Human cost behind bargain shopping

Wal-Mart declined to be interviewed on camera, but in e-mails to Dateline the company says: "We strongly believe that our business… and the wages and benefits we provide have helped improve the lives of many thousands of workers in many parts of the world."

As for the allegation by that factory owner who told us Wal-Mart insisted on paying two pennies less instead of one penny more for his goods,  Wal-Mart says "It is a totally unsubstantiated claim that should be given no credibility," and Wal-Mart says it "discusses prices with suppliers in a responsible manner  that takes many factors into consideration."

The company also says it considers itself an advocate of lower prices for the customer and makes no apologies for driving a hard bargain with its suppliers. A spokesman adds that Wal-Mart inspects more factories than anyone else, more than 12,000 a year worldwide, including Masuma's factory, The Wills Group. Wal-Mart says it inspected the factory in 2004 and "identified numerous violations of standards" and "worked with the factory to ensure better performance."

The company says "ensuring proper workplace standards is an ongoing challenge" and it will "discontinue business with factories that will not take corrective action."

Enforcing codes of conduct is the responsibility not only of retailers like Wal-mart, but also of companies that supply products that end up in those stores. Apparel maker Sara Lee, for instance, which owns the brand of pants Masuma makes, says it, too, sent inspectors into the Wills factory, and the inspectors found "the plant meets appropriate standards.”

The Wills Group itself did not respond to our request for comment. The other factory we showed, The Rising Group, says it abides by all laws on working hours and conditions.

Back in the U.S., Kevin Burke represents Sara Lee and hundreds of other American apparel makers. He says the inspection process has made things better, but he acknowledges it's not foolproof.

Hansen: “In Bangladesh, the work week is supposed to be 60 hours, but when we were there, we saw factories routinely violating that. If we can find that, why is it so difficult for American companies and their representatives to find that?”

Burke: “The goal is to make the workplace a better place, so you don't find conditions like you describe. Now, are there conditions out there? Of course there are. Do we like that? No, we don't. We want to see that eliminated.”

Burke says over the long haul, American business is good for poor countries like Bangladesh.

Burke: “The fact is, we're creating--helping to create jobs that hopefully over time will increase their economy. Now, this doesn't happen overnight. This is a change that goes over a generation or two.”

But for those living in Bangladesh, a generation is a long, long time. And the struggle could get even worse. Competition from China may be forcing some factory owners in Bangladesh to lower prices even more and that means workers pay might not be going up any time soon. 

In the meantime, since we first met Masuma, she's started a new job as a labor organizer, trying to help improve the lives factory workers in Bangladesh, and she continues to keep some hope alive for the future.

Masuma: “We want the jobs. It's not that we don't want work in Bangladesh, but we want to be treated with respect.”

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