JC Penney makes excuses for super-exploitation JC Penney recently gave in to public pressure and promised to pay back wages owed to a few workers who were making their clothing in American Samoa. Now JC Penney is denying responsibility for the conditions in Third World factories where their clothing is made, and even worse, claiming that in most of these factories conditions are just fine. In MIM Notes #230 (March 15, 2001) we reported the story of the 250 Vietnamese women "guest workers" who paid to travel to American Samoa, promised a wage of $2.55 per hour at Daewoosa Samoa, which contracted with major Amerikan retailers JC Penney, Sears, Wal-Mart, and Target. Once there, the wimmin worked and lived in terrible conditions and were not paid even the wage they were promised. When they organized to receive back wages, goons hired by Daewoosa beat them. At the end of March these workers won a partial victory. JC Penney agreed to pay their back wages. Furthermore, Daewoosa's owner, Kilsoo Lee, was arrested in Hawaii and charged with holding the workers under conditions of "involuntary servitude and forced labor." Wal-Mart Sears, and Target, however, did not agree to pay back wages. In a letter sent to a comrade who protested the treatment of the wimmin workers (see page 3), JC Penney stated that they immediately terminated their relationship with Daewoosa when they learned of how it treated workers. In fact, JC Penney said it would have never entered contracted Daewoosa if it knew of Daewoosa's problems. MIM finds it hard to believe that JC Penney is so naive that it doesn't understand that capitalists using the same machinery and raw materials as others can produce cheaper products only by exploiting their workers more. But regardless of what JC Penney knew, sweatshops like Daewoosa are endemic in the capitalist world. That is the primary indictment of the capitalist system in MIM's eyes -- not JC Penny's subjective intentions. Capitalist profits come from exploiting workers. If all workers were paid the value of their labor, there would be no profits for the capitalists. The imperialist system rests upon low-paid Third World labor. When exploited workers organize and their supporters around the world pressure the capitalists, sometimes they can win small victories. But the capitalists can switch to exploiting workers elsewhere. This is why MIM fights for an end to imperialism while also struggling for winnable reforms. JC Penney denies exploiting workers in American Samoa Comrades, As requested in MIM Notes #230 I wrote to Mr. Allen Questrom, the CEO of J.C. Penney Company, and Mr. Tim Lyons, Public Relations, responded two whole months later. I wonder where the Vietnamese workers slept or what they ate while it took these people two months to respond to a letter. Their response is enclosed. -- an Illinois prisoner 26 June, 2001 MIM adds: In the letter to this prisoner JC Penney says they require their factories to comply with "applicable labor laws." This means the labor laws in the country where the production is taking place. This sounds good, but labor laws in the Third World are set up to benefit the capitalists who come in from First World countries to exploit the workers and expand their profits. If JC Penney really wants to ensure decent working conditions they should join MIM in demanding an international minimum wage and international application of u.s. labor laws. May 29, 2001 Dear Mr. [XXX], On behalf of our Chairman and CEO, Allen Questrom, I am responding to your inquiry regarding the garment factory in American Samoa and the workers there, for whom we share your concerns. First of all, please be assured that merchandise from this factory is not being sold in our stores, catalogs, or on jcpenney.com. Second, JC Penney does not own this factory or any factory where its merchandise is made. The factory in question (now closed) was owned by a Korean company, which had a contract to manufacture apparel for an independent supplier to JC Penney. When the first shipment of goods arrived in our stores and its origin was identified, JC Penney returned the merchandise to the supplier and canceled further shipments. JC Penney has suspended all purchases from this supplier indefinitely. JC Penney has a strict Supplier Legal Compliance Program that requires suppliers to demonstrate full compliance with applicable labor laws in the factories where their goods are made. We also require that factories be inspected and approved by our own factory inspectors before production begins. (Details of the program can be found in the enclosed brochure.) This supplier's use of the American Samoa factory was unauthorized and violated our policy on both counts. The latest reports from American Samoa indicate that back wages due to the factory workers have been paid, and arrangements have been made for the factory's Vietnamese workers to be returned home at no cost to them. We understand that those still awaiting transport are being adequately housed and fed in a safe, clean environment through the efforts of the factory's court-appointed receiver and local charitable groups. With more than 4,000 independent suppliers who operate or contract with more than 7,000 factories in more than 100 countries, JC Penney cannot guarantee that every supplier and factory will meet its expectations in every instance. However, such failures have been very rare, and our associates are working diligently every day to make them even rarer. Sincerely, Tim Lyons JC Penney Public Relations J. C. Penney Company, Inc., P.O. Box 10001, Dallas, TX 75301- 0001 TAKE ACTION! Please continue send letters to Sears, Wal-Mart, and Target, urging their immediate attention to resolving the workers' situation. The workers demand to be fairly paid for their work. These companies have policies (e.g. http://www.walmartstores.com/supplier/vstand_curre nt_standards.html) allegedly precluding them from doing business with sweatshop-type operations. They should not be allowed to talk sweet yet act despicably. * Target Corporation Robert Ulrich, Chairman, CEO 777 Nicollet Mall Minneapolis, MN 55402 * Wal-Mart Stores, Inc. S. Robson Walton Chairman 702 Southwest 8th Street Bentonville, AR 72716 * Sears Roebuck & Company Arthur C. Martinez, Chairman/CEO 3333 Beverly Rd. Hoffman Estates, IL 60179 Fax: (847) 286-7829 Tel: (847) 286-2500 SAMPLE LETTER Dear Mr. Martinez (Mr. Ulrich, Mr. Walton): I am writing to express my concern about sweatshop conditions and labor abuses on the island of American Samoa. I understand that workers at the Daewoosa Samoa garment factory sewed Sears (Wal- Mart, Target) clothing without receiving minimum wage or overtime pay, and in some cases, no pay at all. I urge you to make sure these workers are fairly paid and to protect the rights of all workers who sew your clothes. Because Daewoosa has shut down, leaving workers stranded without work, food or the means to return to their homeland of Vietnam, I also urge you to ensure the safety and well-being of these workers. I thank you for your attention to this urgent matter and look forward to hearing your response. Sincerely,