Vote+against+sweatshops+by+only+buying+free+trade+clothing+and+footwear

Kathryn Leckenby (n8297592). Tutor: Dr Mangalam Sankupelly

[] Founded in 2004 by Ethiopia’s Bethlehem Tilahun Alemu, Sole Rebels has become Africa’s largest footwear brand. Selling their range of artisan created, fair traded shoes to over 55 countries, they generated US$2 million in sales in 2011, with projected sales of US$15-20 million by 2015. Alemu has become a shining example of what fair trade can achieve and has received numerous awards including “Young Global Leader” by the World Economic Forum 2011 and “Most Outstanding Businesswoman of 2012” at the annual African Business Awards (Arthur, 2013). By combining fair wages, safe working conditions, workers rights, community development and good business design, Sole Rebels has become a clear example of combining sustainable economic growth with humanitarian support for third world communities (WHO, 2013).

**Low wages and unsafe working conditions in sweatshops result in poverty and health risks for workers**. According to the World Health Organisation (2013) large garment corporations, driven by buyers wanting good quality but cheap products, outsource their manufacturing to countries with cheap labour and poor regulation of working conditions for workers. The workers health and welfare is jeopardized by the harsh conditions, low pay, long hours and poor safety of their workplaces (WHO, 2013). Oxfam (2013) has found that garment workers in countries like Bangladesh earn as little as $0.16 per hour, leading to the devastating effects of poverty: poor education, substandard housing, poor nutrition, early marriage, poor child and maternal health and increased domestic and street violence. Unsafe working conditions result in the death or injury of thousands of workers worldwide. For example in Dakah, Bangladesh, the Rana Plaza collapsed in April this year, killed over 1,100 garment workers and maimed thousands of others (Oxfam, 2013).

Exploitation of third world countries is possible because rich countries dominate the World Trade Organisation (WTO) and make the rules of trade favor the rich over the poor (Oxfam, 2013b). Trade is the way to lift these counties out of poverty but crippling trade rules mean that workers and farmers are paid pitiful prices while western companies make huge profits. Fair trade agreements (FTA’s) work when the countries linked have equal economies, but between a rich and poor economy, the poor always loses. FTA’s restrict a poor countries right to impose tariffs and quotas to protect their own industries from cheap imports. The USA and European Union together spend US$1 billion a day in subsidising their farms and products, forcing poor countries to lower their prices to be competitive, and driving the manufacturers workforce and farmers into poverty, with all it’s accompanying health risks. Further to this, rich economies impose high taxes on imported manufactured goods resulting in poor countries only exporting raw materials, or selling through global companies and allowing the rich to make even bigger profits. Globalisation and trade has encouraged millions of people in poor countries to seek employment in the rapidly expanding manufacturing companies that supply to the West, but most work in conditions not tolerated in richer countries. The wages are so low that they continue to live lives of abject poverty and face daily health hazards (Oxfam, 2013b). In countries like Bangladesh, the garment industry is a mixed blessing. On one hand garment sales to overseas companies accounted for almost 12% of the GDP in 2010 and yet pressures by rich, western companies to keep prices low result in poor safety control and wages so low that workers can barely survive (Islam, 2012). There are approximately 4500 garment factories in Bangladesh that employ over 4 million workers, exporting around US$19 billion worth of clothes to USA and Europe each year (Alamgir, Cooper & Delclos, 2013). The ready made garment sector accounts for 75% of Bangladeshi exports and yet the majority of workers earn less than the legal minimum wage of Tk. 1620 (Islam, 2012). The cost per garment of labour is such a small fraction of the overall cost that fair wages could be paid with very little effect on the end cost of the garment. The primarily young, female staff work in harsh, unsafe environments for as little as $37 per month, which creates a cycle of poverty that few can escape (Alamgir, Cooper & Delclos, 2013). Poverty has far reaching effects on health and quality of life, as demonstrated by figure 1, created using information from WHO (2013) and Oxfam (2013). Poverty also impacts mental health, with Funk, Drew and Knapp (2012) finding that four out of every five people worldwide suffering from a mental health disorder live in a low and middle income country.
 * Literature review **
 * The effects of poverty. **

Figure 1: The effects of poverty

While national income levels have been directly linked to life expectancy, as demonstrated in figure 2, the Preston curve, this correlation does not indicate that health outcomes will be automatically improved with a rise in a countries average income. Taylor (2009), while acknowledging the importance of economic growth in developing countries, found that without equitable distribution of wealth, and access to health services, individuals will not experience the benefits of this growth.

