Serious new conspiracy: Private prison firms monopolizing labor, manufacturing for huge profits

Apollonian

Guest Columnist
American prison labor means longer unemployment lines


Posted: Sep 17, 2012 6:42 AM CDT Updated: Sep 17, 2012 6:42 AM CDT

By FOX News

Link: http://www.myfoxdc.com/story/195599...means-longer-unemployment-lines#ixzz26lYGGQAw


Two southeast companies that make U.S. military uniforms are shedding hundreds of jobs, as the government looks to federal inmates for the fatigues.

American Power Source makes military clothing in Fayette, Ala., but its government contract expires in October. Federal Prison Industries – which also operates under the name UNICOR will snag the work, and leave the task to inmates. FPI has the first right of refusal for U.S. Government contracts, under a 1930 federal law.

American Apparel, the Selma, Ala., based military clothing manufacturer closed one of its plants and continues to downsize others due to the loss of some of its contracts to FPI. According retired Air Force colonel and spokesman Kurt Wilson, the company laid off 255 employees and cut the hours of 190 employees this year alone. So private workers end up losing their jobs to prisoners.

"The way the law is – Federal Prison Industries gets first dibs and contracts up to a certain percentage before they have to compete against us," Wilson, the executive vice president of business development and government affairs, said. "The army combat uniform, for instance, is an item that they take off the top. As a result American tax payers pay more for it – but the bottom line is each soldier is paying more for their uniform."

American Apparel charges $29.44 per uniform, but the FPI uniform costs $34.18 – a 15 percent difference.

FPI has been around since the 1930s. It provides training, education and employment for inmates in federal custody. With more than 13,000 inmates, FPI operates in about 80 factories across the United States. The company is not allowed to sell its goods to the private sector -- and the law requires federal agencies to buy its products, even if they are not the cheapest.

"It has been going on for some time," Wilson said. "Unfortunately what comes to bear now is, as demand for uniforms begins to decrease, budgets decrease and the problem gets bigger for us. Therefore we have to lay people off."

FPI officials were unavailable for an interview, but the company does offer a number of statistics which dispute the criticism.

"It is important to note that FPI produces only 7 percent of the textile garments purchased by DLA. The other 93 percent are produced by other entities," Julie Rozier, an FPI spokeswoman said in a statement to Fox News.

"FPI's percentage has remained fairly consistent over the past decade, with slight declines. FPI is a program that directly protects society by reducing crime and preparing inmates for successful release back into society to become law-abiding citizens; FPI does not receive a congressional appropriation for its operations," the statement said.

Inmates working for UNICOR or FPI are 24 percent less likely to reoffend and 14 percent more likely to be employed long-term upon release, according to the government company's website. More than 40 percent of Unicor's supplies were purchased from small businesses in 2011.

The battle between the two has caught the attention of lawmakers in Washington.

Representative Bill Huizenga, R-Mich., is sponsoring a bill which would reign in the ability to take work from private companies.

"We all have seen those terrible statistics, forty-plus months of 8.1 percent unemployment. We know the actions the government has taken it doesn't look like this is going to get better any time soon," Huizenga said. "Here we are having a prison population coming in and taking jobs away from the private sector - why in the world we think this is OK. I can guarantee you if this were a Chinese product with Chinese prisoners making that - we would be outraged."

Huizenga went on to say the outrage amongst his constituents is palpable.

"It's just this outside entity called UNICOR or Federal Prison Industries coming in and saying sorry - that work is now ours. We are going to having prisoners doing this," he said. "Of course they are outraged, of course they are frustrated. They are angry, they're hurt frankly that their own federal government would come in and do this to them at a time when their watching their friends and neighbors struggle with $4 gasoline and they're trying to keep their mortgage in check."

Read more: http://www.foxnews.com/us/2012/09/1...eans-longer-unemployment-lines/#ixzz26j5gngOV


Read more: http://www.myfoxdc.com/story/195599...means-longer-unemployment-lines#ixzz26mEoeC9L
 
Gov’t Guarantees 90% Occupancy Rate In Private Prisons

Posted on September 19, 2012 by NC

Link: http://fromthetrenchesworldreport.com/govt-guarantees-90-occupancy-rate-in-private-prisons/21648/

Gov’t Slaves Info

At a time when states are struggling to reduce bloated prison populations and tight budgets, a private prison management company is offering to buy prisons in exchange for various considerations, including a controversial guarantee that the governments maintain a 90% occupancy rate for at least 20 years.


Federal Bureau of Prisons director Harley Lappin speaks during a news conference at the Thomson Correctional Center in Thomson, Ill., in 2009.

The $250 million proposal, circulated by the Nashville-based Corrections Corporation of America to prison officials in 48 states, has been blasted by some state officials who suggest such a program could pressure criminal justice officials to seek harsher sentences to maintain the contractually required occupancy rates.

“You don’t want a prison system operating with the goal of maximizing profits,” says Texas state Sen. John Whitmire, a Houston Democrat and advocate for reducing prison populations through less costly diversion programs. “The only thing worse is that this seeks to take advantage of some states’ troubled financial position.”

Corrections Corporation spokesman Steve Owen defended the company’s “investment initiative,” describing it as “an additional option” for cash-strapped states to consider.

The proposal seeks to build upon a deal reached last fall in which the company purchased the 1,798-bed Lake Erie Correctional Institution from the state of Ohio for $72.7 million. Ohio officials lauded the September transaction, saying that private management of the facility would save a projected $3 million annually.

Linda Janes, chief of staff for the Ohio Department of Rehabilitation and Correction, said the purchase came at time when the state was facing a $8 billion shortfall. The $72.7 million prison purchase was aimed at helping to fill a $188 million deficit within the corrections agency.

Ohio’s deal requires the state to maintain a 90% occupancy rate, but Janes said that provision remains in effect for 18 months — not 20 years — before it can be renegotiated. As part of the deal, Ohio pays the company a monthly fee, totaling $3.8 million per year.

Roger Werholtz, former Kansas secretary of corrections, said states may be tempted by the “quick infusion of cash,” but he would recommend against such a deal.

“My concern would be that our state would be obligated to maintain these (occupancy) rates and subtle pressure would be applied to make sentencing laws more severe with a clear intent to drive up the population,” Werholtz said.
 
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