Haitian Garment Plants Accused of Cheating Workers

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Viajero

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Haitian Garment Plants Accused of Cheating Workers - ABC News

A labor rights group is accusing clothing manufacturers in Haiti of frequently cheating workers out of their meager wages.

The U.S.-based Worker Rights Consortium says in a report that workers receive an average of 32 percent less than what they should.

It says the practice is "both widespread and severe" in Haiti's apparel industry, which the U.S. and other nations hope will create jobs for the impoverished Caribbean country.

The report, to be released Wednesday, draws on interviews with garment workers and a review of pay records from five of the country's 24 export garment factories.

The head of a government commission that supports Haiti's garment sector insisted Tuesday that the factories comply with the law and said the country's minimum wage is higher than in places like Pakistan, India and Mexico.

"No one in this country would show up for work if they felt their wages were being stolen," said Yves Savain, executive director of the commission. "They would speak up."

Under a law that took effect in 2009, garment workers who meet production quotas earn 300 gourdes for an eight-hour day, or $6.81. Workers elsewhere earn 200 gourdes, or $4.54.

The report accuses employers of cheating workers in three ways: Production quotas are set so high that workers can't meet the goals in a regular work day. Wages paid for overtime are based on an hourly rate below the minimum wage for production workers instead of at a premium rate above this wage as required by law. Some factory workers aren't paid for work performed before and after their recorded working hours or during lunch breaks.

Such practices deny workers and their families adequate food, medical care, shelter and education for their children, the report says.

The report also examines wages at the Caracol Industrial Park, which has been the U.S. government's biggest investment in Haiti after the 2010 earthquake. Built in northern Haiti through subsidies, the $224 million park was inaugurated a year ago with a star-studded ceremony whose speakers included then-U.S. Secretary of State Hillary Clinton and her husband, former U.S. President Bill Clinton.

The report says Caracol workers are paid on average 34 percent less than required by law.

Henri-Claude Muller-Poitevien, president of the government's garment sector commission, said workers at Caracol "are less skilled, inexperienced and need time to build their productivity and efficiency to match other competitive locations" in Haiti.

The issue of Haiti's garment factory wages came up last week at a congressional hearing in Washington. Citing an April report, Democratic Rep. Yvette Clarke of New York said all of Haiti's 24 garment factories failed to pay workers even the minimum wage.

"Is the State Department and USAID aware of this issue? If so, are you all engaged with the factory industries to be more compliant?" Clarke asked.

Thomas Adams, the U.S. State Department's special coordinator for Haiti, said during the hearing that different interpretations muddle Haitian labor laws.

"I'm firmly convinced that this unclear area of Haitian wage law will be clarified very shortly and that the factories will be in compliance," Adams said.
 

the gorgon

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Haitian Garment Plants Accused of Cheating Workers - ABC News

A labor rights group is accusing clothing manufacturers in Haiti of frequently cheating workers out of their meager wages.

The U.S.-based Worker Rights Consortium says in a report that workers receive an average of 32 percent less than what they should.

It says the practice is "both widespread and severe" in Haiti's apparel industry, which the U.S. and other nations hope will create jobs for the impoverished Caribbean country.

The report, to be released Wednesday, draws on interviews with garment workers and a review of pay records from five of the country's 24 export garment factories.

The head of a government commission that supports Haiti's garment sector insisted Tuesday that the factories comply with the law and said the country's minimum wage is higher than in places like Pakistan, India and Mexico.

"No one in this country would show up for work if they felt their wages were being stolen," said Yves Savain, executive director of the commission. "They would speak up."

Under a law that took effect in 2009, garment workers who meet production quotas earn 300 gourdes for an eight-hour day, or $6.81. Workers elsewhere earn 200 gourdes, or $4.54.

The report accuses employers of cheating workers in three ways: Production quotas are set so high that workers can't meet the goals in a regular work day. Wages paid for overtime are based on an hourly rate below the minimum wage for production workers instead of at a premium rate above this wage as required by law. Some factory workers aren't paid for work performed before and after their recorded working hours or during lunch breaks.

Such practices deny workers and their families adequate food, medical care, shelter and education for their children, the report says.

The report also examines wages at the Caracol Industrial Park, which has been the U.S. government's biggest investment in Haiti after the 2010 earthquake. Built in northern Haiti through subsidies, the $224 million park was inaugurated a year ago with a star-studded ceremony whose speakers included then-U.S. Secretary of State Hillary Clinton and her husband, former U.S. President Bill Clinton.

