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Economy

H&M Agrees To Factory Safety Upgrade Plan In Bangladesh

After the death toll from the factory collapse in Bangladesh soared past 1,100, H&M announced today that it has signed a fire and building safety agreement in the country, Reuters reports. The agreement was initiated by IndustryALL and UNI Global Union. The company said in a statement that it hopes for “a broad coalition of signatures in order for the agreement to work effectively on the ground.” The company didn’t use any of the suppliers that were operating out of the collapsed factory.

In the wake of the tragedy, the country has also announced that it plans to raise the minimum wage for garment workers, the Associated Press reports:

A new minimum wage board will issue recommendations for pay raises within three months, Textiles Minister Abdul Latif Siddiky said Sunday. The Cabinet will then decide whether to accept those proposals.

The wage board will include representatives of factory owners, workers and the government, he said.

The garment industry’s minimum wage was last raised in 2010 by 80 percent following protests from workers, rising to 3,000 takas, or $38, a month.

Working conditions in the country have long been dismal thanks to the corruption of government officials, a failure to commit to higher standards from companies in the industry, and a glut of workers desperate to work. After a fire that killed 112 workers in November, major retailers refused to implement a union-proposed safety plan, citing costs. That may now change following the leadership of H&M.

American demand for cheap clothing has also fueled the garment industry boom in Bangladesh without ensuring better working conditions. As the Wall Street Journal reports, “Americans last year devoted just 3% of their annual spending to clothing and footwear, compared with around 7% in 1970 and about 13% in 1945, according to Commerce Department data.” Spending has decreased in part because clothing prices have fallen over the last two decades after rising from the 1950s to the 1970s. Prices for clothing have risen just 10 percent since 1889, while food prices, in contrast, have gone up more than 80 percent.

But the cost of safety may not even be noticeable to many consumers. The price tag for safety upgrades in the country’s factories, if passed on entirely to the consumer, could cost as little as 10 cents per garment. Companies may also be able to absorb a minimum wage increase as they did when cotton prices rose in 2011.

Update

The New York Times reports that H&M is the largest purchaser of garments in Bangladesh, putting even more heft behind its decision. The agreement it has signed “calls for independent, rigorous factory safety inspections with public reports; for mandatory repairs and renovations – with Western retailers underwriting those repairs; and for retailers to stop doing business with any factory that refuses to make necessary safety improvements.”

Update

Inditex, the Spanish apparel brand that owns Zara, has signed onto the agreement. The country also announced today that it would allow its garment workers to form unions without first getting permission from factory owners.

Alyssa

San Francisco Giants Concession Workers Authorize Strike After Three Years With No Pay Increases

AT&T Park

The last three years have been good to Major League Baseball’s San Francisco Giants, who won two World Series crowns and emerged as a contender to win another in 2013. But they haven’t been as good to the roughly 800 workers who staff AT&T Park, the ballpark on San Francisco Bay the Giants call home.

Those workers, who staff AT&T Park’s concession stands, restaurants, and kitchens, haven’t had a pay increase since their contract with Centerplate, the company that staffs and maintains concessions at the stadium, expired in 2009. The workers, affiliated with Unite HERE Local 2, say negotiations have stalled, leading them to authorize a strike in a vote held across the street from the stadium Saturday afternoon.

The vote won’t automatically result in a strike; rather, it gives the union the choice to begin one at a later date. Both sides are set to return to the bargaining table this week for their sixth round of negotiations — and workers will continue to fight for pay increases and against changes to their health care and pension plans, they told ThinkProgress.

“I started here in 2010, and I haven’t seen a raise since I got here,” Anthony Wendlberger, a kitchen worker at AT&T Park said. “We’re not asking for an extravagant lifestyle. Just the basics. And a little respect.”

Negotiations center on three major issues, according to workers and union officials. Workers want pay increases they haven’t received for more than three years, and they are fighting changes to their pensions and health care coverage. They also want increased job security from the Giants in case the franchise doesn’t renew its contract with Centerplate. That would come in the form of a “successorship clause.”

