[Congressional Record Volume 143, Number 22 (Wednesday, February 26, 1997)]
[Extensions of Remarks]
[Pages E322-E323]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     INTERNATIONAL LABOR STANDARDS

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                      Wednesday, February 26, 1997

  Mr. HAMILTON. Mr. Speaker, I am inserting my Washington report for 
Wednesday, February 26, 1997 into the Congressional Record.

                     International Labor Standards

       American workers are among the best and most productive in 
     the world. New jobs are being created in record numbers, and 
     unemployment in the U.S. is down from 7.5% in 1992 to 5.4% 
     today. In addition, more than two-thirds of the new jobs are 
     in occupations paying above-average wages. At the same time, 
     I often hear from Hoosiers who feel they are competing 
     against exploited laborers from other countries, who earn a 
     fraction of what U.S. workers do. They ask what can be done 
     about goods coming into our country produced under unfair 
     labor practices.
       Extent of Problem: Many of the goods we produce here in the 
     United States, such as various hightech products and 
     machinery, do

[[Page E323]]

     not have to compete with cheaper versions from the developing 
     world. In certain industries, like garments and sporting 
     goods, however, low wages can pose a threat to American 
     workers. In Haiti, for example, workers who stitch T-shirts 
     for one major American company earn about 26 cents an hour.
       Low wages are not the only problem. Indentured labor still 
     exists in some parts of the world, where workers commit to 
     work for someone for a set amount of time, often for less 
     than the prevailing wage, in exchange for a guarantee of a 
     job that pays subsistence wages. Millions of workers also 
     toil under conditions where their health is endangered and 
     their lives threatened. Unsanitary and unsafe conditions are 
     a common sight in Third World ``sweatshops''.
       Child labor can also be a problem. In some developing 
     countries, children under 12 are made to work long hours for 
     sub-standard wages under hazardous conditions, allowing them 
     little for rest and no time for school. The Geneva-based 
     International Labor Organization (ILO) says there are between 
     100 and 200 million workers under the age of 12 worldwide.
       Yet the ILO suggests that while the majority of these 
     children are mistreated and underpaid, they would likely be 
     worse off if child labor was eliminated without a 
     corresponding improvement in the overall economic condition 
     of the countries in which they live. Some Third-World 
     governments see no political advantage in improving working 
     conditions or banning child labor, but trying to punish those 
     governments often means punishing their guiltless citizens by 
     throwing them out of work.
       Goods on American Shelves: Hoosiers do not want to provide 
     a market for goods producted by the sweat and toil of 
     mistreated workers. Yet many of the products made by low-wage 
     earners end up in American homes. Because of their low 
     prices, consumers here may unknowingly buy brand-name toys, 
     clothes, and running shoes made by abused workers. In doing 
     so, we may be supporting ``sweatshop'' conditions we find 
     abhorrent.
       One suggestion which has gained considerable support is an 
     effort to get responsible employers to create a labeling 
     system for goods produced without child or exploited labor. 
     This would go a long way in helping U.S. consumers make 
     informed choices.
       Buying goods from countries which treat workers fairly 
     helps build their economies and makes them strong trading 
     partners. On a human level, it raises workers' incomes in 
     those countries, giving them a higher standard of living, and 
     allowing them to start buying American-made goods.
       While there is no consensus, ``internationally recognized 
     workers' rights'' tend to include the following: the right to 
     form and join labor unions; the right to bargain 
     collectively; a prohibition against forced labor; a minimum 
     age for child workers; a minimum wage; a maximum workday and 
     workweek; occupational safety; and freedom from 
     discrimination.
       Thanks to the Fair Labor Standards Act and enforcement by 
     the Department of Labor, American workers enjoy most of these 
     rights. But things are not perfect here at home, as reports 
     of TV personalities lending their names unknowingly to 
     products made in ``sweatshops'' illustrate. While we are 
     better-off than most countries, child labor and the 
     exploitation of workers continue to be problems in America.
       Possible Legislation: Last session, Congress considered 
     various measures to help protect the standards that American 
     workers enjoy, and to help improve the lot of workers 
     worldwide. They included: a bill to beef up enforcement of 
     federal labor laws aimed at combatting sweatshops in the 
     U.S.; a bill to ban trade in products made by children; a 
     recommendation for a code of conduct for U.S. companies 
     manufacturing abroad; and a measure linking foreign aid to 
     advancements in workers' rights. However, none of these 
     proposals became law. We still have a long way to go.
       One strategy the Administration has been pursuing is to 
     encourage countries to grant their workers greater labor 
     protection in return for better trading opportunities with 
     the U.S. Since the 1970s, our trade regulations have aimed to 
     encourage dealings with countries which support strong 
     workers' rights. I believe labor conditions should always be 
     on the table when we negotiate trade deals.
       This approach has its obvious advantages, and has had 
     encouraging results. For example, prior to the signing of the 
     North American Free Trade Agreement (NAFTA), Mexico was not 
     enforcing many of its guaranteed workers' rights. The side 
     agreements to NAFTA required the signatories to protect their 
     own workers' rights, and the situation in Mexico has since 
     improved.
       Conclusion: I remain confident in American workers' ability 
     to compete because of our high productivity and the quality 
     of our products. At the same time, we need to keep the 
     pressure on countries which treat their workers unfairly, and 
     continue to encourage improvements in working conditions.
       America cannot demand that companies in developing 
     countries pay their workers what we pay ours, but we can 
     demand that basic worker rights are recognized and that 
     children are protected. Paying low wages gives the Third 
     World a competitive advantage; treating workers badly is 
     unfair to them and unfair to us.
       Fair trading is crucial to the world economy and to 
     America's leading role in it. As labor rights take hold 
     worldwide, America's trading position will improve, because 
     countries that cannot exploit their workers will be forced to 
     sell their goods for higher fairer prices.

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