Because of the numerous questions surrounding the use of prisoners in manufacturing operations run by corporations, or who profit from that labor, I realize it is necessary to allow readers the opportunity to begin where I have - 1998. I will take you back there by video links provided below in the main part of the diary. In the meantime...
This is a difficult and sometimes loudly debated issue with many facets far beyond prison labor usage. The last segment proved this to be the case. Some objected to the possibility that President Obama could in some manner be involved in fostering profits driven by corporate use of prisoners as a labor force. Others objected arguing that the President is not a member of the Board of Directors of UNICOR, and thus any involvement by the President was thus false.
Still others object to the use of the words "Slave Labor" to describe the inmates forced - and in some instances, unforced - labor within prison and most importantly, prison industry operations.
These arguments do not address the issue at hand or under discussion - but have to be addressed in order for the rest of us to become able to move forward and find solutions to the problems of privatization of prison industries, corporate profits from housing and working state inmates in their custody and cheap wages paid by corporations involved in industry to the inmates in the program.
First let me say this about why I asked the question whether President Obama is the President of the #1 U.S. Corporation using inmate labor...
...UNICOR is guided by a six member Board of Directors. Each member represents specific interests of several factions, groups or government agencies. The federal government's interests are represented by the Departments of Defense, Labor and Department of Justice (Attorney General). Other interests include: retailers and consumers, industry and Agriculture.
The U.S. Attorney General is responsible for enforcing the laws pertaining to prison industries - state and federal - and the Department of Defense is a preferred customer of UNICOR. Labor and industry obviously have interests in the federal prison industry operation as does Agriculture. The work performed by the Federal Prison Industries impact upon all of the interests represented by the Board of Directors; many products made by FPI are military products such as uniforms, boots, helmets, canteens, camo gear, body and vehicle armor, etc. FPI is involved in growing crops, raising and slaughter of cattle to feed prisoners and non-prisoners. Because the FPI is comprised of 102 separate industries nationwide, industry and labor interests are of importance. I'm sure you see the connections I've made and realize those interests of most importance are represented by the make-up of the Board.
The Board of Directors of UNICOR are appointed by the President of the United States and serve at his pleasure. Two of the currently sitting Board members were appointed to the Board of Directors by President George W. Bush in 2007. Since the President is responsible for choosing the Board of Directors, does he in fact bear any responsibility for the actions of this U.S. owned Corporation? (NOTE: in Florida the PRIDE Board is appointed by the Governor, however PRIDE is a private non-profit corporation and not owned by the state of Florida. In that situation, the Governor was still held responsible for the activities of PRIDE in 2004 when the Inspector General's report mentioned below was completed and submitted to Governor Bush. As Governor he had the authority to ask for and receive the resignations of both Board members as well as members of the Executive staff - Davis, Bruels, Smith and one other).
As with many U.S. corporations, the "company" is made up of a Board of Directors who determine the direction they believe the company should move toward. They make and vote on resolutions and those resolutions serve as guidance to the "Executive" staff; CEO, President, CFO and COO. In most cases these administrative positions do not include a position on the Board of Directors.
In the case of UNICOR, AG Holder describes it as a "wholly-owned government corporation". Since it is just that and has a Board appointed by our President...who then serves as the Executive staff of the "corporation?" My argument was that in the world of corporations, subsidiaries and affiliated sub-corporations, the buck has to stop someplace. UNICOR as a corporate entity is subject to the same conclusion - the buck has to stop someplace...but where?
UNICOR exists as a government corporation, owned and run by the U.S. government and thus the "buck stops" somewhere within our government. Since the Department of Defense and the Attorney General both have representatives on the UNICOR Board and both the DOD and AG report to the office of the President one must assume - rightly or wrongly - that the President is ultimately in the single position of authority over the operations of this government owned corporate entity. If the Department of the Treasury serves as UNICOR's financial institution, Mr. Geithner would be considered UNICOR's CFO.
A simplistic description of how the chain of command works within UNICOR and how ultimately the buck stops at the office of President Obama. This theory was posed to readers as a question - not a statement - but it was taken as the latter. Obviously UNICOR serves at the pleasure of President Obama - or any sitting President - and as such the President has great influence in the operation of the Federal Prison Industry. The DOD and AG report directly to the President and if the FPI is operating in a manner or form objectionable to him, I'm sure it would be changed.
However, President Obama has been asked on several occasions over the past two plus years to address the issues surrounding the use of inmate labor in both state and FPI industries and as yet has refused to join in the discussion. Complaints to his office have gone without response as have similar offers and complaints made to the Attorney General's office. The foregoing is a response to two of the objections posed in last night's segment.
The third is the use of the term "Slave Labor" to describe the use of inmates in prison industry programs. I think that was adequately responded to in the comment thread last night. In support of the use of that term to describe prison labor today, I will only add that Rep. Bill McCollum, (R-FL) in statements made to members in attendance of the National Prison Industries' "Policies and Programs In Prison Industries" seminar in 1998, used that very term to describe how opponents to the PIE program considered the use of inmates in the program 13 years ago (Link to and more about this below).
