The 325 garment industry workers at the American Power Source are just a handful of the estimated 20,000 apparel and textile workers nationwide who produce uniforms and other apparel, as well as textile supplies for the US military.
The APS employees, most of which are black, are working in conditions that mirror those of the sweatshops in 3rd world countries. This is not, however, a story of a plant in Mexico, Thailand or China, this is Columbus, Mississippi in the United States of America.
In 2004, the Defense Supply Center Philadelphia (DSCP), the procurement arm of the Department of Defense, spent $1.9 billion on apparel and textile goods for the military. In February of 2005 the army unveiled it's newly designed military uniforms and announced that $3.4 billion would be spent over the next three years to supply every soldier with the newly designed uniforms. Under federal law all military uniforms are required to be made in the United States, so all contracts are awarded to companies here in the US.
American Power Source is a privately held company owned by Roxanne Ferreiro. Started in 1994, the company was successful in landing lucrative government contracts, based upon Ms. Ferreiro's status as a small and minority owned business. She had no facilities of her own, no equipment, no manufacturing plant. Instead she sub-contracted the work to apparel manufacturers Sterlingwear of Boston, Maybar Pads, and Source American.
In 2003, with plenty of money under her belt, Ms. Ferreiro purchased the sub-contracted company Source American, and went into business with its owner James Utsey.
Utsey had been found guilty of bribing DSCP officials in 1987 for contracts to make battle fatigues, and was convicted of federal bid-rigging. Utsey's conviction barred him from ever bidding on federal defense contracts again. This was Ms. Ferreiro's new business partner.
Ferreiro's company has been paid over $32 million as of 2005, and remains under contract to supply uniforms to the military. She is running a very lucrative business, a business supported solely by US Government contracts. They do no other work for any other manufacturer.
The worker's at Ferreiro's company however, many of whom have years of experience, are working at below poverty wages. They are barely able to support their families.
The hourly wage being paid to the employees at American Power Source is $5.97. The starting wage for new hires is $5.15 per hour. That works out to be, based upon a 40 hour work week, with 50 weeks a year of employment, to be an annualized net income of between $9,270 to $10,567 per year.
The Federally established wage threshold for "poverty level" for a family of four is $19,350 year. Workers at this multi-million dollar corporation are paid only half that yearly amount. Paid half of what is deemed "poverty wages" by the US government.
Being paid poverty wages leaves many workers living from paycheck to paycheck, and one step away from financial ruin. Workers struggle to make ends meet –stretching every dollar to feed their families and pay their bills. Even with large amounts of overtime some workers are only able to get by because of the help they receive from friends, family, or charitable organizations.
Many of the workers for American Power Source are experienced operators whom had worked for many years at a competing company, Red Kap. The company closed it's doors in 2003 due to the lack of garment industry manufacturing contracts available in the US. Desperate for employment, the Red Kap employees went to APS seeking employment. But the wages they had enjoyed at their previous company, wages at $13.00 to $14.00 per hour, health care benefits and pension plans, were not to be found.
“ I made more in the 1970’s than I am making now. I was making $5 to $6 an hour back then. Not too many people at American Power Source are making over minimum wage.”
– DORIS SYKES
“I worked at Red Kap for 14 years. At Red Kap I was making $13 -$14 an hour. Last week I made $5.50 an hour at American Power Source. The last time I was paid minimum wage was in 1985.”
– TAN HARRIS
Despite the huge government contracts the company is receiving, they have cut wages to the employees on more than one occasion. In 2003, and again in 2004, they took wages from $8.00 per hour to $5.15 per hour. They conducted massive layoffs, and then rehired employees at the new rate of $5.15.
Quotas were increased and many of the employees were required to put in massive amounts of overtime. Some of the workers are putting in 18 hour days. If an employee indicates they are unable to stay for the required overtime, they are threatened and disciplined
.“When American Power Source needs us to work overtime they don’t give us any notice. Management just comes up to us at the end of the day and tells us that they need us to work overtime. We really don’t have a choice. The overtime isn’t voluntary. They basically tell us that they really need us to work overtime and threaten us with our jobs saying ‘You will get laid off if you don’t work overtime.’
The company also consistently prints paychecks in error. When the employees complain, they are required to fill out a myriad of forms and are told to wait for the next week's paycheck to correct the error. Errors occur so frequently it is difficult for the employees to keep track of just what is owed them, and many are convinced they are being shorted time and time again with no resolution.
APS provides no health care benefits to it's employees. They have no retirement programs such as a 401(k) programs and pension fund.
Of the workers interviewed for this report, 64% have no health insurance coverage at all and only 36% have coverage through their spouse. For those workers with children, 14% reported their children were covered by a spouse’s plan; 57% reported their children were covered by Medicaid or state funded insurance; and 29% reported their children had no insurance coverage at all.
Workers also complain of managements total disregard for their health and safety. Many suffer severe back, neck and finger pain from the long hours of sitting at machines with poorly adjusted chairs and misaligned machinery.
The aisles are piled with clothing and materials, and many fear for their safety in the event of a fire. Employees have fallen over materials in the walkways, but are not attended to and bosses apparently have laughed at their misfortune. Workers are reprimanded for laughing while working, they are harassed if they use the restroom too often, and threatened with firing if they dare to complain about anything regarding the job or the working conditions.
This is America. These worker's are toiling away producing materials for the military of the United States. The contracts have been awarded to this company by government officials.
The worker's at American Power Source all state they are proud to be making the uniforms for our countries military. They take their jobs seriously, work diligently. But pride alone won't help these women suffer through the abhorrent treatment and deplorable working conditions they are being subjected to.
Considering the fact that the US Government is the sole contract for the APS, it is essentially that government that is allowing these workers to be treated in such a deplorable manner.
American Power Source, and ultimately the U.S. government as the company’s sole customer, are responsible for the wretched conditions that currently exist. The Federal Acquisition Regulations state that it will “conduct business with integrity, fairness, and openness” and that each party is “responsible and accountable for the wise use of public resources as well as acting in a manner which maintains the public trust
.
How is this being allowed to happen to our citizens? How can such corporate greed exist, and right under the noses of the Federal Government? Where are the inspectors, the people from Occupational Safety and Health Administration’s (OSHA)?
I am appalled at what I have read here. I am embarrassed and disgraced that my own country, my very government, will allow it's citizens to be treated like slaves. I have read and seen the video's of the horrors of "sweatshops" in 3rd world countries.
Who would have ever imagined that the same thing is happening here on US soil, with the Unites States Government being the sole contract being serviced.
What can we do? I wish I knew.
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