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1 The State of the World's Children (New York: UNICEF, 1997) 35 [hereinafter The State of the World's Children]; The Small Hands of Slavery: Bonded Child Labor in India (New York: Human Rights Watch, 1996) 102- 117 [here- inafter The Small Hands of Slavery]; Contemporary Forms of Slavery in Pakistan (New York: Human Rights Watch, 1995) [hereinafter Contemporary Forms of Slavery in Pakistan] ; N.
Burra, Born to Work: Child Labor in India (New Delhi: Oxford University Press, 1995) [hereinafter Born to Work]; "Is Child Labor Really Necessary in India's Carpet Industry?" Labour Market Paper #15 (Geneva: International Labor Organization, 1996) [hereinafter Is Child Labor Really Necessary]; Child Labour in Asia: Some Perspectives on Selected Countries (Canberra: Australian Agency for International Development, 1997) [hereinafter Child Labour in Asia].
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2 Industry and Trade Summary: Carpets and Rugs , USITC Publication 2695 (Washington, DC: U. S. International Trade Commission, November 1993) 9 [hereinafter ITC].
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3 Is Child Labor Really Necessary at 26- 27; ITC at 9; Imports for Consumption (Washington, DC: U. S. Department of Commerce, 1997) [hereinafter Imports for Consumption].
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4 ITC at 9; Janet Hilowitz , Labelling Child Labour Products, a Preliminary Study (Geneva: International Labour Organization, 1997) 19 [hereinafter ILO Labeling Report]. Germany is also a leading marketing center for the carpet industry, holding major trade fairs from which carpets are exported worldwide.
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5 Imports for Consumption. Hand- knotted carpets, generally referred to as "oriental rugs," are the major type of carpet imported into the United States, accounting for over 40 percent of the total value of carpets imported during 1987- 1992. ITC at 9 and 18.
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6 Imports for Consumption.
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7 ITC at 19.
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8 "Statistical Report" in Floor Covering Weekly (July 21/ 28, 1997) 14 [hereinafter "Statistical Report"].
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9 Interview with Leslie Stroh, Editor of Rugnews , by U. S. Department of Labor official (May 7, 1997).
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10 "Statistical Report."
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11 "Statistical Report."
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12 Interview with Lucille
Laufer, Executive Director, Oriental Rug Importers Association, by U. S. Department of Labor official (April 4, 1997).
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13 See Footnote 1 supra. Some children are also reported to be working in the carpet industries of Morocco and Egypt. U. S. Consulate- Casablanca, unclassified telegram no. 424 (May 31, 1997);
U. S. Embassy- Cairo, unclassified telegram no. 4702 (May 11, 1997).
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14 The Small Hands of Slavery at 102- 117; Contemporary Forms of Slavery in Pakistan at 53; Jonathan Silvers, "Child Labor in Pakistan," Atlantic Monthly (February 1996) 80- 81 [hereinafter Child Labor in Pakistan]; Best Kept Secret: Child Labor Around the World (Brussels: International Confederation of Free Trade Unions, June 1994) 8- 9 [hereinafter Best Kept Secret]; Child Labor in Nepal: An Overview and A Proposed Plan of Action
(Kathmandu: International Labor Organization, vol. II, August 1995) 9- 10; Girls in Especially Difficult Circumstances: An Action Research Report
(Kathmandu: UNICEF, 1995) 6 [hereinafter Girls in Especially Difficult Circumstances].
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15 International Child Labor Hearing , U. S. Department of Labor (April 18, 1997)( Written statement of the Oriental Rug Importers Association). See also ITC at 1; Girls in Especially
Difficult Circumstances at 6.
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16 Interview with Leslie Stroh, Editor of Rugnews , by U. S. Department of Labor official (May 7, 1997); Sharid
Ashraf, On the Experience of a Major Carpet Exporter in Eliminating Child
Labour While Maintaining Profitability , (New Delhi: Centre for Social Action and Research, 1996) 4.
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17 Is Child Labor Really Necessary at 1, 8.
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18 U. S. Department of Labor officials visiting China were unable to visit any hand- knotted carpet production facilities. Visits were only made to hand- tufted carpet production facilities, which are largely mechanized. There does not appear to be any available information on child labor in the Chinese hand- knotted carpet industry.