I was not the first to use this term nor will I be the last. As used it does not describe slavery or any of the horrendous things that occurred during that darkest of times within our country it refers to the slave-like conditions inmates across the nation work in today - so that corporate interests can earn higher profits.
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This all began in 1998 as hearings, meetings and formal discussions were entered into by members of state and federal agencies, departments, UNICOR, PRIDE and lawmakers from states using prison labor. Hereis a video from C-Span where Rep. McCollum, Former AG Janet Reno and others spoke in support of PIECP. Mr. McCollum spoke at the 29:00 mark on the video. The entire video is one hour and seven minutes long.
The second portion of that same meetingheld at Union Station on May 5, 1998 is opened by former PRIDE President, Pam Davis and involves studies performed by the Enterprise Prison Institute and includes statements by the CEO of Geonex Corporation who at that time was partnered with PRIDE in PIECP.
The purpose of this seminar was to discuss the use of PIECP in more state prison operations by encouraging partnerships with private manufacturers, companies and corporations. Many of the same issues I've written about were discussed; prevailing wages, establishing what a "locality" is for purpose of wage determinations, competition between private sector companies and prison industry operations. The results of this and other seminars leading up to this one was the establishment of the PIECP Final Guideline in 1999. These guidelines have served as the "rule of law" controlling PIECP since.
The concept and purpose of PIECP as envisioned by Congress in 1979 was to create a level playing field and competitive arena for both private sector and prison industries to coexist without either taking or gaining an unfair advantage over the other. However as is often the case when corporations are involved in privatization efforts, the drive for profits outweigh the civic purpose behind such public/private partnerships.
This is what happened with PIECP. From the very beginning back in 1998 two important and influential participants in the discussions - Pam Davis and Bill McCollum - were deeply involved. McCollum's statement and arguments presented were predicated upon his genuine belief that PIECP could help the state respond to increased incarceration by providing training to inmates to enable them to better themselves and once released have an established work ethic and skills to assist them in not returning to prison. To further the goals McCollum encouraged state prison industries to form partnerships with private sector corporations - such as PRIDE had already done with Geonex.
Ms. Davis' ideas were not along those lines at all. At the time of the 1998 seminar she was already working behind the scenes to expand PRIDE's operations and influence over prison industries in Florida - in pursuit of profits. PRIDE's lobbyists were already busy at both the executive and legislative branches of Florida government, working to seek a transfer of the PIECP Certificate from the Department of Corrections to PRIDE and to enact new laws allowing PRIDE to pay wages less than that discussed in the seminar (prevailing wages). Their lobbyists were also pursuing enactment of a law that would allow PRIDE to deduct money from the wages of the inmates working in the program and instead of forwarding that money to the FDOC or state general revenue fund, instead divert it back to PRIDE.
In addition PRIDE's counsel was busy forming nine Florida spin-off corporations to be used to partner with private corporations and businesses under PIECP and PRIDE's guidance. Each of these corporate entities was founded by, chaired, directed or presided over by Pam Davis.
Davis was in a unique position and must have thought it was simply ordained by the stars or whatever that in 1998 she was so well placed within several factions important to prison industry: She was the President of the only private non-profit corporation in the U.S. operating an entire prison industry for a state, she was sitting on numerous boards including collegiate (University of Miami)and was the Chairman of the Correctional Industries Association (changed their name in 2002 to the National Correctional Industries Association - NCIA) that was in charge of oversight of PIECP, and she was affiliated with Florida Tax Watch, an advocacy group that studies how to save tax dollars for the state of Florida and it's taxpayers.
What CEO or President would not want to be in charge of ten (10) corporations and businesses related with one particular field or industry? When he/she sits upon the Board of another private corporation chosen by the government to oversee compliance of those ten (10) industries and also be a member of those chosen to establish wages and other details concerning the operations of his/her corporate empire? Wow...and get a salary from each of those industries along with perks, benefits and other considerations?
The stars were certainly aligned for Davis. Her salary jumped almost obscenely as did her influence. In one year her CEO salaries from PRIDE and ITC combined went from approximately $238,000.00 to $275,573.00 Jack Edgemon's salary (current PRIDE President) jumped from $110,708.00 to $144,849.00 and PRIDE's President John Bruels in 2003-05 went from $164,230.78 to $231,542.87 (source Fl. IG Audit 4-2004 Exhibit #5, page 28)
In the next segment I'll reveal how the manipulation by Davis and her partners have cost Florida taxpayers more than $4 million dollars, cost their inmate employees another several million in underpaid wages and contributed to hundreds of civilian job losses. From there we'll see how all these violations and pursuit of profits have been transferred to other states operating under PIECP.