The average AT&T Park employee earns $11,000 a year, according to union officials. The jobs are seasonal, and many hold second jobs, but they receive their health care through Centerplate. Under the current plan, a worker who staffs 10 events in a month receives health care for the next month, but Centerplate wants to increase that to 12 events per month under a new contract, workers said (A Centerplate spokesperson would not confirm that detail). That would make it impossible to obtain health coverage in months like June, when the Giants have just nine home games, and making health care harder to obtain is a major sticking point for the workers.

Gina Antonini, a spokesperson for Centerplate, said the company viewed the strike vote as an “unfortunate step” in the process, adding that it remains “confident the situation can be resolved at the bargaining table.” While Antonini would not offer specific details of Centerplate’s offer, she said it would “provide a pay increase that would keep the workers among the highest paid in the industry.”

Giants’ workers start at $10.45 an hour for their first 50 games and make between $13.52 and $19.44 an hour after that, according to Unite HERE. But in a city like San Francisco, where the cost of living is among the most expensive in the nation, being among the highest paid in the industry doesn’t mean as much as it would in other cities. Wendlberger said he doesn’t make enough to live in San Francisco; instead, he lives near Sacramento, a two-hour drive without traffic. “A lot of times, I might not go home” after games, he said, even though he has a wife and two young children at home. “Gas is expensive, so I stay with my brother or my mom.”

“Some people are saying we’re being greedy,” Wendlberger said. “We’ve got members living in public housing, we’ve got people on public assistance. There’s nothing greedy about wanting a basic lifestyle.”

The ultimate fight may not be with Centerplate but with the Giants franchise, which takes 55 percent of all concession sales, according to Unite HERE. On a $10 concession sale, the Giants’ cut amounts to $5.50, while workers’ salaries and benefits and operational costs are covered by the remaining $4.50. That money “goes straight into their pockets,” Patricia Ramirez, a kitchen worker who has worked Giants games for 13 years, said.

A Unite HERE release said the Giants team value has risen by 40 percent in the last three years, and concession and ticket prices have risen during that time too. Even reducing their share of each sale by 50 cents “would be huge,” Wendlberger said.

“We feel a major part is how much the Giants are taking, and I feel like it would be different if they would just step up to the plate and do the right thing,” he said. “We work for the Giants and their fans.”

“The Giants are the ones with the deeper pockets, the ones who could help,” Ramirez said.

Ultimately, Wendlberger said, the workers are hoping to avoid a strike, a sentiment Centerplate echoed in a Friday release calling on the union to “come to the table to find a solution that is win-win for both sides.”

“None of us want to strike,” Wendlberger said. “We enjoy our jobs. We want our jobs. We just need the basics.”

Economy

Where Is The Media Coverage Of The Fast Food Workers’ Strike?

Fast food workers strike in New York (Credit: Salon)

If you did nothing but watch cable news for the last two days, you would have no idea that hundreds of fast food workers in the midwest are on strike — walking out of their jobs, protesting outside of the storefronts, calling on employers to end the horrendously low wages that have left many workers in poverty.

Since Wednesday, when the strikes began, neither CNN nor Fox News has even mentioned the fast food worker protests, according to a quick search of media monitoring site TV Eyes. MSNBC has discussed the strikes once, during a segment of All In With Chris Hayes.

It’s not that the channels haven’t discussed economic issues: For comparison’s sake, in the same time period, CNN mentioned the Dow on eight separate occasions, MSNBC on 23, and Fox News on 14. They have also managed to have dozens of discussions about fast food — particularly McDonald’s. But all were in reference to what Charles Murray — one of the men who rescued three kidnapped women in Ohio — was eating before his heroic act.

Cable news often fails to cover economic news as it relates to people’s lives. Every station was equally abysmal at discussing job-threatening sequestration cuts, though they spent a lot of time focusing on lines at airports or the discontinuation of White House tours.

But the workers’ strike is certainly worth the time of all three major cable channels. Currently, those hundreds of workers on strike don’t make a living wage and lack any union representation that would help them collectively bargain. Even as the profits of the companies they work for rise, workers’ wages have stagnated. The fight is also happening at the federal level; in his State of the Union, President Obama called on Congress to raise the minimum wage to $9 an hour. That puts it just at 1981 levels, accounting for inflation.