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19 Summary Results of Child Labor Survey in Pakistan (Islamabad: International Labor Organization, International Program for the Elimination of Child Labor, 1996) 11, 16- 17; International Child Labor Hearing, U. S. Department of Labor (April 18, 1997) (Written statement of the Oriental Rug Importers Association) 5; Child Labor in Pakistan at 80- 81; Memorandum from SACCS to U. S. Department of State (February 20, 1996) [on file]; Child Labour in the Carpet- Weaving Industry in Punjab (Punjab: UNICEF, 1992) 3. Recent and reliable estimates of child labor in the Pakistani hand- knotted carpet industry are difficult to obtain. While the hand- knotted carpet industry estimates that only about 120,000 children are carpet weavers, others have estimated the number to be anywhere from 500,000
(SACCS) to 1 million (UNICEF). The ILO recently estimated that 19 percent (over 600,000) of the 3.6 million child workers in Pakistan are involved in craft and craft- related industries; however, the study did not specifically address child labor in the hand- knotted carpet industry. The Constitution of Pakistan (1973) prohibits employment of children aged 14 and below in factories, mines and other hazardous occupations. The Employ- ment of Children Act (1991) and the Bonded Labour System (Abolition) Act (1992) aim at providing protection to children from exploitation, including bondage. Pakistani law does not prohibit or regulate children weaving carpets at home or in small shops. Adding to the child labor problem is the absence of free and compulsory elementary education in Pakistan.
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20 Contemporary Forms of Slavery in Pakistan at 48.
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21 Id. at 56- 57.
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22 Id. at 53; Dr. Rakhshinda
Parveen, Psychological dimension of child labor (Friederich- Ebert- Stiftung, February 1996) 5.
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23 Child Labor in Pakistan at 80- 81; Sydney H.
Schanberg, "Six Cents An Hour," Life Magazine (April 19, 1996) 43- 44; Contemporary Forms of Slavery in Pakistan at 53.
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24 Contemporary Forms of Slavery in Pakistan at 48. In some cases, children are abducted by strangers rather than bartered by their parents into the carpet weaving industry, but the extent of this practice is not known. Reports have mentioned that children who are abducted and sold into the industry often face worse conditions of work and abuse.
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25 Contemporary Forms of Slavery in Pakistan at 48.
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26 Id. at 50- 51.
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27 Id. at 53- 56.
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28 Centered around the towns of
Mirzapur, Bhadohi, Sonbhadra, Varanasi and Jaunpur in the State of Uttar Pradesh, the carpet belt accounts for 80 percent of all hand- made carpet production in India. See Is Child Labor Really Necessary at 1; Pharis J. Harvey and Lauren
Riggin, Trading Away the Future (Washington, DC: Interna- tional Labor Rights, Education and Research Fund, May 1994) 53.
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29 Is Child Labor Really Necessary at 12- 13; The Small Hands of Slavery at 102. Human Rights Watch estimates that there are 300,000 children working in the carpet industry, 270,000 of whom are bonded laborers. Based on a recent survey, the ILO estimates that at least 130,000 children are employed in India's hand- knotted carpet industry. The Indian Constitution prohibits the employment of children under 14 years in factories, mines, or other hazardous employment. The Children (Pledging of Labor) Act (1933) prohibits bonded labor. The Child Labor (Prohibition & Regulation) Act (1986) also prohibits the employment of children under 14 in various occupations, including carpet weaving.
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30 The Small Hands of Slavery at 106. Loomsheds are often located in the weavers' huts or houses.
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31 Eliminating Child Labor Through Community Mobilization: a study on an NGO's efforts to eliminate child labor in the carpet industry in
Mirzapur, India (New Delhi: International Labor Organization, 1996) 14 [hereinafter Eliminating Child Labor]; The Small Hands of Slavery at 103.
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32 The Small Hands of Slavery at 108-109.
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33 Eliminating Child Labor at 14.
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34 The Small Hands of Slavery at 109.
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35 Id. at 109; Molly Moore, "Factories of Children: Youth Labor Force Growing in Asia to Meet Export Demand," Washington Post (May 21, 1995).
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36 The Small Hands of Slavery at 104.
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37 Id. at 104- 105.
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38 Id. at 104.
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39 Survey of Child Workers in Nepal Carpet Factories
(Kathmandu: Asian- American Free Labor Institute, 1996) 7; Voice of Child Workers
(Kathmandu: Child Workers in Nepal Concerned Center, December 1995) 30. While AAFLI estimates that approximately 3,000 children are presently working in Nepal's carpet industry, an earlier study by CWIN estimated that about 150,000 children work in the Nepalese carpet industry. The Constitution of Nepal and the Children's Rights and Welfare Act (1992) prohibit the employment of children below the age of 14 in factories, mines or hazardous work. The Constitution also forbids slavery, bonded labor, and trafficking of individuals.
