Prison Labor

IAM challenges U.S. prison labor attempts to rob workers of jobs

Federal Prison Industries (FPI)seeks to expand into new markets.

FPI which uses prison inmates to make products has targeted the Lawn and Garden equipment market and has made plans to begin production in this area. IAM members who currently produce lawn and garden equipment at manufacturers including John Deere and Toro may now have to compete with inmates who obviously don't have equivalent pay and benefit packages or have to meet existing labor laws. The IAM is fighting any FPI expansion into areas that pits well paid IAM members and their jobs against prison labor. In a hearing on Oct 20 1998 IAM representatives spoke out against FPI's this proposal.

In Congress there will be efforts from both sides of prison labor issue. The IAM will be strongly supporting legislation to oppose further expansion of prisoner labor that takes jobs from law abiding citizens. Congressmen Hoekstra (MI) and Frank (MA) will be reintroducing legislation in the House that will put more restrictions on the use of prisoners and require to allow the private sector to bid for federal contracts with FPI which is prohibited under current regulations.

The following is a letter sent from IP R. Thomas Buffenbarger.

GOV - Federal Prison Industries, Inc.
October 1, 1998

Mr. Joseph M. Aragon, Chairman
Board of Directors
Federal Prison Industries, Inc.
400 First Street, NW
Washington, DC 20534

Dear Mr. Aragon:

The International Association of Machinists and Aerospace Workers (IAM), represents 682,000 workers in the United States. We represent many workers in the manufacturing of lawn and garden equipment; including those at John Deere, Toro and Tucumsa. On October 20,1998, the Federal Prison Industries (FPI) Board will formally take up a proposal allowing them to expand into the manufacturing of lawn and garden equipment.

The IAM understands the need for training programs to help prisoners with rehabilitation, provide a safer environment, and reduce recidivism. However, creating programs that unfairly pit our members against the prison population is unfair and wrong. Prison labor should not be used to compete in direct competition with workers trying to make an honest living for themselves and their families. The IAM strongly opposes this FPI proposal for the following reasons.

• The use of prison labor puts our members at a competitive disadvantage. Prison labor does not have to adhere to this country's labor laws, (i.e., minimum wage, workers compensation, unemployment compensation, collective bargaining, and other worker protection laws).

• Products assembled at Federal institutions are not subject to the same state and local taxes as are private manufacturers.

• Our members work for wages that have been determined through collectively bargaining. Prison workers can be paid at levels that are only a fraction of the minimum wage.

• Competition with prison labor could artificially depress the wages and benefits of workers producing lawn and garden equipment at a time when tight labor markets are finally producing wage increases.

• FPI mandatory source status requires federal agencies to obtain permission to purchase competitively from the private sector. This also adversely impacts our members ability to fairly compete for market share.

The FPI proposal calls for a plan to capture 47 percent of the federal market. Part of FPI's mission statement is "to keep competition with private industry to a minimum," and "to avoid capturing more than a reasonable share of the federal market." I do not understand how attempting to capture almost half of the market can be considered reasonable. Second, I do not believe selling a projected $33.2 million of equipment manufactured by FPI by the year 2003 cannot be considered having more than a minimal impact on the private manufacturers and workers who could have produced these products.

With the globalization of the marketplace our members now face competition from many fronts. It would be criminal to allow our hard working members endure downward wage pressure and possible loss of work by having their livelihoods taken by those doing time in a correctional facility. We urge you to deny this proposal and look for programs that do not harm the working men and women of this country.

Sincerely,

R. Thomas Buffenbarger
International President RTB/jcs