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Why Are There Sweatshops?

Reprinted from www.coopamerica.org

1. Corporate Greed – In a world free of borders, manufacturers look for subcontractors where regulations are weak and labor and operating costs are lowest

2. International Policies – Governments like the World Trade Organization (WTO) and the World Bank create international trade laws and lending policies that often allow U.S. corporations to dictate their purchase prices

3. Hunt for the Lowest Price – Retail giants put pressure on their suppliers to keep the cost down, while encouraging consumers to buy more at discounted prices. Where and how the products are made are kept from consumers.

4. The Muddle In the Middle – As the playing field has shifted overseas, the number of middle merchants has increased, with each trying to make a profit form those below them.

5. Squeezed At the Bottom – All these factors pressure factory owners to cut costs. The laborers are forced to work overtime with low wages and punishments or fines for slow work or mistakes.

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