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40 S ituation Analysis of Child Labor in Nepal (
Kathmandu: Centre for Women/ Children and Community Develop- ment, May 1997) 54.
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41 U. S. Embassy-
Kathmandu, unclassified telegram no. 2665 (June 23, 1995).
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42 Child Labour in Asia at 71.
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43 John- Thor
Dahlburg, "Trading with Tiny Hands," Los Angeles Times (July 12, 1994) [hereinafter
Dahlburg].
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44
Dahlburg.
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45 Girls in Especially Difficult Circumstances at 7. Thousands of young children are believed to be transported from rural to urban areas, across the Nepalese/ Indian border, from Bihar into the carpet belt of Utter
Pradesh, and from Kathmandu to the brothels of Calcutta.
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46 There have been numerous media accounts attributing decreased carpet exports to the child labor issue. For example, the August 26, 1997 edition of the Pakistan English daily The News attributed a 7.5 percent decrease in carpet exports from Pakistan in 1996- 97 to, at least in part, the child labor issue. American Embassy- Islamabad, unclassified telegram no. 7330 (August 27, 1997). See also "Nepal's Carpet Makers Warned On Child Labor Law Violations," Journal of Commerce (May 20, 1995).
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47 RUGMARK® is a registered trademark. It will be written as RUGMARK throughout the remainder of this report.
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48 Pharis Harvey, RUGMARK After One Year: Appraisal of a New Effort at Social Marketing in the Interest of
Chil- dren (Washington, DC: International Labor Rights Fund, 1996) 4 [hereinafter RUGMARK After One Year].
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49 The German Development Agency is the German government's equivalent of the United States Agency for International Development.
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50 RUGMARK Nepal officials hope their program will be self- financed by 1998.
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51 ILO Labeling Report at 22.
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52 Fax letter from Ingo
Herbst, Representative of RUGMARK International, to the Child Labor Coalition (March 4, 1996) 2 [on file] [hereinafter Fax from Ingo
Herbst].
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53 RUGMARK After One Year at 15.
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54 Telephone interview with Ingo
Herbst, Representative of RUGMARK International by U. S. Department of Labor official (September 16, 1997). According to Mr.
Herbst, the Dutch market is
not large enough to support a RUGMARK Foundation in that country.
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55 The RUGMARK Initiative (New Delhi: Indian RUGMARK Foundation, February 1997) [hereinafter The RUGMARK Initiative]. In Nepal, the dimensions of the carpet are also included on the label since the physical characteristics of Nepalese carpets are often more difficult to describe than those of Indian carpets.
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56 The RUGMARK Initiative.
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57 For example,
RUGMARK- U. S. A. states on its promotional materials that "the RUGMARK label assures you that a carpet was made without illegal child labor, and that former child workers are getting an education." The German RUGMARK Foundation informs consumers that "RUGMARK carpets are from a controlled production which is free of child labor" (translated from German). Telephone interview with Ingo
Herbst, Representative of RUGMARK International by U. S. Department of Labor official (September 16, 1997).
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58 This Board of Directors will be formed according to a new RUGMARK constitution, which is pending final approval by the national foundations.
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59 Fax from Ingo Herbst at 2.
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60 Telephone interview with Ingo
Herbst, Representative of RUGMARK International, by U. S. Department of Labor official (July 31, 1997).
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61 Telephone interview with Terry
Collingsworth, Secretary- Treasurer of RUGMARK- U. S. A., by U. S. Department of Labor official (August 8, 1997).
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62 Affidavit to be Submitted to RUGMARK Foundation by Carpet Manufacturer/ Exporter , RUGMARK Foundation [on file] [hereinafter RUGMARK Affidavit].
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63 RUGMARK Criteria , Indian RUGMARK Foundation (undated) [on file] [hereinafter RUGMARK Criteria].
Appli- cants must submit a sworn affidavit guaranteeing, among other items, their commitment to source only from parties not employing illegal child labor and certifying they have disclosed all looms working for them to the local foundation. See RUGMARK Affidavit.