Figure 2: The Preston Curve (Deaton, 2006)

Globalisation has had positive effects on employment, particularly among women, however competitive market pressure has pushed down wages and resulted in dangerous relaxation of safety regulations (Taylor, 2009). In April, 2013, 1100 Bangladeshi garment workers died after being forced back to work in the Rana Plaza, a building inspectors had ordered evacuated the day before. In crowded, unsafe conditions, in a building not designed to carry the load of heavy industrial machinery, 3122 workers were buried when the building collapsed. Of those that did escape alive, countless had devastating injuries (Oxfam, 2013c). Apart from the large scale tragedies from fires and collapsed buildings, workers face vision disorders, breathing difficulties, musculoskeletal disorders and exposure to toxins. In addition the workers are often physically and verbally abused, required to work long hours and were unable to join unions (Alamgir, Cooper & Delclos, 2013). In the study by Islam (2012) 72.7% of the garment workers in Bangladesh worked 10 to 12 hours a day with few getting award overtime rates.
 * Health risks of sweatshops. **

Alamgir, Cooper & Delclos (2013) expressed the need for both developing and developed countries to share the responsibility of the working conditions of garment workers globally through sharing of basic health and safety knowledge, but while multinational companies are allowed to continue to make profit at the expense of garment workers in poorer economies, shared information will be of little benefit. The consumer, in the end, is the only one who can force companies into responsible treatment and payment to these workers. If consumers demand fair trade, companies will have to comply to maintain sales. Campaigns by Oxfam (2013a) and the World Fair Trade Organization (2013) promote public awareness about the sources of our clothes, shoes and other products and promote fair pay for workers in developing countries. These campaigns are slowly making a difference, as can be seen by the previous successes of campaigns for fair trade coffee. The shocking death toll of the Rana Plaza collapse forced many to face the reality of the bargains they buy in the western shops come at the expense of workers lives in poorer nations. Social outcry has forced some companies to take responsibility for the welfare of workers that make their garments. For example, after the Rana Plaza collapse, and numerous devastating fires in garment factories of Bangladesh, a broad coalition of trade unions, as well as 87 market leading clothing brands, announced in July the next steps in implementing the Accord on Fire and Building Safety in Bangladesh (IndustriAll, 2013). The social theory of Marxism illustrates the mentality behind exploitation of poorer countries by the rich, where profits come before humanity. Karl Marx introduced the theory of class struggle, seeing the main ideology of the bourgeoisie class as making a profit by exploiting the working class. In this case the bourgeoisie are the factory owners and multinational companies that purchase from them. The workers remain disadvantaged as they have to sell their labour to survive (Islam, 2012). Alemu’s approach with Sole Rebels is the opposite of this, with workers rights and fair pay being the principles that guide their business decisions. Sole Rebels Policies (Sole Rebels, 2013) Sole Rebels is the worlds first fully Fair trade footwear company. All workers, from cotton farmers to shop staff, who contribute in any way to the production and sale of Sole Rebels shoes are guaranteed a fair trade price for their products or services. //Workers first:// Sole rebels brought employment into the community where there had previously been none. Workers get paid 4 times the legal minimum and 3 times the industry average, providing an income that can support a family in decent living conditions. //Medical cover:// All staff receive free medical cover for themselves and their families. Doctors also come to the factory to do regular checks on the health of the staff and ensure healthy working conditions. //Transportation for disabled workers:// Finding employment when you have a disability is very challenging in Ethiopia. Not only does Sole Rebels employ many disabled workers, but it provides free transport to and from work each day for those unable to walk. //No quotas:// Unlike the majority of fashion workers, there are no quotas for Sole Rebels employees as it is seen as demeaning. All workers are paid on negotiated wages based on mutually agreed company-wide goals. All work together to keep quality and efficiency levels high. //Community support:// The community on the outskirts of Addis Ababa that Sole Rebels in based in, Zenabwork, was destitute with very high unemployment rates. Sole Rebels has not only brought in employment and health care, but supports the education of workers children with the artisan education fund. The workers decide how the funds are allocated twice yearly. Alemu believes her business model can be replicated by other companies and sees it as the future of growth in developing countries. She said, “soleRebels is living proof that creating innovative world class products and trading them with the world is the best road to greater shared prosperity for developing nations like ours.” She sees her business model as an answer to many African countries reliance on foreign aid. “Today, Africa accounts for a mere two percent of global trade. If sub-Saharan Africa were to increase that share by only one percent, it would generate additional export revenues each year greater than the total amount of annual assistance that Africa currently receives. We simply need the opportunity to increase our market share, something every good, strong, global business seeks to do.”(Arthur, 2013).
 * Cultural and social analysis. **

