By the late twentieth century, the apparel industry had entered a global cost war. Mega-retailers and consumers demanded lower prices, while free-trade policies and increasingly mobile supply chains allowed manufacturers to move production toward countries with cheaper labor and weaker enforcement. Between 1970 and 1995, U.S. garment employment fell from 1.2 million workers to 760,000, while hundreds of thousands of jobs shifted into developing Asian economies. The pressure was not merely theoretical: between 1993 and 1997, the U.S. Department of Labor, under Secretary Robert Reich, recovered $12.5 million in back wages owed to more than 40,000 workers. In 1996, President Bill Clinton created the White House Apparel Industry Partnership in an attempt to address sweatshop abuses. The episode showed how subcontracting could separate famous retail labels from the factories actually responsible for wage theft, while leaving workers to pursue money through slow investigations and difficult legal remedies.
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AI concept artworkArchive Record · 1990s
The 1990s Race to the Bottom and the $12.5 Million Wage Recovery
U.S. apparel manufacturing contractors / 1990s
By the late twentieth century, the apparel industry had entered a global cost war. Mega-retailers and consumers demanded lower prices, while free-trade policies and increasingly mobile supply chains allowed manufacturers to move production toward countries with cheaper labor and weaker enforcement. Between 1970 and 1995, U.S. garment employment fell from 1.2 million workers to 760,000, while hundreds of thousands of jobs shifted into developing Asian economies. The pressure was not merely theoretical: between 1993 and 1997, the U.S. Department of Labor, under Secretary Robert Reich, recovered $12.5 million in back wages owed to more than 40,000 workers. In 1996, President Bill Clinton created the White House Apparel Industry Partnership in an attempt to address sweatshop abuses. The episode showed how subcontracting could separate famous retail labels from the factories actually responsible for wage theft, while leaving workers to pursue money through slow investigations and difficult legal remedies.
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