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CALIFORNIA PRISON INDUSTRIES IN TROUBLE

It has long been an established business practice of any government, whether it be national or, as in the case of the U.S.A., state level, to exploit the resources that they control to offset their overheads. And those resources obviously also include their prison population. In California that process appears to be faltering if the latest figures from Calpia, the California Prison Industry Authority, are to be believed.

Since 1983, California's prisoner work program has become the largest in the U.S., with 5,000 prisoners in 57 state-run prisons (California has no privately-run prisons) earning between 23p-63p an hour doing everything from making dentures and office furniture to roasting coffee, recycling toner cartridges and cutting meat.

california's prison industries

However, this particular valuable commodity is beginning to get thin on the ground because of a 2011 decision by the U.S. Supreme Court decision that California's prisons had caused "needless suffering and death" and that it had to cut its prison population (then running at 75% over capacity) by more than 30,000 in two years to repair a health care system that lower courts had previously found was defying constitutional standards and endangering guards and inmates alike, the latest in a long line of cases brought to court by Californian prisoners themselves.

The State legislature's response was initially to ship prisoners into County i.e. local non-State jails or out of state privately-run prisons. This may have begun to alleviate the overcrowding problem to an extent but it had one major unforeseen effect on Calpia, the lack of short-term prisoners (just the sort chosen to ship out of State-run prisons) to carry out things like stitching trainers or manufacturing spectacles. Hence the closure of 2 spectacles factories and a 45% drop in trainers orders, and the wider 18% drop in revenue over the past 5 years.

The end result is that the industries programme last year ended up $8.8m (£5.8m) in the red and, for an organisation that must by law be self-sufficient and that can only sell its products to other government bodies, things do not look too rosy for Calpia. [17/05/13]

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SPS INDUSTRIES FACING A 'NEW BROOM'

Following on from our recent story on changes at the Scottish Prison Service headquarters, it appears that uniform procurement is not the only sector of their operations showing the distinct influence of the new infusion of fresh blood from south of the border. The widely derided Industries Department at the Fauldhouse Central Stores [apparently seen as an "embarrassment" by management] is about to be given the new broom treatment. The new Chief Executive, Colin McConnell, has picked up on Industries' long-running decline in profitability [1][2] and decided to try and use the 131 Solutions model introduced by Ken Clarke before he fell by the wayside.

The current plan appears to be to 'privatise' half of the current SPS workshop space, allowing companies to set up and equip workshops, and to provide the cheap labour which the firms in question will then train-up to carry out their work, thus providing the companies with a reliable source of cheap labour and the SPS with a regular income, much as happened in the past with Airsprung Beds and as currently happens with Speedy Hire (both at Glenochil).

The first prison to get this treatment will be the as yet unopened new HMP Grampian and SPS HQ are apparently in discussion with Score UK, a valve and gas turbine company based at Peterhead and that has grown out of the North Sea offshore Oil and Gas Industry. It will be interesting to see how the scheme develops and if has more success than the damp squib 131 Solutions currently appears to be. [14/05/13]

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LANDMARK PRISON LABOUR DECISION IN FRANCE

In what is seen by many as a significant court decision about the treatment of prisoners employed by private companies, Marilyn Moureau, a French prisoner who had been employed telephoning customer on behalf of Societal MKT, a call centre outsourcing company created especially to exploit female prison labour, and had been downgraded, 'déclassée' (declassified) from doing this type because she had used company time and equipment to phone her sister, has been found to have been unfairly dismissed.

Article 717-3 of the French Criminal Procedure Code states that: "The working relationship of prisoners are not subject to an employment contract." According to the Prison Act 2009, inmates sign a "contract of employment" with the prison administration, which in turn grants concessions to private companies. These rules therefore derogate the common law surrounding employment entitlement in much the same way as in Britain, except that French law also provides for an hourly rate for prison work of between 20% and 45% of the statutory minimum wage (€4-6 per hour).

