federal Trade Commission (FTC) which sets the legal guidelines, “To make an unqualified Made in USA claim, your product must be “all or virtually all” made in the U.S. and you must have proof to support that claim before saying it on products, on packaging, or in advertising. According to the Enforcement Policy Statement, “all or virtually all” means that all significant parts and processing that go into the product must be of U.S. origin. The product should contain no – or negligible – foreign content.”  The full requirements can be found at: https://www.ftc.gov/tips-advice/business-center/guidance/complying-made-usa-standard.  The FTC takes violations seriously and takes enforcement actions.
 
Congress is currently considering legislation to strengthen the Made in the USA labeling rules.  This action is in response to a California law which created a stricter Made in the USA standard. 
 
Clothes for Olympians have come a long way since the ancient games in 776 BC.  In fact, at that time, the athletes competed with no clothes at all!  But, as we look to competition in 2018 in Seoul, in 2020 in Tokyo and in 2022 in Beijing, lets hope that the clothes will not just be worn by a strong Team USA, but also made and manufactured by an equally impressive team of US designers, machinists and artisans.
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