Two American Companies Layoff Hundreds Of Workers: Military Uniform Contracts Awarded To Prison InmatesSeptember 17th, 2012
Two American companies which make military uniforms are laying off hundreds of workers as the federal government decides to use prison inmates to make soldier fatigues. American Apparel currently charges $29.44 per uniform. The cost will increase by 15 percent when Federal Prison Industries (FPI) convicts begin sewing the clothing at a cost of $34.18 each. FPI also functions under the name UNICOR.
When the American Power Source government contract runs out in October, the work will shift from private sector employees to inmates. A 1930s federal laws allows Federal Prison Industries the first right of refusal on all United Stated government contracts, according to Fox News.
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