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64 Exporters who purchase from unknown sources or who cannot oversee the production of their carpets are not eligible to become a RUGMARK licensee. ILO Labeling Report at 23.
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65 This provision does not apply to family enterprises where the loom owner's children assist in carpet production, as long as these children attend school regularly. In cases where a worker's age is ambiguous, employers or loom owners must furnish an age certificate from a qualified medical practitioner.
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66 Simple Steps at Different Stages: Compliance of RUGMARK Requirements by Applicants (New Delhi: Indian RUGMARK Foundation, undated) 2 [on file] [hereinafter Simple Steps].
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67 Telephone interview with Major General S.
Sondhi, Executive Director of RUGMARK India, by U. S. Department of Labor official (June 17, 1997).
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68 Nepal RUGMARK Foundation General Progress Report
(Kathmandu: Nepal RUGMARK Foundation, April 14, 1997); interview with Surendra
Dhakal, Executive Director, RUGMARK Nepal, by U. S. Department of Labor official (June 5, 1997).
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69 Electronic correspondence from Ingo
Herbst, Representative of RUGMARK International, to U. S. Department of Labor (April 11, 1997) [on file]; Telephone interview with Ingo
Herbst, Representative of RUGMARK International, by U. S. Department of Labor official (September 16, 1997).
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70 Electronic correspondence from Ingo
Herbst, Representative of RUGMARK International to U. S. Department of Labor (September 10, 1997) [on file].
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71 Letter from Ingo
Herbst, Representative of RUGMARK International, to Pharis Harvey, President,
RUGMARK- U. S. A. (September 11, 1996) [on file].
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72 Telephone interview with Terry
Collingsworth, Secretary- Treasurer, RUGMARK- U. S. A., by U. S. Department of Labor official (September 12, 1997). Two other importers are now negotiating RUGMARK licensing agreements with the
RUGMARK- U. S. A. See Section E of this chapter for further information.
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73 RUGMARK After One Year at 17.
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74 Id. at 18. According to the author, empty seats found during inspections are assumed to have been vacated by a child, unless it can be demonstrated otherwise.
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75 Simple Steps at 2. The loom list also includes information such as the name and caste of the loom owner, the village, district, and the location and size of the looms.
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76 In India, the RUGMARK inspectorate consists of 13 inspectors based in the carpet belt in
Varanasi. According to RUGMARK India, additional temporary inspectors, recruited from universities, are sometimes hired. In Nepal, the RUGMARK inspectorate consists of 4 inspectors. Interview with John Mathew,
RUGMARK- India, by U. S. Depart- ment of Labor official (June 12, 1997); interview with Surendra
Dhakal, Executive Director, Nepal RUGMARK Foundation, by U. S. Department of Labor official (June 5, 1997).
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77 The RUGMARK Initiative, Article 2.1.
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78 RUGMARK After One Year at 20. RUGMARK India informed a U. S. Department of Labor official that while there are procedures to de-register individual loom owners for violation of RUGMARK criteria, there are no procedures to de-license exporters in toto . However, for five to six months after a loom is de- registered, the licensee responsible for that loom is not issued any labels. The licensee may re- apply for labels thereafter if the problem has been corrected. Interview with John Mathew,
RUGMARK- India, by U. S. Department of Labor official (June 12, 1997)
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79 Inspections are also made at exporters' facilities. During these visits, inspectors verify the source and serial numbers of each carpet and the exporters' packing lists; and assess whether any carpets are from uncertified sources, have duplicate serial numbers, or carry unauthorized labels. RUGMARK After One Year at 18.
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80 "RUGMARK Statistics," RUGMARK India (June 6, 1997) [on file].
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81 Electronic correspondence from Narayan
Bhattarai, Nepal RUGMARK Foundation, to U. S. Department of Labor (August 8, 1997) [on file].
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82 RUGMARK After One Year at 27. See also "RUGMARK rehab roots spread deep and wide," RUGMARK Foundation Special Newsletter (New Delhi: RUGMARK India, June 1997) 1.
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83 "RUGMARK Primary School Inaugurated in the Carpet Belt," RUGMARK Foundation Special Newsletter (New Delhi: RUGMARK India, September 1996) 1, and interview with John Mathew,
RUGMARK-India, by U. S. Department of Labor official (June 10, 1997).
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84 "RUGMARK's Gift to Carpet Weavers," RUGMARK Foundation Special Newsletter , (New Delhi: RUGMARK India, November 1996) 2, 8- 9.
