Made in the USA ... 3900 miles away?

A US$1 billion garment industry has been thriving on the Northern Mariana Island of Saipan for more than two decades. Enticed by dreams of good American jobs, Chinese, Thai, Bangladeshi and Filipino people pay thousands of dollars to recruiters, leave their homes and families and find themselves working 70 to 80 hours a week without overtime pay for US$3.05 an hour or less. Although Saipan is more than 4.500 miles west of the continental U.S., the labels these workers sew on clothing read "Made in the U.S.A.". Curious?

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Saipan became part of the U.S. Commonwealth after WW II when the U.S. gained control of the Northern Mariana Islands from Japan. To promote industry, the U.S. took control of minimum wage and immigration laws, made way for duty free imports into the U.S. and eliminated quota restrictions, making Saipan a virtual free trade zone. In the year 2000 alone, the federal government estimates that U.S. retailers saved in excess of $200 million in duties on $1 billion worth of garments imported to

the U.S.. Exploiting these benefits, Asian-based garment manufacturers traveled to Saipan in droves, bringing reams of cheap cloth and tens of thousands of foreign indentured workers (meaning that a contract binds these workers to an industry recruiter).

Justice for Saipan's Garment Workers!

The tens of thousands of workers who have toiled and sweated over Saipan's sewing machines since the 1980's are finally receiving compensation for the appalling conditions they endured. In 2003, a $20 million settlement over alleged sweatshop violations brought an end to a legal battle implicating more than twenty of America's favourite clothing retailers. In 1999, a coalition of advocacy groups including, Global Exchange, Sweatshop Watch, the Asian Law Caucus, and UNITE (garment workers union) filed a class action lawsuit on behalf of the sweatshop workers in Saipan.

According to Sweatshop Watch, the 2003 settlement is the largest and most significant sweatshop settlement in history. (See www.sweatshopwatch.org). It is groundbreaking not only for its economic remuneration, but also for bringing justice and improved conditions to the workers of Saipan. The settlement includes:

* Compensation ... More than 30,000 factory workers will be issued cheques for back pay and damages (US$6.4 million in compensation).

* Independent Monitoring ... Will be conducted unannounced by the International Labor Organization including investigation of worker's complaints.

* A Code of Conduct ... To ensure that companies uphold workers' rights, including overtime pay, access to clean water and a safe working environment.

* Repatriation ... Workers from foreign countries (mainly China, Thailand, Bangladesh and Philippines), who wish to return home, are eligible for up to $3,000 in travel costs.

The Saipan settlement comprises 27 garment manufacturers and retailers, among them Gap Inc., Sears, Nordstrom, Tommy Hilfiger, Calvin Klein, Target, Abercrombie & Fitch and Polo Ralph Lauren. Despite the settlement, the retailers continue to deny allegations, insisting there has been no wrongdoing. For a complete list of retailers, visit www.sweatshopwatch.org/swatch/marianas/help.html.

Levi Strauss & Co. was the only defendant to oppose the settlement, and in December 2003, they won official dismissal from the lawsuit at a hearing in Saipan. In an effort to uphold a public image of social responsibility, Levi Strauss & Co. argued that their own monitoring program exceeded the protections defined by the settlement and on these grounds refused to settle. However, Levi's present lack of accountability for creating 14 years of sweatshop conditions in Saipan opposes its public claims of benevolence and conscientiousness even though it no longer buys from Saipan.

Lawyers for the workers of Saipan are hopeful that the settlement with the other 26 manufacturers will make labour and human rights abuses a thing of the past. Supporters of the settlement suggest that it will apply much needed pressure upon factories and retailers that supply U.S. stores with low-cost clothing to uphold workers' rights. Whether these improvements will be effectively implemented remains to be seen, but in the meantime, there is anticipation that this groundbreaking settlement will set a strong precedent for the garment industry across the globe.

Excerpted from the Victoria International Development Education Association Newsletter, Winter/Spring 2004.