Two American companies lay off hundreds as military uniforms to be made by prison labor
Two southeast companies that make U.S. military uniforms are shedding hundreds of jobs, as the government looks to federal inmates for the fatigues.
American Power Source makes military clothing in Fayette, Ala., but its government contract expires in October. Federal Prison Industries – which also operates under the name UNICOR will snag the work, and leave the task to inmates. FPI has the first right of refusal for U.S. Government contracts, under a 1930 federal law.
American Apparel, the Selma, Ala., based military clothing manufacturer closed one of its plants and continues to downsize others due to the loss of some of its contracts to FPI. According retired Air Force colonel and spokesman Kurt Wilson, the company laid off 255 employees and cut the hours of 190 employees this year alone. So private workers end up losing their jobs to prisoners.
"The way the law is – Federal Prison Industries gets first dibs and contracts up to a certain percentage before they have to compete against us," Wilson, the executive vice president of business development and government affairs, said. "The army combat uniform, for instance, is an item that they take off the top. As a result American tax payers pay more for it – but the bottom line is each soldier is paying more for their uniform."
American Apparel charges $29.44 per uniform, but the FPI uniform costs $34.18 – a 15 percent difference.
FPI has been around since the 1930s. It provides training, education and employment for inmates in federal custody. With more than 13,000 inmates, FPI operates in about 80 factories across the United States. The company is not allowed to sell its goods to the private sector -- and the law requires federal agencies to buy its products, even if they are not the cheapest. READ MORE HERE>>
(TLS-) It's not even China thats shutting down American biz anymore but our prison gulag system. End the drug war and shut these prisons down!
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Comment by paul goeltz cookie on September 19, 2012 at 8:19pm
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The company is not allowed to sell its goods to the private sector -- and the law requires federal agencies to buy its products, even if they are not the cheapest. READ MORE HERE>> thAT IS BS
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BS
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Comment by DTOM on September 19, 2012 at 5:58pm
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Meet the new business model for the West.
In the global police state of the USA/UK/Canada, Australia/NZ where potentially everything is now a crime, subject to the whims of the 'Powers That Be', there will always be steady supply of 'terrorists' and 'criminals' to supply such 'services', gratis.
After all, such labor will be promoted as a requirement to hold off the Chinese, Indian and other global manufacturers.
Genevieve is spot on, but I don't think that even Dickens at the height of his creative genius, could have concieved of such a scenario.
It does makes one think, will FEMA (and other federal agency camps?), with their 'happy' swings and slides, be the new workhouses and debtors prisons ( ...hmmm, with the latter being opearted by the IRS) ?
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Comment by Genevieve Fosa on September 19, 2012 at 4:20pm
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How many years ago was it when corporations started buying up prisons? It was never announced by the major news outlets, as far as I know. However now the corporate conglomerate is buying prisons, and demanding that the local communities keep them at 100% occupancy? Or is it only 90% Which ever number it is, it is horrendous. Factories that pay their workers a living wage are now illegal. Work houses and debtors prisons - what would Charles Dickens be writing about now, if he were alive today?
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Comment by apeman2502 on September 19, 2012 at 4:07pm
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There is an irony here.
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