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Sweatshop Labor - Essay Example

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As such, a product that is in high demand becomes rare in the market thus providing the business with an opportunity to increase the price. On the other hand, a product that is high in supply in the market lead to…
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Sweatshop Labor

Download file to see previous pages... This would maintain high-profit margin even in low demand market conditions.
In terms of history, Sweatshop developed during the industrial revolution to refer to a sub-contracting system that provided an environment for high profits among the intermediaries because of low labor costs as compared to the amount paid for the contract (Powell, 2014). The profit margin reflected the “sweat” of the workers as they received low wages compared to the working conditions and the amount of work they undertook. The clothing industry involves a subcontracting system that allows retailers to dominate the top of the chain of subcontracting. The apparel companies order sets of clothing from manufacturers, who are the designers of the clothes, and the manufacturers employ contractors. In some cases, the contractors hire subcontractors. The garment workers are then hired and paid by either the contractors of the subcontractors to perform the basic tasks of cloth making such as sewing, cutting or packaging different clothing (Powell, 2014). As such, the garment workers remain at the bottom of the subcontracting chain as much as they are the center of cloth making.
Low consumer demand leads to increased competition in the marketplace; an aspect that place the contractors in a critical position where they receive low price offers from the manufacturers and are left with no choice other than take the contracts due to high competition (Powell, 2014). In most cases, the prices offered in the contracts are too low that most of the contractors are not able to offer their employees the legal wages they deserve or create safe working places according to the law. As such, due to the structure of the industry, most of the contractors experience “sweating” of profits from their employees as the only alternative that would ensure sustainability of their business. In ...Download file to see next pagesRead More
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