Even though this story was produced by CBC, Canadian Broadcasting Company. This

Question

Even though this story was produced by CBC, Canadian Broadcasting Company. This problem is not just about production from Canadian companies. Most of the "fast fashion" in US are also produced in Bangladesh. Brand such as H&M, Forever 21, American Eagle, GAP, Old Navy all reply heavily for the cheap labor in south Asian countries such as India, Pakistan and Bangladesh. As consumers should we care about where the products we buy come from? If the consumers don't care, will the companies care? The below video talks about the same topic but on lighter side. Helpful links: https://www.youtube.com/watch?v=VdLf4fihP78&feature=youtu.be and https://www.youtube.com/watch?v=onD5UOP5z_c&feature=youtu.be

Explanation / Answer

The U.S. Bureau of Labor Statistics (BLS) defines outsourcing as "the movement of work that was formerly conducted in-house, by employees paid directly by a company, to a different company." If that "different company" is located in a country outside the U.S., "outsourcing" becomes "off-shoring." Both have become very controversial in the U.S. because American workers are losing long-held production jobs by the millions -- and many observers believe they're gone for good.

Lack of Oversight

One of the major issues with outsourcing work in the fashion industry, in particular, is the lack of oversight for businesses sending the work elsewhere. For example, a design house that contracts work out to manufacturing firms in Asia has no way of knowing working conditions in those locales. This lack of oversight for the company outsourcing the work can have disastrous results if it comes out that the dresses it's selling were actually made by underpaid forced-laborers in a third-world country

Companies often outsource to the third world countries because workers in these areas are willing to work for less as well. Because wages are smaller, payroll taxes are also smaller. There are far fewer unions in these countries, so there is a reduced risk of workers going on strike as well. There are also less work regulations for companies in these areas, such as required increases for overtime pay rates, which can save time and money.

Despite the fact that third party companies can often provide quality labor at a drastically reduced cost, there are sometimes moral issues that can accompany this type of labor. For example, working conditions for employees in these companies can be extremely difficult. Workers there often have to sleep in dormitories that have up to thirty people living in a three-bedroom flat. Workers also frequently have to work extremely long hours, to the tune of eighty hours per week. Furthermore, workers often have to stand, or are only allowed to use one third of a chair to sit on in order to keep them more focused. Life at these types of companies can be very difficult for the workers, and it is definitely something to consider when it comes to making business decisions for major corporations. Another key point to consider is that sometimes the factories and buildings in which these workers work often aren’t safe. These countries have fewer building regulations, and sometimes accidents happen. For example, in April 2013, an eight storey commercial building in Bangladesh that housed a clothing manufacturing company collapsed after cracks appeared in the structure. Over one thousand people were killed in this accident.

Ignoring these issues or simply moving operations elsewhere is not an acceptable answer. Pressure needs to be placed on factory owners (by Consumers via the US / Canada government) and the Outsourced country’s government to engage in responsible measures for change. Representatives from Canada and American retailers, trade and labor organizations, internal and external monitors and any and all relevant parties must continue to meet and discuss alternative courses of action that will serve to lessen the likelihood and severity of factory problems. These companies will should be monitored to pay reasonable prices to factories and ensure worker safety only when they are convinced that early 20th-century working conditions are unacceptable to 21st-century customers, with strict guidelines set.

Protecting the rights and safety of the workers who make their clothes, should be order of the day. Priorities must be established so that the more egregious problems can be addressed as soon as possible.

Clearly substantial time and money will be needed as the problems are great. These issues did not develop overnight and it is not reasonable to expect a quick fix. But the serious nature of what has been occurring does ethically lead to a call for taking action now.

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