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You can find the current article at its original source at http://www.guardian.co.uk/world/2013/may/16/fair-trade-combat-sweatshops
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| How 'fair trade' could tackle sweatshops | How 'fair trade' could tackle sweatshops |
| (4 months later) | |
| An international minimum wage, whether based on a percentage of the median country wage or on a rate set by international committees, could be destructive to emerging economies (A way to start healing the huge wound that Savar left, 13 May). Not only would such an initiative be costly to administer, but increased costs resulting from a higher minimum wage, and the corresponding incentive among producers to lower costs through automation, would reduce overall demand for labour in emerging economies. Not surprisingly, in the context of prevailing macroeconomic conditions and pent-up demand for low-cost production, the prospect of black market sweatshops becomes all too real. | An international minimum wage, whether based on a percentage of the median country wage or on a rate set by international committees, could be destructive to emerging economies (A way to start healing the huge wound that Savar left, 13 May). Not only would such an initiative be costly to administer, but increased costs resulting from a higher minimum wage, and the corresponding incentive among producers to lower costs through automation, would reduce overall demand for labour in emerging economies. Not surprisingly, in the context of prevailing macroeconomic conditions and pent-up demand for low-cost production, the prospect of black market sweatshops becomes all too real. |
| The problem could be addressed at the other end of the supply chain. Western retailers should be required to display details of their full supply chain to consumers and invest in monitoring conditions at all stages. The "fair trade" concept could then be applied to all types of industries, allowing consumers the choice of paying a small premium on products produced in acceptable working conditions. Piers Sanders, Vanina El-Khoury, David Faye, Cui Hailiang and Samsoo Oh Cambridge Judge Business School | The problem could be addressed at the other end of the supply chain. Western retailers should be required to display details of their full supply chain to consumers and invest in monitoring conditions at all stages. The "fair trade" concept could then be applied to all types of industries, allowing consumers the choice of paying a small premium on products produced in acceptable working conditions. Piers Sanders, Vanina El-Khoury, David Faye, Cui Hailiang and Samsoo Oh Cambridge Judge Business School |
| • Your article (Fashion chains sign deal for worker safety, 14 May), relating to a legally binding agreement in Bangladesh, is encouraging. However, it is shameful to read that famous retailers with huge buying power are not insisting on fair pay and conditions for an obviously exploited workforce, some of whom are paid as little as £25 per month. Assuming a machinist sews around 10 garments a day, that would be less than 10p per unit. If minimum wages were tripled to £75 per month (say 37p per hour), we would have to pay an additional 50p per garment, including a healthy margin. Ultimately, I blame the retailers for not laying down rules with their suppliers, who seem to care more about tax havens and shareholders with little thought for their hardworking employees. Peter Connolly Nottingham | • Your article (Fashion chains sign deal for worker safety, 14 May), relating to a legally binding agreement in Bangladesh, is encouraging. However, it is shameful to read that famous retailers with huge buying power are not insisting on fair pay and conditions for an obviously exploited workforce, some of whom are paid as little as £25 per month. Assuming a machinist sews around 10 garments a day, that would be less than 10p per unit. If minimum wages were tripled to £75 per month (say 37p per hour), we would have to pay an additional 50p per garment, including a healthy margin. Ultimately, I blame the retailers for not laying down rules with their suppliers, who seem to care more about tax havens and shareholders with little thought for their hardworking employees. Peter Connolly Nottingham |
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