U.S. Fought To Lower Minimum Wage In Haiti So Hanes And Levis Would Stay Cheap [View all]

[KamaAina]

http://www.businessinsider.com/wikileaks-haiti-minimum-wage-the-nation-2011-6

It started when Haiti passed a law two years ago raising its minimum wage to 61 cents an hour. According to an embassy cable:

This infuriated American corporations like Hanes and Levi Strauss that pay Haitians slave wages to sew their clothes. They said they would only fork over a seven-cent-an-hour increase, and they got the State Department involved. The U.S. ambassador put pressure on Haiti’s president, who duly carved out a $3 a day minimum wage for textile companies (the U.S. minimum wage, which itself is very low, works out to $58 a day).

Haiti has about 25,000 garment workers. If you paid each of them $2 a day more, it would cost their employers $50,000 per working day, or about $12.5 million a year ... As of last year Hanes had 3,200 Haitians making t-shirts for it. Paying each of them two bucks a day more would cost it about $1.6 million a year. Hanesbrands Incorporated made $211 million on $4.3 billion in sales last year.

Thanks to U.S. intervention, the minimum was raised only to 31 cents.

Yes, it is from 2011, but still...