U.S. corporate profits and Chinese sweatshops

chart290813a
.

chart290813b

Costs and profits for Apple’s i-Phone

Defenders of sweatshop conditions in China say that low wages are the result of the impersonal workers of a hypothetical free market.  But a recent study (links are below) shows the real cause is the structure of the supply chain linking components producers such as Foxconn to customers such as Apple Computer.

When I hire a painter to paint my house, and he hires a helper, the free market works the way it ought to work because there is a rough equality of buying power.  But no such equality exists when individual workers are dealing not just with corporations, but with networks of corporations.

The corporate supply chain represents a concentration of power and a diffusion of responsibility.   When workers try to negotiate with Foxconn, managers can say that there is as limit to what they can do based on Apple’s requirements.   But Apple managers have no direct responsibility.  They can say there is a limit to what they can do based on their fiduciary responsibility to maximize return to stockholders.

You could say government should step in and set minimum wages and labor standards, but at the present time the governments of China and the USA are aligned with management, not workers.  Governments will not heed workers until they organize and create a base of power that governments must heed.  The workers of the world should unite.

Click on A Suicide Survivor: The Life of a Chinese Migrant Worker at Foxconn for a picture of working conditions at Foxconn by Jenny Chan.

Click on The politics of global production: Apple, Foxconn and China’s new working class for the text of the study by Jenny Chan, Ngai Punan and Mark Selden for their full paper.

Click on Apple et al create new working class for a duplicate copy of the study in Asia Times.  This is where I first came across the study.

Remember that Foxconn is not the only electronics components manufacturer in China and that Apple Computer is not their only customer.  Other U.S. companies may not have profit margins comparable to Apple’s, but the basic situation is the same.  You’re not going to change things by boycotting Apple and buying from another company whose practices are the same.

Tags: , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: