Madam Speaker, I rise to commend to my colleagues the following article on one company's attempts to do the right thing--inspired by the consumer choices made by thousands of students across the United States who say that there should be…
Madam Speaker, I rise to commend to my colleagues the following article on one company's attempts to do the right thing--inspired by the consumer choices made by thousands of students across the United States who say that there should be ``No Sweat'' in their sweatshirts.
For years I have fought against the use of sweatshop labor, exploited adult labor and exploited child labor, around the world. For many years now, the student movement in the United States has played an important role in helping to bring the issue of sweatshop labor to the attention of political leaders, corporate boardrooms, and the college and university community. I applaud them.
Now, one company is trying to do the right thing by making apparel without sweatshop labor. That is good for workers and good for our consumers. I applaud Knights Apparel and urge other companies to follow their example.
I am especially pleased by this development because of the history of the Alta Gracia factory in the Dominican Republic where Knights Apparel is producing its goods. This same factory was unceremoniously shut down in 2007, leaving over 1,000 employees out of work and in dire economic straits--many of them forced to sign agreements that they didn't understand waiving their right to receive adequate severance pay. As this new factory moves forward, it can become a shining example of a new trade model that works by ensuring that all workers are able to take advantage of broader prosperity, rather than by starting a race to the bottom that leaves only a select few better off.
The world looks to the United States to set standards for human rights, labor rights, and democracy. By making products with a decent wage and union rights, this company is setting the finest example of corporate responsibility for the world to see.
The article follows:
[From the New York Times, July 16, 2010]
Factory Defies Sweatshop Label, but Can It Thrive?
(By Steven Greenhouse)
Villa Altagracia, Dominican Republic--Sitting in her tiny
living room here, Santa Castillo beams about the new house
that she and her husband are building directly behind the
wooden shack where they now live.
The new home will be four times bigger, with two bedrooms
and an indoor bathroom; the couple and their three children
now share a windowless bedroom and rely on an outhouse two
doors away.
Ms. Castillo had long dreamed of a bigger, sturdier house,
but three months ago something happened that finally made it
possible: she landed a job at one of the world's most unusual
garment factories. Industry experts say it is a pioneer in
the developing world because it pays a ``living wage''--in
this case, three times the average pay of the country's
apparel workers--and allows workers to join a union without a
fight.``We never had the opportunity to make wages like this
before,'' says Ms. Castillo, a soft-spoken woman who earns
$500 a month. ``I feel blessed.''
The factory is a high-minded experiment, a response to
appeals from myriad university
officials and student activists that the garment industry
stop using poverty-wage sweatshops. It has 120 employees and
is owned by Knights Apparel, a privately held company based
in Spartanburg, S.C., that is the leading supplier of
college-logo apparel to American universities, according to
the Collegiate Licensing Company.
For Knights, the factory is a risky proposition, even
though it already has orders to make T-shirts and sweatshirts
for bookstores at 400 American universities. The question is
whether students, alumni and sports fans will be willing to
pay $18 for the factory's T-shirts--the same as premium
brands like Nike and Adidas--to sustain the plant and its
generous wages.
Joseph Bozich, the C.E.O. of Knights, is optimistic.
``We're hoping to prove that doing good can be good business,
that they're not mutually exclusive,'' he says.
Not everyone is so confident. ``It's a noble effort, but it
is an experiment,'' says Andrew Jassin, an industry
consultant who says ``fair labor'' garments face a limited
market unless deft promotion can snare consumers' attention--
and conscience. ``There are consumers who really care and
will buy this apparel at a premium price,'' he says, ``and
then there are those who say they care, but then just want
value.''
Mr. Bozich says the plant's T-shirts and sweats should
command a premium because the company uses high-quality
fabric, design and printing.
In the factory's previous incarnation, a Korean-owned
company, BJ&B, made baseball caps for Nike and Reebok before
shutting it in 2007 and moving the operation to lower-wage
countries. Today, the reborn factory is producing under a new
label, Alta Gracia, named after this poverty-ridden town as
well as the Virgin of Altagracia, revered as protector of the
Dominicans. (Alta gracia translates to ``exalted grace.'')
``This sometimes seems too good to be true,'' says Jim
Wilkerson, Duke University's director of licensing and a
leader of American universities' fair-labor movement.
