Companies Using Prison Labor

Companies Hiring Prison Labor

by Ericka Foster

On March 9 th , New York Governor Andrew Cuomo announced that the state of New York would be meeting the demand for hand sanitizer by having inmates make it. Ironically, not only were those inmates being paid 16 cents per hour to make the hand sanitizer, it is considered contraband and they are prohibited from having any.

In fact, the hand sanitizer is one of many products made by inmates under the Corcraft brand name. According to its website, Corcraft “can only sell to government agencies at the state and local levels, schools and universities, courts, fire departments, police departments and certain not- for-profits.” Products and services include textiles, engraving, and teleservices for the Department of Motor Vehicles. It is common for state correctional facilities to create corporations designated to create and sell goods – including California, Tennessee, Texas, Georgia, and Oregon – made my incarcerated individuals. For the most part, those companies sell only to government agencies. The federal On the Unicor website, inmates at the government has a similar business entitled Bedford Hills in a call center for the Unicor. Department of Motor Vehicles.

Most of these organizations are supposed to offset the costs of maintaining a prison facility, not necessarily make profits. Between 2009 and 2016, “ FPI’s expenses have exceeded revenue as a result of a combination of reasons, including the economic downturn, constrained budgets of many of FPI’s federal agency customers, deactivation of military forces in recent years, and changes to procurement laws and policies," said Bureau of Prisons spokesman Justin Long in an 2016 NBC article .

When companies have the opportunity to create profit, the chance for exploitation increases. Unicor has recently become available to private companies, where they brag on their website, “ Imagine... All the benefits of domestic outsourcing at offshore prices. It's the best kept secret in outsourcing!” . In an article written by Politifact in June 2020 companies such as Whole Foods, Victoria’s Secret, AT&T, Bank of America, Starbucks, and Wendy’s stated that they do not use prison labor – anymore . Many state d that it is against their company policy to use suppliers that rely on prison labor. However, Wal - Mart contracts with companies that use prison labor.

At first glance, it looks like exploitation – people getting paid pennies per hour (if they get paid at all) while companies earn profits. But it is a bit more complicated than that…

Is it exploitation or job training?

Remember when you got your first job? If you’ve had a job for a while, it is easy to forget the value of having a job. Employment instills a sense of responsibility, accountability, and teamwork. "My experience that most incarcerated people want to work," says David C. Fathi, Director of the American Civil Liberties Union (ACLU) National Prison Project. Employees can take a sense of ownership, used their time productively, earned a little change, and possibly made a difference.

While most of the jobs in the prison facility help with Jail Inmates Worked for a $16 the upkeep and maintenance (i.e. laundry, cooking, Billion Company Without Pay. cleaning, maintenance, etc.), the more coveted jobs Now They Want Their Wages. could end up coming from a private company. "If you dial a call cen ter, there's always a decent chance that you are talking to an incarcerated person," says Mr. Fathi . Call centers are common among the prison jobs, however they aren’t the only ones. California has approximately 200 firefighters that are inmates. They earn $1.45 per hour to protect the lives, homes, and environments of others. As this article is being written, they are fighting fires in California. That’s an honorable role.

So, what’s fair?

It’s not about getting the jobs out of prisons; it is about leveling the playing field. "We think the best remedy is to treat incarcerated workers as we treat other workers,” Fathi explains. “If you treat incarcerated workers, as much as possible like "outsi de" workers, you reduce the risk of exploitation.” Treating incarcerated employees isn’t just about paying them a reasonable wage, though that is a great start.

Additionally, inmates are not protected by the same workplace safety guidelines (OSHA) and unfair working conditions that protect those of us on the outside. And the possibility of retribution for making complaints is real – if those complaints are even taken seriously.

Finally, the same companies that take advantage of inmate labor won’t hire felon s on the outside. Those same California firefighters that are out saving lives wouldn’t be considered upon release. (Look for an article in 2021 on efforts that are being made to repeal and remove some of those antiquated regulations. )

On one hand, it benefits everyone when the prisoners have productive ways to spend their time. So, why not have them create goods and services that can be sold to offset the real costs of incarceration (see our article on the costs of incarceration)? However, the opportunity for exploitation exists since inmates are subject to low or nonexistent wages, nor are they protected by the same worker’s rights as people who are not incarcerated. That opportunity for exploitation increases when companies begin to sell their goods and services for a profit. Most importantly, the job training argument becomes moot when those same inmates are unable to get the jobs that they had while incarcerated upon release .

There’s a Vendor for That

By Ericka Foster

Lo ts of companies are getting rich in the business of incarceration and law enforcement – that’ s what they mean by prison industrial complex. To be clear, there’s nothing inherently wrong with capitalism – we all like it a lot when we’re the ones getting paid. However, we need to be responsible when profits come the expense of another’s freedom . According to the 2020 Worth Rises Report, more than 4,000 companies benefit – make profit – from incarceration and law enforcement services. In every aspect of an inmate’s existence, safety, rehabilitation, and public good are considered right along with profits.

