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A Report on the Injustice System in the USA Written by: Pauline (a contributing writer to IPFG’s Publication; Payaam Fadaee) Published in Payame Fadaee, Spring edition 2002 The US ruling class has established the largest forced labour sweatshop system in the world. There are now approximately 2 million inmates in US prisons compared to 1 million in 1994. These prisoners have become a source of billions of dollars in profits. In fact, the US has imprisoned a half million more people than in China which has 5 times the population. California alone has the biggest prison system in the Western industrialized world. It has more prisoners than France, Germany, Great Britain, Japan and Holland combined while these countries have 11 times the population of California. According to official figures, Iran incarcerates 220 citizens per 100,000, compared to US figures of 727. Overall, the total "criminal justice" system in the US, including those in prison, on parole and on probation, is approaching 6,000,000. In the last 20 years, 1000 new prisons have been built; yet they hold double their capacity. Prisoners, 75% of who are either Black or Hispanic, are forced to work for 20 cents an hour, some even as low as 75 cents a day. They produce everything from eyewear and furniture to vehicle parts and computer software. This has lead to thousands of layoffs and the lowering of the overall wage scale of the entire working class. At Soledad Prison in California, prisoners produce work-shirts exported to Asia as well as El Salvadoran license plates more cheaply than in El Salvador, one of the poorest countries in the Western Hemisphere. A May/99 report in the Wall Street Journal summarized that while “more expensive private-sector workers may lose their jobs to prison labour, assigning work to the most cost-efficient producer is good for the economy.” The February/00 Wall Street Journal reported “Prisoners are excluded from employment calculation. And since most inmates are economically disadvantaged and unskilled, jailing so many people has effectively taken a big block of the nation's least-employable citizens out of the equation.” Federal Prison Industries (FPI) whose trade name is UNICOR exports prisoner-made products as well as selling them to all federal agencies as required by federal law. FPI manufactures over 150 different products in 99 factories in 64 prisons (with 19 new ones on the way) in 30 states. It is the federal government's 35th largest contractor, just behind IBM and is exempt from any federal workplace regulations. FPI's prison workforce produces 98% of the entire US market for equipment assembly services, 93% of paint and artist brushes, 92% of all kitchen assembly services, 46% of all personal armour, 36% of all household furnishings and 30% of all headset/microphone/speakers, etc. RW. Feb/00 FPI consistently advertises for companies "interested in leasing a ready-to-run prison industry" especially following congressional testimony in 1996 that reported a "pent-up demand for prison labour." Meanwhile, shareholders profiting from prison labour consistently lobby for the legislation of longer prison sentences in order to expand their workforce. At least 37 states have legalized the contracting out of prison labour to private corporations that have already set up operations inside state prisons. Prisons' business clients include: IBM, Boeing, Motorola Microsoft, AT&T Wireless, Texas Instruments, Dell, Compaq, Honeywell, Hewlett-Packard, Nortel, Lucent Technologies, 3Com, Intel, Northern Telecom, TWA, Nordstrom, Revlon, Macys, Pierre Cardin, Target Stores, etc. http://www.ashrafdehghani.com/articles-english/on%20prison.htmIn 1985 one out of every 320 Americans were in jail. In 1995 one out of every 167 Americans were in jail. Between1980 and 1994, the number of people in federal and state prisons increased 221%. Today, 2 million Americans are in prison. 1.2 million are African-American men. While there is debate over their underlying causes, these staggering statistics are generally thought to result from rigid drug laws, mandatory minimum sentences and increasingly tough legislation— such as California’s "three strikes" law. One fact remains undisputed: prisons have become big business. The Business of Prison Labor A prison-industrial complex has emerged. The increased prison population, a strong economy and the tightest labor market in 30 years have given rise to prison privatization and the expanded use of prison labor. Big name corporations compete with each other to underwrite prison construction with private, tax-exempt bonds and without voter approval. More and more states across the country are implementing mandatory labor for inmates, necessitating partnerships with outside industry. These developments fuel a national debate over prison labor practices in the U.S. ------------------- Prison Partners In the tiny town of Lockhart, Texas a private prison run by Wakenhut (a for-profit private corporation) does business with a company called LTI. In this partnership the prisoners assemble circuit boards bound for hi-tech corporations. For LTI, moving manufacturing to the Lockhart prison was a no-brainer. There they found a captive workforce that did not require benefits or vacation pay, major tax incentives and a brand new assembly plant rented for only a symbolic fee. As a result, LTI’s plant in Austin, Texas was shut down and 150 people lost their jobs. In Michigan, through a similar arrangement, the majority of Brill Manufacturing Company’s workforce lost their jobs to state prison inmates. http://www.itvs.org/shift/prison.html
