Prison labor responsible for rise in unemployment
Several American companies that make uniforms for the U.S. military are cutting hundreds of jobs after losing contracts to Federal Prison Industries, Inc. (commonly referred to by its trade name, UNICOR), a government-owned corporation that produces goods and services using labor provided by the Federal Bureau of Prisons.
As Fox News and ABC News report, American Power Source of Fayette, Ala. and American Apparel of Selma, Ala. could not compete with UNICOR and its labor force of convicts. Neither could another military clothing manufacturer, Tennessee-based Tennier Industries, reports the New York Times.
The irony is, UNICOR's winning bid will end up costing the government more. Even with minimal overhead costs and prison wages running from a measly 23 cents to $1.15 an hour, its price for a uniform is $34.18, while American Apparel charges $29.44 — 15% less — reports Digital Journal.comments powered by Disqus