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85 Electronic correspondence from Ingo
Herbst, Representative of RUGMARK International, to U. S. Department of Labor (April 11, 1997) [on file].
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86 Interview with Major General S.
Sondhi, Executive Director, RUGMARK India, by U. S. Department of Labor official (June 17, 1997).
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87 RUGMARK After One Year at 22.
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88 Electronic correspondence from Surendra
Dhakal, Executive Director, RUGMARK Nepal, to U. S. Department of Labor (September 12, 1997) [on file].
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89 Id.
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90 Id.
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91 Telephone interview with Terry
Collingsworth, Secretary-Treasurer, RUGMARK- U. S. A. by U. S. Department of Labor official (September 12, 1997).
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92 Interview with Major General S.
Sondhi, Executive Director, RUGMARK-India, by U. S. Department of Labor official (June 17, 1997).
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93 The directors of both RUGMARK programs emphasized that all of the licensees' looms must be free of illegal child labor, even if some are used for non- RUGMARK production.
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94 Interview with A. C.
Baranwal, East- West Imports, by U. S. Department of Labor official (June 10, 1997). Mr. Baranwal indicated that he suspected this was not an atypical practice among other exporters who were RUGMARK licensees.
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95 Netib is a
RUGMARK-licensed factory; the same situation was seen at Potala Carpet (a member but no longer a licensee). Observation by U. S. Department of Labor official (June 8, 1997).
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96 Interview with Surendra
Dhakal, Executive Director, RUGMARK Nepal, by U. S. Department of Labor official (June 5, 1997).
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97 Telephone interview with Terry
Collingsworth, Secretary- Treasurer, RUGMARK-U. S. A., by U. S. Department of Labor official (October 10, 1997).
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98 "RUGMARK Policy on Stock Carpets" (Washington, DC:
RUGMARK- U. S. A, undated) [on file].
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99 Telephone interview with Terry
Collingsworth, Secretary- Treasurer, RUGMARK- U. S. A., by U. S. Department of Labor official (October 10, 1997); Electronic correspondence from Narayan
Bhattarai, Inspection, Monitoring and Certification Program Supervisor, Nepal RUGMARK Foundation, to the U. S. Department of Labor (October 7, 1997) [on file].
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100 Telephone interview with Terry
Collingsworth, Secretary- Treasurer, RUGMARK- U. S. A., by U. S. Department of Labor official (October 10, 1997).
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101 In some cases, these activities are done on site. During a site visit to
RUGMARK- licensed facility in Nepal, a U. S. Department of Labor official observed both adults and children spinning
yarn.
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102 Interview with Major General S.
Sondhi, Executive Director, RUGMARK India, by U. S. Department of Labor official (June 7, 1997).
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103 These identification cards are proof of adulthood, issued by the central government on request at age 16. But because birth certification is still relatively new, many workers do not have these identification cards.
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104 Nepalese law prohibits marriage before the age of 16, but this law is not enforced in rural areas.
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105 Observation by U. S. Department of Labor official (June 11, 1997).
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107 "Kaleen" is the Hindi word for carpet.
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108 A "registration- cum- membership certificate" from the CEPC is now required in order to obtain an export license. American Embassy- New Delhi, unclassified telegram no. 3876 (April 15, 1997).
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109 Annual Report, 1995- 96 (New Delhi: Carpet Export Promotion Council, 1996) 4 [hereinafter CEPC Annual Report].
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110 ILO Labeling Report at 49.
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111 Id.
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112 CEPC Annual Report at 4.
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113 "Kaleen My Future," Carpet Export Promotion Council at 5 [on file] [hereinafter Kaleen My Future].
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114 "Details of Kaleen Labels Sold as of June 15, 1997," Carpet Export Promotion Council, [on file].
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115 Interviews with CEPC officials: T. S.
Chadha, Executive Director and Secretary; O. P. Garg, Chairman; and V. R. Sharma, First Vice Chairman, by U. S. Department of Labor official (June 2, 1997).
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116 International Child Labor Hearing , U. S. Department of Labor (June 28, 1996)( Written statement of the Govern- ment of India, Annexure VII).
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117 Kaleen My Future.
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118 Interviews with CEPC officials: T. S.
Chadha, Executive Director and Secretary; O. P. Garg, Chairman; and V. R. Sharma, First Vice Chairman, by U. S. Department of Labor official (June 2, 1997).
