“What a cute shirt! Where did you get it?”

“Joe Fresh! For only 4.99$”

While these may not be the exact words out of your mouth, I can guarantee you’ve said something similar, especially after finding something so cheaply. However, the true cost of the clothes, especially those out of Bangladesh, India, Sri Lanka and other places, is not in the price tag.

However, with the recent factory collapse in Bangladesh cheap has a new meaning. In North America, the cost of labour is so high, especially for specialized jobs like sewing. Companies like Canada Goose, which has its factory in Toronto (near my house!), has a high wages, while many others prefer using machines. In places like those named above, labour is so cheap because so many people are looking for work (law of supply and demand).

Since many of the governments do not have the resources (through their economy or rampant corruption) to have committed oversight, I offer a few tips for companies using outsourcing:

1. In places where outside oversight is allowed (not China), hire an independent inspector to regularly inspect factories, including surprise visits. This small cost could prevent another Savar

2. NO CHILD LABOUR. The benefit of building a school near the factory where worker’s children can attend will benefit the company in the future, who will have skilled, educated workers, who will be more loyal to the company