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Buying Overseas Clothing, U.S. Flouts Its Own Advice U.S. Flouts Its Own Advice in Procuring Overseas Clothing
(about 11 hours later)
WASHINGTON — One of the world’s biggest clothing buyers, the United States government spends more than $1.5 billion a year at factories overseas, acquiring everything from the royal blue shirts worn by airport security workers to the olive button-downs required for forest rangers and the camouflage pants sold to troops on military bases.WASHINGTON — One of the world’s biggest clothing buyers, the United States government spends more than $1.5 billion a year at factories overseas, acquiring everything from the royal blue shirts worn by airport security workers to the olive button-downs required for forest rangers and the camouflage pants sold to troops on military bases.
By Meridith Kohut

While the Dominican manager of a garment factory in Codevi says the industry is helping improve lives, a worker says conditions are bad for people like him.

By Meridith Kohut

While the Dominican manager of a garment factory in Codevi says the industry is helping improve lives, a worker says conditions are bad for people like him.

Next year, BKI managers hope to double the amount of camouflage clothing made for the American government, part of a contract worth more than $30 million between a division of Propper International, a Missouri-based uniform company, and the General Services Administration, which outfits workers for more than a dozen federal agencies.Next year, BKI managers hope to double the amount of camouflage clothing made for the American government, part of a contract worth more than $30 million between a division of Propper International, a Missouri-based uniform company, and the General Services Administration, which outfits workers for more than a dozen federal agencies.
Three years ago, much of this camouflage clothing was made in Puerto Rico, where workers earned the minimum wage of about $7.25 an hour. By 2011, many of these jobs moved to a factory in the Dominican Republic called Suprema. Wages there were about 80 cents per hour and unpaid overtime was routine, according to workers in recent interviews and a 2010 audit. Since then, most of these jobs have migrated again, this time to BKI in a Haitian free-trade zone called Codevi. Average hourly wages at BKI are about 8 cents less per hour than those at Suprema, according to workers.Three years ago, much of this camouflage clothing was made in Puerto Rico, where workers earned the minimum wage of about $7.25 an hour. By 2011, many of these jobs moved to a factory in the Dominican Republic called Suprema. Wages there were about 80 cents per hour and unpaid overtime was routine, according to workers in recent interviews and a 2010 audit. Since then, most of these jobs have migrated again, this time to BKI in a Haitian free-trade zone called Codevi. Average hourly wages at BKI are about 8 cents less per hour than those at Suprema, according to workers.
Standing near the factory entrance, several BKI workers said they were proud of the clothes they made for the American government. “We push hard because we know they expect better,” said Rodley Charles, 29, a quality inspector at the factory.Standing near the factory entrance, several BKI workers said they were proud of the clothes they made for the American government. “We push hard because we know they expect better,” said Rodley Charles, 29, a quality inspector at the factory.
But there is basic math: the average pay of 72 cents per hour (which is illegal and below Haiti’s minimum wage) barely covers food and rent, said Mr. Charles, who has since quit, and two other BKI workers.But there is basic math: the average pay of 72 cents per hour (which is illegal and below Haiti’s minimum wage) barely covers food and rent, said Mr. Charles, who has since quit, and two other BKI workers.
These wage pressures may soon intensify. Codevi will soon face new competition from another industrial park called Caracol, which is being built partly with money from the United States Agency for International Development as part of reconstruction efforts after the earthquake of 2010.These wage pressures may soon intensify. Codevi will soon face new competition from another industrial park called Caracol, which is being built partly with money from the United States Agency for International Development as part of reconstruction efforts after the earthquake of 2010.
American officials predict that Caracol will eventually create 60,000 new jobs. Current wages there? About 57 cents per hour, or roughly 15 cents less than typical wages at Codevi.American officials predict that Caracol will eventually create 60,000 new jobs. Current wages there? About 57 cents per hour, or roughly 15 cents less than typical wages at Codevi.
Big BusinessBig Business
At a military store in Bethesda, Md., Tori Novo smiled as she looked over a pair of $19.99 children’s cargo pants made in Bangladesh that sell for $39 in most department stores. The best part of living on base, said Ms. Novo, a 31-year-old Navy recruiter, was “savings like these.”At a military store in Bethesda, Md., Tori Novo smiled as she looked over a pair of $19.99 children’s cargo pants made in Bangladesh that sell for $39 in most department stores. The best part of living on base, said Ms. Novo, a 31-year-old Navy recruiter, was “savings like these.”
Known as exchanges, these big-box stores on military bases around the world offer a guarantee: to beat or match any price from rivals. That promise puts the exchanges in direct competition with the deep discounts offered by stores like Gap and Target. It also adds to already intense pressure to lower costs by using the cheapest factories, industry analysts say.Known as exchanges, these big-box stores on military bases around the world offer a guarantee: to beat or match any price from rivals. That promise puts the exchanges in direct competition with the deep discounts offered by stores like Gap and Target. It also adds to already intense pressure to lower costs by using the cheapest factories, industry analysts say.
