No More Sweatshop

Japan Is the Un-fairest Trader among Advanced Countries

Kobe Gakuin University

B115092 Ohnishi, Mikiko

Examiner: Nakanishi, Noriko

Abstract

In this report, first paragraph is mentioned about what sweatshop and fair trade is.

In the second paragraph, I will write how sweatshops increased in the world and why sweatshops do not decrease. Sweatshops increased after industrial revolution and immigration reform and it is one of a big social problems in the world.

In the third paragraph, I will write about fair trade and my research about it. Fair trade is one of the solution to decrease sweatshops, so this paragraph shows how fair trade solve the problems caused by sweatshops. My research is about the recognition about fair trade. I did my questionnaire for Japanese and Canadian students, and I found some differences by the result.

In the fourth paragraph, I wrote about what we have to do. Sweatshops are increasing in the world, but most of people do not know about them. Therefore, we have to learn about sweatshops and fair trade and think about it more seriously. If fair trade products is common among people in advanced countries, sweatshop will decrease in the world. Contents

1. Introduction ...... 1 2. The issues related to sweatshops ...... 1 2-1. Sweatshops in developing countries ...... 2 2-2. Sweatshops in advanced countries ...... 3 2-3. Sweatshops and child labor ...... 4 3. Fair trade ...... 5 3-1. Promotion of fair trade in England ...... 6 3-2. Fair trade communities in Europe ...... 7 3-3. Fair trade products in Japan ...... 9 3-4. Why fair trade cannot spread to the world? ...... 9 4. Fair trade questionnaire ...... 10 4-1. Purpose of this study ...... 10 4-2. Method ...... 10 4-3. Result ...... 11 4-3-1. Knowledge of fair trade products ...... 11 4-3-2. Attitudes toward fair trade products ...... 12 4-4. Discussion ...... 13 5. No more sweatshops in the world! ...... 14 5-1. Be aware of the sweatshops ...... 14 5-2. Make fair trade trendy...... 16 5-2-1. Fair trade and organic products ...... 16 5-2-2. Fair trade and companies ...... 17 5-3. Be fair to everybody on the earth ...... 17 References ...... 18 Appendix ...... 23

1. Introduction

Recently, mass production and mass consumption has become normal in the world. It creates fast fashion and fast food. Most people like cheap and trendy things, especially, in advanced countries. However, it takes advantages of sweatshops and child labors. Unfortunately, the people in developed countries do not know much about these problems because they are under the development of countries and technology. One of the solutions of these problems is fair trade that is trade fairly between companies and workers. It is not famous in Japan. Japan is the worst country in terms of ranking the purchasing of fair trade products in advanced countries. The reasons are lack of recognition and knowledge about fair trade. Therefore, Japanese people have to learn more about it and companies and media have to cooperate more with fair trade organizations. If fair trade products are acknowledged among people in advanced countries, the number of sweatshops will decrease in the world.

Chapter 2 is about the history and the problems about sweatshops. Sweatshops have a long history and they have a lot of problems. After that, chapter 3 is about the current fair trade. It explains how fair trade solve the problems of sweatshops. In chapter 4, it is the survey about the recognition about fair trade. I did it for Canadian and Japanese students, so this chapter shows the result about it.

2. The issues related to sweatshops

Most people love the latest fashion and foods. However, the trends changes so quickly like fashion and gourmet, so there are a lot of products in the world that people buy and consume. This cycle is “Mass production and mass consumption” and it makes a lot of sweatshops. It needs many workers who work for low wage. Some companies believe that it is better to hire the workers in developing countries. Sweatshop means “a

1 small factory where workers are paid very little and work many hours in very bad conditions” (Cambridge Dictionary, 2018).

Unfortunately, many people do not know about these problems because it is hidden within the development of countries and technology. In addition, many famous companies’ factories or firms used to make their products are sweatshops. Sweatshops exist, not only in developing countries, but also in advanced countries. After the

Industrial Revolution, the number of sweatshops increased in developing countries and after immigration reform, the number of sweatshops increased in advanced countries.

