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kate lomax | A Dilemma???? |
On a recent visit to Turkey I was out in my car when I happened across a MacDonalds and a retail park in the middle of nowhere.
On enquiring why these 2 establishments were sited here I was informed that just down the road there was a factory, American owned.
The factory was producing denim jeans.
The factory workers were paid 50$ a month for an 8 hour daily shift.
The jeans were retailing at 75$ per pair.
Your thoughts? Additional Details On returning to my hotel I enquired of the owners what their views were on this situation.
They informed me that in this rural part of Turkey it was difficult for the locals to get work and they would take any form of employment to put food on the table.
They despised the exploitation of their fellow countrymen and added that it was no wonder that the indigenous population disliked the Americans for exploiting them in this way. I appreciate that 50$ goes further in Turkey per month than it would in the Western World.
However, my point is that if American companies are internationally flying the flag for America they are not doing a very good job. |
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Captain Credit
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It is truly a dielema. Should those same jeans be made in the USA, with workers earning $15 to $20 an hour? I have heard that the average number of jeans made per worker (with division of labor, or course) is 7 finished jeans per hour. So, if you pay someone $21 an hour, plus another $7 in benefits, that costs the business $28 to manufacture 7 pair of jeans per hour. That comes to $4 for each pair of jeans. If they sell them to jobbers for $16 a pair, that is still a 400 percent mark-up on American made products. The jobber can then sell them to a wholesaler for $24 a pair. And, the wholesaler can sell them to a retailer for $36 a pair. (In each case, their mark-up is 50 percent.) The retailer can then more then double their money. Even if the stuff does not sell, they can have a close-out sale at $36 a pair and no lose.
Ok, so that is one scenario; making them in the USA. But, that means NO jobs the people making jeans in Turkey. Their income goes from $50 a month down to 0.
Frankly, I would like to see overseas labor get paid a lot more. It woud mean that the USA could better compete in the global marketplace with reasonable paying jobs here. |
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Kevin
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This is actually typical behavior for many industries from many countries, not just America - anywhere that non-technical production labor can be found for a low cost, the "bean counters" in any sufficiently large organization will locate the most inexpensive methodology and labor cost for any particular product. Essentially the only thing that stands in the way of this practice is a company's own internal philosophy. The fashion industry simply happens to be one industry in which the consumer can be induced to buy a product for a price very much higher than the cost of production. Philosophically, I don't agree with the company philosophy in the situation you described, as if "it were me", I'd either make the jeans cheaper or pay the employees more - however there are other things to consider - for one, $50 a month may be considered a fair wage for that area, and if a company hired say, a hundred workers for U.S. minimum wage, what would that do to the economy in that area? Consider the tensions that would develop between the lucky folks working at the jeans plant making $7.00 per hour and the other people in the region making five cents an hour working for other local enterprises... Now let's say that oh, the supply of food is limited - and now, the lucky folks at the jeans plant have literally bought all of the available bread and cheese in the area - what happens to the other folks in the region whose nickel-an-hour can't buy them anything to eat anymore?
Personally I would tend to embrace a more balanced operational philosophy than the situation you mentioned, however as with most things, the seemingly-simple decision of what to pay your labor can be influenced by many complexities not immediately apparent. |
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Heart-Shapped Poe
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$50 a month for an 8 hour daily shift??!! what?? that's SICK. Turkey's minimum wage is $215 A MONTH. This is exploitation at its grossest. Unfortunately, many american factories work under this corrupt philosophy. It's simply cutting budget. These workers are NOT ok with their income, they just won't get a better job. Job opportunities in third world countries are limited to bilingual people with a college degree and many people are simply not able to get this sort of education. I cannot believe this is even legal. |
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Feeling Mutual
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The cost of things varies with location.
$50 a month here is a pittance, in Turkey, it might be a good wage. |
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jezzika
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thats outrageous....75 a pair...i want some! |
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