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Current Affairs Assignment

Current Affairs Assignment. How Much Does That $14 T-shirt Really Cost?. Bangladesh disaster raises tough questions about cheap clothes. Before last week, Loblaw’s Joe Fresh was known mostly as a hot spot for cheap, stylish clothing. Few customers likely cared how the clothes were made.

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Current Affairs Assignment

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  1. Current Affairs Assignment How Much Does That $14 T-shirt Really Cost?

  2. Bangladesh disaster raises tough questions about cheap clothes • Before last week, Loblaw’s Joe Fresh was known mostly as a hot spot for cheap, stylish clothing. • Few customers likely cared how the clothes were made.

  3. That all changed with the deadly collapse of an eight-storey factory complex used by the retailer in Bangladesh. • Nearly 400 people are dead, and the owners of the complex—and the factories within it—that was reportedly built without proper permits, have been arrested on charges of negligence.

  4. The worst industrial accident in Bangladesh’s history offers an uncomfortable glimpse into the fast-growing garment industry there, and the treatment of its workers.

  5. A generic $14 polo shirt sold in Canada and made in Bangladesh actually costs a retailer only $5.67. • To get prices that low, workers see just 12 cents a shirt, or 2% of the wholesale cost.

  6. The garment industry in Bangladesh was worth $19 billion last year, up from $380 million in 1985. • The country’s 5,400 factories employ four million people, mostly women, who cut and stitch shirts and pants that make up 80% of the country’s total exports.

  7. Wages ultimately get squeezed most because businesses can easily control them, unlike the price of cotton or shipping.

  8. H&M, which had no connection to the collapsed building, works with 166 different factories in Bangladesh. • This week, Wal-Mart said it had “no authorized production in [the collapsed] facility,” but added that if unauthorized production were discovered, it would take “appropriate action.”

  9. Retailers have pledged to improve working conditions. • Loblaw Companies Ltd., have said they will compensate victims’ families. But Bangladesh is just one country in a vast supply chain. • H&M, for instance, uses hundreds of other factories, including 262 in China. • In Vietnam, workers make only slightly more than in Bangladesh: 14 cents per shirt. Real reform will mean paying a lot more than $14 for a shirt.

  10. Discussion • Do you think cheap labour is a bad thing? • Is there anything good about it? Might this be why we have unions in Canada?

  11. ? • Would you be willing to pay more for the stuff you like?

  12. Original Article: http://www2.macleans.ca/2013/05/01/what-does-that-14-shirt-really-cost/

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