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tj444 -> RE: iPhones and child labor (1/17/2012 9:40:56 AM)
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And aint this interesting..
"Berkshire Unit Finds It Broke Canada Trade Laws Over Prison Labor ."
"pointed to the use of prison labor by Shaw and other U.S. rivals. He noted that U.S. law wouldn't allow foreign companies to ship products made with prison labor into the U.S. but that U.S. producers themselves used prison labor. "We should not apply one standard to China and another to the U.S.," he said."
http://online.wsj.com/article/SB10001424052970203436904577155042652527240.html
Berkshire Unit Finds It Broke Canada Trade Laws Over Prison Labor .
JANUARY 12, 2012.
By JAMES R. HAGERTY
Shaw Industries Group Inc., a carpet and wood-flooring maker owned by Warren Buffett's Berkshire Hathaway Inc., has quietly acknowledged that it broke Canadian trade laws by exporting hardwood flooring to Canada that was partly made by prison inmates.
Shaw notified customers in Canada last week that it had "recently learned that our importing into Canada of goods that are manufactured utilizing prison labor is prohibited by Canadian law," according to a copy of the letter reviewed by The Wall Street Journal.
The Canadian ban on imports made by prisoners isn't unusual. Many countries try to avoid encouraging what some consider to be akin to slave labor. The U.S. also bars such imports.
Shaw, based in Dalton, Ga., said it had halted the shipments and notified Canada's Border Services Agency. A spokesman for that agency declined comment, citing "privacy and operational confidentiality." In a statement, Shaw said it "is not anticipating any penalties or fines."
Shaw told Canadian customers it would try to resume shipments soon with products that weren't made using prison labor.
"This came as a big surprise to us," said Vince Scott, a flooring buyer at Brampton Hardwood Floors, in Brampton, Ontario.
Shaw, whose flooring brands include Anderson, had been shipping the products that involved prison labor to Canada for years and wasn't aware of the country's prohibition until a journalist asked about it late last year, said Scott Sandlin, a Shaw vice president. He added that the affected products are "a small percentage" of overall Shaw wood-flooring sales.
Prisoners in the U.S. are used by Shaw and other flooring makers for such tasks as scraping wood to create what Shaw calls a "distressed" or "time-worn" look. The work is part of a longstanding federal program that helps rehabilitate prisoners and provides money for restitution to crime victims, Shaw said. Prisons around the country also produce a broad array of other items, including hockey sticks, boats and dentures, according to the National Correction Industries Association.
Shaw has frequently accused Chinese rivals of violating U.S. trade laws by dumping wood flooring on the American market at less than fair value. Last year, along with other U.S. flooring makers, it persuaded the U.S. government to impose duties on imports of Chinese-made "multilayered" wood flooring, made from veneers. The U.S. companies charged that the Chinese flooring was subsidized by Beijing and dumped on the U.S. market at less than fair value.
During a hearing on the trade dispute last October in Washington, Wu Shengfu, director of marketing for the China National Forest Products Industry Association, pointed to the use of prison labor by Shaw and other U.S. rivals. He noted that U.S. law wouldn't allow foreign companies to ship products made with prison labor into the U.S. but that U.S. producers themselves used prison labor. "We should not apply one standard to China and another to the U.S.," he said.
Jeffrey S. Levin, a lawyer representing the U.S. flooring makers, retorted at the hearing that Mr. Wu's comment was "a cheap shot." He said the U.S. program involved "prevailing" wages and wasn't akin to "slave labor."
Shaw's Mr. Sandlin said he saw no similarity between his company's violation of Canadian import law and dumping by Chinese makers of flooring.
Most prison work programs make such items as license plates or furniture for use by government agencies. Shaw's use of inmate labor falls under the federal Prison Industry Enhancement, or PIE, program, which sets standards for prison operations making goods for sale in interstate commerce.
Shaw said in a Q&A about prison labor that the program was a "great program for the state and for Anderson's overall commitment to social responsibility," and allowed Anderson to "get work done like hand scraping which is physically demanding, with more skill than we can get it done by civilians who tend to turn over when they find other work." The company also noted that it saved "on some benefits, such as vacations."
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