The report says Caracol workers are paid on average 34 percent less than required by law.

Henri-Claude Muller-Poitevien, president of the government's garment sector commission, said workers at Caracol "are less skilled, inexperienced and need time to build their productivity and efficiency to match other competitive locations" in Haiti.

The issue of Haiti's garment factory wages came up last week at a congressional hearing in Washington. Citing an April report, Democratic Rep. Yvette Clarke of New York said all of Haiti's 24 garment factories failed to pay workers even the minimum wage.

"Is the State Department and USAID aware of this issue? If so, are you all engaged with the factory industries to be more compliant?" Clarke asked.

Thomas Adams, the U.S. State Department's special coordinator for Haiti, said during the hearing that different interpretations muddle Haitian labor laws.

"I'm firmly convinced that this unclear area of Haitian wage law will be clarified very shortly and that the factories will be in compliance," Adams said.

who owns these companies, do you know?
 

GWOZOZO

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There is no such thing as underpaid or overpaid. People are paid what they are worth to the payer.

It can happen in the short term...then the employee would make his/her case...and the payer will decide.

If employee stays...then employee agrees that he/she is being paid exactly what he/she is worth.

If there is a violation of the country's minimum wage laws....(that can easily be verified).....that is a separate issue and it is the duty of the haitian government to intervene.
 

the gorgon

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There is no such thing as underpaid or overpaid. People are paid what they are worth to the payer.

It can happen in the short term...then the employee would make his/her case...and the payer will decide.

If employee stays...then employee agrees that he/she is being paid exactly what he/she is worth.

If there is a violation of the country's minimum wage laws....(that can easily be verified).....that is a separate issue and it is the duty of the haitian government to intervene.

i whole heatedly disagree. employees are not paid what they are worth to the employer. the employer, in many cases, pays people desperation wages. people have to eat, and feed families, so most of them have to work. the employers realize that people will not have many options, and they offer salaries that are not a fair reflection of the worth of the employee, but the fact that the employer has the upper hand.
 

AlterEgo

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i whole heatedly disagree. employees are not paid what they are worth to the employer. the employer, in many cases, pays people desperation wages. people have to eat, and feed families, so most of them have to work. the employers realize that people will not have many options, and they offer salaries that are not a fair reflection of the worth of the employee, but the fact that the employer has the upper hand.


I agree with you. Back in the late 70's I worked for a textile company in Manhattan who had a small Haitian factory [made wood window shades woven with Haitian cotton] in PauP, and I had to travel there several times each year [accounting reviews]. The wages even then were appalling, less than $2 a day.

The desperation wages are disgraceful, but as long as there are desperate people without a government who protects their interests, it will continue.

And Haiti isn't the only country in the world that does it.
 

GWOZOZO

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i whole heatedly disagree. employees are not paid what they are worth to the employer. the employer, in many cases, pays people desperation wages. people have to eat, and feed families, so most of them have to work. the employers realize that people will not have many options, and they offer salaries that are not a fair reflection of the worth of the employee, but the fact that the employer has the upper hand.

You are confusing poorly paid with underpaid.

In your example above, the employer is paying exactly what the employee is worth to him in the market.

If not, the employee would go to another employer willing to pay more or his current employer would have to pay more.

The fact that the employer can afford to let the poorly paid employee go....because others will replace him at the same price....and that price is the employee's actual worth on the market.

I am not saying it is fair...but it is what it is.
 

the gorgon

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You are confusing poorly paid with underpaid.

In your example above, the employer is paying exactly what the employee is worth to him in the market.

If not, the employee would go to another employer willing to pay more or his current employer would have to pay more.

The fact that the employer can afford to let the poorly paid employee go....because others will replace him at the same price....and that price is the employee's actual worth on the market.

I am not saying it is fair...but it is what it is.

that is an extremely simplistic appraisal of labor economics. do you believe that , in the real world, bosses just pay what they think is right? nope! wages are virtually agreed upon by companies in the same line of work. do you think that Wendy's is going to pay so much better than McDonald's? they are virtual cartels. if you get unhappy with the pay at Lowe's, do you think you are going to find paradise at Home Depot?
 

GWOZOZO

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that is an extremely simplistic appraisal of labor economics. do you believe that , in the real world, bosses just pay what they think is right? nope! wages are virtually agreed upon by companies in the same line of work. do you think that Wendy's is going to pay so much better than McDonald's? they are virtual cartels. if you get unhappy with the pay at Lowe's, do you think you are going to find paradise at Home Depot?

