15521: Arthur replies to Orenstein: Re: 15509 assembly jobs (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Tttnhm@aol.com

In a message dated 5/9/2003 1:28:23 AM W. Europe Daylight Time, katie
orenstein <katie@orenstein.com> writes:

<< There *are* less assembly jobs in
 Haiti now than there were some years ago. A lot of factors have led to the
 assembly industry's decline - political instability, poor infrastructure,
 etc. - but isn't it worth acknowledging that among these factors labor
 disputes, or threats of disputes, have in fact contributed on occasion to
 sub-contractors' decisions to leave Haiti?   What's more, it's my
 understanding that Haitian factories are not all operating at enormous
 profits, and that if not for Haiti's low wages they might not be able to
 compete for contracts against countries with much better infrastructure, or
 other advantages.  If that is so, how should labor organizers working for
 more jobs and higher wages proceed? >>

Charles Arthur writes:
This post seems to really add to the confusion, notably for omitting to
mention that one of the biggest contributing factors to the massive decline
in the number of assembly jobs in Haiti between the heydays of the mid-1980s
and the decline of mid/late 1990s was the 1991-94 military coup regime and
the economic sanctions against it. Although the US companies enjoying the low
wages offered in Haiti were exempted from the sanctions until 1994, I
understand that many upped and left before then. Anyway, by the end of 1994,
there were very few foreign companies left operating in the assembly sector.
On the other hand, the drive to unionise some of the workers in the assembly
sector did not begin until 1995. It's therefore somewhat disingenuous to try
and 'blame' labour organisers for that particular slump.

As for subsequent labour disputes contributing to contractors' decisions to
take their business elsewhere, well, perhaps they were a factor. Under the
Duvaliers and the military regime, there were no labour disputes, but surely
Orenstein is not advocating these sort of regimes, even though they might
provide the foreign contractors with the docile labour force they obviously
prefer?

Turning to the 'low wages giving Haiti the edge in competing for contracts
with other countries with higher wages and better infrastructure' argument,
let's consider the current case of Grupo M, the Dominican garment assembly
giant that is building factories near Ouanaminthe to take advantage of
Haiti's cheap labour. If we turn Orenstein's argument around, what advice
should we give to workers in the Dominican Republic who presumably are going
to lose contracts to their rivals in Haiti? In order to remain competitive,
should the Dominican workers go on strike for lower wages, rip up their
better infrastructure, and start living in cardboard shacks?

But seriously, as PAPDA's Camille Chalmers has pointed out over and over
again, in the current global economic system, assembly plants do have
something to offer Haiti, but only as part of a economic development
programme for the wider economy which necessarily includes agricultural
production for the domestic market. Hoping that assembly plants by themselves
can help Haiti's economic development is 'pie in the sky'.