Economy

World Trade Center, Built With Union Labor, Is Now America’s Tallest Building

(Credit: Anne Thompson, NBC News)

One World Trade Center, which will replace the World Trade Center towers that fell in the September 11 terrorist attacks, became the tallest building in the United States this morning when workers hoisted a 408-foot spire atop it. At 1,776 feet tall, the building is now the tallest in the United States and the third-tallest in the world.

And, as American Rights at Work noted when it became the tallest building in New York, it was built with union labor:

It’s fitting: union members were among the first responders; union members served in the immediate cleanup; and now union members are part of the rebuilding.

Anti-union legislation has made its way across America in recent years, from Michigan to Indiana to Wisconsin. But unions were instrumental in building America’s middle class, in responding to the attacks on 9/11, and now, in rebuilding the World Trade Center in the decade since the attacks.

“It’s a pretty awesome feeling,” project manager Juan Estevez told the Associated Press. “It’s a culmination of a tremendous amount of team work … rebuilding the New York City skyline once again.”

Economy

13 Workers Died On The Job Each Day In 2011

A new AFL-CIO analysis of data from the Bureau of Labor Statistics reports that 4,693 workers were killed on the job in 2011, an average of 13 workers every day. That’s more than the number of pedestrians struck and killed by cars every year and more than the lives lost during the entire Iraq War. This is the third year that the fatality rate for workers has been unchanged after years of decline.

Another estimated 50,000 died from diseases contracted on the job. Overall, workers reported 6.8 million job-related injuries and illnesses.

The report also notes that the cost of injuries and illnesses that occur on the job is huge. One study put the figure at $250 billion annually due to medical costs and the loss in productivity, more than the cost of cancer.

These numbers come after a fertilizer plant in West, Texas exploded, killing 15 and injuring hundreds. The plant hadn’t been inspected by the Occupational Safety and Health Administration (OSHA), the agency tasked with ensuring workplace safety, since 1985. In fact, the Government Accountability Office recently found that the average workplace only gets a visit from OSHA inspectors every 99 years.

That number may get even worse, as OSHA can expect a big cut from sequestration. It will have to slash its budget by 8.2 percent, which could mean 1,200 fewer workplace inspections. Meanwhile, Republican budgets have sought to reduce its budget by $99 million and cut other workplace protection agencies.

Economy

Where Consumers Can Shop To Avoid Supporting Dangerous Working Conditions

Credit: The Associated Press

Bangladesh’s $20 billion garment industry makes it the world’s second-largest apparel exporter, and the United States is its second-largest buyer after Europe. With the factory collapse death toll now over 800, American consumers may be looking to buy clothes that weren’t made in such working conditions. It is likely much better for the Bangladeshi economy and its garment workers for companies to invest in upgrades rather than flee the country, and those investments could cost consumers a mere 10 cents per garment. But in the meantime, there are some places for American shoppers to turn.

Finding these retailers can be difficult, given how much American companies rely on Bangladeshi manufacturers, but some have either taken steps to ensure better working conditions or simply manufacture their clothing elsewhere. Below are some of those retailers, although the list is far from comprehensive. Help ThinkProgress build this list: Where do you buy clothing that is sourced from humane working conditions? Leave your suggestions in the comments and we will update the post.

Levi Strauss & Co.
Sells: Full range of men’s and women’s apparel
Levi Strauss & Co. claims to be the first multinational apparel company to establish a code of conduct for its suppliers in 1991. Its Terms of Engagement outlines rules for child and forced labor, working hours and wages, freedom of association, and detailed safety requirements. While it still sources from factories in Bangladesh, it doesn’t use multistory facilities that have factories with different owners, and in the past it has taken action to police the standards in its facilities. When it found that two factories in Bangladesh employed child workers, it decided to keep paying the workers while they attended school and offer them full-time jobs once they were of legal working age rather than fire them.