If consumers demand, industry will supply. After Rana Plaza, and considerable public outcry, Australian brands Cotton On, Forever New and KMart signed the Bangladesh Accord (IndustriAll, 2013). We need to be thoughtful and responsible consumers and enquire about the source of the products we buy and ask for fair traded items. I thought that I was well informed about fair trade issues, but researching sweatshop working conditions has been a sobering experience and made me examine my own purchasing habits. Buying only Australian made products is not the answer, as it denies many developing countries the opportunity to rise above poverty through trade. By voting with our wallets, we can demand retailers only stock garments made in factories where fair wages are paid and working conditions are safe. Promoting companies like Sole Rebels will not only help the community they support but will send a message to the multinational companies that we do care about fair trade and we want to be able to enjoy our purchases, knowing that they have helped create economic growth in the workers involved in their production.

References

Alamgir, H., Cooper, S. P. and Delclos, G. L. (2013), Garments fire: History repeats itself. American Journal of Industrial Medicine, 56(9). 1113–1115. doi: 10.1002/ajim.22196 Arthur, C. (2013). Ethiopia’s soleRebels handcraft eco shoes and win. United Nations University. Retrieved from: []’s-solerebels-handcraft-eco-shoes and- win/ Deaton A. (2006) Global patterns of income and health: facts, interpretations and policies. NBER Working Paper W12735. Funk, M., Drew, N., & Knapp, M. (2012). Mental health, poverty and development. Journal of Public Mental Health, 11(4), 166-185. doi:[] IndustriAll (2013). Bangladesh safety accord implementation - moving forward. Retrieved from: [] Islam, K. (2012). Socioeconomic deprivation and garment worker movement in Bangladesh: A sociological analysis. American journal of sociological research, 2(4). 82-89. doi: 10.5923/ j.sociology.20120204.05 Nsehe, M. (2012). Africa's Most Successful Women: Bethlehem Tilahun Alemu. Forbes. Retrieved from: [|http://www.forbes.com/sites/mfonobongnsehe/2012/01/05/africas-most-successful- women-bethlehem-tilahun-alemu/] Oxfam. (2013a). Tell us where our clothes are made. Retrieved from: [|https://www.oxfam.org.au/ 2013/07/tell-us-where-our-clothes-are-made/] Oxfam (2013b). What’s wrong with world trade? Retrieved from: [|https://www.oxfam.org.au/ explore/trade/make-trade-fair/whats-wrong-with-world-trade][|/] Oxfam (2013c). Ask Australian companies to ensure safety in Bangladesh. Retrieved from: [] Sole Rebels, (2013). Retrieved from: [] Taylor, S. (2009). Wealth, health and equity: convergence to divergence in late 20th century globalization. British Medical Journal, 91(1), 29-48. doi: 10.1093/bmb/ldp024 WHO (2013). Social determinants of health: Stories of positive action from around the world. Retrieved from: [|http://www.who.int/social_determinants/thecommission/finalreport/ case_studies/en/index2.html] World Fair Trade Organization (WFTO)(2013). Retrieved from:[|http://www.wfto.com/index.php? option=com_content&task=view&id=889&Itemid=290]


 * Reflections **

I found your wiki well written and informative. The access to medical facilities and services in rural and remote Australia is difficult and I find it sad that services like Angel flight are needed, as I believe these services should be supplied by the Government. The closure of regional rural hospitals is another issue that contributes to this problem. It is great to hear you wish to work in this area in the future, they certainly need good health workers.
 * Angel's among us **

I really enjoyed your wiki. It was interesting to read the recommended amounts of red meat compared to that actually consumed. Your choice of the Lawnton tavern poster was great; I find the idea of eating a 1kg steak repulsive and excessive. I am not vegetarian but do frequently cook vegetarian meals and only have meat 3 or 4 times a week. Although I agree that you can eat meat (minus the fat and in reasonable amounts), and be healthy, I think you can still be healthy on a vegetarian or vegan diet, it is just not as easy. Great work
 * Do we really need to eat meat to be healthy? **