Cheap Labor Issues

“Every exploitative relationship begins with an initial inequality that makes the taking advantage possible. In exploitative relationship the rich get richer and the poor fall further behind. “- Robert Mayer

Cheap labor is a term used to describe the low wages given to people living in developing countries that work through harsh conditions. Companies like Walmart and Apple expect these workers overseas to manufacture clothing and other goods, even though the buildings and materials given aren't enough for an efficient workforce. As companies begin to think less about the people working overseas and more about how much of a product is made, the businesses are only helping themselves while these workers suffer. Cheap labor

is causing issues rather than providing a beneficial opportunity for both the businesses and the workers.

One reason why cheap labor has caused issues rather than helping is because of the horrible conditions experienced by those working to keep themselves alive.

Having to work in a building that could possibly collapse unexpectedly is not worth risking for the pay received by the children, women, and men working in these factories. The article “ No one is making them stop”: Why corporations outsource catastrophe — and workers pay the price” by Erik Loomis discusses many topics concerning cheap labor, businesses that are involved with providing cheap labor, and how we view this issue. According to Loomis, “...organizations helping out the world’s poor with the gift of a job in a sweatshop is ridiculous. A corporation can still save money on labor costs and workers don’t have to die on the job...They don’t have to allow their products to be produced in factories that collapse” (Salon). What Loomis is telling the audience is that companies don't spend time to think about the safety of their workers overseas, but to rather pay them and hope that everything is fine. The author also mentions how “A corporation can still save money on labor costs and workers don’t have to die on the job”, talking about how the condition of the factory will provide the worker with a safe area so they can work more efficiently (Salon). If the staff of these factories were given newer machines to work with, then death tolls would begin to start dropping instead of rising every year. The way Loomis

phrases his ideas also show that the reality of cheap labor is not one to be taken lightly, as he describes his feelings towards cheap labor powerfully, bringing a dark tone to set a more serious atmosphere to make the audience understand that these workers do not receive enough to die from the lack of care coming from the companies that they work for. However, in third world countries, this low wage is the highest pay they can receive. According to Benjamin Powell in the article “Sweatshops In Bangladesh Improve The Lives Of Their Workers, And Boost Growth”, Powell states that “...43 percent live on less than $1.25 a day, workers at the much-demonized Bangladeshi “sweatshops” average more than $2 a day. Granted, that’s not a lot. But it’s more than they would earn elsewhere” (Forbes). Cheap labor to third world countries are seen differently from the eyes of citizens, because sweatshops are the only places where laborers can make the most money out of any other job in the same area. Although sweatshops contains hazards surrounded within the workplace, that will not prevent people from working in them, as the thought of a higher pay drives them to think about the work rather than safety. Even though these workers are risking their lives in order to work for a higher pay, there wouldn’t need to be a risk taken by these workers if the conditions of the buildings and equipment were safer.

Another reason why cheap labor is a detriment to third world countries is because of the hours workers must endure to receive their pay.

In the paper “The Disadvantages of China’s Cheap Labor in Its Foreign Trade”, JI Zuwei states, “In three factories, workers were employed for 80-90 hours overtime per month during the peak season. In one factory producing for Apple, up to 120 hours overtime was worked; a gross violation of Chinese labor law that limits overtime to 36 hours per month” (Zuwei, 2). Zuwei`s focus on the hours of the workers shows the uneasy struggle these laborers go through to hopefully earn enough to live and sustain a normal life. What Zuwei also points out is the labor limit for overtime, stating that 120 hours was gross and overall unbelievable, breaking the law`s 36 hour limit. Then again, the choice of overtime is that of the worker, as they clocked in as many hours as the wanted to, but it is not a business practice that should be kept. Even though these workers are working long hours, their dedication dramatically changes the economies of their countries.

In
“US Companies Find Cheap Labor”, Ralph Jennings, wrote “Economic growth reached 6.2% last year and the Asian Development Bank forecasts 6.4% this year, making it one of the strongest economies in Asia “ (The Street). With the extended work hours, economies were able to rebuild themselves due to the extensions to overtime done in the factories of these laborers. As more works began to have longer work shifts, countries where cheap labor is a heavy influence to daily life began to flourish like never before. Although these countries are having cheap labor fix problems within their economies and governments, it is not until these issues arise once more.

Lastly, cheap labor is the exploitation of millions of workers. Companies like Walmart, Apple, etc. used these sweatshop employees to their full advantage. Offering low wages, forcing overtime, and causing them to work in factories has continuously ruined their way of living. In “Exploitation or Opportunity?” by Irvana Krog discusses these hardships in a few lines. “Hours are long. Wages are pitiful. Workers go there voluntarily, which means–hard as it is to believe–that whatever their alternatives are, they are worse” (Krog). What Irvana is saying is that these workers aren't even receiving what they should be for the work they are doing for these companies in their daily lives. Everyday for these laborers is the same, as they then grow accustomed to these conditions for the rest of their existence. Even with these horrible working conditions, Workers overseas look past their situation in order to make enough to survive another day. In “The Virtues of Sweatshops” by Stefan Spath, the text states, “The poor of these less-developed countries would have fewer opportunities for work and would lose all the other benefits of foreign direct investment…” (Fee). Without any work, these workers would have died from starvation and the unavailability to support themselves. The opportunities given by sweatshops are the only hope for the survival of both the country and its people, as the economy begins to repair itself as more people do so through cheap labor. Even though workers would have less opportunities for work, which does not mean that the fact of exploitation through cheap labor does not exist. If these businesses were to care more for the labor of these workers from developing countries, then safety would be the top priority if the pay for their labor were not already. In other words, cheap labor is a detriment faster to the lives of the poor, as they are being used and abused by large companies.

In conclusion, cheap labor is only destroying the people working in these disasters waiting to happen and also the company in both sales and reputation, as the lack of care for cheap exploitation can cost the company in the future. Working overtime in order to have enough to survive each day slows down the rate at which the country of these workers repairs itself, as the income gained is hardly enough for survival. Buying clothing made in the US is only covering the problem up with a blanket, as cheap labor will still be going on in countries overseas, leaving it to the industries in order to fix the issues with labor across the world. Businesses ignoring the issues of cheap labor will only worsen, but it is the company that ends up falling last through mistreatment and carelessness.