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119 Terms and Conditions for Issuance of Kaleen Label , CEPC Circular No.
CEPC/ Cess/ Label/ 95 (July 26, 1995) Annexure III [hereinafter CEPC Circular].
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120 Id.
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121 "Kaleen," My Future at 3.
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122 Letter from T. S.
Chadha, Executive Director cum Secretary, CEPC, to all members (July 7, 1995) [on file].
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123 A "show of cause" notice would first be issued to the member requesting an explanation, and CEPC
registra- tion could be revoked if the explanation proved unsatisfactory.
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124 American Embassy- New Delhi, unclassified telegram no. 3876 (April 15, 1997). The CEPC provided the U. S. Department of Labor with a list of the 69 CEPC members whose cases had been brought before that entity's Administrative Council for violation of the code of conduct or misrepresentation in the registration process. Six of these 69 members had been de- registered by the
CEPC. According to CEPC policy, the export licenses of these members should be revoked upon de- registration. However, prior to the acquisition of this list, a U. S. Department of Labor official actually toured the finishing plant and warehouse facilities of one of the de- registered exporters — Om Carpet Industries, also a RUGMARK licensee — who appeared to be at that time engaged in export activities (June 10, 1997).
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125 Interviews with CEPC officials: T. S.
Chadha, Executive Director and Secretary; O. P. Garg, Chairman; and V. R. Sharma, First Vice Chairman, by U. S. Department of Labor official (June 2 and 16, 1997).
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126 The CEPC's Executive Director informed a U. S. Department of Labor official that the program would be adding up to 24 inspectors by September 30, 1997 to verify that all reported looms had actually been registered. Inter- view with T. S.
Chadha, Executive Director, CEPC, by U. S. Department of Labor official (June 16, 1997).
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127 Interviews with A. K.
Dwivedi, Director of AMS, and two members of an inspection team by U. S. Department of Labor official (June 9, 1997).
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128 The U. S. Department of Labor was provided copies of the inspection form in Hindi and in English. The forms are geared towards the type of household production that predominates in Eastern Uttar Pradash state, but also request information, as appropriate, on hired workers who are brought in from localities outside the village [on file].
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129 Interview with A. K.
Dwivedi, Director of AMS, by U. S. Department of Labor official (June 9, 1997).
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130 Interview with T. S.
Chadha, Executive Director, CEPC, by U. S. Department of Labor official (June 16, 1997). The CEPC currently has 24 applications in the pipeline from NGOs
interested in running such programs. It estimates that a center serving 48- 50 children requires annual funding of about 187,000 rupees.
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131 CEPC grants have gone to four NGOs: Project Mala (380,000 rupees), The Center for Rural Education and Development Action
(CREDA) (280,000 rupees), the Child Labor Eradication and Welfare Society (226,000 rupees) and the Bonded Labor Liberation Front (187,000 rupees).
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132 Two other centers are scheduled to open during the 1997- 98 fiscal year; another one in
Amoi, and one in the village of Patehra. CEPC is one of six funders for Project
Mala; the others include the ILO, foreign- based founda- tions and NGOs, as well as the Ministry of Labor of the Government of India.
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133 ILO Labeling Report at 59.
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134 These NGOs are: Bread for the World, Caritas Switzerland, Swiss Lenten Fund,
Swissaid, and Berne Declaration. Bread for the World headed up the initial media campaign in Europe regarding child labor in the carpet industry.
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135 Letter from Geraldine
Zeuner, STEP Foundation official, to U. S. Department of Labor (July 25, 1997) [hereinaf- ter Geraldine
Zeuner].
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136 Interview with Barbara
Maibach, STEP representative in Nepal, by U. S. Department of Labor official (June 6, 1997). See also ILO Labeling Report at 60.
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137 Electronic correspondence from Werner Dick, Executive Secretary, STEP Foundation, to U. S. Department of Labor (August 6, 1997) [on file].
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138 Fax letter from Werner Dick, Executive Secretary, STEP Foundation, to U. S. Department of Labor (April 11, 1997) [hereinafter Letter from Werner Dick].
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139 Id.
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140 Geraldine Zeuner at 2.
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141 STEP Foundation code of conduct [on file].
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142 Geraldine Zeuner at 2.
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143 Id. at 3.
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144 Letter from Werner Dick at 2.
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145 ILO Labeling Report at 61.
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146 Geraldine Zeuner at 2.
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147 Id.
