An old conflict between bottom line and human lives
Friends and relatives gather at a burial site for some of the 112 victims of a fire at a Bangladesh garment factory. (AP)
A little over a hundred years ago, a fire at the Triangle Shirtwaist Factory in New York killed 146 workers. Many of the victims had tried to flee but were prevented from doing so by exits that had been locked by management. Scores of people died as they fell or jumped from windows to escape the flames, plummeting to the ground from the 10-story building.
The tragedy proved to be an important turning point, helping to lead to passage of tougher workplace safety and fire laws, as well as creation of labor unions in the garment industry. (As someone who covered the 1980 MGM Grand fire in Las Vegas that killed 85, and who witnessed the adoption of much tighter fire-safety rules as a result, I know how that dynamic works. Even after the MGM tragedy, Nevada’s powerful casino industry resisted fire-code changes as too expensive, changing its tune only after a second fire a few months later, this one at the Las Vegas Hilton, killed eight people.)
Now, a century after the Triangle factory fire, an all-too-similar scenario is playing out on the other side of the globe. On Nov. 25, 112 garment workers died in a fire in a high-rise factory in Bangladesh that had little or no fire-protection measures. In September, two similar fires in garment factories in Pakistan had killed almost 300 people.
It is not, in other words, a new problem. As Bloomberg reports, Wal-Mart, Gap and other companies that rely on such factories have been well aware of the dangers they represent. Wal-Mart in fact had technically ended its relationship with the Bangladesh factory where the most recent fire occurred, but the company also now acknowledges that Walmart goods were still being produced there because a supplier had “subcontracted work to this factory without authorization and in direct violation of our policies.”
Overall, however, the companies have been reluctant to help pay for necessary safety upgrades:
At a meeting convened in 2011 to boost safety at Bangladesh garment factories, Wal-Mart Stores Inc. made a call: paying suppliers more to help them upgrade their manufacturing facilities was too costly.
The comments from a Wal-Mart sourcing director appear in minutes of the meeting, which was attended by more than a dozen retailers including Gap Inc. (GPS), Target Corp. and JC Penney Co…
“Specifically to the issue of any corrections on electrical and fire safety, we are talking about 4,500 factories, and in most cases very extensive and costly modifications would need to be undertaken to some factories,” they said in the document. “It is not financially feasible for the brands to make such investments.”
But hey, at least it’s cheaper to do business under those conditions, right? Fewer of those pesky government regulations and inspectors to cause trouble? Paying a few pennies more per clothing item just to save a few hundred lives … “It is not financially feasible for the brands to make such investments.”
From the Forbes listing of the 400 richest Americans
– Jay Bookman
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455 comments Add your comment
JamVet
December 6th, 2012
9:10 pm
For the less than compassionate conservatives…
http://www.youtube.com/watch?v=jeXcaRYNlSQ
Mark in mid-town
December 6th, 2012
9:12 pm
Dekalb Comments wrote: “Costco for starters. They pay, on average, nearly double what Walmart pays their employees. They provide benefits and contribute to a 401K plan. Employee turn-over is significantly less than at Walmart.”
————————————————————————————
This is often pointed out by critics of Walmart. But one needs to apply some scrutiny as to why this is possible. I absolutely love Costco and think it’s one of the great companies out there. But their business model is completely different than Walmart. Costco can afford to pay their employees more than Walmart for a couple of reasons. Reason # 1 is that Costco is a less labor intensive business than Walmart per unit of product sold. Costco moves a far higher dollar amount of product per employee than does Walmart. The 2nd reason is that Costco actually does have plenty of low wage people who work at their stores, but Costco contracts the low wage positions out. That means such low-wage positions aren’t included in the average wage that Costco pays their employees since the lower wage workers are technically not employees of Costco. For example, many of those who serve the food samples at Costco are not Costco employees. They are low-wage employees of the companies that Costco farms out such work to, but for all intents and purposes, they are Costco workers. When all that is accounted far, it’s entirely possible that Walmart pays its workers a higher share of revenue than Costco. There is one thing that Costco has in common with Walmart. They both use their power and leverage to squeeze every ounce of efficiency out of their providers as possible.
They BOTH suck
December 6th, 2012
9:12 pm
Bro
Will send you and TBG and email tomorrow. Based on schedules of course, let’s see if we can squeeze in a few beers before Christmas, if not before the New Year.
Hope mama and little mama are doing well.
They BOTH suck
December 6th, 2012
9:17 pm
jam
they “really” say they want me to do this, but they are reluctant to follow
http://www.youtube.com/watch?v=Al9WmowJ3bQ
getalife
December 6th, 2012
9:19 pm
The gop are tossing the cons under the bus and we are moving forward not back.
Life is good.
