Asia Floor Wage

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The document summarizes the Asia Floor Wage (AFW) initiative, which aims to establish a living wage standard for garment workers across Asia. It discusses the state of the global garment industry, including frozen wage levels and lack of collective bargaining. The AFW is presented as a feasible solution that sets a standard wage based on caloric needs and working hours. It also promotes the linkage of labor rights issues and seeks solidarity among Asian workers and those globally.

Business News & Politics

Christina Rebel Christina Rebel 26/10/2009

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Source: ILO Conditions of Work and Employment; www.ilo.org/public/english/support/lib/dblist.htm Actual wages data (**) based on Workshop on Asian Garment Wages at New Delhi, organized by CEC and CCC, January 2006

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1 8The Real Economy in the Long RunDirk Bair, Michelle Kinchen, Amera Hatcher, Raz Faraji, Eboney AllenECO/372August 29, 2016Kate StoweThe Real Economy in the Long Run Introduction Nike holds 36% of the market share and brand recognition amongst its competitors in the athletic apparel industry, with a market capitalization around $102 billion and aggressive growth projections (Strider, 2016). Nike’s dominance in the market results from global brand recognition, using celebrity endorsements, advertisements, and sponsorships to fuel brand image and company success. Nike’s success has been dependent on “the ability to control the initial and final stages of the production process, i.e., product conception, design, and composition, on the one hand, and marketing, promotions, and consumer relations on the other” (Greenberg & Knight, 2004). The true production part of the manufacturing process is outsourced to third-world countries due to the low cost to manufacture. This low cost structure has allowed Nike to turn large profits and returns to their stockholders. However, along with a low cost of to manufacture overseas, Nike attracted negative attention from the press for poor working conditions and limited labor standards. To achieve Nike’s growth projections, they will need to continue to strategize and expand in their manufacturing sites outside of the United States, in particular China. In order to uphold their brand reputation, Nike will have to manage their outsourcing in low-income countries and labor law requirements and standards. This paper will evaluate China’s productivity, policies that influence its productivity growth, and financial system. Further, Nike’s strategy for risk reduction in relocation will be evaluated as well as their current and projected unemployment for the next 5 years. The factors that determine the country's productivity China is a good strategic location for Nike’s manufacturing facilities because of their low cost of production driven by high population and low wage structure. According to Greenberg & Knight, 2004, “the intervening stages of manufacturing are sourced out to subcontractor factories in less-developed countries where wages are already low, unskilled and semi-skilled (particularly female) labor power is plentiful, and labor standards are limited and/or easily ignored in practice.” Nike responded to negative criticism for poor working conditions with explaining that “weak labor conditions are a necessary, short-term stage along the road to long-term economic prosperity” and that they wish to be a good, beneficial employer. Nike’s offshore production strategy works because they reduce operating costs in China with cheap, relatively unskilled labor due to the high population of nearly 2 billion people. China also is positioned as a “stepping stone” for Nike’s productions sites to expand further into Asia (Wilsley & Lichtig, 2015). Nike’s presence in China and in Asia diversifies the business, ...

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In March 2014, U.S. President Barack Obama made headlines by ceremoniously shopping at a Gap store on East 42nd and Third Avenue. Obama’s decision to visit the store followed an announcement by Gap that they would raise minimum wages for U.S. workers to USD 10 per hour by 2015. Gap’s decision to raise minimum hourly wages broke with U.S. retailers and business groups that urged lawmakers to maintain the federal minimum wage at USD 7.25 an hour (Banjo 2014).

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1,138 Bangladeshi workers were found dead between piles of garments destined for the European and American markets after the six-storey Rana Plaza complex in the industrial outskirts of Dhaka collapsed on 24 April 2013. Asia's largest industrial catastrophe – after Bhopal – did not only disclose construction shortcomings but also the race to the bottom in the garment sector, which this time led to a deadly conclusion. How have the authorities, businesses, trade unions and NGOs responded? Does the consumer have any sustainable alternatives?

