But the federal
government did little to ensure that these companies clean up their
acts before they collected tens of millions in contracts. A 2013 report
from Sen. Tom Harkin (D-Iowa) found that the government awarded
companies with the most egregious records of violating workplace wage
and safety records $81 billion in 2012 alone.
In effect, the
federal government has been subsidizing contractor misconduct with our
tax dollars. As long as federal contractors have known that their
lawbreaking would not jeopardize the next contract, they have had little
financial incentive to stop mistreating their workers.
By
signing the Fair Pay and Safe Workplaces Executive Order, President
Obama signaled that it's time for this to stop. The order will ensure
that federal contractors obey workplace laws before receiving government
contracts.
Once implemented, the order:
" Will require federal contractors to disclose their record of compliance with workplace laws;
"
Will ensure that law-breaking companies clean up their acts by
empowering federal agencies to consult with the U.S. Department of Labor
to investigate and remediate ongoing problems with contractors.
This
report helps to put a face to the millions of workers the order is
designed to protect. Through press accounts and personal interviews,
CorpWatch documents the stories of Rodney Bridgett, Calvin Bryant, and
Alma Aranda, explaining how their employers ignored basic workplace
safety rules or undermined an employee's legal right to unpaid leave in
the case of a medical emergency, yet still managed to secure tens of
millions of dollars in federal money.
For far too long, federal
contractors have been able to cheat or injure their employees, secure in
the knowledge that their lawbreaking will not count against them when
their contracts come up for renewal. Once implemented, the Fair Pay and
Safe Workplaces Executive Order will take that security away from them.
The full report "Subsidizing Contractor Misconduct: Three Contractors Who Won Big Despite Egregious Labor Violations" can be downloaded here.
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CorpWatch: Non-profit investigative research and journalism to expose
corporate malfeasance and to advocate for multinational corporate
accountability and transparency. We work to foster global justice,
independent media activism and democratic control over corporations.
We seek to expose multinational corporations that profit from war,
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We believe the actions, decisions, and policies undertaken and
pursued by private corporations have very real impact on public life à ‚¬"
from individuals to communities around the world. Yet few mechanisms
currently exist to hold them accountable for those actions. As a result,
it falls to the public sphere to protect the public interest.
In many cases, corporate power and influence eclipses even the democratic
political
process itself as they exert disproportional influence on public policy
they deem detrimental to their narrow self-interests. In less developed
nations, they usurp authority altogether, often purchasing government
complicity for unfair practices at the expense of economic,
environmental, human, labor and social rights.
Yet despite the
very public impact of their actions and decisions, corporations remain
bound to be accountable solely to their own private financial
considerations and the interests of their shareholders. They have little
incentive, nor requirement, for public transparency regarding their
decisions and practices, let alone concrete accountability for their
ultimate impact.