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148 Electronic correspondence from Werner Dick, Executive Secretary, STEP Foundation, to U. S. Department of Labor (August 7, 1997) [on file].
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149 Electronic correspondence from Werner Dick, Executive Secretary, STEP Foundation, to U. S. Department of Labor (September 17, 1997) [on file].
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150 Electronic correspondence from Werner Dick, Executive Secretary, STEP Foundation, to U. S. Department of Labor (August 6, 1997) [on file].
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151 ILO Labeling Report at 63.
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152 Interview with Barbara
Maibach, STEP Representative in Nepal, by U. S. Department of Labor official (June 6, 1997).
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153 "Health Education and AIDS Prevention in
Kathmandu, Nepal," STEP Info- (Berne: STEP Foundation, July 1996) 3. See also ILO Labeling Report at 62.
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154 Telephone interview with Manju Vira Gupta, STEP Representative in India, by U. S. Department of Labor official (June 16, 1997).
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155 Id.
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156 ILO Labeling Report at 62.
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157 Environmental issues receive a high priority. Water pollution and depletion have become serious problems in the Kathmandu valley as a result of the concentration of the carpet industry in that region.
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158 Telephone interview with Manju Vira Gupta, STEP Representative in India, by U. S. Department of Labor official (June 16, 1997).
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159 Telephone interview with Manju Vira Gupta, STEP Representative in India, by U. S. Department of Labor official (June 6, 1997).
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160 Id.
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161 Manju Vira Gupta, A Situational Analysis and Strategies to Combat Child Labour in the Carpet Industry in India (Bombay: June 1997) 10 (unpublished manuscript) [on file] [hereinafter Gupta].
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162 Gupta at 11.
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163 Rules (Hamburg: Care & Fair/ Europe, undated) Article 1.3 [hereinafter Rules].
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164 Membership list and letter from Klaus R.
Beekmann, Secretary General, Care & Fair, to U. S. Department of Labor (July 18, 1997) [on file][ hereinafter Beekmann letter].
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165 Rules, Article 2.3.
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166 Beekmann letter.
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167 Memorandum from Klaus R. Beekmann, Secretary General, Care & Fair, to U. S. Department of Labor (July 17, 1997) 2 [on file] [hereinafter Beekmann memorandum].
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168 Id. at 1.
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169 According to Mr.
Beekmann, Care & Fair is lobbying the European Union to institute a two percent fee on all carpets imported into Europe, regardless of the country of origin, to be used for further projects in carpet- producing countries. Fax letter from Klaus R.
Beekmann, Secretary General, Care & Fair, to U. S. Department of Labor (September 1, 1997) [on file].
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170 Individuals and organizations who are not involved in the carpet trade can become supporting members of Care & Fair, provided they also pay the same annual fee.
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171 Beekmann memorandum at 2.
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172 "Supplementary Purchasing Conditions (Statement of Demands)" (Hamburg: Care & Fair, undated) 1
[hereinaf- ter Supplementary Purchasing Conditions].
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173 "Declaration of Membership" (Hamburg: Care & Fair, undated) 1.
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174 Beekmann letter.
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175 Supplementary Purchasing Conditions.
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176 Care & Fair Magazine (Hamburg: Care & Fair Foundation, January 1997) 1.
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177 Id. at 2.
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178 Beekmann letter.
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179 Interview with A. C.
Baranwal, Honorary Secretary, Care & Fair, by U. S. Department of Labor official (June 10, 1997).
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180 American Embassy- Islamabad, unclassified telegram no. 9784 (November 20, 1996).
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181 American Embassy- Islamabad, unclassified telegram no. 4106 (May 19, 1997).
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182 Interview with Siddiqui
Alvi, Director General, Pakistan Export Promotion Bureau, by U. S. Department of Labor official (June 10, 1997). As mentioned in the previous section, Care & Fair explicitly does not monitor the production facilities of its members.
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183 Letter from Nasim Ahmed, Chief Executive, Child Care Foundation, to U. S. Department of Labor (July 14, 1997) 2 [on file].
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184 Letter from Shekh
Wahiduddin, President, Lahore Chamber of Commerce & Industry, to U. S. Department of Labor (June 9, 1997) [on file].
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185 Telephone interview with Terry
Collingsworth, Secretary- Treasurer, RUGMARK- U. S. A., by U. S. Department of Labor official (August 8, 1997). The Atlanta Fair includes the largest
exhibit of hand- knotted carpets in the United States.
