West Virginia residents are caught up in a nationwide monopoly that is taking away jobs and business opportunities. And you won’t believe who is behind it!
LINKS TO FACTS ON THIS STORY LOCATED AT BOTTOM OF STORY
If you recently lost your job and or closed the doors to your small business, you might want to know that the federal prison system could be the reason. The US Bureau of prisons has become one of the world’s largest “slave labor” industrial manufacturers who have covertly cornered the market in everything from vehicle parts to music speaker box’s and missile wiring harness systems. These, and hundreds more products, are all listed inside their sales catalog that offers prices so low that even Wal-Mart & foreign sweat shops can’t compete.
UNICOR, also known as the “Federal Prison Industries” was started 60 some years ago just to make office furniture for federal buildings. FPI is a wholly owned government corporation created by Congress in 1934. FPI is authorized to operate industries in federal correctional institutions and disciplinary barracks (18 U.S.C. § 4121 to § 4129). Today, they have managed to undercut every competitor in their way.
So, the days of prisoners working the chain gang, making license plates & blankets are long gone in the federal system. By paying convicts as little as $.75 cents an hour, to a high end pay rate of $1.50, they have created a standard monopoly that no one on the face of the earth can compete with in. In all sense of the word, the feds have a “captive audience” to work with.
But, don’t feel sorry for their extremely low rate of pay. Federal inmates also receive free medical, food, lodging, recreation and other benefits that make up for it. Plus, don’t forget, they committed a federal crime and are serving time for that at your tax dollars expense. Some critics against UNICOR point out that “Federal Prison Industries pays slave wages, and that some prisons require all medically fit inmates to work subject to conditions and salary the company itself decides.”
What is a “Natural Monopoly?”
According to Wikipedia, “Any industry is said to be a natural monopoly if one firm can produce a desired output at a lower social cost than two or more firms— that is, there are economies of scale in social costs. Unlike in the ordinary understanding of a monopoly, a natural monopoly situation does not mean that only one firm is providing a particular kind of good or service. Rather it is the assertion about an industry, that multiple firms providing a good or service is less efficient (more costly to a nation or economy) than would be the case if a single firm provided a good or service. There may, or may not be, a single supplier in such an industry.”
Currently, there are 110 prisons (more being built as you read this) that have UNICOR industries, and every new facility being built adds to the chain. They currently employ approx. 23,000 inmates who are working up to seven days a week, 365 days a year on jobs that should be yours. Officials claim this business was created just as a way to train inmates a trade, responsibility and to pay off their court ordered restitution and fines. WV currently has 4 federal prisons with FTP industry within.
In reality, UNICOR has been able to underbid every competitor across the globe, which makes them able to obtain contracts in any job market they desire. Not to mention the fact that this inmate labor force has no additional costs to absorb like medical insurance, workers comp or 401-K. Just how much money does UNICOR generate each year? In a 2007 report, they claim in excess of $852 million in profits. According to documents at the end of this story, the business is very lucrative.
Depending on which federal prison a person is confined in, they could be assembling:
Eyeglasses, miscellaneous vehicle components, air purification equipment, radio mounts, communication equipment, headsets & microphone speakers, cable wire assembles, electric components, electrical power distribution components, household & office furniture, household supplies, business forms, men’s outerwear, special purpose clothing, armor personnel, signs-advertising displays, forklift repair, radio modifications, toiletry kiting services and printing & binding services.….
UNICOR is the “Sams Club” of manufacturing.
According to their organizational structure report, “In fiscal year 2004, FPI operated in eight business areas: Clothing & Textiles, Electronics, Fleet Management &Vehicular Components, Graphics, Industrial Products, Office Furniture, Recycling Activities, and Services. They have industrial operations at 102 factories located at 71 prison locations. FPI processes customer orders through a centralized customer service center at the Lexington, Kentucky facility. In addition, FPI performs product development, testing and costing at its facility in Englewood, Colorado.”