2-1. Sweatshops in developing countries

The causes of why there are currently sweatshops in developing countries is because of the Industrial Revolution and poverty. After the Industrial Revolution, the level of the manufacturing industry improved throughout the world and people could make a lot of products like clothes, shoes and foods. In addition, consumers needed cheaper products because there were a lot of products and the trend of clothes and foods changed so quickly. Therefore, many companies tried to make products more cheaply for their profit. Many famous companies sell products like clothes and chocolate cheaply around the world. These cheap products are made in developing countries and some poorer areas of developed countries. In these areas, there are a lot of famous companies’ farms or factories. Companies make their factories or farms in these areas because the wages for workers can be cheaper than other areas. In those factories and farms, the working condition is very bad, for example, low wage and overtime work

(Nakai, 2016). These factories and farms are called “sweatshop”.

A country that has many sweatshops is Nicaragua. Nicaragua is famous for its clothing factories. The sweatshops have bad conditions, low wages and overtime work.

The wages are very low. According to Watrous (2011), the wage of one worker is $130 per a month. But if they have a family of six, they need $450 per a month, so they cannot live healthy and decent life. Even if their family is large, they cannot be given enough money to live healthily and safely. They cannot eat enough food, so the rate of the starvation in Nicaragua is high. In addition, they have a problem of overtime work.

In Nicaragua, there is a Kohl’s factory that produces jeans. It is a sweatshop and it is difficult to prove the bad working conditions for the workers because there is not any evidence of it. Antlfinger (2000) reports as follows;

Charles Kernaghan of the National Labor Committee of New York, a nonprofit

group that focuses on workers’ rights worldwide, said workers at the sweatshops

have been verbally and physically abused, live on “starvation” wages and work

more than 90-hour weeks. Nicaraguan workers sewing jeans for Kohl’s are paid

$65 a month and live in “utter misery,” Kernaghan said. He said many works as

many as 50 hours overtime, added to the 47.5 hours week” (Antlfinger, 2000).

The workers are forced to work overtime because the companies need mass production.

2-2. Sweatshops in advanced countries

The sweatshops in advanced countries are mainly staffed by poor people or immigrants. In the U.S.A., after Immigration Reform in 1980, it became illegal for companies to hire undocumented workers because the American government wanted to decrease the amount of undocumented immigrants and then undocumented workers could not get a job. The U.S. Legal Dictionary defines undocumented immigrants as

3 follows:

The term ‘undocumented immigrant’ refer to foreign nationals residing in the U.S.

without legal immigration status. It includes persons who entered the U.S. without

inspection and proper permission from the U.S. government, and those who

entered with a legal visa that is no longer valid. Undocumented immigrants are

also known as unauthorized or illegal immigrants.

However, it caused an increase in the number of sweatshops. Some companies started to secretly hire undocumented workers because the companies could hire them cheaper than the documented workers. In addition, because the companies hired them secretly, it would be difficult for the government to find out about this illegality. This situation is called “underground economy”. This is one cause of the sweatshop in advanced countries (Miyasaka, 2005).

2-3. Sweatshops and child labor

A more serious problem is that children are forced to work in these sweatshops. It is called “Child Labor”. According to International Labor Organization (ILO),

152million children are forced to work as “Child Labors” (ILO, 2016). In poor countries, most of the children cannot receive education because they have to work to support their family. Children cannot lay claim and they cannot on a defiant attitude, so companies and factories prefer to exploit child laborers. However, it is bad for the children and the nation because children will become the people who make the nation in the future. If they do not receive education, they will unable to write and understand words and they will not have any knowledge. It means they are forced to work as a laborer for rest of

4 their lifetime.