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2.The objective of this question is to help you: •understand the real issues of scarcityof resources and the choices we must make. •Understand the issues of rational behavior as it applies to a real life problem. •Understand utility concepts as they are applied to the Keystone Pipeline Project. •Understand some of the basics of the theory of consumer behavior. •Understand the concepts of marginal analysis as applied to the Keystone Pipeline project. Planet Earth is our only home for the time being. As global populations grow and our resources dwindle, we should worry more about theissues of SCARCITYAND CHOICE. All parts of this question are part of thetopic called Intro to some keyconcepts of Economics. i.There are 17 Rare Earth Elements. Pickany 5of them, and for EACHof the 5, explain in detail whythey are so critical to us.Use Google to look the up.Includein your answer: a.what it used for, b.why are those resourcesso critical? c.Whereinthe world the resource islocated. d.And approximately how much is left. e.For EACHof the 5, please explain3thingswe need tostart doingtodayto avoid running out of that resource. It is very important that you provide thorough and complete explanations here. •The theory of rational behaviorsays that we humans act in ourown self-interest. Given our actual behavior and the decisions we have made and are continuing to make relative to theplanet, please: i.What doesover-pumping of aquifersreallymean?Use Googleto gather info. ii.Is continued over-pumping of aquifers around the world in our best interest? If yes, explain why. If no, explain why not.Please provide thorough explanations. iii.Explain how the continued over-pumpingof aquifersin America, China, and India, could impact our ability to survive on the planet.This will require that you find out what things these 3 nations have in common thatarerelated to aquifers.Connect thedots and explain how our abilityto survive on the planet could be impactedby continued over pumping of aquifers. Pleaseprovide plenty of detail here.Google can help! iv.Explain in detail 3 thingswe can do to stop the over-pumping problem.In your explanation, please talk about how your suggestion would actually lead to solution of the problem. Hint:Focuson the top usesof water in the world. •Utility Concepts: •Explain the 3concepts: Utility, Marginal Utility, and Diminishing Marginal Utility.this material is provided in the slides and audio lecture. i.Provide explanation of 2examples ofEACHof those 3concepts as they might be applied to the Keystone XL Pipelineproject. •The Theory of Consumer Behavior:this material is provided in the slides and audio lecture. i.Explain EACHof the key assumptionsof the Theory of Consumer Behaviorand what the theory tells us.Read the slide and listen to the audiolecture. ii.Does thetheory of consumer behavior reflectreality? If yes, then why. Ifno, the why not. •Marginal analysis is a decision-making tool. This material is p.

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Oxfam Australia is working, along with other international organisations, to persuade major companies to improve the rights and conditions of workers. You can help by taking action with us: www.oxfam.org.au/labour-rights-action Workers in developing countries have a pretty raw deal. They’re paid minimal wages and are often forced to work long hours in harsh – often dangerous – conditions. Yet, they’re producing some of the world’s most expensive and coveted brands. In the sportswear and garment industry – where much of our work focuses – most of these workers are women. Major sportswear brands rake in billions of dollars in profits every year, spend millions of dollars on slick ad campaigns and sponsor the highest-earning players in sport from David Beckham to Michael Jordan. But dig beneath this glamorous façade and you’ll see that this industry is built on the hard-working backs of some of the world’s poorest men and women. Sportswear workers in Asia endure long hours in sweatshop-like conditions for on average less than US $3 a day and still struggle to feed and clothe themselves and their families. There’s something wrong with this picture. We're working hard to ensure that the big brands like Nike, adidas and Puma treat their workers with respect and pay them enough to meet their basic needs. How are we doing this? By making the garment and sportswear giants accountable. Join our campaign and support the human rights of workers: www.oxfam.org.au/labour-rights-action

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Asia Floor Wage

1. Christina Rebel Christina Rebel 26/10/2009

9. AFW Formulation 1 Based on a caloric value basket of 3000 calories 2 With a scope of ±10% 3 Based on a 48 hour standard working week

10.

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12. AFW’s Further Requirements Solidarity amongst workers within Asia AND Transnational Solidarity amongst workers

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16.

17.

18. Source: ILO Conditions of Work and Employment; www.ilo.org/public/english/support/lib/dblist.htm Actual wages data (**) based on Workshop on Asian Garment Wages at New Delhi, organized by CEC and CCC, January 2006

19.

20.

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