Patagonia
Sells: Outdoor apparel and gear
While it has factories in Bangladesh, it has eight in the U.S. and a Code of Conduct for its suppliers that expressly prohibits unsafe working conditions, child labor, and excessive hours and encourages higher wages and unionization.

Land’s End
Sells: Jeans, shirts, and sweatpants as well as home and pet items
Land’s End launched a “Made in the U.S.A.” collection in 2012 with its Durable Goods line. The line offers clothing, home, pet, and specialty items.

Brooks Brothers
Sells: Men’s dress clothes
Brooks Brothers has a clothing line of men’s dress shirts, suits, ties, and dress shoes that are made in the United States. The company also has a commitment to philanthropic spending and partners with non-profit organizations related to health issues, education, and the arts.

New Balance
Sells: Sneakers and sportswear
New Balance has a line of sneakers either made in the U.S. or assembled here.

American Giant
Sells: Men’s sweatshirts, T-shirts, and sweatpants
Seeking to address the fact that “most clothes we love…are made in countries that are so far away, the only American job it created was a store clerk,” the company sources its materials and manufacturing in the U.S.

Alta Gracia
Sells: College apparel
Alta Gracia’s products are made in the Dominican Republic, where it says it pays a living wage, sometimes “more than three times the minimum wage,” respects the right to form a union, and ensures a safe workplace. The Worker Rights Consortium ensures that the company is compliant with these standards through on-the-ground monitoring.

Flint and Tinder
Sells: Men’s underwear and accessories
The company manufactures all of its products in the U.S. in its own facilities, which started with a single factory and has expanded to a larger group. It says that for every 1,000 pair of underwear it sells in a month, it adds at least one job in its supply chain.

Update

Here are more retailers thanks to reader comments:
Carhartt
Sells: Work pants and jeans, outerwear, and shirts
The retailer’s production comes mostly from company-owned factories in the U.S. and Mexico. It also has a Workplace Code of Conduct based on the Core Conventions of the International Labor Organization and the UN’s Universal Declaration of Human Rights.

Pact
Sells: Men’s and women’s tops and intimates
The company says it is committed to using sweat shop-free factories that it visits multiple times a year. It also sources its materials from eco-friendly and organic factories.

Everlane
Sells: Men’s and women’s tops and accessories
The company claims to “spend months seeking out the best” factories that specialize in different fabrics and construction methods.

Shockoe Denim
Sells: Jeans
The company is family owned and operated and manufactures its products in the U.S. It also says that “all raw materials used in our jeans can trace their origins to a US factory or workshop.”

AG
Sells: Jeans
Every step of manufacturing the jeans is done under one roof in the U.S., including design, sewing, and finishing. It also uses eco-friendly practices and recycles its scraps.

For more ideas, you can check out the Made in USA Challenge blog, which features items made in the U.S.

Economy

Bangladesh Factory Upgrades Could Cost Consumers As Little As 10 Cents Per Garment

Credit: The Associated Press

The factory collapse in Bangladesh has now claimed upward of 700 lives, making it the worst industrial disaster in Bangladesh and the most deadly one in the history of the garment industry. As has been widely reported, workers were hesitant to enter the building on the day of the collapse due to visible cracks in the building.

Since the disaster, many have urged large retail corporations to upgrade the working conditions in the factories from which they source their products. Three hundred large companies had previously refused to sign a pledge to do so before the collapse, citing costs. The need for low prices and fast production is driven in large part by American demand for cheap clothing. So how much would clothing prices rise for the average consumer if all of the costs of upgrading Bangladesh factories were passed on to them?

According to an estimate provided by the Worker Rights Consortium, it could be as little as 10 cents per article of clothing. The group comes to this figure by estimating that building renovation, safety equipment installation, and other related costs would come to about $3 billion, which is says is a high estimate that assumes virtually all factory buildings need major renovations, as some may not. Spreading that cost over five years, it comes to $600 million each year, and tacking 10 cents on to each of the roughly 7 billion garments exported from the country each year would easily cover that cost. After the initial investment in renovations, the group says the costs of maintenance will drop significantly.