ILO works for the right to work and human rights. Among them, they work towards decreasing child labors. The definition of child labor is children who are forced to work in bad situations. It is one of the main social problems in the world. ILO was established in 1919. They worked towards making an international standard for an employee’s age. In 1992, they started the program of International Programme on the

Elimination of Child Labor (IPEC). IPEC was built for the abolition of child labor, which is “to be achieved through strengthening the capacity of countries to deal with the problem and promoting a worldwide movement to combat child labour” (International

Programme on the Elimination of Child Labor, 2010).

3. Fair trade

There are a lot of problems with sweatshops and child labor in the world and many people suffer from these problems. One of the solutions to these problems is fair trade. It is to trade fairly between companies and workers. Hinckley & Bosworth

Borough Council explains Fair trade as follows:

Fairtrade is an alternative approach to conventional trade and is based on a

partnership between producers and consumers. When farmers can sell on Fairtrade

terms, it provides them with a better deal and improved terms of trade. This

allows them the opportunity to improve their lives and plan for their future.

Fairtrade offers consumers a powerful way to reduce poverty through their

everyday shopping. When a product carries the FAIRTRADE Mark it means the

producers and traders have met Fairtrade Standards. The Fairtrade Standards are

designed to address the imbalance of power in trading relationships, unstable

markets and the injustices of conventional trade (Hinckley & Bosworth Borough

Council, 2018).

This movement started in Europe, so there are many fair trade products in Europe

and it also became more recognized in advanced countries. Recently, the purchasing

rate of fair trade products has risen in Western countries. Many organization work to

help poor people, like the, Fairtrade Foundation and ILO. However, fair trade are not

known well as Western countries in Japan. In this chapter, I will mention the work of

Fairtrade Foundation, the recognition of fair trade in European countries and the fair

trade products in Japan.

3-1. Promotion of fair trade in England

The Fairtrade Foundation is the organization that works for promoting fair trade.

They work in about 74 countries and about 1.66 million people work in their system

(Fairtrade Foundation, 2019). The origin of the Fairtrade Foundation is in England. In

1992, Fairtrade Foundation was made by a NGO organization in England. At the time, it was not popular because people did not understand the concept of “Fair trade”.

However, fair trade spread in England because of two reasons.

The first reason is “Fairtrade Town”. “Fairtrade Town” means the town whose people buy fair trade products often in the town. If the town is recognized as a town that supports fair trade the most, the town is given the award of “Fairtrade town”. Many towns and countries tried to buy fair trade products because they wanted to get the award. It was one of the reasons that helped with spreading fair trade.

The second reason is that many churches sold fair trade foods. They sold a lot of fair trade products because it meant helping the poor. A lot of people attended churches,

6 so it was a strong way to spread fair trade products to people.

Because of these reasons, fair trade is very popular in England now. In England, most supermarkets sell fair trade products, for example, three supermarkets in England sell bananas which have Fair trade certification (Fairtrade Foundation ~Buying

Fairtrade Bananas~,2014). In addition, they sell many fair trade products like coffee or chocolates, so 80% people in England know about fair trade and 90% of the people recommend fair trade products because they recognize the fair trade products are safe and high quality (Miyahara, 2014).

In 2012, London Olympic was held and Fairtrade Foundation sold a lot of fair trade products like coffee and bananas in the city. As a result, they sold 10,000,000 cups of coffee and 7.000,000 bananas of fair trade certification. Fairtrade Foundation work for promoting the name value of fair trade (People Tree, 2012).

3-2. Fair trade communities in Europe

There are a lot of reasons why the recognition of fair trade in European countries is so high. For example, the educating about fair trade, the supports by companies for fair trade, and the fair trade history in each countries. Firstly, in European countries, there are many fair trade towns. The U.K. especially works towards the extensive spreading of fair trade through means such as advertisement and education. The

Fairtrade Foundation explain about fair trade communities as follows:

We run campaigns with local community groups aimed at boosting awareness and

understanding of international trade issues, and promoting the buying of Fairtrade

products as a way for everyone, no matter who they are, to use the power of their

purchase to make a difference to the lives of farmers and workers.

