Now is not the time to defend sweatshops

Abstract arguments about the benefits of outsourcing have no place in defending criminal negligence, here or overseas.

Yesterday Rana Plaza, a Bangladeshi clothing factory and shopping mall, collapsed, killing hundreds and injuring thousands. According to BBC News, "the factory owners had ignored warnings not to allow their workers into the building after cracks were noticed on Tuesday." As a result, the Bangladeshi High Court has summoned the owner of the building, as well as senior staff at the factories, to appear before the court next week. The factory owners themselves are reported to have gone into hiding.

The Telegraph's David Blair is unequivocal: we take the blame.

One of Rana Plaza’s factories – New Wave – supplied Primark, the bargain clothing chain with 161 branches in Britain, and Bonmarché, another budget retailer with its head office in Wakefield and 360 stores across the country. They may not have known it, but these two companies were buying products made by people working in a death trap.

But the rush to the counterintuitive take is quicker every day. In fact, write Alex Massie and Matt Yglesias, we shouldn't be so quick to jump to conclusions. Yglesias writes:

Bangladesh may or may not need tougher workplace safety rules, but it's entirely appropriate for Bangladesh to have different—and, indeed, lower—workplace safety standards than the United States.

The reason is that while having a safe job is good, money is also good… Bangladesh is a lot poorer than the United States, and there are very good reasons for Bangladeshi people to make different choices in this regard than Americans. That's true whether you're talking about an individual calculus or a collective calculus.

While Massie adds:

It would be better if more buildings in Bangladesh met existing, local, safety regulations. It may well be that western companies could and should do more to monitor the conditions in which their contractors work. Be that as it may, sweatshops in the developing world have, on balance, been a good thing. And it is not even close.

The question of the morality of sweatshops is an old one. So old, in fact, that many consider it settled, giving arguments like Paul Krugman's 1997 piece "In Praise of Cheap Labour" the final word.

And indeed, those arguments – and the bulk of Massie's piece is also comprised of defending sweatshops in general – are convincing. Workers in sweatshops frequently earn more than the agricultural labourers that they are recruited from, and usually enjoy better conditions to boot, so in a way, they aren't treated badly at all. And the labourers are paid from money overseas, rendering sweatshops a sort of decentralised international aid: you buy clothes from Primark, and Primark gives some money to a poor Bangladeshi labourer! It's almost like charity.

But not only is the value of sweatshops to developing nations not actually a settled argument, it bears very little relationship to the issue at hand here.

Rana Plaza's building standards were illegal under Bangladesh's own laws. This is not a case of hardy foreign workers taking jobs that westerners wouldn't; nor is it a case of the cost of living being lower overseas, enabling cheaper goods with less money spent on wages. It is a case of criminal exploitation of labour: criminal by our standards, and criminal by Bangladesh's

The argument in defence of sweatshops relies on the point that free and equal exchange is mutually beneficial. That's claimed on a national level, that Britain exchanging money for Bangladeshi labour makes Britain and Bangladesh better off, and on a personal one, that employers exchanging money for employee's labour makes them both better off. But the deal here was not free and equal: employees were not warned that the danger of their job had increased vastly after the first cracks were noticed four days ago. There was no choice, there was no mutually beneficial exchange. There was just exploitation, and death.

There is a time for the defence of sweatshops. That time is not now. Now is the time for asking why it is that our international companies can't even buy from suppliers which follow the meagre labour protections which are afforded to workers in the developing nations they operate in.

Primark, for its part, says that "the company is shocked and deeply saddened by this appalling incident at Savar, near Dhaka, and expresses its condolences to all of those involved." But sadness is not the point. When Primark, and Bonmarché, and all the other contractors who squeeze margins down to the last penny, start using suppliers who actually live up to the minimum standards already in place, then we can have the argument about whether those standards ought to be raised. That's the time Krugman's argument might be needed. But today, the wrongdoing is clear, and the last thing needed is a defence of it.

Bangladeshi volunteers and rescue workers assist in rescue operations 48 hours after an eight-storey building collapsed in Savar, on the outskirts of Dhaka. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty Images
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What's to be done about racial inequality?

David Cameron's words on equal opportunities are to be welcomed - now for some action, says Sunder Katwala.

David Cameron made the strongest, clearest and most high profile statement about ethnic inequalities and the need to tackle discrimination ever yet offered by a British Prime Minister in his leader’s speech to the Conservative Party conference in Manchester.
“Picture this. You’ve graduated with a good degree. You send out your CV far and wide. But you get rejection after rejection. What’s wrong? It’s not the qualifications or the previous experience. It’s just two words at the top: first name, surname. Do you know that in our country today: even if they have exactly the same qualifications, people with white-sounding names are nearly twice as likely to get call backs for jobs than people with ethnic-sounding names? … That, in 21st century Britain, is disgraceful. We can talk all we want about opportunity, but it’s meaningless unless people are really judged equally”, said Cameron.
While the proof of the pudding will be in the eating, this was a powerfully argued Prime Ministerial intervention – and a particularly well-timed one, for three reasons.

