What is a sweatshop

What is a sweatshop - What is a sweatshop? The...

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What is a sweatshop? The Merriam-Webster dictionary defines a sweatshop as a shop or factory in which employees work for long hours at low wages and under unhealthy conditions. The US General Accounting Office (GAO) defines a sweatshop as an employer that violates more than one federal or state labor law governing minimum wage and overtime, child labor, industrial homework, occupational safety and health, workers’ compensation, or industry regulation. The term originated out of the apparel industry in England, where work was done piecemeal in homes not factories. It was easier to keep workers from organizing if they didn’t work together. Eventually the factory process provided more efficiencies and controls and employers found other ways to prevent workers from organizing to improve conditions. There is another definition that also applies. It is the process of “sweating” workers. Basically an employer can degrade pay rates and working conditions because they know that if workers leave, someone is waiting to take their job under any conditions. This creates pressure or “sweating” as a result of the harsh reality that any job is better than no job. Is Wal-Mart guilty of running sweatshops? According to the National Labor Committee, about 85 percent of Wal-Mart's privately owned clothing and footwear lines are produced offshore. The bulk of production is in countries like China and Indonesia, where wages are as low as 10 cents an hour. Wal-Mart's famous "low prices" are in fact a product of the company exploiting the workers who make the products they sell. I read that Wal-Mart pays next to nothing for labor, demanding 6 or 7 day work weeks and 12 hour shifts, and blatant abuses of labor laws and workers. Wal-Mart’s corporate philosophy is to drive down the cost of doing business and keep profits
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This note was uploaded on 05/22/2010 for the course ALL MBA taught by Professor All during the Spring '10 term at Jones Intl..

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What is a sweatshop - What is a sweatshop? The...

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