They BOTH suck
December 6th, 2012
9:22 pm
get
The Repubs in the Senate that are breaking ranks are just letting you know what is coming.
I do hope Obama isn’t just playing games as many Presidents do, but he does have the Repubs on the ropes much more than they will ever admit. That is a given.
Brosephus™
December 6th, 2012
9:23 pm
They BOTH
You set it on the tee. I only had to swing the club.
In all seriousness though, you’re A-OK in my book.
————————-
Mick
I’m just hoping y’all let him leave out in one piece afterwards.
JamVet
December 6th, 2012
9:23 pm
Arguably still the greatest live rock album ever, BOTH.
And it still sounds great.
http://www.youtube.com/watch?v=H315jc_iHcI
Brosephus™
December 6th, 2012
9:25 pm
The 2nd reason is that Costco actually does have plenty of low wage people who work at their stores, but Costco contracts the low wage positions out.
Interesting point. One figures that in for Costco’s employee pay, but nobody ever mentions contracting when it comes to public sector pay. Just thought I’d throw that one out there.
Dekalb comments
December 6th, 2012
9:28 pm
@Mark in Midtown
I do not, for a moment doubt, that Costco works toward reducing costs and increasing profits. Both Walmart and Costco are “volume” retailers.
But we have to start somewhere. At the most basis point frontline employees in the US at Costco are compensated more fairly than their equivalents at WalMart. And I agree Costco is really more like Sams Club than WalMart.
But I stand by my view that Costco, overall, accepts lower yields and profits in exchange for something. Whether we call that moral conviction, etc. is not mine to define.
JamVet
December 6th, 2012
9:29 pm
Find out just what a people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them; and these will continue till they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress. ~Frederick Douglass
getalife
December 6th, 2012
9:31 pm
Both,
So far the gop purged the cons from committees and they lost a Senator.
I laugh at their rhetoric but watch their actions.
They should pass the middle class tax cut like Cole said.
They BOTH suck
December 6th, 2012
9:32 pm
Jam
Don’t want to say all Republicans because it will paint the brush I call them out when they paint as well as paint over some good Republican friends of mind who are right leaners……….. with that said………. this tune is should be their theme at this point in time
http://www.youtube.com/watch?v=uD3bGEFxGC0
0311/8541/5811/1811/1801
December 6th, 2012
9:33 pm
For my conservatives allies:
(LIBERALS …….. VIEW AT YOUR OWN RISK)
http://www.youtube.com/watch?v=lm1PdW3vs3o&feature=youtube_gdata_player
They BOTH suck
December 6th, 2012
9:38 pm
Jam
Turn it up and groove on some of this sot=southern boogie
http://www.youtube.com/watch?v=hRavC8CjRL0
They BOTH suck
December 6th, 2012
9:42 pm
get
the old guard is going to fight like hell
let them fight and hopefully that fight spills over into the Dems and some of their long lasting political nothings……….
We as a nation are better and deserve better than what most of both parties provide at this time……….
Yes I lean left, but not enamored with what we are getting on many levels
They BOTH suck
December 6th, 2012
9:44 pm
http://www.youtube.com/watch?v=5WUeOEkl270
getalife
December 6th, 2012
9:44 pm
There are no more cons left to be your ally scout.
Your party hurt their feelings today.
JamVet
December 6th, 2012
9:44 pm
Being a Republican is no shame. But something has gone terribly wrong.
Spoke at length today with a very interesting, successful, well spoken, well traveled Aussie today and he said that from his perspective, a lot of the animus directed at Obama is racial.
Time for a little old fashioned, GOP enlightened self interest…
http://www.youtube.com/watch?v=oakfWDsq_1Y
Alex
December 6th, 2012
9:47 pm
I read it as the company0 ( Walmart) does not want to pay for upgrades, the question is wether the company is still using these factories. The article does not answer that question, In fact it appears that Walmart has stopped using some factories. Now if Walmart, knowingly uses factories with horrendous working conditions then this is obviously worth telling potential customers and the customers will drive any correction.
getalife
December 6th, 2012
9:48 pm
Both,
Getting the Dems to focus on the middle class is leadership.
Forget the rhetoric and watch their actions.
Our President wants a middle class tax cut so they do not get stuck with 4 k bill.
Americans should be yelling at the gop to pass it.
They BOTH suck
December 6th, 2012
9:49 pm
Jam
That Aussie doesn’t happen to be in commercial real estate, does he?
I know a guy who fits the bill exactly. He has been in the states since the mid 90s.
middle of the road
December 6th, 2012
9:49 pm
Let’s put this into perspective. Every year about 20 kids die getting off school buses because the school district don’t want to pay to double the routes so students only get off on the right side (so they don’t have to cross the street). There is a price on human life.
If we want overseas companies to follow our regulations, we have to impose tariffs on inported items from countries without the same regulations as us.