However, Ms Moureau's lawyer argued that despite the lack of an employment contract between the prisoner and the company she was working for, she was effectively an employee of that company and still entitled to the sort of protection under law afforded to 'ordinary' employees, something that the court agreed with, awarding a compensation package with elements for lack of notice, paid holiday entitlement, back pay and failure to comply with fair dismissal procedures plus damages of €3000. Unfortunately, Societal MKT (a subsidiary of call-centre 'offshoring' company MKT Conseil, which had previously used prisoners in countries such as Tunisia) had since gone bankrupt and the monies are ultimately to come out of a public wage guarantee scheme. [10/02/13]

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RIPPED OFF

The following is a letter that appeared in the February 2013 edition of the Inside Time:

I would like to bring to your attention the scandalous behaviour of some management and staff at HMP Wolds who, in my opinion, are in fact criminals and rip-off merchants. This letter is on behalf of all the slaves in the prison workshop who have stripped copper wire for the 2 months before Christmas on the understanding that the money raised would be for our Christmas bonus from the company the prison hires us to, Bonus Electrics, Hull. Obviously the lads have grafted hard as some of them do not have family or friends to support them and the extra money would have come in handy. We stripped 95 kilos of wire and were told that it was sold for £4 a kilo, which would have made £398 or thereabouts, which would have been a nice return on our work. But we were then informed that Bonus Electrics were going to take 50% of this money for themselves, which still left around £200 to be shared amongst us prisoners who did the actual work, about £10 each. Now the Director of HMP Wolds has informed us that we are getting none of the money. We feel that we have been deceived by this private prison and a private company as there is no way we would have spent hours stripping this wire with teeth, hands and blunt Stanley knives as it is not in our job description. We have spoken to the IMB about this matter but they say there is not a lot they can do. The lads would rather have this money go to a chosen charity rather than it end up paying the bar tab for the staff Christmas party.

David Johnson – HMP Wolds
[10/02/13]

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SLAVE LABOUR DOWN UNDER

If we thought the constant round of revisions to the so-called Rehabilitation Revolution (RR) was making us all dizzy, then we should spare a thought for the plight of prisoners in New Zealand where they are introducing their own version of RR. One of the cornerstones of the Coalition's RR, and the element that received the biggest PR push, was the planned introduction of a full working week across the prison system to ensure prisons "become places of hard work and industry" in the words of Ken Clarke. He even had an expensive makeover of the Prison Industries department, renaming it rather grandiosely ONE3ONE Solutions, in order to try and entice new companies into using prison workshop labour. Alongside this, the inevitable debate about the contentious issue of prisoners' wages rates, with the idea of a Prison Minimum Wage (as opposed to the National Minimum Wage) being floated, and the possibility of any new wage rate undercutting outside workers' pay.

Well, in New Zealand they appear to have decided that they will go about it in a slightly different manner. Taking the model of Christchurch's Rolleston prison, where prisoners have been put to work refurbishing houses damaged in the 2011 earthquake, the National party government has decided to roll out a 40 hour week across all of Rolleston's prisoners, as well as two of their other prisons - Rangipo and Auckland Women's prison. Except, unlike those working on earthquake-damaged properties, these prisoners will not only be working a 40-hour week, but they will be doing so for NO pay at all. And whilst this sidesteps the sticky problem of the setting of fair pay rates for prisoners, it totally ignores the problem of 'out-competing' outside businesses. Expect some form of backlash from the business world (or at least the sections that are unable to get a slice of this new pool of slave labour. [31/01/13]

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DIME-AN-HOUR WAGES

The basic pay rates for prisoners in England and Wales have not seen an increase since the Incentives and Earned Privileges Scheme was introduced in 1995 (although local pay rates for a select number of jobs have risen and private sector prisons tend to pay more for equivalent jobs). In fact some governors have introduced pay cuts on the back of the Coalition cuts to the Prison Service budget. In New York's prisons things are even worse: they haven't had a pay rise since 1993. And their pay rates are even works than over here: between 10 cents and $1.14 an hour (6p and 72p). [25/01/13]

