You are employed in the human resources department of a large international company that manufactures athletic clothing and shoes. Over the course of several years, the company has closed down a dozen or so manufacturing plants in the United States. Most of the company’s manufacturing and assembly operations have been moved overseas to subcontractor-owned factories located in third world countries. Wages are much lower and local regulations governing workers safety and factory conditions are significantly less restrictive in third world countries than in the United States.
Recently, your company has become the target of groups who protest against “globalization.” Members of these groups have been quoted in major media stories and have set up websites accusing your company of “selling out” American labor by moving jobs overseas. They have also accused your organization of running “sweatshop” and exploiting poor workers by paying low wages, exposing workers to dangerous working conditions, and employing young children at some plants. You are asked by company executives to lead a team of human resources personnel to visit some of these factories and write a report offering your thoughts about the company’s actions.
After visiting five different factories, you find that the average wage is $ 30 (U.S.) for a six-day week, which averages 55 hours (in the U.S., a worker doing comparable work earns about $ 17 per hour). This wage scale is in compliance with minimum wage scales set by local laws. Most workers are young women (16-22) who live in poor conditions and cannot save much money or afford many items we would consider necessities in the United States. However, the employees you interview tell you that they are satisfied with the wages they earn and the hours they work. Judging by the long line of job seekers at each factory’s gates each morning, you can tell that there is heavy local demand for a job in the factories.
You also find that working conditions are much different than in the United States. One factory had inadequate ventilation and no source of clean drinking water. When you were inside this particular factory, the temperature was 98 degrees and very humid. At another factory you witnessed a number of workers handling chemicals without wearing masks or gloves, which does not necessarily violate local laws but goes against your company’s code of conduct. About 25 percent of the one hundred or so workers you interviewed at this factory had no knowledge of your company’s code of conduct, which is supposed to be posted. In fact, several workers had not even heard of your company.
During your trip, you also speak with several youthful-appearing employees who told you they were only 13 years old. Local laws permit them to work at this age, and it is clear to you that their families need the income they produce. However, protesters are particularly vocal about firms employing children under the age of 14.