113217
Description
Flashcards by Molly Atkinson, updated more than 1 year ago
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Created by Molly Atkinson
almost 11 years ago
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| Question | Answer |
| Advantages of Levi's in Bangladesh | · Brings money and jobs into the country i.e. OPEX the company that runs this factory employ in excess of 3000 people. · Very little alternative work apart from informal work on the street. · Education – OPEX provide an education system for children under the age of 14. · Health Care Project – OPEX spent £80,000 on health care for its employees. |
| Advantages of Nike/Gap in Cambodia | · Generate revenue through a number of outlets. · Pay wages that meet legal minimum of £13 per month. · Revenue generated through taxes. · Through the use of technology, they develop certain skills. · Multiplier effect. |
| What is the New Ethical Standard? | · Child Labour – controlled, normally no children under 15, support for education. · Forced Labour – prohibited. · Health & Safety – minimum standards must be met. · Union Rights – protected. · Discrimination – Forbidden, including on grounds of union membership and political affiliation. · Discipline – must not include corporal punishment, coercion and verbal abuse. · Working Hours – 48 hour week, maximum, at least one day off a week and maximum 12 hours overtime. · Pay – must meet basic needs, not merely legal minimum. · Management – Systems must be in place to ensure continued compliance. |
| Disadvantages to Levi's | · Very long hours, often up to 14 hour shifts. · Very low wages – 500 taka per month (£8) and consequently many live in poverty. · Despite a turnover of £24 million from 10 of these factories per annum, very little of this money is reinvested. · Very poor working conditions. · Maintains cycle of poverty. No job security i.e. if targets are not met employees are docked pay. Similarly, if days are taken off sick, employees are sacked. · Costings reflect the situation i.e. the total cost of production = 40p. Labour costs are 2p! · If they added 3p to the price of each garment this would double the employees wages. |
| Disadvantages to Nike/Gap | Can be made work up to 8 hours overtime on top of an 8 hour shift. · Many children who are working are below the minimum legal age of 15 years. · Work 7 days a week. Forced to sign ‘shadow contracts’ which result in them signing away their basic rights. Physical harassment if rules are not observed. |
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