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IKEA AND PRISON LABOUR

So IKEA have finally been forced to admit that they used forced labour in East German Stasi-run prisons, something that the company has consistently denied since the issue was first raised in 1982, and despite all the evidence to the contrary. In fact it is now apparent that the company 'knew' that this was the case as early as 1978, yet they continued to source furniture from the German Democratic Republic with the only thing apparently bringing an end to the practice being the fall of the Berlin Wall and hence the loss of the manufacturing base. And, to make matters worse, the Swedish flat-pack giant even came close to sourcing products made by Cuban political prisoners when their GDR contacts tried to outsource production to the Caribbean island's communist regime (the only thing stopping them it seem was the lower quality of the product).

Here at CAPS a number of issues surrounding the apparent outrage surrounding this story stick out like a sore thumb, not least the blatant hypocrisy of the apparent indignation expressed. Take the massive Laogai prison labour network in China for example. Many of us are more than happy to use resources and products coming from the Laogai front companies, whose factories and mines produce everything from the cheap tools and a myriad of other items that are found in high street 'pound shops' and DIY stores across the UK, all the way up to the Rare Earth metals essential to the latest high tech must-have mobile phone, laptop and games console central to our Western consumer lifestyles. Where are the complaints about the use of political prisoners' labour there?

Added to that there is the argument as to exactly what constitutes a political prisoner and whether the police and legislature in so-called enlightened liberal democracies are any less culpable of criminalising and exploiting the imprisoned labour of it's political opponents, whether they be animal rights activists or climate protestors whose passionate objection to currently legal practices are either made illegal overnight by some new law or are suddenly deemed to be so under new interpretations of older laws simply because they have interfered in the ability of someone currently with sufficient political/financial/social clout to produce money, often via a means that at some point in the future will be deemed to be politically, financially or socially unacceptable.

These arguments are of course put forward in addition to the fundamental position of the Campaign, namely that all conditional prison labour, whether it be paid or not, amounts to a form of slavery/indentured labour irrespective of the legal basis governing the imposition of that labour [e.g. Article 4 of the European Convention on Human Rights, Article 4 of the UK Human Rights Act 1998 or Article 2 of the International Labour Organisation's Forced Labour Convention No. 29]. [19/11/12]

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MORE CALL CENTRE HIJINKS

urbandata leaflet

The Guardian today have broken another prison labour/call centre story, this time featuring the possibility of the Prison Service setting up their own in-house call centres just like UNICOR, the US Federal prison labour corporation. However, it is not too reassuring for all concerns that the company that the Guardian has identified, UrbanData Ltd., have filed for liquidation. The words 'piss up' and 'brewery' spring to mind in typical MoJ/Prison Service fashion and certainly will not inspire futurue customers with confidence, even if it does have the Indian call centre providers worried.
[09/08/12]

BECOMING GREEN AT THE GILLS

According to the Guardian, day release prisoners from HMP Prescoed in south Wales are working for as little as 40p an hour in the sales division call centre of solar power and double glazing firm called Becoming Green Ltd., a 42 miles round trip bus journey each day. These prisoners are on a 2 months plus 'work experience' placement that they need to complete before they can take up a 'proper' employment place. That's only £3 a day (6% of the minimum wage rate of £6.08 per hour for workers aged 21+) and currently 12 prisoners, half of the 23 working for the firm, are on that rate with the rest.

The Daily Mail in its outrage-ridden coverage of the same story has the basic wage at £15 a day (shock horror), which appears to be a £5 per meal payment from the Prison Service rather than the company, and only mentions the 40p per hour in passing and without putting it in any context. Leaving aside the Mail's dodgy coverage, the Guardian has a further revelation which the Mail's supposed investigative journalism has failed to dig up. According to one ex-Becoming Green worker, 17 staff have been sacked by the company since just before Christmas, exact the same number of call centre-employed prisoners on the 40p an hour rate when the Guardian contacted the company last month and before the story broke. Read into that what you will. [08/08/12]

