Newsweek.com

Some of the world’s leading computer makers don’t want you to know about Local Technic Industry. It’s a typical Malaysian company, one of many small makers of the cast-aluminum bodies for hard-disk drives used in just about every name-brand machine on the market. But that’s precisely the problem: it’s a typical Malaysian company. About 60 percent of Local Technic’s 160 employees are from outside Malaysia—and a company executive says he pities those guest workers. “They have been fooled hook, line and sinker,” he says, asking not to be named because others in the business wouldn’t like his talking to the press. “They have been taken for a ride.” It’s not Local Technic’s fault, he insists: sleazy labor brokers outside the country tricked the workers into paying huge placement fees for jobs that yield a net income close to zero. “They say they were promised 3,000 ringgits [$950] a month,” the manager says. “How can we pay that? If we did, we would be bankrupt in no time.”

So why don’t those foreign employees just quit? Because they can’t, even if they find out they’ve been cheated by the very brokers who brought them there. Malaysian law requires guest workers to sign multiple-year contracts and surrender their passports to their employers. Those who run away but stay in Malaysia are automatically classed as illegal aliens, subject to arrest, imprisonment and caning before being expelled from the country.

This is the dark side of globalization: a vast work force trapped in conditions that verge on slavery.

In some way, we are all enablers. Is it really worth it to get that great deal at Wal-Mart? Not to mention what it does to American workers.




  1. Jetfire says:

    “Is it really worth it to get that great deal at Wal Mart?”
    How is Wal Mart’s fault? Walmart doesn’t make/use “cast-aluminum bodies for hard-disk drives used in just about every name-brand machine on the market.”
    Wouldn’t this be Dell, HP, Apple, etc., who use HDDs in their machine. Or Better yet Seagate and Toshiba who make the HDDs.

    I’m not saying that what is happening Malaysia is right. I actually think it’s wrong and sick.And people should be thrown in Jail for it. The lying about the $950/month and trapping them their part. This stuff usually comes around and bites you in the ass too.

  2. Mister Catshit says:

    You are right. We are all enablers. It is silly for us to blame HP or Dell for exploiting the lowest cost when we also demand the lowest cost.

    Maybe Malaysia should be banned from trading with the US until they stop the slave labor practises.

  3. Mister Catshit says:

    In #2, that should be practices.

  4. morram says:

    Would computers be such a big deal if they were still like my last few sales in the late 80s? I still have a few old friends/customers that remind me I charged them $1800. for a 286/1G/80MB+15″CRT workstation!

  5. Charles says:

    Most of us are guilty for allowing this to happen. We elected the Republican Extremists that passed the laws for “Globalization” of our economy. Now, bridled by war and soon to be rampant hyper inflation, we are going to pay dearly for allowing this to happen. You get what you vote for!

    Oh boy! Legal guest workers by the millions coming to America soon. Brought to you by the same guys that brought you the illegal guest workers.

  6. McCullough says:

    #1. Yes, I was wrong to pick on Wal Mart exclusively. But they are an easy target. And one of the worst offenders importing cheap Asian goods.

  7. Jetfire says:

    #5 Clinton pass NAFTA and was in bed with the Chinese so don’t lay this on the Republicans feet alone.

    #6 I never said I was against cheap. I’m against tricking someone into it and then to make it even worst is not letting them go. But if I’m up front with you that I’m paying you $.03/hr and you take it. I think that’s fair especially when you made $0.00/hr before. Soon that $0.03 becomes $.06 than $0.50 and so on.

    BTW the US would be were it is if not for people looking for cheap labor since we used to be the source of it once.

    Do CEOs and upper Management make to much hell yes. But look at China the free market even with it’s flaws and Corruption is better the the Monopoly that the Government there had on Corruption which they are now having to face in the free Market and deal with.

  8. OhForTheLoveOf says:

    This is the dark side of globalization

    Wow… There is a dark side to globalization? Who could have imagined that?

  9. bobbo says:

    This isn’t the dark side of globalization and none of us are responsible for this in any way.

    What this is is a failure of governmental authorities to create or enforce “level playing field” trade relationships.

    We voters “might be” responsible for this IF our government were at all responsive to our expressed will?–as in lack of an enforced border, tax incentives still in place to encourage off shoring of USA jobs and all the rest.

    In fact, I assume “somewhere” there are trade requirements prohibiting slave labor just like the USA prohibits illegal immigration. There must be republicans in charge of beuracracies all over the world?

  10. joaoPT says:

    That’s why we have governments…
    -“Oh, but these countries are so poor that the entire government is in some multinational big pocket”… well… we should have the rich Governments, like USA’s, to uphold human rights. At least these are no in someone’s back pocket… Er… wait a minute…

  11. jbellies says:

    Workers are required to sign a contract? Of course, a work contract must specify how much the workers are going to be paid. If not, the contracts should be deemed invalid and the companies, labour importers and gov’t brought to task.

    Also, any contract should have an out clause. What about illness, for example?

    Sounds like there is high-up complicity in allowing sham contracts to pass for real employment contracts.

    As has been said before, a global economy without global labour laws and global pollution / ecological standards is a fool’s paradise. The more fools us.

    Looks like Cyril Kornbluth’s 1948 classic “The Space Merchants” has become a commercial Bible.

  12. yarrburger says:

    Why don’t we do this?
    All it takes to be an American is to commit one’s self to it.
    Make ’em try a little bit harder.
    (See Janis Joplin “Try”.}
    We have to, why not them?
    Still a great place to live.
    YARR

  13. OhForTheLoveOf says:

    #12 – Wow.

    I never knew you had it in you to say something so… progressive.

    Good for you.

  14. BdgBill says:

    Yes it’s worth it.

  15. natefrog says:

    #16;

    “beats the hell out of globalization protesters…”

    I thought that’s what the police are for?

  16. Ah_Yea says:

    Globalization has taken off in only the last 20 years -more or less- and we are seeing much of the fallout, both good and bad.

    I have been saying for quite some time that the globalization free ride is going to come to an end.
    Sooner or later the cheap labor force is going to wizen up. We have already seen where Filipino workers in Saudi Arabia, Miners in South Africa, etc. are demanding better working and living conditions, and I believe this trend is accelerating. Companies touting “Sweatshop free” hopefully will become more important.

    Of course, that is really our decision as the buying public. Are we willing to allow these conditions to continue just to save a few pennies?

  17. JoaoPT says:

    Globalization will go down, not by having Filipino workers demanding better working condition, but because the growth of the new economies will even things out. That’s what growth means.


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