Specialized not doing the best it can?

[nmrt]

I still find it amazing that workers in El Salvador make $370/month while Spesh turns around and sells one bib for $250.

I know, I know...most companies manufacturing in low wage overseas countries do this but the math, the politics, the lifestyle we enjoy here, and our expectations puts a lot of things in perspective.

[fourflys]

Originally Posted by nmrt

I still find it amazing that workers in El Salvador make $370/month while Spesh turns around and sells one bib for $250.

I know, I know...most companies manufacturing in low wage overseas countries do this but the math, the politics, the lifestyle we enjoy here, and our expectations puts a lot of things in perspective.

yep! and Spesh certainly aren't alone in that..

and to the previous comment from ridethecliche, I agree 100%! Obligations are obligations..

[FastCanon]

Anyone here could always work for less than market rate and charge less.

[bigbill]

We all get to choose where we spend our money, but I doubt most people research the company's business practices, but instead, look for a good price.

Here is an American company that manufactures in the US with US sourced materials. https://originusa.com/

I bet the jeans are superior quality, but they're still $129 a pair. Or pay $40-50 for Levi's manufactured outside the US.

[shrimp123]

Originally Posted by prototoast

So if I'm understanding the situation correctly, Specialized contracted with an unrelated company to manufacture equipment for them. Specialized paid the company and the company delivered the goods to Specialized. The company did not pay its workers. Now some folks want Specialized to pay the workers directly?

If that understanding is correct, I don't believe Specialized is under any obligation to provide additional compensation. It's surely an unfortunate situation for the workers who weren't paid, but implicitly guaranteeing the liabilities of every business you enter into a contract with is simply not a sustainable business practice, and could be easily abused if it became an established practice.

exactly ...... and let me go a step further : If S failed to sell those goods and ran into a loss, then, is it allowed to ask them to pay back some of their salaries, retroactive?

moral, humanitarian reasons : sure, we can talk those - and i agree we should take care of people who make products we love. But, that is you, me and our cycling buddies - nothing to do with S.

S is a company, in the world, to make bike products and make $$ (hopefully in that order, but, not necessarily!)

[oldpotatoe]

Originally Posted by fourflys

as I said in the original post, none of the companies have any legal obligation to pay any of the workers.. of the companies that had garments made at this facility, all of them except Specialized have provided some relief to these workers..

I don't know if Spesh has a moral obligation to help support these workers or not.. I have mixed feelings for sure..

'Moral' obligation? Don't know, ask the accountants..

[AngryScientist]

Ugh.

Stories like this just make me realize how lucky we are to be born where we were and under what circumstances.

I hope the workers somehow get compensated. It sounds like their lives are hard enough as it is.

Most big companies now have, or should have some ESG component baked into their contractor selection process. One would hope Specialized would be required by internal policy to understand who they are choosing to enter into contracts with to prevent themselves from being mixed up in a big mess like this.

Manufacturing products offshore is the norm now. At least if we're going to flow money into a poorer country, we should do so responsibly.

[the bottle ride]

I don’t think specialized is morally obligated by any stretch-
Their contract was with the management of the manufacturer- they are the ones who failed the workers.

The bigger subject is consumption habits globally: the US does not even rank in the top 50 of emissions centers, most of which are in China industrial areas.

Tellason jeans is my favorite US made clothes company- they are really expensive but they last.

I don’t mind paying more if the product will last longer

[RoosterCogset]

Originally Posted by the bottle ride

I don’t think specialized is morally obligated by any stretch-
Their contract was with the management of the manufacturer- they are the ones who failed the workers.

I think the suggestion is that a contract is just a legal agreement, while morality isn't always aligned with law.

[fignon's barber]

I think this thread/topic illustrates that when you make a purchase, your buying into not only the material product, but the ethos or "je ne sais quoi" as well. After all. a bike is really just a bike, as a sneaker is just a sneaker. I choose not to buy products from Specialized or Nike for this reason. I'm a normal sized human and don't require a custom made bike. But I own a Bixxis and Bertoletti because I appreciate what they represent, as opposed to Spec. This article reinforces that. Please excuse me while I hope off the soapbox in my Sidis.

[oldguy00]

Originally Posted by deluz

I recently purchased an SL8 frameset and there were no discounts available.
I actually had a hard time even finding one and colors are very limited. Maybe they are producing less and trying to keep the prices at MSRP. I don't think discounts are allowed unless the big S says so. The prices on a complete bike seems excessive to me, one reason I went the frameset route.
There are good discounts on SL7's and also Aethos. But I didn't want yesterday's groceries.

Not true, depends on your dealer.
A buddy of mine and I were interested in buying SL8 frames, which were in stock with Spec Canada, and our LBS offered 10% off one frame, 20% off if both of us bought frames.

[vespasianus]

Originally Posted by nmrt

I still find it amazing that workers in El Salvador make $370/month while Spesh turns around and sells one bib for $250.

I know, I know...most companies manufacturing in low wage overseas countries do this but the math, the politics, the lifestyle we enjoy here, and our expectations puts a lot of things in perspective.

There are many companies making clothing in places like Bangladesh, paying them less than a dollar a day, making them work in absolute squalor, and selling that item for hundred of dollars. The exploitation of the third world is the basis of the wealth in the first world. Has been that way for hundreds of years. And don't get me started on things like chocolate or fruit. The owners of many of those companies generally have more money than the entire country they are taking things from.

Hell, those fancy carbon frames are made primarily by women in China because women are paid less than men.

Also, I see great deals on Specialized frames. Got a Diverge STR at almost 50% off.

[Alistair]

Originally Posted by jlwdm

Not enough facts. Too much speculation.

Jeff

What's being speculated? It appears clear that...
1. Specialized contracted with a Chinese company, which operated a factory in Latin America.

2. Chinese company shuttered the Latin American factory and left employees hanging without several months of owed waged.

3a. Other brands made good on the moral obligation to ensure their supply chain meets obligations to employees.

3b. Specialized has refused to do the same.

As noted up-thread, Specialized has no legal obligation here. But, it' a bad look - if you're going to off-shore production to save money, you should feel morally obliged to ensure that money savings isn't entirely made at the expense of impoverished laborers.

[eippo1]

Originally Posted by oldguy00

Not true, depends on your dealer.
A buddy of mine and I were interested in buying SL8 frames, which were in stock with Spec Canada, and our LBS offered 10% off one frame, 20% off if both of us bought frames.

This would definitely make some sense and one other thing to note is that different dealers get different margin tiers depending on how many bikes they buy, how many they sell, and what they sell. So one dealer may want to make a deal because they have better margins and also may be rewarded due to their tier for moving more high end frames.