PATENTLY ABSURD

The decision by the High Court to reject the challenge by two prisoners on the application of the provision to deduct a 40% victims levy on wages earned above £20 from Category D prisoners working in the community is patently absurd when the levy forces some prisoners to have to either give up or not take on paid outside work as part of their structured reintegration plan because they cannot afford to finance transport and other incidental costs such as meals whilst they are outside their open prisons; because they cannot afford to pay for the home visits that are essential part of their reintegration back into society so that these long term prisoners can get used to being in an often much changed society, being around family and friends again in situations other than in a closed supervised visiting room; gaining the dignity involved with earning money to provide for their family or for themselves - saving money for rent and deposit on a new home, for basic furniture and clothing needs when they are finally released. How does taking 40% of their earning (above and beyond tax and N.I.) for some notional 'victims fund' help with their progress towards being a useful law-abiding citizen? [03/07/12]

REHAB REV PLANS COME FULL CIRCLE

In the run up to the last election Iain Duncan Smith's pet ideological front organisation (think tank), the Centre for Social Justice, released a report entitled 'Locked Up Potential: A strategy for reforming prisons and rehabilitating prisoners' which contained the following paragraph:

"We believe it would be possible to double the number of ‘real jobs’ in our prisons within three years. This would require a drive into areas like training for NHS jobs, recycling contract work, forestry commission work and all work activities where there are skills shortages at local levels. There will be commercial rewards for private sector companies with such a strategy. But the greatest reward to the national interest would be that every year several thousand prisoners would be trained for work and well equipped, often for the first time in their lives, to secure jobs after their release. This would be a sure way to reduce re-offending." [p. 188]

Those 'real jobs' at the time of the report being written consisted of "approximately 4,000 work[ing] for contract services, producing goods and services for commercial organisations outside prison. Another 6,000 prisoners work[ing] to produce goods and services for the internal market of the Prison Service." [ibid]

Fast forward to the launch of Ken Clarke's 'Rehabilitation Revolution' two years ago and his stated desire to get all prisoners working and ensure prisons "become places of hard work and industry" as witnessed in his attempt to win over his right wing critics with an interview in July 2010 in The Sun.

That October, his Tory party conference speech was notably long on hard-edged rhetoric - "Most prisoners lead a life of enforced, bored idleness, where even getting out of bed is optional. If we want to reduce the crimes these people will commit when they get out, we need as many as possible to get used to working hard for regular working hours." - but short on any detail of how he was going to achieve this miraculous transformation at a time when the prisons budget was being trimmed by 23% and tens of thousands were being made redundant from his department.

Therefore it was inevitable that plans for the full employment of prisoners were gradually whittled away with each dubious media appearance or PR stunt that tried to inject confidence into the body politic about his plans - one of the more desperate was a Ministry of Justice press release announcing that 30 prisoners in the HMP Bristol Waste Management Unit i.e. recycling workshop were now working 33.25 hours instead of 22, as were the 15 prisoners in the laundry unit! Even the major announcement in September last year of the enacting of the dormant 1996 Prisoners' Earnings Act, and tied in to the following week's Conservative conference, turned out to be a bit of a damp squib, despite much bluster and effort on the various Justice ministers' behalves.

So in January this year we finally had an admission of failure, a rowing back of Clarke's commitment to the 'Revolution', with the less than sparkling promise to double the number of inmates working up to 40 hours a week, according to The Telegraph (although I think they meant double the number of inmates working AND to get them working up to 40 hours a week). And even then Clarke couched it in terms of: “The first thing we are doing is introducing a full working week to get more offenders off their beds and into purposeful activity." To that end, we had the less than earth-shattering relaunch of the Prison Industries department as ONE3ONE Solutions ['Justice Working For You' - "an enterprise with a difference. We have 131 locations across England and Wales, utilising a workforce of motivated prisoners (!?) who are looking to repay society and build outstanding business relationships with you."], a sort of down-market temps agency, replete with glossy brochures and jazzy logo.