You are still missing the point by comparing people within the same industry...in this case fast food workers.

Again, they are paid what they are worth to McDonald and Wendy's.

If they feel their labor is worth more, then they are free to go peddle it in an industry with higher pay.
 

the gorgon

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You are still missing the point by comparing people within the same industry...in this case fast food workers.

Again, they are paid what they are worth to McDonald and Wendy's.

If they feel their labor is worth more, then they are free to go peddle it in an industry with higher pay.

really? so you are saying that if some guy who dropped out of high school in the 8th grade feels his labor is worth more than working in the stock room at Macy's , he can go peddle his services elsewhere? such as?
 

GWOZOZO

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really? so you are saying that if some guy who dropped out of high school in the 8th grade feels his labor is worth more than working in the stock room at Macy's , he can go peddle his services elsewhere? such as?

Such as wherever he feels he would be worth more.

....and if he is unable to find someone willing to pay him more....then he is geting paid exactly what he is worth.
 

the gorgon

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Such as wherever he feels he would be worth more.

....and if he is unable to find someone willing to pay him more....then he is geting paid exactly what he is worth.

so, in your worldview, there is no such thing as exploitation, because whatever you are paid is what you are worth..

i get it now.
 

GWOZOZO

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so, in your worldview, there is no such thing as exploitation, because whatever you are paid is what you are worth..

i get it now.

Changing the topic will not help.

Exploitation is a totally different subject.


In a market where workers are free to move around and sell their labor, they will get paid what they are worth to the payers in that market.

It is a simple concept.
 

the gorgon

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this is what you said

There is no such thing as underpaid or overpaid. People are paid what they are worth to the payer.

i am still trying to digest it.

that assumes that the payer has a sense of fair play, and pays what the worker is worth to him. i will not go into the dimensions which determine the concept of worth, but it is naive, at best, to believe that people are paid based on what they are worth to an employer. they might be paid what the employer can get away with paying them, given the dynamics of the labor market. if there is an oversupply of unskilled labor, then the wage scales will be set by the laws of supply and demand. that does not mean that the employee gets paid what he is worth. even if that is the wage that the employer can get away with paying, it does not mean that the worker is not underpaid.

using your reasoning, slaves were not underpaid.
 
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GWOZOZO

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using your reasoning, slaves were not underpaid.

No, that would be using your reasoning or lack of.

Slaves were properties of the master and did not have to be paid...nor had the freedom to move and sell their labor to the highest bidder.

Again, this is a simple as simple gets. I don't understand what it is you are trying to digest.
 

the gorgon

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No, that would be using your reasoning or lack of.

Slaves were properties of the master and did not have to be paid...nor had the freedom to move and sell their labor to the highest bidder.

Again, this is a simple as simple gets. I don't understand what it is you are trying to digest.

i am trying to digest the thinking of some guy who states that there is no such concept as a person being underpaid, when there are innumerable articles written by noteworthy scholars which address the very notion of underpayment of employees by all manner of private employers and corporations. i am trying to make the case in my mind why i should dismiss the notions of all these myriad scholars, and listen to you.

it is not working well so far.
 

GWOZOZO

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i am trying to digest the thinking of some guy who states that there is no such concept as a person being underpaid, when there are innumerable articles written by noteworthy scholars which address the very notion of underpayment of employees by all manner of private employers and corporations. i am trying to make the case in my mind why i should dismiss the notions of all these myriad scholars, and listen to you.

it is not working well so far.

It is not working because you are confusing socio-political writings with a basic economic fact......as simple as 1+1 = 2

That is why you are all over the map...bringing in SLAVERY in a discussion about free movement of labor.

Take some time.....read carefully what I am saying...then come back with your OWN arguments.
 

GWOZOZO

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maybe you can file a brief in the courts on behalf of the respondents to these actions. tell them who you are, and that you disagree that there is such a concept as underpayment of workers

Companies fined for underpaying workers | Economia

You may want to read and UNDERSTAND articles before you attempt to use them in an argument.

Two telecom companies are facing a combined bill of ?100,000 in wage arrears after underpaying the national minimum wage to "apprentices" - See more at: Companies fined for underpaying workers | Economia

The above deals with two companies breaking the LAW by failing to pay the MINIMUM WAGE.
 
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