Even without these large-scale renovations, there are precautions that could be taken immediately that would cost little. As Kimberly Ann Elliott, a senior fellow at the Center for Global Development and an expert in international trade policy, told Dylan Matthews of Wonkblog, factories could install fire extinguishers, unlock doors, and take other measures that don’t add much to costs but improve workers’ safety.

But it may not be as simple as companies investing more in building renovations and fire extinguishers. As Pietra Rivoli, a professor of international business at Georgetown University’s McDonough School of Business, told ThinkProgress, one of the biggest barriers to safe working conditions is a political infrastructure in Bangladesh that can properly monitor workers and their employers. “In the U.S. we have things like building codes and occupancy permits,” she pointed out. “What’s missing in Bangladesh is that local political infrastructure.” There is also a problem with widespread political corruption. It may therefore be difficult for large corporations to substitute for regulatory bodies.

The response from many large retailers so far has been to pull production from the country altogether. The Walt Disney Company has already announced that it will end production in Bangladesh, and other retailers may follow suit. That could devastate the country’s economy and make life even more difficult for its garment workers. Other Western retailers have indicated that they will instead invest in operations in Bangladesh and look at new plans for factory safety, but so far most of the money pledged will be for relief efforts and few have committed to upgrading factories or tougher inspections.

Immigration

Our Immigrant Future: Love It Or Lose It

With the immigration reform debate heating up, now is a good time to review the latest data on our immigrant future.  These data come from a terrific, detailed report by the Pew Research Center that didn’t get the nearly the attention it deserved when it was issued this February.

Start with the percent of the US population that are first and second generation immigrants.  Today there are 76 million immigrants in our country accounting for about 25 percent of the population.  Pew projections indicates that by the year 2050 there will be 162 million immigrants, accounting for 37 percent of the population, the highest in modern history.

And that’s not all.  One aspect of this growth that is of tremendous significance is its effect on our future workforce. According to the Pew projections, almost all (93 percent) of the growth in the working-age (18-64) population between now and 2050 will be accounted for by immigrants.  That is a figure that all policy-makers should have committed to memory as they grapple with how to handle immigration reform and related issues.

Growth in our country’s immigrant stock will be heavily driven by Latinos and Asians, which has important implications for our politics.  The Pew report finds that Latinos and Asians both lean heavily toward the Democratic Party and that there is no diminution of this lean toward the Democrats among more assimilated second generation immigrants.   In fact, among Latinos, to the extent there is a difference, it is that second generation immigrants are more Democratic (71 Democratic/19 Republican compared to 63 percent Democratic/16 percent Republican among first generation immigrants).

Of course, just how big these implications are politically will depend on many factors, one of which is immigration reform, which should increase the numbers of eligible Latino and Asian voters.  But it’s worth stressing that immigration reform is by far not the GOP’s biggest problem with these groups.  Far more significant, as Nate Silver’s recent simulations of the political effects of population growth and immigration reform demonstrate, is whether the GOP will continue to run such huge deficits among Latinos and Asians.  If they do, they are facing a looming disaster from population growth, with or without immigration reform.  But if they can succeed in reducing those deficits substantially, they can remain competitive even with both population growth and immigration reform in effect.

That’s something for today’s GOP to ponder as they face the rising sentiment for immigration reform and the possibility they could further alienate Latinos and Asians with their intransigence.  America’s immigrant future: love it or lose it.

Economy

Hawaii Becomes Second State To Pass A Domestic Workers Bill Of Rights

On Tuesday, both houses of Hawaii’s state legislature passed a bill that grants domestic workers basic labor rights:

The bill passed the House and Senate on Tuesday with little opposition in the heavily Democratic chambers. It covers cooks, waiters, butlers, housekeepers and other workers, including babysitters in some cases.

The bill makes it illegal to discriminate against anyone employed as a domestic worker based on race, gender, sexual orientation and other factors.

The bill also brings them under the protection of the state’s wage and hour laws. It now heads to Gov. Neil Abercrombie’s (D) desk. If he signs it into law, Hawaii will join New York as the only two states with laws on the books to grant domestic workers basic worker protections. The Illinois Senate’s labor committee is also set to vote on the state’s proposed bill of rights this week, and California, Massachusetts, Oregon, Texas, and Ohio are expected to consider similar measures soon.