Thus it came as no surprise when the Minister appeared on Radio 4's Today programme this morning marking the second anniversary of the 'Rehab Rev' launch that "the delivery of the policy will take years to take effect" and immediate results can not be expected. Admittedly he was referring to the whole 'Revolution' but even a relatively simple practical part of the plan, namely increasing workshop spaces and employment (as opposed to change the whole bang 'em up "culture" or even the reoffending juggernaut), remains relatively immune to his intervention. So Locked Up Potential's timetable of doubling 'real work' within three years definitely appears to be outside the scope of Clarke's abilities. And he has finally admitted as much, if not in so many words. [30/06/12]

DESPERATE KEN

The recent appearance of Justice Secretary Ken Clarke in a small newly-opened Timpson workshop located in an ex-farm building next to HMP Blantyre House in deepest darkest rural Kent would not normally be particularly newsworthy, even though the photo opportunity was tied in with the launch of the newly rebranded Prison Industries Unit as ONE3ONE Solutions - 131 prisons having been identified as able to host some sort of new business or prisoner training scheme.

Yet this announcement was significant in that it signalled a major surrender of ground in the ConDem Coalition's attempts to establish its 'Rehabilitation Revolution'. Gone were the plans to expand Prison Industries (in fact, gone was Prison Industries itself) and the idea of having Contract Services prisoners working for private companies contracts earning the Prison Service much needed income. Instead, we have the rather undignified sight of the Minister of Justice effectively begging private companies to come to his department's rescue, to provide the expertise and the funds to equip new workshops and the necessary training for a largely under-skilled prison workforce across England and Wales.

contract services analysis graph

Analysis of Freedom of Information and other Ministry of Justice data for the Prison Industries Unit's Contract Services department over the past 4 years shows that income has been more or less stagnant [see the graph of notional weekly incomes from various Contract Services employment sectors]. Additionally, the mix of different contract types has shown a significant de-skilling: the vast majority of contracts have always been low-skilled assembly and packing type jobs, but their value doubled between 2008-09 and 2011-12; whilst the value of manufacturing contracts halved during the same period. It therefore follows that if the Prison Service department dedicated to bringing in contracts to the 70 or so prisons that have operated Contract Service workshops has so singularly been unable to increase its income [in fact, Industries' sales have shown a significant decrease over more than a decade], then renaming the Prison Industries Unit and tasking it with getting jobs and training for 131 prisons is doomed to failure, even if much of the prisoners' labour appears to be being offered free [see: The Rehabilitation Counter-Revolution]. [18/05/12]

IRISH PRISONS 'IEP' SCHEME

The Irish Prison Service has deservedly earned a reputation of being somewhat (how to put it politely?) slow to introduce reforms into it's overcrowded and increasingly dilapidated incarceration system. Therefore, it should come as no surprise that they have only just cottoned on to the idea of replicating the pernicious 'carrot and (heavy-handed) stick' system of incentives and earned privileges that has been operating north of the border and across the Irish Sea since 1995.

So, instead of the current regime whereby prisoners are awarded a €2.35 daily allowance, there will instead be a flat rate of €1.70 i.e. a cut of 28%, the equivalent of the Standard IEP rate. That will be increased if they are 'compliant' and do not break any prison regulations and are actively engaging with the alcohol and drug treatment regimes and education programmes. Prisoners obeying all the new criteria will receive an Enhanced rate of €2.20 per day, which will be increased by €1 if they work on cleaning, kitchen or other jobs equivalent to HMPS Administration Tasks. Foreign nationals will also be allowed Skype calls abroad.

Failure to 'toe the line' and engage in the various 'rehabilitation' courses or who fail drug and alcohol tests will be reduced to a Basic rate (the Irish Times lists this as 95% of the standard rate but the Independent claims the rate will only be 95c i.e. 55% the Standard rate). On top of that, all prisoners face a flat rate 15% deduction for TV rental and for phone access - the current deductions are 15c for TV rental and 15c per phone call.

Thus, the whole process (along with the planned release of 1,200 prisoners over the next 3 years) appears to be just another facet of the Irish government's cuts programme rather than encouraging greater engagement with the Prison Service's rehabilitation regime. Sounds familiar? [03/05/12]


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