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Why Offshore? Pay 23 cents an hour in US Federal Prisons!

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  • Why Offshore? Pay 23 cents an hour in US Federal Prisons!


    No, this is not satire from The Onion. It's an article published in Supply Chain Management Review.

    Federal Penitentiary in West Virginia Provides Re-Shoring Training for Inmates


    Unicor was established in 1934 to provide meaningful work for inmates and support low cost manufacturing for the US Government.
    By Rosemary Coates, President of Blue Silk Consulting



    July 20, 2015


    Last week I went to the Federal Correctional Facility in Gilmer, West Virginia (just for a tour – I had no desire to stay!) I made the trip there to tour the Federal Prison Industries otherwise known as Unicor (http://www.Unicor.gov ).
    I’ll admit, entering though the metal detectors and several locked prison gates and doors and into the prison yard where inmates were assembling for lunch, was a bit unnerving. Gilmer is a medium-high security facility and the inmates looked scary. I was intimidated. I appeared to be the only woman around. My tour guide explained the various buildings and services available while we stood in the prison yard, before entering the factory. It was the lunch hour so the factory was empty and I was relieved to finally go inside with my guide.


    Unicor was established in 1934 to provide meaningful work for inmates and support low cost manufacturing for the US Government. Originally prisoners made military uniforms and equipment, license plates and other items. But over time, Unicor developed capabilities in many industries including metal fabrication and machining, electrical devices, printing, automotive, textiles, solar energy, plastics and more.

    Although Unicor is not permitted to compete with established American industries they are allowed to accept Reshored production. The 13,000+ prisoners earn between $.23 - $1.25 per hour - labor rates that are competitive with the lowest cost countries around the world.

    Now we, are talking! One of the biggest hurdles to Reshoring is labor costs in the US and Unicor’s rates neutralize this issue. So it was with great interest that I toured the West Virginia facility with an eye toward what Reshored production might fit into one of Unicor’s 78 American prison factories. The Reshoring Institute already has several companies interested in Unicor production.

    This particular factory was focused on automotive production and indeed, they were working on several military vehicle conversions and refurbishing a truck trailer. The factory was clean, organized and impressive. Unicor factories practice Lean manufacturing techniques, are ISO certified and are focused on high-quality results.


    The inmates get an opportunity to do productive work and learn new skills that are transferrable to the outside world. The recidivism rate for former Unicor employees is about 20% less than other released prisoners.


    For all these reasons, Unicor is an interesting alternative to offshore manufacturing.

  • #2
    Re: Why Offshore? Pay 23 cents an hour in US Federal Prisons!

    Plus you don't have to pay them plush pensions, give them excessive time off, and provide cadillac health plans like federal government employees and corporate executives receive.

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    • #3
      Re: Why Offshore? Pay 23 cents an hour in US Federal Prisons!

      Some time ago this was called slavery

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      • #4
        Re: Why Offshore? Pay 23 cents an hour in US Federal Prisons!

        So this basically confirms the main plot of "Orange is the new Black" Season 3 on Netflix (WARNING: movie spoiler).... wherein the lady prisoners are given $$ to make women's lingerie at tiny fractions of the price of what they retail for, yet still make more money than they make doing other jobs in the prison.
        Warning: Network Engineer talking economics!

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        • #5
          Re: Why Offshore? Pay 23 cents an hour in US Federal Prisons!

          Originally posted by vt View Post
          Plus you don't have to pay them plush pensions, give them excessive time off, and provide cadillac health plans like federal government employees and corporate executives receive.

          vt, I offer a minor correction.
          The hiring business owners pay just fifty cents an hour for actual hours worked.
          The US taxpayer, on the other hand, pay $29,000 a year for 25 to life.

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          • #6
            Re: Why Offshore? Pay 23 cents an hour in US Federal Prisons!

            Joking aside, the article says:

            ...Unicor is not permitted to compete with established American industries...
            That is disregarded in practice.
            Some years ago I owned part of a $20mm manufacturing company established for 50 years.
            One of our biggest direct competitors in Leavenworth Kansas uses prison labor.
            Buses drop off the prisoners at their plant each morning and pick them up each afternoon to bring them back to Leavenworth for the night.

            At our company we paid our people wages and health insurance to make the same products.

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            • #7
              Re: Why Offshore? Pay 23 cents an hour in US Federal Prisons!

              Originally posted by thriftyandboringinohio View Post

              earn between $.23 - $1.25 per hour
              And the calls from inmates in those institutions to others is typically sold on as a collect service via exclusive contracts. In some cases the above rate range is accurate on a per minute basis, so a half-hour call can cost like $40. So that means if a person gets locked up not near their family, they might need to pay phone sex styled rates if they want to communicate via any medium other than written letters (especially if their family members don't have a car or if the distance is quite far to travel).

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              • #8
                Re: Why Offshore? Pay 23 cents an hour in US Federal Prisons!

                American exceptionalism: A uniquely free nation founded on personal freedom and liberty...but not for everyone. The US has always needed slaves and prisoners are the newest incarnation of slavery in the US. Even China can barely keep 1:1000 people in prison, but we're close to 1:140 and have 25% more people in prison than China even though they have more than four times as many citizens. World wide there are ~10MM prisoners. 22% of them are in the US and we have a bit over 4% of the world population.

                It's brilliant. Send as many jobs overseas as possible while jailing as many people as possible and then bring those jobs back to the US. Thanks Ronnie, trickle down really does work. I've said things like this before and I know it may seem radical to some but if you live in the US and you're in the bottom economic quartile, you're worth way more to the US economic system incarcerated than free. Orange is the new gr$$n.

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                • #9
                  Re: Why Offshore? Pay 23 cents an hour in US Federal Prisons!

                  2 questions:

                  is this part of the Sharing Economy?

                  and

                  shouldn't they be happy they have a job?







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