They BOTH suck
December 6th, 2012
9:52 pm
get
Got you and with you more than you know
However, I do not and will not overlook the bs that the Dems also bring to the table.
It is politics. My leanings are one thing, being honest about how they interact and politicize is another story………
They BOTH suck
December 6th, 2012
9:53 pm
http://www.youtube.com/watch?v=Yi0D9JizqWw
JamVet
December 6th, 2012
9:53 pm
BOTH, I had never seen that Old Grey Whistle Test recording of that monster. Thanks!
They BOTH suck
December 6th, 2012
9:56 pm
http://www.youtube.com/watch?v=Y-gCOEDeCYs
Billy Gibbons doing what he does best…………. blistering guitars…….
middle of the road
December 6th, 2012
9:57 pm
I don’t think the workers in that factory were slaves, they CHOSE to work in that factory for the wages there. Just like coal miners choose to work in coal mines. If you offered to buy remote control miners so the miners would be perfectly safe, but cut their pay in half, they would tell you “no way”. They can use the danger to demand higher wages.
Alex
December 6th, 2012
9:58 pm
the republican party is responding to a changing america and the party drifted too far right as they got arrogant and lazy. They are recognizing their mistakes and working hard to improve their representation of this country. This gives the voter options and may well attract more voters into the future elections and that is good for the country. Jay has said this is bad for the repubs as it will alienate some of their base, Is not this similar to the Dems of the 1960’s when they supported civil right act which they knew would loose them the south, and it did.. but of course it was morally correct and has , in the long term been extremely positive for the party AND the country.The Repubs will become a viable conservative alternative to the liberal/democrats, providing choice……GREAT!
They BOTH suck
December 6th, 2012
10:00 pm
Jam
Billy is blistering that a$$ on that last tune I posted
http://www.youtube.com/watch?v=8nXbAOgMavY
Those dudes rocked
Kamchak ~ Thug from the Steppes
December 6th, 2012
10:00 pm
the republican party is responding to a changing america…
Not intended to be a factual statement.
They BOTH suck
December 6th, 2012
10:04 pm
http://www.youtube.com/watch?v=CFK75GyCWHs
Jam: turn this one up
JamVet
December 6th, 2012
10:06 pm
No BOTH, he’s an executive at an engineering co. We talked about England, Wales, the Premier League and such before discussing people and politics…
http://www.youtube.com/watch?v=Jjdowef1oKE
They BOTH suck
December 6th, 2012
10:11 pm
Jam
Cool tune
One more for now. Peace
http://www.youtube.com/watch?v=KfO8TcBa6I0
Mark in mid-town
December 6th, 2012
10:13 pm
Dekalb comments wrote: “But I stand by my view that Costco, overall, accepts lower yields and profits in exchange for something. Whether we call that moral conviction, etc. is not mine to define.
—————————————————————————————————————
Costco locates in more affluent areas and their customers are on average far more affluent that a customer of Walmart or Sam’s Club. Costco does accept less percentage yield than Walmart, but that lower yield is a good part made possible by the larger revenue stream per customer and worker. And for what its worth, Walmart accepts less yield than Target. Anyway, the revenue per employee at Walmart is $211,000. At Costco, it’s about 3 times as much at $620,000 per employee.
It makes many liberals feel good to think that Costco treats its employees better than Walmart. But Costco also goes out of its way to avoid the lower income type consumers than Walmart caters to and the less affluent areas where Walmart has no problem locating in. The median income of a Costco member is a whopping $85,000 which is over double the U.S. average. For Walmart to be more like Costco, it would mean Walmart pulling out of the lower income parts of the country. That’s a lot of jobs that would be lost and a lot of people of modest means who wouldn’t have access to goods at very affordable prices. And I doubt Costco would then come in to fill the void.
Costco is a great company. They do what they do incredibly well. Costco is probably my favorite place to shop. But for people of average and modest means, Walmart has been a godsend. That’s what a lot of affluent liberals don’t understand, and probably never will.
getalife
December 6th, 2012
10:16 pm
Alex is still in la la land.
Your party tossed cons under the bus.
They said cons are the reason for losing.
Deal with reality alex.
They BOTH suck
December 6th, 2012
10:16 pm
jam
hard to slow me down when I’m on a roll
http://www.youtube.com/watch?v=mtF3KoSZuFQ
They BOTH suck
December 6th, 2012
10:18 pm
Kam
You in the ATL or enjoying the peace of the mountains?
Kamchak ~ Thug from the Steppes
December 6th, 2012
10:18 pm
…affluent liberals…
There’s your sign.
Kamchak ~ Thug from the Steppes
December 6th, 2012
10:20 pm
BOTH
I’m in the Mtns at this time.
I’ve lost your number. If you still have mine gimme a call when you can.
Welcome to the Occupation
December 6th, 2012
10:50 pm
dbm: ” The richer anyone or anything is, the more fire safety they can afford, just like with everything else.”
The richer WHO is, the workers or the owners?
Oscar
December 6th, 2012
10:51 pm
Alex – Whichever party can get in the center and get the votes of the majority of the voters will win the presedential elections.
Some years its the Dems, sometimes the GOP.
dbm
December 7th, 2012
5:03 am
Welcome to the Occupation
December 6th, 2012
10:50 pm
To the extent that it’s the owners that pay for the fire safety, it would be the owners. But it could also apply to workers choosing where to work.
How rich are the owners of those third world factories?
marko
December 7th, 2012
5:43 am
Sam Walton planted the wheat, harvested the wheat, ground the wheat, baked the wheat, then he died and his useless offspring inherited all the bread. We live in a system where the best and brightest among us wisely chose their parents.
No doubt many jobs have been lost because our glorious job creators found foreign workers that would do the same work for less pay. That’s the bottom line. the fact that they get to ignore pesky environmental, safety, child labor laws, etc. is just the icing on the cake.
Standard right wing ideology teaches us that our wealthy benefactors have bigger brains, fatter wallets and superior morals. Just like the notion that the world’s about six thousand years old, there’s abundant evidence to support this fundamentally religious belief.
stands for decibels
December 7th, 2012
5:58 am
Mark in mid-town @ 10.13, if you happen to see this (otherwise I’ll need to google it myself later)
Fair points, all. However, I have to wonder if you’re mixing Costco w/ Wal*Mart when the better comparison would be strictly with Sam’s Club, for some of that analysis.
/drive-by
stands for decibels
December 7th, 2012
6:00 am
one other thing:
…affluent liberals…
There’s your sign.
Agreed, it was a pointless cheap shot, but otherwise those points seemed valid to me. (There is, perhaps, a lesson to all of us there…)
More of the 47%
December 7th, 2012
6:33 am
http://www.myfoxdetroit.com/story/20264712/detroit-councilwoman-to-obama-we-supported-you-now-support-us
Flashback???
December 7th, 2012
6:36 am
http://freebeacon.com/flashback-2011-obama-we-can-get-1-2t-in-revenue-without-rate-increases/
dcb
December 7th, 2012
6:41 am
Right Bookman – and another of your “we’re from the government and we’re here to help you”. Wonder how your op-ed piece will read a couple of years from now when the price of the Mac computer just announced yesterday to be produced in the U.S. in the future skyrockets due to increased labor cost. Probably something like “Apple executives and excess corporate profits fuel massive Mac laptop cost increase.”
Corbin Sharpe. Baby Boomer leech...and earned it!
December 7th, 2012
6:56 am
Good Friday Morning to all y’all…
dcb,
Since you can see into the future, can you tell me who is going to win the Super Bowl? I want to make an investment.
Jefferson
December 7th, 2012
7:01 am
It’s the wanna be crowd of the GOP that is the at the selfish core.
stands for decibels
December 7th, 2012
7:19 am
Right Bookman
…aaaand I stopped reading.
stands for decibels
December 7th, 2012
7:19 am
Trendy SHEETZ.
Mark in mid-town
December 7th, 2012
7:21 am
stands for decibels wrote: “Mark in mid-town @ 10.13, if you happen to see this (otherwise I’ll need to google it myself later)
Fair points, all. However, I have to wonder if you’re mixing Costco w/ Wal*Mart when the better comparison would be strictly with Sam’s Club, for some of that analysis.”
————————————————————————————————————————–
The customer base that Costco targets is still far more affluent than the one targeted by Sam’s Club. While there is some overlap, Sam’s Clubs are also by and large located in considerably less affluent areas that Costco. So in that regard, Sam’s Club still has more in common with Walmart stores than it does with Costco. Which begs the following question. If Costco really does have the far superior social conscious than WalMart, then why does Costco go out of its way to avoid the parts of the country which are of modest means so as to focus on a demographic that is more than twice as affluent on average in terms of median income, and most likely far more than twice the average in terms of median net worth? As well, Walmart (including Sam’s Club), whatever their faults, hires a lot pf people that Costco wouldn’t touch with a 10 foot pole. Costco’s business model is predicated on them hiring better people than Walmar, whereas Walmart is content on hiring from the lower-skilled and work ethic of the retail category. There is also some overlap in this, but by and large, Walmart is hiring from the middle or below of this category, whereas Costoc is aiming for the cream of the crop of this category, at least the ones they officially include as being Costo employees as opposed to the lower-wage work that Costco farms out to contractors so as to buttress their ability to officially treat their *employees* so much better than other retailers.
lovelyliz
December 7th, 2012
9:17 am
Ignorance is bliss and deadly