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186 Ten Thousand Villages is an "alternative trading organization" or
ATO. Unlike fair trade organizations, which do not trade themselves but certify fairly traded goods, ATOs import and sell products generally made by small- scale producers and artisans in developing countries. They pay these producers more than do commercial importers. ATOs operate under principles of "fair trade," which is discussed in detail in Chapter V of this report. Ten Thousand Villages was included in a U. S. Department of Labor survey of U. S. retailers and importers of hand- knotted carpets, which is discussed in the following section.
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187 "Jakciss Oriental Rugs Fair Wages for Top Quality Handknotted Rugs from Pakistan," (Pennsylvania: Ten Thousand Villages, undated) [on file].
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188 Id.
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189 Interview with Reverend Chaman
Masih, founder, JAKCISS, by U. S. Department of Labor official (June 11, 1997).
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190 Telephone interview with Yousef
Chaman, JAKCISS representative, by U. S. Department of Labor official (September 12, 1997).
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191 Telephone interview with Yousef
Chaman, JAKCISS representative, by U. S. Department of Labor official (September 12, 1997).
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192 International Child Labor Hearing, U. S. Department of Labor (April 18, 1997) (Written statement of the Oriental Rug Importers Association).
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193 "The Focus 100 Retail," Floor Focus Magazine , vol. 5, no. 9 (November 1996) 18- 44; Michael Caratzas and Lee Stern, "Manufacturers Maneuver for More Market Share," Floor Covering News Weekly (July 1996).
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194
RUGMARK-U. S. A. is in negotiations with both Masterlooms and Tufenkian and anticipates they will soon become licensees in the United States. The presidents of both Masterlooms and Tufenkian are already on the Board of Directors of
RUGMARK-U. S. A. Interview with Terry Collingsworth, Secretary-Treasurer,
RUGMARK-U. S. A., by U. S. Department of Labor official (August 8, 1997).
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195 Interview with Thomas
DiMarco, Representative, Odegard Inc., by U. S. Department of Labor official (October 7, 1997).
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196 According to
RUGMARK- Nepal, neither Tufenkian nor its major Nepalese supplier, Samling Industries, has applied to become a RUGMARK licensee in Nepal. Therefore, Samling is not yet authorized to request RUGMARK labels, and Tufenkian is neither authorized to import nor sell Rugmark carpets. Electronic correspondence from Mr. Narayan
Bhattarai, RUGMARK- Nepal Foundation, by U. S. Department of Labor official (August 8, 1997); interview with Terry
Collingsworth, Secretary- Treasurer, RUGMARK- U. S. A., by U. S. Department of Labor official (August 8, 1997).
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197 Interview with James
Tufenkian, President, Tufenkian Import/ Export Ventures, by U. S. Department of Labor official (September 8, 1997).
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198 Interview with Yousef
Chaman, JAKCISS representative, by U. S. Department of Labor official (March 21, 1997).
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199 Masterlooms stated that the total cost of participating in the RUGMARK labeling program is 1.25 percent of the value of each carpet (1 percent is paid by importers and .25 percent is paid by manufacturers and exporters). Similarly, Ten Thousand Villages estimated the cost of its labeling program to be approximately 1- 2 percent.
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200 Interview with Stephanie
Odegard, President, Odegard Inc., by U. S. Department of Labor official (September 4, 1997).
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201 Interview with Nassar
Rahmanan, President, Masterlooms Inc., by U. S. Department of Labor official (June 6, 1997).
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202 Interview with James
Tufenkian, President, Tufenkian Import/ Export Ventures, by U. S. Department of Labor official (September 8, 1997). Interview with Paul Meyers, President, Ten
Thousand Villages, by U. S. Department of Labor official (September 8, 1997).
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203 These policies also include provisions on prison and forced labor, and compliance with occupational safety and health laws.
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204 Interview with Frank J. Williams, Jr., Vice President for Public Affairs, May Department Stores Company, by U. S. Department of Labor official (August 29, 1997). In some cases, large
department stores, such as those owned by May Co., do not directly buy or sell carpets directly. Instead, they lease floor space to an importer who sells their own carpets inside the department store.
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205 May's monitoring and enforcement procedures do not apply to retailers leasing space and selling carpets in May Department Stores.
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This report was produced by the staff of the International Child Labor Program and is published by the U.S. Department of Labor, Bureau of International Labor Affairs.
Acknowledgements
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