Tag: living wage

business ownership, Fair Wage, Made in America, manufacturing, social enrepreneur, social enterprise

The Minimum Wage of $15: A Case Study

 

Industrial sewing machine used in manufacturingThe Minimum Wage Debate

The CT State Legislature finally passed a $15/hour wage after a contentious debate as reported in this article by and of the CT Mirror. The debate was contentious, of course, because of the sharp divide between Republicans who put the concerns of business owners at the top of their agendas and majority Democrats who favor the cause of workers. This debate is essentially about what constitutes a “fair Wage” in CT.

A Case Study

I have closely followed this process because of my commitment to basing the pay of the contractors who work with me at a minimum of $15/hr. I have made this commitment because my business, United Sewing and Design, is a social enterprise which focuses on workers first in addition to customers. However, like any business owner, I have to balance the needs of my workers against the opportunities to earn income. l won’t do anyone any good if I don’t stay in business. For example: as a manufacturer, the work we do is often for resale. Therefore, simply put, there is a limit to what our customers can afford to pay us. Often, our customers allow the retail market in which they compete to determine their price and thus, the amount they can afford to pay for manufacturing. This is not anything new.

So far, in order to reach and sustain my pledge to pay a $15 an hour wage, I have had to turn down work from several customers because the retail price of the item being discussed was not high enough. This hasn’t negatively affected our bottom line up to this point. Additionally, I have begun to actively seek out work that sells at a higher retail price and am investigating manufacturing fields where retail price is not a factor. These haven’t been difficult decisions, but I’m making them during the formative stages of business development while I am still scaling up.

Many business leaders are not happy about the gradual increase to a $15 wage. They have legitimate concerns, which I share. But, I feel that the $15/hr wage which approaches a fair wage, is a necessary start to strengthening our entire state economy.

To frame this debate and the action by our legislature, pick up this book by Zeynep Ton, read this about what counts as the “middle class” in CT according to the Census Bureau, and this about what supposedly is a “living wage” in Hartford County. Hint: it will take until fall of 2021 to reach a so called “living wage.” Also, $15 an hour will in no way approach a middle class income in CT.

 

 

 

Fair Wage, manufacturing, social enrepreneur, social enterprise

Have You Thought About Racism and Your Business?

bridges are built with respect
bridges are built with respect Photo by Tim Swaan on Unsplash

I was planning to write a post about the fast vs slow fashion this week, but decided instead to write on what has been on my mind for months now. I’m in a “put up or shut up” mind set after re-reading my LinkedIn profile the first sentence of which reads

“Business is about putting our beliefs to work. It’s not enough to talk about what you think is wrong; you must apply what you know best to create change.”

Also, I ran across Rev. Martin Luther King, Jr.’s “Letter from Birmingham Jail,” in which he chastises white moderates:

“I have almost reached the regrettable conclusion that the Negro’s great stumbling block in the stride toward freedom is … the white moderate who is more devoted to order than to justice…..Shallow understanding from people of good will is more frustrating than absolute misunderstanding from people of ill will. Lukewarm acceptance is much more bewildering than outright rejection.”

I’ve been delaying writing about the place of racism in business for two reasons, neither of which I could be faulted for. First, obviously, racism is a controversial topic. As a small business owner, honestly expressing my opinion about it could potentially damage my business in multiple ways not the least of which is alienating potential customers. As you undoubtedly realize, small business owners have a very close relationship with the brand image of their businesses.  It is therefore, fair to assume that the business would suffer if the views of the owner are seen as misguided.

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manufacturing, quality, sewn manufacturing, social enterprise

High Quality: Competitive Advantage or Pointless Expense?

Last week we explored the idea of innovation as a necessary component of competitiveness for the U.S. sewn products industry. This week, I take up a topic which has been the downfall of the world wide apparel industry for almost 20 years–quality.

Quality as the Problem

Much has been written on the depressing collapse in quality of the fashion industry, most notably by Teri Agins in her book, “The End of Fashion: How Marketing Changed the Clothing Business Forever.” In the 1990’s, one could easily find well made designer apparel at retailers like Bergdorf Goodman, such as fully lined women’s slacks of a pants

beautiful wool, with each pant seam allowance carefully completed with a Hong Kong finish. As Agins points out, the collapse began when giant conglomerates instead of namesake designers became the owners of major fashion labels. Instead of the designer mandating the quality of fabrics and construction; stock holders, demanding ever higher profit margins; began to cut more and more corners. They discovered that the majority of customers had forgotten what their parents knew–garments can be made with quality materials and workmanship and styled with a timeless look. Fortunately for the stock holders, customers had begun to disconnect quality of workmanship and materials from price. Price now became a superficial mark of brand distinction and nothing more. The advent of “fast fashion,” turning around new styles in two weeks or less, was the pit at the bottom.

Customers shopping for ready-to-wear have been well trained to expect poor quality new styles in the shops every time they go in. However, the manufacturing model which enables this system to be profitable is not possible in the U.S.

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