Communities (also known as Fairtrade Towns), schools, universities, colleges and

places of worship can apply for Fairtrade status, awarded by the Fairtrade

Foundation. A set of goals exist for each type of community or institution, but it is

the creativity and commitment of Fairtrade campaigners coming together to make

a change locally that unite all of this action together in to a vibrant and impactful

movement. (Fairtrade Foundation, 2018)

In the U.K., there are 635 fair trade towns. The most famous university in the world, Cambridge University, is one of the fair trade universities. In this university, the student council tried hard to sell fair trade products in their university. In 2007, they were recognized as a fair trade university. In addition, Cambridge town is a fair trade town, so there are many fair trade products in the super markets and cafés (Shimosawa,

2016).

In fair trade schools, there are three steps to follow; fair aware, fair active and fair achieve.

1. Fair Aware: To survey for students about the recognition of fair trade and have

many classes about fair trade.

2. Fair Active: To set up a fair trade group in the school and create an action plan

such as some event or campaign about fair trade.

3. Fair Achiever: To decide a fair trade policy and deal in merchandise of fair

trade products

(Miyahara, 2014)

The school that implements these three steps can be recognized as a fair trade

8 school. In the U.K., 752 schools are recognized as a fair trade school. Therefore, many children receive education about fair trade in the U.K.

3-3. Fair trade products in Japan

On the other hand, fair trade products are not popular in Japan. There are a lot of

differences between Japan and Western countries. According to Miyazaki (2009),

Japan is the worst in the ranking of purchasing rate of fair trade products in advanced

countries and the numerical value is 8 yen per a person. The top of the ranking is

Switzerland. The numerical value of Switzerland is 3,396 yen per a person. In other

European countries, the recognition of fair trade is high, so the purchasing rate is also

high.

3-4. Why fair trade cannot spread to the world?

The recognition of fair trade is improving faster than before, but it is difficult to spread enough throughout the world. One of the reasons is that companies that are not fair trade companies use the fair trade mark. It is “Daily Milk Chocolate” It is one of the famous products that have Fairtrade logo on the package. I saw this products in many foreign countries such as Canada and England and I thought it was a fair trade product.

However, it is wrong. In 2009, Dairy Milk chocolate started to be sold as a fair trade product and it was recognized as fair trade by the Fairtrade Foundation, but they no longer maintain the standard as a fair trade products. According to John Bingham:

Dairy Milk and other products will no longer be recognized as fair trade

chocolate and will carry the logo of Mondelēz’s “Cocoa Life” scheme, which it

says will involve investing millions of dollars in poor communities, on the front of

packets. But it will still carry the fair trade logo on the back as part of a

“partnership” with the foundation which will monitor its work.

Therefore, if there is a fair trade logo on a package of some products, it may not always a “Fair trade product”. If the logo is on the back of the package, it means it has

“partnership” with Fairtrade Foundation.

4. Fair trade questionnaire

4-1. Purpose of this study

In the world, there are a lot of problems like sweatshops and child labor, and on each occasion that some problems happen, many organizations find solutions like fair trade. However, fair trade is not famous and popular yet, so I wanted to know how many students know about it and how much they understood.

4-2. Method

I created questionnaire for Canadian and Japanese students because I went to

Canada for study abroad. My target were my friends. I asked the same question for 16 students in Japan and 10 students in Canada. I asked my questionnaire through chat for students.

I asked two questions about fair trade to students, because I wanted to know about the recognition about fair trade and the difference of the recognition between Japan and

Canada, so the first question was “Do you know fair trade?” In addition, I wanted know how much students buy fair trade products, so the second question is “Do you buy fair trade products?”

4-3. Result

4-3-1. Knowledge of fair trade products

As indicated in Figure 1, more Japanese students know about fair trade. 62 % of

Japanese students answered yes and 50% of Canadian Students answered yes.

