Institute for Justice and Democracy in Haiti

US Government Played Role in Suppressing Haitian Wages

With pressure from large companies like Hanes, the Obama Administration apparently fought to keep the Haitian minimu wage low.  Haitian garment workers struggle to make a living with about a $3/day minimum wage in the textile industry.

Wikileaks Reveals Obama Administration’s Role in Stifling Haitian Minimum Wage

American corporations like Hanes and Levi Strauss prefer to pay Haitians slave wages to sew their clothes.

Rod Bastanmehr, AlterNet
January 16, 2014

Wikileaks. The ever-controversial leaker of the world’s best-kept secrets has published a wire on The Nation that reveals the Obama Administration fought to keep the Haitian minimum wage to 31 cents an hour.

According to the published wire (which came to light thanks in large part to the Haiti Liberte, a newspaper based in Port-au-Prince and New York City), Haiti passed a law in 2012 raising its minimum wage to 61 cents an hour. America corporations like Hanes and Levi Strauss vociferously objected, claiming such an increase would irreparably harm their business and profitability. According to the leaked U.S. Embassy cable, keeping these garment workers at “slave wages,” was better for the two companies The corporations in question allegedly stated that they would only fork over a seven-cent-an-hour increase, eventually going so far as to involve the U.S. State Department.

Soon, the U.S. Ambassador put pressure on Michel Martelly, the president of Haiti, to find a middle ground, resulting in a $3-a-day minimum wage for all textile companies. To put it in perspective, the United States’s minimum wage—already considered extremely low—works out to roughly to $58 a day.

Haiti has about 25,000 garment workers, who are somehow getting by on these abysmal wages. According to Business Insider, if each garment worker was paid just $2 more a day, it would cost their given corporate employers $50,000 per working day, or $12.5 million a year. Hanes, the garment company best known for their t-shirts, had roughly 3,200 Haitians working in their factory. An increase of $2 a day would cost the company a mere $1.6 million a year—for a company that had $4.3 billion in sales last year alone.

 

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