Captive Labor America's Prisoner's As Corporate Workforce By Gordon Lafer The American Prospect, 1 September 1999------------------------------------------------------------------------------------------ During the past 20 years, more than 30 states have enacted laws permitting the use of convict labor by private enterprise. While at present only about 80,000 U.S. inmates are engaged in commercial activity, the rapid growth in America's prison population and the attendant costs of incarceration suggest there will be strong pressures to put more prisoners to work. And it's not hard to figure what corporations like about prison labor: it's vastly cheaper than free labor. In Ohio, for example, a Honda supplier pays its prison workers $2 an hour for the same work for which the UAW has fought for decades to be paid $20 to $30 an hour. Konica has hired prisoners to repair its copiers for less than 50 cents an hour. And in Oregon, private companies can "lease" prisoners for only $3 a day.But the attractions of prison labor extend well beyond low wages. The prison labor system does away with statutory protections that progressives and unions have fought so hard to achieve over the last 100 years. Companies that use prison labor create islands of time in which, in terms of labor relations at least, it's still the late nineteenth century. Prison employers pay no health insurance, no unemployment insurance, no payroll or Social Security taxes, no workers' compensation, no vacation time, sick leave, or overtime. In fact, to the extent that prisoners have "benefits" like health insurance, the state picks up the tab. Prison workers can be hired, fired, or reassigned at will. Not only do they have no right to organize or strike; they also have no means of filing a grievance or voicing any kind of complaint whatsoever. They have no right to circulate an employee petition or newsletter, no right to call a meeting, and no access to the press. Prison labor is the ultimate flexible and disciplined workforce. All of these conditions apply when the state administers the prison. But the prospect of such windfall profits from prison labor has also fueled a boom in the private prison industry. Such respected money managers as Allstate, Merrill Lynch, and Shearson Lehman have all invested in private prisons. As with other privatized public services, companies that operate private prisons aim to make money by operating corrections facilities for less than what the state pays them. If they can also contract prisoners out to private enterprises—forcing inmates to work either for nothing or for a very small fraction of their "wages" and pocketing the remainder of those "wages" as corporate profit—they can open up a second revenue stream. That would make private prisons into both public service contractors and the highest-margin temp agencies in the nation. http://www.postcarbon.org/node/2244
# The Prison Industry Authority (PIA) # The PIA’s industries produce over 1,400 goods and services including: office furniture, clothing, food products, shoes, printing services, signs, binders, eye wear, gloves, license plates, cell equipment, and much more. # Up to 40 percent of an inmate’s wages is deducted for court-ordered restitution/fines and is transferred to the Crime Victims’ Restitution Fund. In FY 2005-06, over $700,000 of PIA inmates’ earnings was deposited. Since FY 1992-93, $6.5 million has been deposited to the Fund. # Inmates receive wages of $.30 to $.95 per hour before deductions. # The PIA maintains an “electronic catalog” of products which is available online at www.pia.ca.gov. # A study in 2002 by the University of California, Berkeley, calculated PIA’s contribution to California’s economy. The study found that through its production and sales and the purchase of supplies from the private sector, PIA has a positive effect on the State’s economy. PIA’s impact consequently produced an increase of jobs and sales in California’s private sector. # The Prison Industry Board (PIB) was established to oversee the operations of PIA, much like a corporate board of directors. The 11-member Board sets general policy for PIA, oversees the performance of existing PIA industries, determines which new industries shall be established, approves its annual plan, and appoints and monitors the performance of the General Manager. The Board also serves as a public hearing body charged with ensuring that PIA enterprises do not create a substantial adverse impact on California industry.
Due to the history of the private prison management experience in Texas, colleagues frequently call upon TDCJ officials from other states and countries for information or just compare notes on the prison privatization experience. We welcome this exchange and opportunity for criminal justice practitioners to advance the profession. Over the seventeen years that privately managed prisons have been operating in Texas, we have learned the need to better define expectations. Also, as corrections is a dynamic profession, new issues arise from time to time that were not anticipated under the original terms of the contract. The resolution of these issues takes the cooperative efforts of all contracted parties in forging a true public/private partnership.
Private Sector/Prison Industry Enhancement Certification Program (PS/PIECP), commonly referred to as a PIE Program. The program is exempt from federal constraints placed on offender-made goods and on the sale of such goods both in interstate commerce and to the federal government. Offenders participating in the PIE program agree to pay a percentage of their earned income for room and board, cost of supervision, restitution, crime victim’s compensation, savings, and dependent care.
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