Mr. President, this week I am introducing a bipartisan piece of legislation that every Member of the Senate should support. The legislation aims to crack down on sweatshop abuses taking place in…
Mr. President, this week I am introducing a bipartisan piece of legislation that every Member of the Senate should support. The legislation aims to crack down on sweatshop abuses taking place in overseas factories that produce merchandise for sale in the American marketplace.
The United States currently prohibits the importation of products made with prison labor but does not similarly prohibit the importation of products made in sweatshops under slave-like conditions. What is more, if a U.S. retailer finds that one of its competitors is importing products made in a foreign sweatshop, it has no recourse in U.S. courts and is placed at a competitive disadvantage.
I am certain that if Members of the Senate were asked to raise their hand if they support abusive sweatshop conditions at foreign factories producing for the United States, not one hand would go up. Yet, as the media and watchdog groups have documented all too well, these conditions are prevalent in a number of our major trading partners.
We have to put a stop to this. Sweatshop factories undermine the foreign workers who work in them, and they undermine U.S. workers who are asked to compete with them.
The bill I am introducing is called the Decent Working Conditions and Fair Competition Act, and it is really very simple.
First, the bill says that it is illegal to bring the product of sweatshop factories to this country. In this bill, a ``sweatshop factory'' is one where workers are abused in violation of that country's labor laws.
Second, the bill allows U.S. retailers the right to sue their competitors for damages in U.S. court if their competitors are sourcing their merchandise from sweatshop factories.
Let me give you an example of why such legislation is essential, involving the country of Jordan.
Our trade negotiators signed the Jordan Free Trade Agreement in October of 2000. The agreement was negotiated under the Clinton administration, and it was supposed to be a model trade agreement. I give the Clinton administration credit for at least giving some thought to putting labor provisions in the trade deal with Jordan.
But those labor provisions were not enforced, and the result has been the proliferation of sweatshops in Jordan. In May of last year, the New York Times described this trend.
It turned out that when the agreement was signed in 1999, Jordan began to fly in so-called guest workers from countries like Bangladesh and China to make products in Jordan for sale at stores like Wal-Mart and Target. The conditions for these so-called guest workers in Jordan were slave-like.
This is how the New York Times described it: ``Propelled by a free trade agreement with the United States, apparel manufacturing is booming in Jordan, its exports to America soaring twenty fold in the last five years. But some foreign workers in Jordanian factories that produce garments for Target, Wal-Mart and other retailers are complaining of dismal conditions--of 20-hour days, of not being paid for months and of being hit by supervisors and jailed when they complain.''
These were some of the other conditions documented at these factories. Workers were promised $120 a month but in some cases were hardly paid at all. One worker was paid only $50 for 5 months of work. And 40-hour shifts were common. Incredibly, the 40-hour shift apparently had replaced the 40-hour workweek.
To its credit, Wal-Mart admitted to the New York Times that it had found ``serious problems with the conditions at several major Jordanian factories.'' But it should not have taken a New York Times investigation to uncover these abuses.
Here is another instance of sweatshop conditions. In November 2006, BusinessWeek had a cover story on sweatshop abuses entitled ``Secrets, Lies, and Sweatshops.'' The article begins with the description of a Chinese company called the Ningbo Beifa Group. This company has made a lot of money as a top supplier of pens, mechanical pencils, and highlighters to Wal-Mart Stores and other major retailers.
In 2005, Wal-Mart inspected this company's factories. It found that the company was paying its 3,000 workers less than China's minimum wage and violating overtime rules. So Wal-Mart asked the company to fix these serious problems.
The Chinese company failed to do so. Wal-Mart then returned to the company, found the same problems, and told the company to shape up. Again, the Chinese company failed to do so and happily continued making pens and highlighters for Wal-Mart. Wal-Mart returned a third time and gave the Chinese company its third warning. Once again, the Chinese company failed to treat its workers according to Chinese law.
So finally, even Wal-Mart had had enough, and they issued a fourth warning--comply with the law or we will stop doing business with you. What did the Chinese company do? It turned to another Chinese company called the Shanghai Corporate Responsibility Management & Consulting Co. For a $5,000 fee, the company promised to send a consultant to take care of the Wal-Mart problem.
The consultant provided advice on how to create fake but authentic- looking payroll records. The consultant also told the company that, on the day of the fourth Wal-Mart audit, they should give the day off to any workers with grievances, so that they would not tell any inconvenient stories. After following the consultant's advice, the Chinese factory passed the Wal-Mart audit--even though the Chinese company later admitted that it didn't change any of its practices.
Now, I am not suggesting that Wal-Mart deliberately turned a blind eye in this case. And there are certainly documented cases of other companies selling sweatshop products in the United States.
But I do think that companies that decide to import products for sale in this country should not be allowed to gain an unfair competitive advantage by deliberately sourcing from sweatshop factories. And the bill that I am introducing would address such abuses by banning the importation or sale of products made in factories under sweatshop conditions.
For purposes of the bill, ``sweatshop conditions'' are gross violations of the labor, health, and safety laws of the country where the labor is performed. Enforcement would be divided between the Customs Service and the Federal Trade Commission. If the Federal
Trade Commission determined that a factory was operating under sweatshop conditions, it would issue an order prohibiting the sale of products from that factory. Violations of those orders would then carry a civil penalty of up to $10,000 for each individual violation.
The import ban deals only with goods that can be proven to have been made with sweatshop labor and is not a ban of products based on the country of origin. In order to comply with nondiscrimination provisions of the WTO, the sales ban would apply to both domestic and imported goods. The President could waive the application of this section to particular goods, but the Congress would also be able to pass a joint resolution rejecting a Presidential waiver.
The legislation also creates a private right of action for U.S. retailers and their investors to bring a civil action against competitors who import or sell sweatshop goods. For each offense, plaintiffs can sue for damages of the higher of $10,000 or the actual value of the goods. They can also sue for injunctive relief, to prevent the further entry of these goods into the U.S. marketplace.
This legislation is similar to S. 3485, a bill that I introduced late in the last Congress. I am happy that, in introducing the legislation in the 110th Congress, I am being joined by Senator Graham of South Carolina, who has agreed to lead the effort to advance it from the other side of the aisle. The legislation is also cosponsored by Senator Sherrod Brown, who last year introduced a companion piece of legislation in the House of Representatives. And I would also like to thank the other original cosponsors of the bill, Senators Byrd, Feingold, and Sanders.
I believe that one of the messages the American people sent to Congress in the November elections is that they demand fair trade. The legislation I am introducing is a way for Congress to show that the message has been heard.