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Sociology TNC Poster
2
Economy & Work Case Study
A Study on Fast Fashion: Rana Plaza Disaster
How It All Started:
Introduction:
When you check the tags on your clothes, most of the time, they are either made in Vietnam, China, or India. Bangladesh, being one of them, has always been one of the cheapest places that produces clothes--the minimum wage being only 32 cents; the equivalent of 68 dollars per month. The cheap price of labor brought brands to establish production here in Bangledash, "sourcing $30 billion worth of ready-made-garments", making the city the "world's second largest apparel manufacturing center, after China".
Based on New York Times' data records, in 2018, there were approximately 4.4 million people working in the 3,000 established factories in Bangledash with Rana Plaza being one of the bigger aparrel factories stationed in the city.
A photo from 2013 showing the collapse of the Rana Plaza, and the rescue workers at the site of this eight story building. Credits: Abir Abdullah/European Pressphoto Agency
Mass Production & Safety Awareness
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But, even with 83% of foreign currecny of India coming from the aparrel industry, the garment factories such as Rana Plaza has been "rife with sweatshops" --Bangledash having one of the worse sweatshops in the industry. Industrial accidents were commonplace in these factories. According to the report, between 2006 to 2012, more than "500 garment workers died from factory fire", the cause of these incidents being the usual: faulty electrical wiring. Death from these incidents were normal, and as inhuman as it may sound, barely anyone outside of Bangledash, or people from the same field paid much attention at all. Not to mention the employers from these Fast Fashion brands, barely any of tragedies were ever mentioned.
It was only until an incident 5 months prior (Tazreen Factory incident from November, 2012) to the collapse of Rana Plaza, which 117 people were announced dead with 200 being heavily injured, that these sweatshops were being recognized. However, even with the publicity and the NGO trying to form legal binding agreements for safety concern, only two companies from Germany joined in.
TNCs
Transnational Corporations (TNC)
Transnational Corporations are companies that operates in more than one country. With the cheap wage for a steady and large amount of labor force, Bangledash attracted TNCs to establish steady production lines. While it is good to have foreign exchange and trade, because of the amount of TNCs established, specifically for the garment industry, India's foreign currency is also now overly reliant on these companies. This allow TNCs to have much greater authority and greater ability to enforce sweatshops over these 3,000 or so factories that holds a total of around 4.4 million people in this line of work. This is also clearly shown with the Tazeen Factory incident. Although over 117 people died because of this factory accident, the government still could not enforce any legal agreements on these TNCs for safety precautions, allowing sweatshops to continue on.
The Rana Plaza
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Located in Savar, outside Dhaka, Bangladesh, the Rana Plaza was an eight-story-tall garment factory that housed roughly 3,600 worker during apparel production. On April, 2013, the plaza collapsed, killing more than 1,100 people and injuring around 2,500 people during the process. It was later revealed that the collapse was due to mutliple errors in engineering and constructing that led to the catastrophe.
The incident brought light to TNCs' sweatshops, and led to "two five year compliancy agreement" to ensure the safety of those working in the garment factories. The legal agreements were all led by major TNCs--including H&M, GAP, Target, and Walmart-- to ensure the safety of these factories. However, with the five year contracts nearing its end, hints of safety hazard and factory accidents are once again returning, suggesting that things may return to how it was before the collpase of the Rana Plaza.
Nature of Work
Work
Which type of work is it? How so?
Type of Work
The work that occurred in the Rana Plaza is considered Industrial Work. The Rana Plaza is a garment factory, suggesting that this is a form of employment in manufacturing of goods. Garment factories are also a form of waged labor, considering that the labor took place within the plaza, which is the factory. That said, it is strongly suggested that Rana Plaza is considered as Industrial Work.
Which revolution of work does it most relate to? How so?
Revolution of Work
Garment industry most relates to the Industrial Revolution. Like how the industrial revolution revolved around the mass production of goods, and incentivized sweatshops, the garment industry at the Rana Plaza for Fast Fashion also revolved around mass production and often exploiting the workers through low pay, and long working hours.
How does it demonstrate key aspects/trends of this time of work?
Key Aspects
Similar to the time of the industrial revolution, or as how Karl Marx came to describe it, the garment factory focuses solely on the mass production of goods at the expense of workers' wellbeing. Like of those during the 1800s, workers in the garment factory would feel a sense of alianation as well. Workers are also paid barely enough around the minimum wage limit, which doesn't represent of the full time and profit earned.
Sociological Perspective
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How would this theory understand the case study?
Understand
Using conflict theory, we can see that in this Fast Fashion case study has an undeniable difference in power between the TNC and the garment workers working for the TNC. Following Karl Marx's ideals towards power struggle, we can understand this case where the TNCs, who are in power because they have economic power over foreign currency in India, controls and are dominant over the workers at the garment factory, who are being exploited and used for TNCs' benefits while not being able to change the stance in power between the TNCs and themselves. Conflict theory would also consider this power struggle to be unfair, that the garment workers are always oppressed by the TNCs.
In what ways does this theory apply?
Application
This theory applies in the way where there is a definite dominant authority that controls and exploits those with less authority. Conflict theory also applies in the sense that power is unequally distributed, and that the order in authority between TNCs and the garment workers will always remain the same.
In what ways does this theory not apply (what are the limits)?
Limits
Conflict theory occurs because one of the two sides have disagreements with the other side and want changes to be made. I don't think this theory will apply as much in the case of the Rana Plaza incident. As mentioned in the article, garment workers were always exploited by the TNCs, and that factorial accidents normally recieves 0 attention. On that note, I do not think that there will be a comprimise that comes between the TNCs and the garment workers. Since the TNCs, already have a lot of authority because of their economic power, the government could only enforce safety agreements that could be binding or non-binding. TNCs are already at a level where limiting them will become detrimental for India. Therefore the one in power will only remain in power, and the one being ordered around will conintue to be ordered around.
Sweatshops
Sweatshops
Is used to descirbe manual labor that is done in very poor conditions, and at a very low wage for long hours. Because of the low minimum wage standards in Bangledash, it allowed TNCs to fully exploit it, allowing the companies to have the most amount of benefits and the least amount of loss from labor. And with India's foreign currencies relying on these TNCs, it allowed them to continue to operate without much safety precautions in mind. Sweatshops like these also led factorial accidents to occur frequently, leading to the 500+ death of garment workers between 2006 to 2012.