He said a few other apparel companies have tried to improve
working conditions, like School House, which was founded by a
25-year-old Duke graduate and uses a factory in Sri Lanka.
Worker advocates applaud these efforts, but many say Alta
Gracia has gone further than others by embracing higher wages
and unionization. A living wage is generally defined as the
amount of money needed to adequately feed and shelter a
family.
``What really counts is not what happens with this factory
over the next six months,'' Mr. Wilkerson says. ``It's what
happens six years or 10 years from now. We want badly for
this to live on.''
Santa Castillo agrees. She and many co-workers toiled at
other factories for the minimum wage, currently $147 a month
in this country's free-trade zones, where most apparel
factories are located. That amount, worker after worker
lamented in interviews for this article, falls woefully short
of supporting a family.
The Alta Gracia factory has pledged to pay employees nearly
three and a half times the prevailing minimum wage, based on
a study done by a workers' rights group that calculated the
living costs for a family of four in the Dominican Republic.
While some critics view the living wage as do-gooder mumbo-
jumbo, Ms. Castillo views it as a godsend. In her years
earning the minimum wage, she said she felt stuck on a
treadmill--never able to advance, often borrowing to buy
necessities.
``A lot of times there was only enough for my kids, and I'd
go to bed hungry,'' she says. ``But now I have money to buy
meat, oatmeal and milk.''
With higher wages, she says, her family can move up in the
world. She is now able to borrow $1,000 to begin building her
future home and feels able to fulfill her dreams of becoming
a minister at her local evangelical church.
``I hope God will continue to bless the people who brought
this factory to our community,'' she says.
In many ways, the factory owes its existence to an incident
a decade ago, when Joe Bozich was attending his son's high
school basketball game. His vision suddenly became blurred,
and he could hardly make out his son on the court. A day
later, he couldn't read.
A doctor told him the only thing that would cause his
vision to deteriorate so rapidly was a brain tumor.
So he went in for an M.R.I. ``My doctor said, `The good
news is you don't have a brain tumor, but the bad news is you
have multiple sclerosis,' '' he says.
For three days, he couldn't see. He worried that he would
be relegated to a wheelchair and ventilator and wouldn't be
able to support his family. At the same time, a close friend
and his brother died, and then one of his children began
suffering from anxiety.
``I thought of people who were going through the same thing
as my child and me,'' Mr. Bozich recalls. ``Fortunately, we
had the resources for medical help, and I thought of all the
families that didn't.''
``I started thinking that I wanted to do something more
important with my business than worry just about winning
market share,'' he adds. ``That seemed kind of empty after
what I've been through. I wanted to find a way to use my
business to impact people that it touched on a daily basis.''
He regained his full vision after three weeks and says he
hasn't suffered any further attacks. Shortly after Mr. Bozich
recovered, Knights Apparel set up a charity, weKAre, that
supports a home for orphans and abused children. But he says
he wanted to do more.
A national collegiate bodybuilding champion at Vanderbilt,
Mr. Bozich was hired by Gold's Gym after graduation and later
founded a unit in the company that sold Gold's apparel to
outside retailers. Building on that experience, Mr. Bozich
started Knights Apparel in 2000.
Still solidly built at 47, he has made apparel deals with
scores of universities, enabling Knights to surpass Nike as
the No. 1 college supplier. Under Mr. Bozich, Knights
cooperates closely with the Worker Rights Consortium, a group
of 186 universities that press factories making college-logo
apparel to treat workers fairly.
Scott Nova, the consortium's executive director, says Mr.
Bozich seems far more committed than most other apparel
executives to stamping out abuses--like failure to pay for
overtime work. Knights contracts with 30 factories worldwide.
At a meeting that the two men had in 2005 to address problems
at a Philippines factory, Mr. Bozich floated the idea of
opening a model factory.
Mr. Nova loved the idea. He was frustrated that most
apparel factories worldwide still paid the minimum wage or
only a fraction above--rarely enough to lift families out of
poverty. (Minimum wages are 15 cents an hour in Bangladesh
and around 85 cents in the Dominican Republic and many cities
in China--the Alta Gracia factory pays $2.83 an hour.)
Mr. Bozich first considered opening a factory in Haiti, but
was dissuaded by the country's poor infrastructure. Mr. Nova
urged him to consider this depressed community, hoping that
he would employ some of the 1,200 people thrown out of work
when the Korean-owned cap factory closed.
