The Day Of The Savar Building At Rana Plaza Case Study

Ron Hira, an associate professor of public policy at Howard University, on the other hand, argues that the primary reason why most American corporations choose to outsource essential tasks to companies in foreign countries is due to the cost and salary differences between the United States and those countries. For example, an IT company in India that has entered a contract with a U.S. corporation generally pays its workers $30 an hour for completing the same tasks that a programmer in the United States would be compensated $120 an hour for completing. When calculated, this is a 75% difference in pay. However, Hira warns that this figure does not account for the additional management and coordination costs that accumulate from the fact that

In fact, “though government agencies and the police knew about the cracks the day before the plaza collapsed and could have shut the building down, Rana [the owner of the plaza] was roundly blamed for convincing factory managers that the building was safe.” The day of the Rana Plaza collapse, workers were told to either go to work or lose their jobs, as the factory managers believed that effective production for the American brands and corporations was more important than the safety of thousands of individuals. This sequence of events shares a similarity with the Ali Enterprises fire, as well. Just days before the deadly fire, private and voluntary inspections were conducted at the factory. The factory passed these inspections and was certified with the “gold standard” of workplace certifications, the SA8000, in August 2012. It is clear that these companies either a) have a special relationship with the inspectors or b) employ the inspectors themselves; this certifies that these companies are not likely to ever fail an inspection, or fail to receive a necessary certification that they need to continue