When I asked this question for Japanese students, most of them answered just

“Yes” or “No”. Canadian students also answered “Yes” or “No”, but some of them who answered No said “I just have heard of it, but I do not know the contents of fair trade”, for example, one Canadian student said “Yes and No, I know the concept, but not details.

Fair trade is where the businesses pay the appropriate amount for their supplies or resources like some coffee is fair trade, which is a little more expensive because the brand buys coffee at a good price from the source where as some companies buy the resource at a really cheap price because the country it is coming from is poor and can’t afford to ask more” (Appendix).

I thought Canadian students answered these questions with their own thoughts about fair trade more than Japanese students. It could be a difference of culture, but it is also the difference of knowledge about fair trade between Japan and Canada.

Q1, do you now fair trade?

Do you know fair trade? n=16 (Japan) 12 n=10 (Canada) 10 10

6 6 5 5

0 11 Japan Canada Yes No Figure 1. Participant’s Knowledge of Fairtrade

4-3-2. Attitudes toward fair trade products

As indicated in Figure 2, most of students answered yes. Most of the students who answered yes at Figure 1 answered also yes at Figure 2. In addition, the students who answered yes said they always prefer to buy fair trade products.

Before I started this research, I thought fair trade products were more expensive than other products even if they are the same quality. Therefore, I thought it would be like donations and volunteer work to buy fair trade product, causing the low purchasing rate. However, it is not just donation and the same quality. I realized this because some

Canadian students said fair trade products are good quality or organic. According to the

Fairtrade Foundation, there are standards in order to be recognized as a fair trade product. In the standard, fair trade products have to be organic and it must not be made by using agricultural chemicals. It means all fair trade products are organic and good for environment, so fair trade products are not just expensive and a donation.

So, people who know about fair trade products buy these products because it is better quality and reliable. On the other hand, people who do not know about the products do not buy it because they do not know the merits of it. It can be the cause of awareness of most Japanese people do not know about fair trade, and therefore the low awareness

Q2, do you buy a fair trade product even if it is expensive?

Do you buy fair trade products? n=16 (Japan) 12 11 n=10 (Canada) 10

8 8

6 5

2 2

0 Japan Canada

Yes No

Figure 2. Participants’ Attitude toward Fairtrade Products.

4-4. Discussion

When I researched about fair trade and sweatshops, I did a presentation about them in Canada and Japan, and I asked students “Do you know about sweatshops?” every time. However, most of students have never heard of them. Some students know most clothes, chocolates and coffee are made in developing countries, but they do not know about the bad situations of working places and the awful systems like low wage and heavy labor.

As I said, Japan is the worst country in terms of ranking purchasing of fair trade products in advanced countries. There are two reasons why Japan is the worst. The first reason is there are only a few people that understand about fair trade completely and the second reason is that most companies do not think about fair trade positively. On the other hand, in Europe, this thinking spread to the people because of the incident at

Chernobyl. After the incident, people prefer to buy the products that is safety and healthy. It is one of the cause of organic trend.

In my research, 62% of Japanese students and 50% of Canadian students answered that they know fair trade, and 69% of Japanese students and 80 % of Canadian students answered that they buy fair trade products. However, I felt it’s not possible to spread fair trade through the world by only having the knowledge that it leads to save the workers in sweatshops to buy fair trade products. Therefore, I will suggest what will decrease sweatshops in the next chapter.

5. No more sweatshops in the world!

5-1. Be aware of the sweatshops

When I was a high school student, I learned about sweatshops for the first time because my English teacher taught us about international problems. I was shocked because the present situation of sweatshops was so bad and many famous fashion brands had sweatshops such as Nike, Disney and UNIQLO. I loved the clothes of H&M, but they also had sweatshops. I then started to be interested in sweatshop and fair trade.

I think it is the most important to learn or watch the situations of the places where our clothes are made and the life of people who make our clothes. If I did not learn about it,

I would not care about where my clothes came from and I would not notice the fair trade mark. So it is important to increase the amount of opportunities to learn about it for students because the knowledge may cause the raising of awareness for sweatshops.

