News Archives » Economic Justice
Oblates and other Faith-Based and Socially Responsible Investors Work to Clean up Garment Industry Supply Chain May 16th, 2013
The Missionary Oblates, Oblate Investment Pastoral and GS-JPIC Rome have joined with more than 100 other institutional investors, with over $1.2 trillion in assets under management, in a statement condemning the broken supply chain system in the garment industry, especially in Bangladesh. This system, much of which urgently needs fixing, continues to result in huge loss of life in unsafe factories, as well as unfair remuneration for workers, many of whom are young parents.
This large coalition of religious groups and investors is pressing major American retailers to join a sweeping plan to improve safety in Bangladesh apparel factories, calling on them to act together to force changes in overseas workplaces.
Read the article about investor activism in the garment sector in the New York Times…
List of Signatories to the investor statement…
Additional press coverage:
Clothing Retailers Pressed on Safety Issues May 12th, 2013
Photo credit: Emma L. Herman
The Rev. Seamus Finn, OMI (OMI JPIC Office Director) was quoted in a recent New York Times article on the building collapse and fires in the Bangladesh garment industry, saying: “What happened in Bangladesh is a game-changer because of the gravity of the situation and the tremendous loss of life,” Father Finn said. “People are really coming to life about this and saying, ‘We need to do something.’ ”
Rev. Finn is circulating a letter among other faith-based and socially responsible investors – groups that control more than $100 billion in assets — expressing displeasure with U.S. retailers. He says the retailers have not done nearly enough to improve workplace safety for the more than three million garment workers in Bangladesh.
Bangladesh labor costs in the garment manufacturing industry are the lowest in the world. Decent factory operations there are under tremendous pressure from their purchasers to lower costs, with the buyers threatening to ‘take their business down the road’ unless their terms are met.
JPIC Staff Visits Bangladesh May 3rd, 2013
Christina Herman, JPIC Office Associate Director, visited Bangladesh in late March/early April. Her daughter, Emma, accompanied her, taking thousands of photos and copious notes. Fr. Joseph Gomes, OMI graciously hosted a ten day trip around the Sylhet region of NE Bangladesh, which provided a fascinating look at the lives of the indigenous Khasi people and the issues confronting their villages. The Oblate mission in Bangladesh started in the Sylhet region, and there are a number of parishes among the indigenous peoples of the area.
Frequent national strikes (or hartals) called by a political opposition determined to undermine the government made the trip challenging, but the group covered a lot of ground.
Sharif Jamil, Buriganga RiverKeeper
In Dhaka, Christina teamed up with the Bangladesh WaterKeeper, Sharif Jamil, in an examination of environmental and labor issues related to the leather and garment export industries. They visited the Buriganga River, leather tanneries north of the city, a massive garment factory, and had a number of informative meetings with factory owners and managers, labor union organizers, and environmentalists.
Polluted Water from Leather Tanneries flows into the Buriganga River
The tanneries are a large source of pollution for the main river flowing through Dhaka, a megacity of an estimated 18 million people. Millions depend on the rivers for bathing, washing clothes, and transportation, yet they are heavily polluted with industrial and human waste. Human Rights Watch recently issued a study of the health impacts of the tanneries, which matched the findings of this trip. Untreated industrial waste flowing from the garment factories is common. A huge factor in the pollution is the lack of adequate sewage treatment for the city’s burgeoning population.
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Urgent! Tell Congress, COSPONSOR the Stop Tax Haven Abuse Act (H.R.1554) April 24th, 2013
This legislation addresses a systemic cause of poverty – the fact that many multinational corporations don’t pay taxes to the developing governments that need the revenue most. Between 2000 and 2008, 6.5 trillion dollars left the developing world completely untaxed. If this money had been taxed modestly, we wouldn’t be facing a global debt crisis and there would be better access to food in the poorest countries. A key way this legislation curbs tax dodging is by requiring country-by-country reporting of corporate payments to governments.
This is good legislation that also has positive impacts for us in the United States, curbs corruption globally and gives us the information we need to start addressing global corporate tax avoidance.
Photo: The building is a well-known tax haven called the Ugland House in the Cayman Islands that houses 18,857 registered businesses.
Thanks to Jubilee USA for the information in this Action Alert!
Argentina Takes on Vulture Funds in “Debt Trial of the Century” April 23rd, 2013
For years, “vulture funds” have preyed on struggling nations by purchasing their debt for a pittance. Could an upcoming U.S. court decision put an end to the extortion of poor countries?
Read the article in Sojourner’s Magazine by Jubilee USA Director Eric LeCompte:
Last October, soldiers from the West African nation of Ghana boarded an Argentine naval ship called the Libertad. They overtook the crew and brought the ship to port in the town of Tema. This was not an act of piracy, at least not in the sense we normally understand it. The detaining of the Libertad took place after hedge fund NML Capital convinced a Ghanaian court that the ship, which was sailing in Ghanaian jurisdiction, should be held ransom for a debt the hedge funds claimed Argentina owed them.
The saga began in 2001, when Argentina was thrown into economic crisis and defaulted on its loans. Hedge funds swooped in and bought Argentine debt for almost nothing and circled until the country was in recovery to collect the debt in full.
