Global logistics companies fuel race to the bottom

Following on from the mass murder of workers at the Rana Plaza in Bangladesh earlier this year, there has been renewed focus on how companies search the world for the lowest labour costs. Companies race to have the lowest overheads like fire and other occupational safety in order to chase the biggest profits. Li & Fung is the largest sourcing and logistics company in the garment industry that helps companies set up in the most profitable countries. While Li & Fung is a global powerhouse in the garment industry, it is dwarfed by global logistics companies such as DHL, KUEHNE + NAGEL, and DB Schenker. Logistic companies constantly drive costs down in order to operate at a global level. As workers, we need to also globalise our structures and organisations to be able to defeat these giant corporations.

Following on from the mass murder of workers at the Rana Plaza in Bangladesh earlier this year, there has been renewed focus on how companies search the world for the lowest labour costs. Companies race to have the lowest overheads like fire and other occupational safety in order to chase the biggest profits. Li & Fung is the largest sourcing and logistics company in the garment industry that helps companies set up in the most profitable countries. While Li & Fung is a global powerhouse in the garment industry, it is dwarfed by global logistics companies such as DHL, KUEHNE + NAGEL, and DB Schenker. Logistic companies constantly drive costs down in order to operate at a global level. As workers, we need to also globalise our structures and organisations to be able to defeat these giant corporations.