These stores, run by the Defense Department, do big business, selling more than $1 billion a year in apparel alone. Exempt from the Berry Amendment, the exchanges get more than 90 percent of their clothes from factories outside the United States, according to industry estimates. The profits from these tax-free stores mostly go toward entertainment services like golf courses, gyms and bowling alleys on bases.These stores, run by the Defense Department, do big business, selling more than $1 billion a year in apparel alone. Exempt from the Berry Amendment, the exchanges get more than 90 percent of their clothes from factories outside the United States, according to industry estimates. The profits from these tax-free stores mostly go toward entertainment services like golf courses, gyms and bowling alleys on bases.
Though the Government Accountability Office criticized the exchanges over a decade ago for exerting less oversight than private retailers and for failing to independently monitor their overseas suppliers, little has improved.Though the Government Accountability Office criticized the exchanges over a decade ago for exerting less oversight than private retailers and for failing to independently monitor their overseas suppliers, little has improved.
The Marine Corps and Navy still do not require audits of these factories. The Air Force and Army exchanges do, but the audits can come from retailers, and defense officials fail to do routine spot checks to confirm their accuracy.The Marine Corps and Navy still do not require audits of these factories. The Air Force and Army exchanges do, but the audits can come from retailers, and defense officials fail to do routine spot checks to confirm their accuracy.
For example, Citadel Apparels, a factory in a seven-story building in Gazipur, has cut, stitched and shipped more than 11 metric tons of cotton boys’ T-shirts and other clothes for sale at exchanges on Army and Air Force bases in recent months. This summer, lawmakers in Congress asked the Defense Department for proof that Citadel was safe. Defense officials produced an audit conducted for Walmart, another client of the factory, showing that it had an “orange” risk ranking in July 2012, the same high level of alarm that Walmart had given the Tazreen factory before the fatal fire there last year.For example, Citadel Apparels, a factory in a seven-story building in Gazipur, has cut, stitched and shipped more than 11 metric tons of cotton boys’ T-shirts and other clothes for sale at exchanges on Army and Air Force bases in recent months. This summer, lawmakers in Congress asked the Defense Department for proof that Citadel was safe. Defense officials produced an audit conducted for Walmart, another client of the factory, showing that it had an “orange” risk ranking in July 2012, the same high level of alarm that Walmart had given the Tazreen factory before the fatal fire there last year.
While allowing the factory to stay open, the audit offered an alarming statistical snapshot.While allowing the factory to stay open, the audit offered an alarming statistical snapshot.
Sixty-five percent: number of workers barefoot, some on the building’s roof. Fifty percent: workers without legally required masks to protect against cotton dust. Sixteen percent: workers missing time-sheets, a common sign of forced overtime. Most serious infractions: cracks in the walls that could compromise the building, and partly blocked exit routes and stairwells.Sixty-five percent: number of workers barefoot, some on the building’s roof. Fifty percent: workers without legally required masks to protect against cotton dust. Sixteen percent: workers missing time-sheets, a common sign of forced overtime. Most serious infractions: cracks in the walls that could compromise the building, and partly blocked exit routes and stairwells.
By January, Citadel’s auditors concluded that most of these dangers had been fixed. However, a half-dozen Citadel workers offered a starkly different picture. Virtually none of the original problems had ever been corrected, they said in interviews last month with The Times.By January, Citadel’s auditors concluded that most of these dangers had been fixed. However, a half-dozen Citadel workers offered a starkly different picture. Virtually none of the original problems had ever been corrected, they said in interviews last month with The Times.
“We aren’t sewing machines,” one worker said. “Our lives are worth more.”“We aren’t sewing machines,” one worker said. “Our lives are worth more.”
For now, Bangladesh’s garment sector continues to grow, as do purchases from one of its bulk buyers. In the year since Tazreen burned down, American military stores have shipped even more clothes from Bangladesh.For now, Bangladesh’s garment sector continues to grow, as do purchases from one of its bulk buyers. In the year since Tazreen burned down, American military stores have shipped even more clothes from Bangladesh.

Ian Urbina reported from Bangladesh and Washington. Research was contributed by Susan Beachy in New York, Poypiti Amatatham in Bangkok, Karla Zabludovsky in Mexico City, Malavika Vyawahare in New Delhi and Meridith Kohut in Ouanaminthe, Haiti.

Ian Urbina reported from Bangladesh and Washington. Research was contributed by Susan Beachy in New York, Poypiti Amatatham in Bangkok, Karla Zabludovsky in Mexico City, Malavika Vyawahare in New Delhi and Meridith Kohut in Ouanaminthe, Haiti.