Businesses, Members of Congress Not Happy with UNICOR
By Derek Gilna
When a powerful U.S. Senator takes interest in an issue, even a bureaucratic government agency like the Bureau of Prisons (BOP) pays attention.
Kurt Wilson, an executive with American Apparel, Inc., an Alabama company that makes military uniforms, and Michael Marsh of Kentucky-based Ashland Sales and Service Co., found that out after they learned that UNICOR, which runs prison industry programs for the BOP, was considering bidding on contracts for business that their companies already had. A public statement from U.S. Senator Mitch McConnell, who sits on the Senate Appropriations Committee, led UNICOR to change its mind.
Like many other initiatives of the federal government, UNICOR, formally known as Federal Prison Industries, Inc., started off as well-intentioned. Prisoners earning from $.23 to $1.15 an hour are trained to work in factories supervised by BOP staff, where in theory they learn job skills that will help them find employment following their release. However, UNICOR has become not only a job training program but a manufacturing behemoth that employs some 12,300 prisoners and made approximately $606 million in gross revenue in fiscal year 2012 – yet still reported a net loss of $28 million. [See: PLN, Nov. 2013, p.52].
With that kind of size, purchasing power and cheap prisoner labor, it is almost impossible for small businesses to compete. Indeed, several companies have lost federal contracts due to competition from UNICOR, resulting in job losses among freeworld workers. [See: PLN, Feb. 2013, p.42]. This has made some business owners nervous – and angry.
