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Friday, June 10, 2011

The Obama Administration Fought to Lower Minimum Wage in Haiti

According to a Wikileaks post, which was published on The Nation but was taken down due to an embargo, the Haitian government passed a law two years ago that sough to raise its minimum wage to 61cents an hour. However, according to the post, the Obama Administration fought to keep Haitian wages at 31 cents an hour.

According to an embassy cable:

This infuriated American corporations like Hanes and Levi Strauss that pay Haitians slave wages to sew their clothes. They said they would only fork over a seven-cent-an-hour increase, and they got the State Department involved. The U.S. ambassador put pressure on Haiti’s president, who duly carved out a $3 a day minimum wage for textile companies (the U.S. minimum wage, which itself is very low, works out to $58 a day).
Haiti has about 25,000 garment workers. If you paid each of them $2 a day more, it would cost their employers $50,000 per working day, or about $12.5 million a year ... As of last year Hanes had 3,200 Haitians making t-shirts for it. Paying each of them two bucks a day more would cost it about $1.6 million a year. Hanesbrands Incorporated made $211 million on $4.3 billion in sales last year.

Thanks to U.S. intervention, the minimum was raised only to 31 cents.

Source: Business Insider  

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