Is exploitation just another form of slavery? This question has crossed my mind
a few times today. The borrower I just visited (who will remain anon) uses her loan
to buy materials to make a product. After a fair bit of questioning and digging.
Here’s the dirt.
* The product she makes costs around $1.50USD in materials PLUS 7 hours of labour
* She sells each item for $2.50 – which translates to a profit of $1 per item
* She ALWAYS sells her goods as there is ALWAYS a demand.
THE QUESTION THEN IS …Why doesn’t she sell these items for more than $1?
Unfortunately, the answer is that she can’t. This lady has little control over the
income from her work. She is limited by the fact that;
* She can make a maximum of 7 items per week (1 item/day)
* The person who sells her the material is THE SAME person who buys and exports
the product. They enforce a maximum of 120PhP ($2.50) for the finished item otherwise
she won’t receive materials in the future. On the local market she knows her product
is worth 500Php.
I don’t know about you, but to me this sounds like exploitation of labour. This
lady is earning around 15cents/hour, $1/day. Minimum wage in this part of the country
is around $5/day.
So let us consider how free she really is. Does she have the ability to increase
her profits over time? No. Does she have the ability to increase her production?
No. Is she earning less than minimum wage? Yes. Is her cousin employed in the same
industry? Yes. Are there others like them? Of course. Where are these products
going? Overseas. What are they sold for overseas? I don’t know – but I can guess
that is more than $2.50. Is she a “slave” to this system? I think so. What are
her chances to improve her living conditions, and the living conditions of her four
children? Slim to none.
So where does the one buck stop? I guess I’m throwing this question at anyone who
cares about a Filipino lady who lives in a small house, in a small village, on a
small island – a lady inevitably like many others around the world.