Chapter 2: Literature Review. 2.1 Introduction. This Chapter

Sweatshops have been around for centuries, beginning around the late 1880’s. Sweatshops are classified by three main components, long work hours, very low pay and unsafe and unhealthy working environments. Sweatshops are usually found in manufacturing industries and the most highlighted production is clothing corporations, who take full advantage of the low production costs of their products. Many may think sweatshops are a thing of the past but they are still affecting many lives across the nations. There are many ways sweatshops affect lives, but a recent article titled “New study finds ‘more sweatshops than Starbucks’ in Chicago” explains that there are many low wage industry jobs that are violating labor laws in the United States alone. The article also reports how employees who are working in such conditions won’t speak up in fear of the retaliation employers will implement. Analyzing Sweatshops through the lens of the Sociological perspectives will help us better understand the illegal conditions of workplaces that still exist today.

* Labor outsourcing is a good strategy to decrease the labor cost. But it associates with many issues. Once outsourcing is done, the MNC cannot just stay behind. The MNC should carefully supervise on the working conditions, safety, wages, working hours, gender discrimination and human rights violations. If any of these factors going wrong and leads to sweatshop conditions, it directly affect on the reputation of the MNC. If once the name or the brand is blacklisted, it is very hard to repair the damage. Therefore, the risk of outsourcing is high.

A majority of the clothing worn and purchased today in the United States has been manufactured overseas in sweatshops. Since the beginning of factories and businesses, owners have always looked for a way to cut production costs while still managing to produce large quantities of their product. It was found that the best way to cut costs was to utilize cheap labor in factories known as sweatshops. According to the US General Account Office, sweatshops are defined as a “business that regularly violates both wage or child labor and safety or health laws”. These sweatshops exploit their workers in various ways: making them work long hours in dangerous working conditions for little to no pay. Personally, I believe that the come up and employment of these sweatshops is unethical, but through my research I plan to find out if these shops produce more positive than negatives by giving these people in need a job despite the rough conditions.

Many businesses in United States manufacture their product overseas. This involves manufacturing products outside United States where the labor cost is cheaper. Because of cheap labor, it is often more economical for a U.S. company to manufacture overseas and pay the shipping costs than to manufacture in the United States. For a company, the savings may be substantial. However, there are negative impacts on U.S. employment, as many jobs in the United States are being outsourced and replaced by overseas positions. The manufacturers outsource production projects to save time, money or resources. The manufacturing is outsourced so as to remain competitive and maintain a steady work flow. Without outsourcing, manufacturing costs could escalate to the point at which no product would sell and all employees would have no work. Outsourcing comes

Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.

In this article he tries to prove his point of view of the sweatshop by proving and stating how the women suffer being there just so in the end we can have a brand accessory like Nike or Gap. Also he talks to his audience because he mentions that we can write letters to companies when workers’ rights are violated and to show support of their efforts to organize, “we can put pressure on our government to adopt policies and regulations that make companies accountable when they fail to address flagrant and persistent violations of workers’ rights.” As of today there are some major brands that have the ‘company code of conduct compliance staff’ in order to answer complaints and investigates the situation and report back and tell what they were going to do to fix the problem. But with all those advances made there’s still any changes in the workplace because he states that a “a little less child labor, fewer forced pregnancy tests or health and safety violations in the larger factories used by major brands” but they still give them poverty wages, long hours of forced overtime and massive firings of workers that tried

They often use child labor, lack workers’ benefits, and use intimidation as means of controlling workers (Boal, Mark). Typically, sweatshops are found in developing countries, however, they are also a prevalent problem in many first world countries including the United States. Many manufacturers claim that sweatshops exist in order to keep prices down for consumers, while allowing profit. On the contrary, there is also substantial evidence that goes against these beliefs. For instance, a study showed that while doubling the wage of sweatshop workers would increase consumer price by 1.8%, consumers are willing to pay 15% more with the assurance that the product was made with fair labor (11 Facts About). This, however, is a hard argument seeing as the circumstance was hypothetical and if prices were actually raised, there is no way to assure that consumers would react the same way. Either way, both sides of the argument can agree that the conditions are not good, it is just a matter of analysing the cost vs. the benefit to determine their necessity. This leads to several questions: Are sweatshops a necessary evil, how could they be abolished, and what realistic goals regarding the bettering of worker conditions can be met? Through the answering of these questions, it is easy to see that despite claims of sweatshops bringing opportunities to