E ach inmate is issued clothing , shoes, underwear, and bedding. ATD-American Supply and the Bob Barker Company (no relation to the beloved TV host) are responsible for supplying those items. ATD diversifies its services by supporting other businesses with dormitory style living facilities (i.e. retirement homes, hospitals, etc.). They also use suppliers, so it’s not just these larger companies that are making profits, but also smaller companies serving as their suppliers. It also be gs the question, if companies are uplifting mom and pop suppliers while they are profiting off the incarceration of individuals, does that make them all bad, less bad, ne u tra l, or good?

We can ’ t discuss inmate expenses without talking ab out feeding them. Companies like Aramark and Trinity Services Group (part of Access SecurePak) specialize in feed ing large groups. Aramark earned $14 billion in 2018 in prison food contracts. The company supports al l aspects of food service including preparation, distribution, and training the inmates who do so. When you visit their website, Aram ark boasts of providing cost- effective and nutritious meals for inmates devel oped by a “ team of registered dieticians, ch efs, and cul inary staff.” (see the screenshot below):

But all that glitters isn ’ t gold. A quick Google search will serve up (couldn’ t resist the pun ) articles on poor nutrition , uncl ean kitchens, and maggots. As a consumer, you know that processed food and starchy carbs (potatoes, pasta, etc.) are cheapest. If you wan t to cut costs, y ou can easily replace expensive produce and meat with processed white bread and pasta . Additionally, what is the incentive to provide healthy, deliciou s meals when the same companies also offer vend ing machine and commissary contracts?

According to an article last year in the San Fran cisco Bay View, Kevin Johnson , an inmate in an Indiana prison describes his experiences: Aramark sells fresh, real food i n its commissary, while servi ng processed meat and fillers during mea l time – its starvation hustle .

Commissaries don’ t just carry food; the y a lso carry toiletrie s and personal items. To manage costs, facilities will often have to ration items like toilet paper, sanitary napkins and tampons, and toothpaste. When the prison issues scant toiletries and offer lackluster food, it drives prisoners to seek small comforts from the commissary.

According to the Equal Justice Initiative , commissary costs were $1.6 billion in 2017 . While the vendors’ web sites and scant online reports want us to believe that pricing in these commissaries are fair – actually serv ing the needs of the inmates -- anecdotes (word on the street) express that commissary prices are more than they are on the outside. Since vending contracts can vary, that may be true in some cases. However, the winners of these contracts have a monopoly on availability , so companies such as Keefe Group (a n affiliate of Access Securepak and ICSolutions) that have secured vending contracts with corrections departments can charge predatory prices to incarcerated people and their loved on es. Keep in mind that if an inmate is receiving a wage for work, it is cents per hour, so they must work hard and save up for that overpriced box of ramen .

Reaching ou t to loved ones helps inmates feel whole…connected . Yet, whether an inmate wants to make a phone call, have visitation, or send a receive mail, there is a vendor for that.

T o send a package to an inmate, the facility requires that packages be shipped through a service . Keefe G roup’ s Access Securepak, Aramark’s iCare, and Union Supply Direct are three major companies that supply care packages services for inmates. The prices and availability vary per prison system. Fa mily members ca n purchase a variety of products from tampons, boxers, books, office supplies, and hot meals like hamburgers and pizza.

According to the Equal Justice Initiative , telephone calls totaled 1.3 billion in 2017 . Th at was shortly after the FCC capped the cost of prison phone calls at $1.65 per minute for a 15- minute phone call. How do the y make their money? State departments of corrections contract with phone companies that generally pay the Department of Corrections a commission (cynically referred to as a kickback) which can cost an average of 42%. In Baldwin County, Alabama, ICSolutions agreed to pay 84.1 percent of profits back to the county. Keep in mind, thi s isn ’ t just a burden on in carcerated people , but also on their families who want to offer their loved ones some sort of comfort while on lock down.

This is just the tip of the iceberg when it comes to the types of companies that earn a p rofit from the business of incarcerating people.

As you go throughout your day, pay attention to the clothes you are wearing, your shoes, your towels, and your sheets. Then, while you’re in the bath room, pay attention to your toilet paper, soap, toothpaste and tampons. ( Inmates don’t receive unlimited amounts of these items.) As you enjoy your breakfast, lunch, dinner, and snacks, consider the costs of those items. Inmates don’t have those choices, but they are still end users. They are at the whim of the companies that stand to make profit solely by them being incarcerated .

Notice how the same company names keep coming up in this article – Aramark, Keefe Group -- k eep an eye out for more articles as we learn more about this.

The truth is, someone will need to supply these items. And inmates who receive these services need and enjoy them. However, a lot of people make money from the incarceration from others, something we should always take into consideration when decisions are being made.

Final Thoughts…

I’ v e bee n wanting to create this issue for a looooong time. And the more I learned, the more I wanted to know. We also found out that billions of dollars are bein g made in other industries, including bail bonds. So, look for additional articles as we di g deeper into the prison industrial complex.