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Shocking underpayment of workers in modern-day USA

Published: 28th Jun 2023
Author: Tinashe Mandirahwe

Workers at Sewing Machines inside Richman Bros., 1928: Uncommon for the American garment industry of the early twentieth century was the open-air, welcoming interior accommodations of the Richman Brothers factory.  It is disheartening to learn today, in 2023, workers in California are being exploited by being underpaid.   Source: Cleveland Memory Project, Cleveland State University Library Special Collections Date: April 8, 1928

Worker exploitation has always been a matter close to my heart. Having spent many years as an industrialist in Africa, I believed then that it was primarily an issue faced by developing nations in Africa, Asia and China. Little did I know that even in the United States, a country known for its affluence, such exploitation would be uncovered. This humbling realization reminds me that we never stop learning.
Recently, the U.S. Department of Labor’s Wage and Hour Division revealed truly alarming findings regarding the garment industry in Southern California. The investigation exposed that a staggering 80% of contractors were violating minimum wage and overtime laws, resulting in back wages and damages exceeding $892,000. To make matters worse, one contractor was paying garment workers a meagre $1.58 per hour, well below the state's minimum wage of $15. These distressing revelations came to light through a March 2023 US Department of Labor blog.
As the former managing director of Cathula Sandals, a company founded by my late father, Donald, and my mother, Sellinah Mandirahwe, I can testify to the power of prioritizing fair wages and ethical practices. Despite operating in the face of economic challenges in Zimbabwe, we remained resolute in ensuring that every worker received wages stipulated by the employment councils and agreed upon through collective bargaining. Upholding fair wages was not an easy task, but we firmly believed in its importance. When economic difficulties made it nearly impossible to continue being in business, we faced the difficult decision of shutting down rather than subjecting our workers to underpayment. Lovingly, our former workers have remained connected to my mother and I, forming an extended family. Even before my father's passing in 2017, former employees continued to look up to him as a father figure. This enduring bond leaves me contemplating whether such a profound relationship would have existed had we resorted to underpaying them.
In the United States, where only 2% of clothing sold is domestically made and the majority is imported from Asia and elsewhere, this recent exposé of worker exploitation is likely to have a significant impact. The increased scrutiny and monitoring of companies involved in underpaying workers may force them to scale back or even shut down operations, potentially leading to a decline in supply sources for retailers who take pride in offering 'Made in America' clothing.
The problem of worker exploitation seems to be fuelled by the fast fashion business model, which prioritizes producing trendy clothes rapidly and inexpensively to meet consumer demand. Unfortunately, this profit-driven approach often comes at the expense of workers' wages.
The garment industry's vast and intricate global supply chain, plagued by poor regulation, exacerbates the exploitation of workers. This systemic issue can no longer be ignored. It is crucial for all stakeholders, including governments, companies, and consumers, to address this grave matter and work towards ensuring fair and ethical treatment of workers throughout the industry.
As I reflect on these revelations, I am reminded that appearances can be deceiving, and the glittering façade of the United States does not always reflect the reality for workers on the ground. We must strive for greater awareness, accountability, and action to eradicate worker exploitation, regardless of its occurrence. Only through collective efforts can we create a future where workers' rights are respected, regardless of their geographical location.

Greeting Workers: This photo shows founding President Joseph Lehman greeting employees on their way to work. The owners of the Richman Brothers Company were recognized for the fact that they knew each of their two thousand employees by name. Founded by family members, executives at the Richman Brothers Company wanted to ensure that they cultivated a family-like atmosphere amongst its employees.  Source: Cleveland Memory Project, Cleveland State University Library Special Collections

A Lesson From The Past: Richman Brothers' Fair Compensation Of Workers
Although Richman Brothers is no longer active, its legacy as a respected and influential men's clothing maker endures. The company's commitment to fair wages and creating a positive work environment holds valuable lessons for today's garment industry. Founded in 1853, Richman Brothers operated until the 1990s when profitability challenges led to its closure. However, the company's innovative human resource strategies became industry benchmarks, including the elimination of time clocks and pioneering fully paid vacations of two to three weeks for all employees. Furthermore, Richman Brothers provided comprehensive benefits like pensions, life insurance, medical coverage, and no-interest loans.
Richman Brothers' history exemplifies the significance of fair compensation and ethical practices in the workplace. As a renowned company that prioritized the well-being of its employees, it serves as an enduring reminder for present-day business owners in the garment industry. By adopting similar principles, companies can create a positive work environment and foster long-term success while valuing their workforce.

Images and text sources:  https://clevelandhistorical.org/items/show/708
 

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