States that are home to UNICOR industries are located in GA, WV, KY, NC, CA, SC, NJ, IL, VA, KS, FL, LA, TX, MN, MS, OH, PA, MD, CO, AZ, OR, OK, AL, TN.
Ironically, the government has claimed to open the door for all companies to have an “equal chance” at competitive bidding, (for years it was closed to just UNICOR) but no company in the world can compete.
Here a just a few of the ongoing competitive advantages:
1. FPI is not required to have the lowest bid to win a contract.
2. FPI is exempt from federal mandates.
3. FPI is allowed to pay a sub-minimum, slave wage to its workers.
4. FPI facilities are built as part of a prison and have access to production equipment from other government agencies, at no cost.
5. FPI has direct access to the Treasury with authority to borrow up to $20 million, at rates far below what would be available to even the largest commercial enterprise.
6. FPI pays no state, federal business or employee related taxes.
7. FPI is the federal governments best kept secret, most state governments don't know of their existence and are missing out on business taxes and other revenues available to them.
Federal Prison Industries corporate offices are listed in Washington, DC. And offers easy access to order products online at :
http://www.unicor.gov/ .
Corporate Board Members, and who they represent:
David D. Spears, Chairman, (Represents Agriculture)
Donald R. Elliott, Vice Chairman (Represents Industry)
Audrey J. Roberts, Member (Represents Retailers and Consumers)
Phillip J. Bell, Deputy Under Secretary for Logistics and Material Readiness
Frank Gale, National Sergeant-At-Arms, Fraternal Order of Police (Represents Labor)
Lee Lofthus Assistant Attorney General for Administration (Represents the Attorney General)
Over the last few years, many advocates against the use of FPI prison labor argue this federal industry has greatly restricted free trade for other business, big and small, who are losing contracts to UNICOR because they cannot compete with their substantial cheap labor costs. Several US congressman & senators have proposed legislation that claim on the surface to allow all businesses to compete in federal bidding for goods that UNICOR previously had all to themselves. Even by their own standards, FPI admits they have a “mandatory source status.”
US Senator Carl Levin has even admitted that “there has been a glaring exception to the requirement for competition in government contracting. Under a statute passed long before the enactment of the Competition in Contracting Act, Federal Prison Industries (FPI) has enjoyed a complete exemption from the requirement to compete for federal contracts. Federal Prison Industries is a government-run business employing convicts in federal prisons.”
It’s not all peaches and cream for the FPI inmates and their prison guard supervisors. FPI also takes on jobs some businesses may not want. At least one report obtained pointed out that some inmates are exposed to toxic waste.
Conclusion....
The president, and even the current nominee’s running for that office, all admit there is a job market problem and that the economy is in danger of collapse. Unemployment is up and most Americans are struggling just to survive, much less make ends meet. While the federal politicians keep complaining how bad the economy is, they have left out some very interesting facts about their own manufacturing venture in UNICOR that is doing extremely well!! The FPI industry that appears to be costing honest-law abiding citizens a potential job or business contract.
In fact, according to recent FPI stats, there are 23,000 jobs and new lucrative contracts available to any business that can beat out seventy five cents an hour wages, free room and board, medical insurance and job security while you’re incarcerated.
By the way, two inside sources state that some executive and judicial federal employees are receiving stock options, or other bonus incentives in UNICOR.
And, to put this all into perspective, none of the FPI money is going into the economy!!
http://www.unicor.gov/about/reports/sales/Market_Share_2007_Report.pdfhttp://www.unicor.gov/information/publications/pdfs/corporate/CATMC3805.pdfhttp://www.unicor.gov/information/publications/index.cfm?bg=8http://www.unicor.gov/information/publications/pdfs/corporate/CATAR2007.pdfhttp://www.etoxics.org/site/PageServer?JServSessionIdr012=kx4oxs4983.app5b&pagename=svtc_prison_laborEnd Of Story
Sam Webber & Jack Swint PWDGroup@gmail.com 304-549-4978
For More Info, Go To:
http://www.westvirginianews.blogspot.com
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