Labor is Not a Commodity

Re-examining the role of labor suppression in economic development

By Rebecca Cassler, ILRF Intern

This post is the first in a series about the relationship between organized labor and economic growth.

Over the last few decades, policy makers, analysts and pundits have often posited that the suppression of labor, be it in the form of restrictions on freedom of association, limitations placed on unions in politics and decision-making, anti-union legislation, or even anti-labor violence, is a necessary precondition for growth in developing economies. Economist Paul Krugman argues that transnational corporations with manufacturing facilities abroad do poorer nations a favor by supplying them with ‘awful’ working conditions for very little pay, since these jobs are better than the alternative - no jobs at all and rural poverty. Nicholas Kristof echoes Krugman’s arguments when he claims that denouncing sweatshops hurts the poorest more than helps them.

Labor Day Protest Sparks Solidarity Among Longshoremen Workers Against Del Monte

By Diana Karakos, Intern, International Labor Rights Forum

Between 400 and 500 Longshore workers in Philadelphia decided to celebrate this past Labor Day by reminding Del Monte that the corporation cannot continue to get away with abusing workers’ rights.  The Longshoremen’s (ILA) Local 1291 protested the Del Monte fruit company’s decision to go non-union on October 1 by throwing their own version of the American Revolution’s tea party when they dumped Del Monte’s pineapples into the Delaware River.

Del Monte said that it will move its Philadelphia imports from the ILA pier to one operated by Holt Logistics.  The Holt pier does not support labor unions, paying its workers as little as $10.50 per hour with no benefits.  However, at the ILA port, the members make anywhere from $17.00 to $24.50 per hour.  Holt pier has actively prevented union formation, reported Boise Butler, the Local 1291 President.  He explained that the union tried to incorporate the workers at Holt pier into the ILA, but were turned away due to a mixture of raises and intimidation organized by Tom Holt, the Holt pier owner.

Unfortunately, if Del Monte moves its banana and pineapple imports to Holt pier, the ILA will lose 200-300 jobs and up to 400,000 labor hours.  However, Holt does not seem to care how devastating this would be to the workers and to their pension and health funds.

Attack on Alien Tort Statute Threatens Future of International Human Rights

By Rhia Bakshi, Intern, International Labor Rights Forum 

With the unprecedented growth of multinational corporations in recent years, protective measures like the Alien Tort Claims Act are not only desirable, but also necessary. For several decades, the ATCA has enabled victims of international human rights abuses to bring their perpetrators to trial in U.S. courts. As a result, several MNCs have been brought to court for condoning gross human rights violations including torture, forced labor and extrajudicial killings. The ATCA has thus played an important role in building corporate accountability and preserving human rights. However, recent attempts by powerful organizations representing MNCs to limit the scope of the ATCA poses a serious threat to the future of international human rights.

The issue came to fore in August, when New-York based Second Circuit Court of Appeals ruled that corporations, unlike individuals, may not be held accountable for violations of international law. The case, Kiobel v. Royal Dutch Petroleum, involved complaints by Nigerian nationals against Royal Dutch Petroleum for aiding and abetting in the torture of local villagers who were opposed to the company’s destructive oil exploration operations. The three-judge panel ruled 2-1 that the company could not be found guilty, on grounds of the notion that “individual liability for violations of international law is limited to natural persons.” What this essentially means is that the plaintiff must first prove a corporate or government official personally responsible for negligence, a process that could be both tedious and unfeasible. In addition, this argument seems rather ironic, considering the court’s recent decision in the Citizens United case, in which it granted corporations the same political speech rights as individuals under the First Amendment. The prevalence of such hypocrisy in our legal system is disturbing to say the least.

Fashion Fights Poverty Holds 4th Annual Forum

By Diana Karakos, Intern, International Labor Rights Forum 

  “Can Fashion Fight Poverty?” This was the big question addressed at Fashion Fights Poverty’s (FFP) 4th annual ethical and eco fashion forum on Wednesday, October 13, 2010 in Washington D.C.  It was held the same week as FFP’s annual fashion show.  In partnership with Foreign Policy Digest, FFP hosted the event to “address and initiate discussion among global leaders, international policy makers, consumers, and the world’s fashion designers.”  Issues addressed at the forum included eco-sustainability, Corporate Social Responsibility (CSR), international anti-poverty income-generating programs, global micro-finance, and the international commercial fashion industry.

ILRF's Cocoa Campaign Wins Award

Tim Newman, Campaigns Director, International Labor Rights Forum

Every year, the Business Ethics Network (BEN) honors corporate campaigns that have made significant achievements. BEN is the largest network in the US of non-profit marketplace advocacy activists and organizations.  Campaigns are nominated by BEN member organizations and winners are selected by an Awards Committee.  The awards are in two major categories: 1) The BENNY for campaigns that have achieved a major victory and 2) The Path to Victory for campaigns that have made significant progress and show strong potential for achieving their goals.

This year, the International Labor Rights Forum's campaign to stop child labor in the cocoa industry won first place in the Path to Victory category. Along with campaign partners, Global Exchange, Green America and Oasis USA, the campaign has raised significant awareness about labor rights abuses in West Africa's cocoa industry and highlighted the responsibility of companies to trace their cocoa supply chains and institute labor standards among their suppliers.  In the last year, many chocolate companies have made significant announcements to certify that their cocoa is produce under certain labor conditions, but Hershey has lag behind all of its competitors.  That is why the campaign is now focusing on Hershey and encouraging this company to raise the bar for the industry by supporting Fair Trade Certified cocoa. Check out this ILRF report on Hershey for more background.

Bangladesh’s New Wage is Still a Poverty Wage

By Bonnie Stinson, Intern, SweatFree Communities

Today in Bangladesh, a new minimum wage increase is due to go into effect, following lengthy negotiations between the government, workers, and factory owners. The agreement was originally made on July 30, 2010, and it arrived on the heels of widespread protests throughout the region that received a great deal of international coverage.

Some papers are reporting this initiative as a remarkable success, noting certain unions’ acceptance of this wage increase, and as an advance in the broader workers’ rights movement to achieve a decent wage. But workers are saying it’s not enough.