Nike’s sweatshops had many positive effects on the developing countries that they were located even though the workers in the sweatshops were mistreated. The company created jobs and this is one of the main reasons that developing countries welcome the formulation of sweatshops. By Nike opening sweatshops in these countries they pay taxes and provide revenue for the host country’s government. In order for Nike to produce more goods in less time the company has to supply the sweat shops with high-tech machinery which improved the production process and raised productivity levels. The countries that allowed Nike to have sweatshops had no restrictions on the sweatshops or any forms of foreign direct investments so they were able to achieve high rates of GDP growth, reduction of the inflation rate and swell up the country’s trade surplus. Although most sweatshops were thought of as whole sale manipulators, human rights violators, and the work conditions were noticeably poor. The workers suffered from the absence of safety procedures and quality equipment because the sweatshops were not

From the minute Chinese citizens began to work for outside companies, they were exploited and taken advantage of. (Miller 2013) Once sweatshops were outlawed in North America and Europe in the mid 1900s due to their inhumane practices, foreigners were quick to flock to developing countries that did not have the same laws in place. Firms sought out manufacturers in poorer nations that could provide the highest quality product at the cheapest cost and Chinese migrants were easy prey for manufacturers who paid small wages and offered poor working conditions. Meagre social and economic conditions in developing China resulted in a great amount of people willing to accept any wage and management systems that neglected the workers. Multinational textile firms soon grew to rely on foreign subcontractors for their production needs. (Pugatch 1998) The system estranged corporations from the production process, and in turn resulted in the estrangement of the consumers from the production process, which encouraged and continues to encourage the ignorance that fuels the sweatshop system. The relationship between corporation and producer was only further separated as agents arranged subcontracting for companies, allowing these companies to have the goods they were selling produced in factories they had never seen. The subcontractors were met with severe corporate deadlines and targets in order to stay in business, leaving workers as the sacrificial

Outsourcing, or the practice of Corporations expanding their influence, and labor force to foreign countries needs to stop. As it causes the decline of developed nations labor forces, does nothing to fix inequality in underdeveloped nations, has adverse affects on the economies of developed nations, and outsourcing allows corporations to cause extensive harm the the world, and it’s enviornment. If the practice of globalization were ended, it would improve the lives of many people in developed nations, the policies that affect them, and ultimately the world.

Global poverty is known to be decreased due to sweatshops. It is said that 83 cases of exploiting sweatshop wages reported in sources and compared those earnings to the living standards in the countries where they were found. In every country where the sweatshops were

Sweatshops. The image the word provokes isn’t a pleasant one. A factory where people work long hours for only a small amount of money isn’t something we like to think about. The article published by The New York Times in 2009 entitled “Where Sweatshops Are a Dream” however, proposes a different view of these grueling working conditions. The article seeks to transform the view of most Americans from disgust to support for so called sweatshops. When the article was first published in 2009, the Obama administration was considering labor standards, something the author Nicholas Kristof believes is detrimental to undeveloped countries. As he argues, “Sweatshops are only a symptom of poverty… and banning them closes off one route out of

Sweatshops have always been a problem in the Unites States, especially during the past century. Unfair working conditions and pay prompted the formation of the Garment Worker

By definition a sweatshop is a “negatively connoted term for any working environment considered to be unacceptably difficult or dangerous. Sweatshop workers often work long hours for very low pay in horrible conditions, regardless of laws mandating overtime pay and or minimum wage”. Many corporations in the United States use sweatshop labor in countries over seas such as China to produce their products at a lower cost. As entailed in the letter from a man born in China, many citizens on these countries resort to factory labor to support themselves to escape other sources on income such as prostitution. Without these corporations usage of oversea sweatshops these employees would be forced to return to self-demeaning jobs such as these.

“Is labor outsourcing to developing countries a legitimate business strategy that can be handled without risk of running into a sweatshop scandal?” outsourcing of production facilities and