Domestic workers inhabit a booming industry, but one that offers little pay and is rife with abuse. A survey by the National Domestic Workers Alliance found that 20 percent of housekeepers and nearly a third of nannies and caregivers make less than the minimum wage. In fact, nearly three-quarters of the domestic workforce is paid less than $13 an hour. Forty percent of nannies and caregivers work more than 40 hours, yet 85 percent aren’t guaranteed overtime pay. About 20 percent of domestic workers report being threatened, insulted, or verbally abused by their employers, a figure that rises to 36 percent for live-in workers, yet they have little recourse to report and address abuse.

New York’s Domestic Workers’ Bill of Rights addressed all of these issues by affirming the right to be paid a minimum wage and granting the right to overtime pay at time-and-a-half over 40 hours, protection for workers who suffer sexual or racial harassment, and earned paid days off.

Economy

North Carolina Under-Reported Worker Deaths And Ignored Multiple Workplace Safety Violations

A memorial for killed workers in Raleigh, NC. (Credit: Chuck Liddy, News & Observer)

The number of North Carolinians who died at work in 2012 is likely more than three times the original number reported by the state Labor Department. While the state estimated 35 worker fatalities last year, the National Council for Occupational Safety and Health (COSH) put the number at 150.

Released in the wake of the deadly Texas fertilizer plant explosion enabled by massive regulatory failure on the state and federal levels, COSH’s report holds North Carolina’s weak workplace regulations accountable for these 150 deaths. While the federal Occupational Safety and Health Administration covers workplace safety in about half the states, North Carolina uses a far more lenient state program.

In one of the highlighted cases, 39-year-old Luis Martinez died in a trench cave-in while installing a water line at NC State University. The trench cave-in could have been prevented with the use of proper equipment like a trench box that supports the sides. Yet the state essentially ignored repeated violations by Martinez’s employer for years before his death:

• August 22, 2007: As part of a planned inspection, NC OSHA finds that J.F. Wilkerson has violated trench safety standards and assesses a fine of $1,175. But the penalty is reduced to zero as part of an “informal settlement” with the company.

• November 14, 2007: After a worker files a complaint of unsafe conditions on the company’s jobsite, NC OSHA investigates and finds five serious violations. The company is fined $7,920 but the penalty is reduced to a paltry $1,820.

• February 23, 2011: Another worker files a complaint of unsafe conditions on a J.F. Wilkerson jobsite. NC OSHA inspects but does not cite the company for any violations.

• November 19, 2012: Unsafe conditions persist at the worksite and Luis Martinez is killed. NC OSHA’s investigation is still in process.

NC OSHA’s fines for companies that violate workplace safety standards are far lower than federal penalties. Repeat offenders pay just $1,906 in North Carolina, while they would pay $7,487 in a state covered by federal OSHA.

While the federal agency’s protections are generally stronger than state programs, so-called “pro-business” lawmakers have worked hard to hobble OSHA. The agency is already desperately underfunded and so over-extended that many workplaces have avoided inspection for nearly a century. As sequestration cuts are implemented, OSHA will lose another $564.8 million and will likely cut 1,200 workplace inspections.

Even without budget cuts, OSHA’s existing protections have already fallen short. COSH also released a national report on worker fatalities estimating that 13 Americans die at work every day, while countless others contract serious illnesses from exposure to harmful chemicals or excessive heat. Immigrant workers have the highest rate of deaths, as employers routinely threaten them with deportation if they speak out against the dangerous conditions. However, the Texas fertilizer plant explosion seems to have served as a wake-up call for many Americans. A majority now support tougher enforcement of existing regulations, while 44 percent believe current workplace safety regulations are not strict enough.

The recently reintroduced Protecting America’s Workers Act is one attempt to remedy the dangerously wide loopholes in existing workplace safety standards. The bill would bolster OSHA’s reporting, inspection and enforcement practices, expand federal protections to state, county, municipal and U.S. government employees, and increase whistleblower protections.

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