Firstly, the Prime Minister was able to root his case in an all-but-universally accepted appeal for equal opportunities. It will always prove more difficult in practice to put political energy and resources behind efforts to remedy discrimination against a minority of the population unless a convincing fairness case is made that values cherished across our whole society are at stake. Cameron’s argument, that any party which tells itself that it is the party of the ‘fair chance’ and ‘the equal shot’ must have a response when there is such clear evidence of discrimination, should prove persuasive to a Conservative Party that has not seen race inequalities as its natural territory. Cameron argued that the same principles should animate responses to discrimination when it comes to race, gender and social class. Put like that, wanting job interviews to be fair – by eradicating conscious and unconscious patterns of bias wherever possible – would strike most Britons as offering as clear a case of the values of fair play as wanting the best baker to win the Great British Bake-Off on television.
Secondly, Cameron’s intervention comes at a potential "tipping point" moment for fair opportunities across ethnic groups. Traditionally, ethnic discrimination has been discussed primarily through the lens of its impact on the most marginalised. Certainly, persistent gaps in the criminal justice system, mental health provision and unemployment rates remain stark for some minority groups. What has been less noticed is the emergence of a much more complex pattern of opportunity and disadvantage – not least as a consequence of significant ethnic minority progress.

Most strikingly of all, in educational outcomes, historic attainment gaps between ethnic minorities and their white British peers have disappeared over the last decade. In the aggregate, ethnic minorities get better GCSE results on average. Ethnic minority Britons are more likely, not less likely, to be university graduates than their fellow citizens. 

As a result of that progress, Cameron’s intervention comes at a moment of significant potential – but significant risk too. Britain’s ethnic minorities are the youngest and fastest-growing sections of British society. If that educational progress translates into economic success, it will make a significant contribution to the "Great British Take-Off" that the Prime Minister envisions. But if that does not happen, with educational convergence combined with current ‘ethnic penalties’ in employment and income persisting, then that potential could well curdle into frustration that the British promise of equal opportunities is not being kept.  Cameron also mirrored his own language in committing himself to both a ‘fight against extremism’ and a ‘fight against discrimination’: while those are distinct challenges and causes, actively pursuing both tracks simultaneously has the potential, at least, depolarise some debates about responses to extremism  - and so to help deepen the broad social coalitions we need for a more cohesive society too.

Thirdly, Cameron’s challenge could mark an important deepening in the political competition between the major parties on race issues. Many have been struck by the increase in political attention on the centre-right to race issues over the last five to ten years. The focus has been on the politics of representation. By increasing the number of non-white Conservative MPs from two to seventeen since 2005, Cameron has sent a powerful signal that Labour’s traditional claim to be ‘the party of ethnic minorities’ would now be contested. Cameron was again able to celebrate in Manchester several ways in which his Cabinet and Parliamentary benches demonstrate many successful journeys of migrant and minority integration in British society. That might perhaps help to ease the fears, about integration being impossible in an era of higher immigration, which the Home Secretary had articulated the previous day.

So symbolism can matter. But facial diversity is not enough. The politics of ethnic minority opportunity needs to be about more than visits to gurdwaras, diversity nights at the party conference fringes and unveiling statues of Mahatma Gandhi in Parliament Square. Jeremy Corbyn’s first speech as Labour leader did include one brief celebratory reference to Britain’s ethnic diversity – “as I travelled the country during the leadership campaign it was wonderful to see the diversity of all the people in our country” – and to Labour bringing in more black, Asian and ethnic minority members - but it did not include any substantial content on discrimination. Tim Farron acknowledged during his leadership campaign that the Liberal Democrats have struggled to get to the starting-line on race and diversity at all. The opposition parties too will no doubt now be challenged to match not just the Prime Minister’s rhetorical commitment to challenging inequalities but also to propose how it could be done in practice.

Non-white Britons expect substance, not just symbolism from all of the parties on race inequalites.  Survation’s large survey of ethnic minority voters for British Future showed the Conservatives winning more ethnic minority support than ever before – but just 29 per cent of non-white respondents were confident that the Conservatives are committed to treating people of every ethnic background equally, while 54 per cent said this of Labour. Respondents were twice as likely to say that the Conservatives needto do more to reach out – and the Prime Minister would seem to be committed to showing that he has got that message.  Moreover, there is evidence that ethnic inclusion could be important in broadening a party’s appeal to other younger, urban and more liberal white voters too – which is why it made sense for this issue to form part of a broader attempt by David Cameron to colonise the broad centre of British politics in his Manchester speech.

But the case for caution is that there has been limited policy attention to ethnic inequalities under the last two governments. Restaurateur Iqbal Wahhab decided to give up his role chairing an ethnic minority taskforce for successive governments, unconvinced there was a political commitment to do much more than convene a talking shop. Lib Dem equalities minister Lynne Featherstone did push the CV discrimination issue – but many Conservatives were sceptical. Cameron’s new commitment may face similar challenges from those whose instinct is to worry that more attention to discrimination or bias in the jobs market will mean more red tape for business.

Labour had a separate race inequalities manifesto in 2015, outside of its main election manifesto, while the Conservative manifesto did not contain significant commitments to racial inequality. The mid-campaign launch in Croydon of a series of race equality pledges showed an increasing awareness of the growing importance of ethnic minority votes - though the fact that they all involved aiming for increases of 20 per cent by 2020 gave them a slightly back-of-the-envelope feel. 

Prime Ministerial commitments have an important agenda-setting function. A generation ago the Stephen Lawrence case opened the eyes of middle England to racist violence and police failures, particularly through the Daily Mail’s persistent challenging of those injustices. A Conservative Prime Minister’s words could similarly make a big difference in the mainstreaming of the issue of inequalities of opportunity. What action should follow words? Between now and next year’s party conference season, that must will now be the test for this Conservative government – and for their political opponents too. 

Sunder Katwala is director of British Future and former general secretary of the Fabian Society.