I think there are two reasons why sweatshop is not recognized in the world.

The first reason is education. Japan is famous for a lot of “Black company” in

Japanese. It means companies that habitually flouts labor regulations. Therefore, most of Japanese schools do not educate their students about “sweatshops” because the

14 definition of “sweatshop” is similar to “Black company”. The second reason is that the most companies that have sweatshops are famous companies. As I said, many famous companies have or had sweatshops, such as Nike.

Figure 3 shows a famous picture which shows a Nike sweatshop. I think the reason why I do not see a word of sweatshops on television or in the media is because most companies have sweatshops and it has become part of the main stream in the business world. So media does not prefer to advertise the stopping of sweatshops because the advertisement may become a protest movement for many famous companies’ business stream.

Figure. 3: Amanjotchahil (2014) Business Ethnic: Nike’s Sweatshop

Nike was famous for their sweatshops, so people knew about it and people joined a opposition movement. Therefore, the condition of Nike’s factories is now getting better. According to Max Nisen, in 2005 “Nike publishes a detailed 108-page report revealing conditions and pay in its factories and acknowledging widespread issues, particularly in its south Asian factories.” (Nisen, Max, “How Nike Solved Its Sweatshop

Problem”, May 9, 2013).

5-2. Make fair trade trendy.

5-2-1. Fair trade and organic products

We first have to increase the opportunities to know or understand about fair trade.

Recently, organic foods and products have become popular in the world, so people prefer to buy organic products. All fair trade products are organic products, so if all people know it, the purchasing rate of fair trade will become higher.

According to Shoko Takenouchi (2016), the word of “organic” include the meaning of natural, sustainable, slow, fair, ethical, healthy and spiritual. Organic can be one of the solution of global issues for unfair trade and global environmental problems caused by human. According to the research about the interest about organic products by woman smile report (figure 4), 60.2 % of people are interested in organic cosmetic and foods. So, when companies sell fair trade products, it have to include the word of

“organic” on the package. Then, people can understand fair trade is organic products more easily.

Figure. 4: How much Japanese is interested in organic products (Seikatsu style kenkyujo, 2016).

There are some other reasons why organic products become popular more and more, such as some famous models prefer to eat or treat organic things for their health and keep their slim body, and teenagers see it and imitate the thinking or lifestyles. In many foreign countries, organic is trend and also Japanese people prefer to buy the products. The trend of organic may be the cause of what fair trade becoming popular .

5-2-2. Fair trade and companies

For improving the recognition of fair trade products, companies and media have begun to cooperate with fair trade. Recently, some Japanese companies have started to use fair trade products.

According to the Fairtrade Foundation, NTT Data Company use fair trade coffee for serving their customers. This company is a global company, so, when they worked or talked with foreign companies, many famous foreign companies use fair trade coffee in their café. NTT Data Company then started to use the products. They said it is a little bit more expensive than other brands, but it can become a conversation starter, so it has long term benefits.

I think that if famous global companies started to use fair trade products, like

NTT Data Company, it will become normal to use fair trade products within the company and its employers. I hope big companies lead to what the word of fair trade become trendy in their conversation.

5-3. Be fair to everybody on the earth

People have to understand what fair trade products are and why fair trade is needed in the world. As I said, Japan has the worst purchasing rate of fair trade products

17 in advanced countries, so Japanese students have to be educated about “sweatshops”.

Companies and media have to corporate with fair trade organizations. I was interested in sweatshop when I was a high school student, because my teacher taught me about it.

Then, I was really shocked because I learned many children who are younger than me work in sweatshops. Therefore, I think the people who care about sweatshops will begin to increase. If all advanced countries cooperate for fair trade, the number of sweatshops will decrease. Not only sweatshops, but the problems in the world like global warming and global social issues that relate to all people. The small cooperation can change and improve the current conditions.

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Appendix