Mr. Bozich turned to a longtime industry executive, Donnie
Hodge, a former executive with J.P. Stevens, Milliken and
Gerber Childrenswear. Overseeing a $500,000 renovation of the
factory, Mr. Hodge, now president of Knights, called for
bright lighting, five sewing lines and pricey ergonomic
chairs, which many seamstresses thought were for the
managers.
``We could have given the community a check for $25,000 or
$50,000 a year and felt good about that,'' Mr. Hodge said.
``But we wanted to make this a sustainable thing.''
The factory's biggest hurdle is self-imposed: how to
compete with other apparel makers when its wages are so much
higher.
Mr. Bozich says the factory's cost will be $4.80 a T-shirt,
80 cents or 20 percent more than if it paid minimum wage.
Knights will absorb a lower-than-usual profit margin, he
said, without asking retailers to pay more at wholesale.
``Obviously we'll have a higher cost,'' Mr. Bozich said.
``But we're pricing the product such that we're not asking
the retailer or the consumer to sacrifice in order to support
it.''
Knights plans to sell the T's for $8 wholesale, with most
retailers marking them up to $18.
``We think it's priced right and has a tremendous message,
and it's going to be marketed like crazy,'' says Joel
Friedman, vice president of general merchandise at Barnes &
Noble College Booksellers. He says Barnes & Noble will at
first have smaller-than-usual profit margins on the garments
because it will spend heavily to promote them, through a Web
campaign, large signs in its stores and other methods.
It helps to have many universities backing the project.
Duke alone placed a $250,000 order and will run full-page ads
in the campus newspaper, put postcards in student mailboxes
and hang promotional signs on light poles. Barnes & Noble
plans to have Alta Gracia's T's and sweats at bookstores on
180 campuses by September and at 350 this winter, while
Follett, the other giant college bookstore operator, plans to
sell the T's on 85 campuses this fall.
Still, this new, unknown brand could face problems being
sold alongside Nike and Adidas gear. ``They have to brand
this well--simply, clearly and elegantly--so college students
can understand it very fast,'' says Kellie A. McElhaney, a
professor of corporate social responsibility at the
University of California, Berkeley. ``A lot of college
students would much rather pay for a brand that shows workers
are treated well.''
Nike and Adidas officials said their companies have sought
to improve workers' welfare through increased wages and by
belonging to the Fair Labor Association, a monitoring group
that seeks to end sweatshop conditions. A Nike spokesman said
his company would ``watch with interest'' the Knights
initiative.
To promote its gear, Knights is preparing a video to be
shown at bookstores and a Web documentary, both highlighting
the improvements in workers' lives. The T-shirts will have
hanging tags with pictures of Alta Gracia employees and the
message ``Your purchase will change our lives.'' The tags
will also contain an endorsement from the Worker Rights
Consortium, which has never before backed a brand.
In a highly unusual move, United Students Against
Sweatshops, a nationwide college group that often lambastes
apparel factories, plans to distribute fliers at college
bookstores urging freshmen to buy the Alta Gracia shirts.
``We're going to do everything we can to promote this,''
says Casey Sweeney, a leader of the group at Cornell. ``It's
incredible that I can wear a Cornell hoodie knowing the
workers who made it are being paid well and being
respected.''
One such worker is Maritza Vargas. When BJ&B ran the
factory, she was a stand-up-for-your-rights firebrand
fighting for 20 union supporters who had been fired.
Student groups and the Worker Rights Consortium pressed
Nike and other companies that used the factory to push BJ&B
to recognize the union and rehire the fired workers. BJ&B
relented. Today, Ms. Vargas is president of the union at the
new plant and sings a very different tune. In interviews, she
and other union leaders praised the Alta Gracia factory and
said they would do their utmost to make it succeed and grow.
Mireya Perez said the living wage would enable her to send
her 16-year-old daughter to college, while Yolando Simon said
she was able to pay off a $300 debt to a grocer.
At other factories, workers said, managers sometimes yelled
or slapped them. Several said they were not allowed to go
home when sick, and sometimes had to work past midnight after
beginning at 7:30 a.m.
Comparing this factory with other ones, Ms. Vargas said,
``The difference is heaven and earth.''