Major Computer Manufacturer S

Toni Coin December 7, 2004 CIS 106, Online Project 2

Major Computer Manufacturer’s “Sweatshop” Factories Exposed

The Catholic Agency for Overseas Development (CAFOD) has uncovered “dire working conditions” in factories located in Mexico, China, and Thailand. The companies that were named are Dell, IBM, and Hewlett Packard. During the investigation, CAFOD spoke with electronics workers in all three countries. CAFOD found unsafe factories, compulsory overtime, pay below legal minimum wage, and many workers did not have benefits such as health, pension, and employment benefits.

CAFOD blames this situation on pressure within the IT industry to cut costs and offer more affordable products. Manufacturers like to outsource in developing countries because labor is cheap, there are no unions, and they can hire and fire as industry demands change. CAFOD reviewed the codes of conduct for labor standards and discovered that Dell, IBM, and HP went below the standards set by the United Nations.

IBM was faulted for low wages, harsh and inhumane treatment, and excessive working hours. IBM was also accused of dealing with suppliers that used child labor.

CAFOD reviewed interview lists for IBM production workers and found reasons for rejections that included: homosexuality, two tattoos or more, worked for a union, or pregnant. IBM has responded by taking actions to improve these situations.

There are reports that female employees are required to take pregnancy tests, because pregnant workers are more likely to be fired. HP released a statement saying,

“We have implemented a Supplier Code Of Conduct that has been rolled out to our top

50 suppliers, and we are working with those suppliers to ensure that their practices meet our code.” Dell’s attitude was similar to IBM and HP. Dell welcomed the investigation, and they are working on the problems CAFOD discovered. One of the problems that workers face is being blacklisted for complaining. Three Mexican workers were fired after they talked to CAFOD about how they were treated.

CAFOD has created an “agenda for change”, which requests that multi-national computer manufacturers adopt codes of conduct based on standards set by the United

Nations International Labor Organization (ILO). The crucial source of labor rights is the

Universal Declaration of Human Rights. The ILO has the responsibility of setting these standards. The ILO is made up of governments, employees, and workers’ representatives.

The ILO identifies four core labor standards:

 freedom of association and recognition to the right of collective bargaining

 elimination of all forms of forced or compulsory labor

 abolition of child labor

 elimination of discrimination in all forms of employment

All ILO members have an obligation to respect, promote, realize the core standards, and uphold human rights.

In a CAFOD update, IBM has taken action to reinforce the company’s discrimination policy. IBM is also planning to adopt a code of conduct implementing labor standards. Apparently, HP is the leader of the pack based upon partial labor standards that have been practiced over the past 2 years. In response to CAFOD, Dell has adopted a code of conduct. CAFOD is consulting with them to improve and implement their code. Anne Lindsay, a CAFOD analyst, says, “It’s encouraging that the computer industry recognizes the need to address labor standards in the supply chain.” Hopefully, this will promote a more positive working environment for these employees.

2 Works Cited

Wearden, Graeme. IBM, Dell and HP under fire over “Sweatshop” computer factories (http://hardware.silicon.com)

Wearden, Graeme. IT vendors exposed over “sweatshop” factories

(http://zdnet.co)

Website http://cafod.org Issue Monday 26 January 2004, Issue Friday 12

March 2004, and Issue Friday October 22 2004.