Copyright 2026 McClatchy Newspapers, Inc.
April 21, 1997,
News about the ways multinational companies exploit Third World workers to
make cheaper and more competitive products causes increasing discomfort for
American consumers -- but has not, thus far, made much impact on what we buy or
how the companies operate. Despite the spotlight focused on a few high-profile
examples -- Kathy Lee Gifford's Wal-Mart clothing line and Nike's Southeast
Asian factories, for example -- the sweatshops of the Third World constantly
toil through seven-day weeks to supply cheap consumer goods for richer nations.
Now a top-level consortium of U.S. clothing manufacturers, labor unions and
human rights monitors has agreed on an accord to set standards for treatment and
work conditions that could do much to end the worst abuses. The code of conduct
is designed to allow manufacturers who comply to reassure consumers that their
goods weren't produced in grossly exploitive factories. The code could give a
distinct commercial advantage to those who comply, and initial participants
include major firms such as Nike, Reebok, Liz Claiborne, L.L. Bean, Nicole
Miller, Patagonia, karen King, Phillips-Van Husen and Tweeds.
The accord calls for a maximum 60-hour work week with at least one day off,
bans child labor under the age of 15 and calls for payment of at least the
prevailing local wage or national minimum wage. Workplaces are to be safe and
healthy and free from harassment such as the forced march one Nike factory
supervisor used to discipline workers in Vietnam.
Critics point out that the minimum wage paid in places such as Indonesia and
Haiti is too low to support a family. They also have serious doubts about how
independent the monitors will prove to be, about whether companies will make
cosmetic changes but avoid fundamental change. Even some manufacturers have
worries. Nordstrom expressed concern about joining the accord, citing
uncertainty about enforcement.
Labor unions and human rights organizations wanted independent monitors drawn
from local watchdog groups in each country. Manufacturers prevailed in demanding
that auditors paid for by the companies be employed to ensure compliance.
How well that compliance will work remains to be seen, and there is a
movement among some human rights organizations to demand far stricter standards
lest the companies hide behind these initial agreements in order to stall
further progress. Despite those objections, however, this decision to adopt a
code with the potential for penalties and rewards is still, in the words of one
participant, a "breakthrough agreement" that holds great promise for the future.
Manufacturers who comply may be allowed to display "No Sweat" labels assuring
consumers the goods weren't made in sweatshops. By establishing guidelines
manufacturers can live with and providing that powerful economic incentive for
compliance, this accord holds promise for widespread adoption.