On the Hunt for Sweatier Sweatshops June 29
Panty purveyor Hanes announced deep job cuts this week. There’s nothing surprising about that, many companies shutter plants and abandon communities and employees for sweatshops overseas. The empty streets in dozens of North Carolina and New England mill towns is testament to it. What is different this time is where Hanes is making the cuts.
Of the 5,300 redundancies (man, those Brits sure use classy words, don’t they?), only a handful will come from the US and Canada. The rest are from such “high cost” locations as the Dominican Republic, Honduras, Mexico, and Puerto Rico. At the same time, Hanes will hire 3,000 workers at new plants in Central America and Asia. In other words, Hanes is abandoning sweatshops in Third World countries for sweatier shops elsewhere.
It’s enough to make you want to go commando.
You Suck and We’re Moving
Whenever companies break the news about layoffs, employees hear lots of management talk about staying competitive and saving jobs - a particularly odd explanation when employees are coping with the loss of many close friends and colleagues. Sometimes they even throw in an admonition about moving jobs to locations where product quality is higher, or in other words, telling the surviving employees, “You suck and we’re moving your jobs to someplace less sucky.”
Oddly, these “high quality” plants are inevitably in places with some of the lowest standards of living on the planet. Imagine the coincidence.
As companies stalk lower costs like a canned hunt on a Texas ranch, they conveniently forget their tactics will come back to bite them in the ass. In fact, the biting has already begun.
Made in Japan
Not so many years ago, “Made in Japan” was synonymous with “cheap crap”. As production migrated there from the US, Japanese wages grew into a rising tide of prosperity. As they did, Japanese managers made the same short-sighted decisions as their US counterparts. Expensive Japanese production begat cheaper Korean, Indonesian, and Singaporan production. As wages in those countries rise, their production is moving to places like India where wages are nearing the tipping point of sending their jobs to Chinese prison labor or African countries where stick-thin people will make boxers and tighty-whities for not much more than a ladle of soupy gruel and a hunk of stale bread. America’s homeless couldn’t compete in a market like that.
Companies that talk about higher quality are just as disingenuous. Business leaders care little about quality. That’s because quality no longer means building a better mousetrap. It means making products that only suck marginally less than your competitors. Quality talk is twaddle. Wage talk is king.
Somali Underwear
So in the end, workers around the world watch helplessly as their jobs bounce from one cheap crap factory to another and their livelihoods dry up and prevent them from affording even Somali-made underwear. While this may seem like a viable business strategy now, it’s a pretty stupid long-term strategy.
It’s a strategy where companies not only kill the goose that laid the golden egg, but then roast it, gorge on it, and boil the bones for that soupy gruel so popular in African diets.
Tech Tags: business globalization corporatization hanesbrands omnipotent+poobah
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