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  February 20, 2004


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Three more recent articles feature corporations acting in their own self-interest, and against the interests of their employees and customers.

Two of the articles are about offshoring -- where the corporations seem destined to 'win', and workers worldwide will lose:
  • An article from Jim Lobe at OneWorld summarizes a new report by Oxfam, showing that Wal-Mart and other large multinational retailers are driving down wages and working conditions all over the world. It's a neat corporatist trick: Don't own the third world sweatshop, control it by being its dominant customer. Then coerce them incessantly to lower their wholesale price at any cost. The sweatshop has no alternative but to reduce its costs to keep its biggest customer without going bankrupt, and to do that it must abrogate even dismally low social and environmental standards. And in the unlikely case someone dares to blow the whistle, Wal-Mart can simply say "That isn't one of our companies, we're merely a customer of theirs; we have no control over how they operate". The Washington Post in a related article said: "As capital scours the globe for cheaper and more malleable workers, and as poor countries seek multinational companies to provide jobs, lift production and open export markets, Wal-Mart and China have forged themselves into the ultimate joint venture, their symbiosis influencing the terms of labor and consumption the world over."

    OneWorld goes on: "That marriage, however, according to the both the Post account and the Oxfam report, has come largely at the expense of the worker on the factory line. 'Wal-Mart pressures the factory to cut its price, and the factory responds with longer hours or lower pay,' a Chinese labor official who declined to be identified for fear of retaliation told the Post, 'And the workers have no options.' That was also the message of a report released Monday by the New York-based National Labor Committee and China Labor Watch on a toy factory in Ping Township in Guangdong province that produces goods for Wal-Mart. The two groups reported that the mostly female labor force at the plant were paid only about half the legal minimum wage and forced to work longer hours than the legal maximum. It also reported that fire exits were normally locked. Wal-Mart responded to the report by insisting that it conducted regular inspections of all of its plants in China, but the groups said that plant managers were always informed of the inspections in advance and coached the workers on what to tell the inspectors."
This is, of course, corporate fraud, and the big-budget PR campaigns of these stores, telling consumers they've cleaned up their act, are bare-faced lies. But in the wild and wooly world of third world business, where money buys anything, just try and prove it. And be careful about charging these companies with lying to customers -- as the Nike case shows, corporatists prosecute those that try to stop the lies, claiming that prohibiting deceptive advertising interferes with the corporation's 'rights'. There is therefore only one way to fight back: Boycott companies that offshore domestic jobs to third world countries (both manufacturing and service jobs). Encourage Consumers Union and other consumer and labour advocacy groups to maintain and communicate lists of offshorers. Pledge to buy local.
  • An article by Anne Fisher in Fortune magazine suggests the potential for offshoring American jobs to the third world is almost limitless. The article says: "So far, according to the best industry estimates, only about 5% of U.S. IT jobs have been shipped to India, New Zealand, and Eastern Europe. But by 2007 at least 23% will have gone. Not a techie? Don't get cocky. IT folks may just be the canary in the coal mine. Notes a reader named Hans: 'There is almost no limit on the technology that can take jobs overseas. Anyone in any field who has ever thought they could just as easily do their job from home, or who has smiled at the thought of working from a laptop on a beach, should understand that his or her replacement could just as easily do their job from Bangalore."
So it's not just manufacturing and help-desk service jobs at risk. As retailing goes online, all the related services and transaction processing could be offshored. As virtual presence technologies improve, all sales, consulting and business overhead jobs could go offshore as well. No job is safe. In addition to boycotting offshorers, we need to lobby politicians to change tax regulations to put employers of domestic workers on the same after-tax footing as offshorers.

One customer is determined to strike back at abusive treatment by one notorious group of corporations, the RIAA. As reported by John Borland at CNET, Michele Scimeca, one of the people sued by the RIAA for file-swapping is counter-suing the RIAA for extortion and violations under the federal anti-racketeering act. According to CNET she "contends that by suing file-swappers for copyright infringement, and then offering to settle instead of pursuing a case where liability could reach into the hundreds of thousands of dollars, the RIAA is violating the same laws that are more typically applied to gangsters and organized crime". Brava, Ms. Scimeca.

Now if only we could get that kind of creative strategy to deal with offshoring. Is depriving citizens of their right to a reasonable livelihood against any law? How about wrongful dismissal? Or a human rights violation?

10:27:25 AM  trackback []  comment []


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