Increasing Shareholder WealthINTRODUCTIONThe goal of all corporations is to increase shareholder wealth. Shareholder wealth increases by increasing company profits. In a business involved in the manufacturing sector, reducing the cost of production factors is essential for growth. One of the main components of production costs is labor. When it comes to labor costs, the company and the worker usually have very different goals. The company wants to pay the worker as little as possible, while maintaining the productivity and quality demanded by its customers. The worker, on the other hand, seeks to increase his personal wealth by demanding the highest possible wages and benefits. Because of this somewhat adversarial relationship, companies and unions have developed strategies to strengthen their positions. One of the Labor Party's main defenses is to organize into unions. The existence of unions can be an effective way to gain a position of strength, especially when it comes to energy companies. Depending on the size of the company, they may have the power to employ methods that are difficult for workers to prevent or thwart. One tactic companies use to reduce labor costs is the use of “sweatshop” labor. A sweatshop is a manufacturing facility that operates below minimum standards for safety and/or wages and benefits. Sweatshops flourished in the United States in the late 1800s and early 1900s. This article will examine the re-emergence of sweatshop manufacturing in the United States and abroad, as well as its impact on the way manufacturers do business. Two American companies will be discussed in detail. The issue of using low-cost labor domestically and abroad, including the arguments against this practice, will be discussed. BACKGROUND OF THE PROBLEM Since, by definition, sweatshops violate the basic rights of workers, a brief discussion of the history of the labor movement is a necessary part of understanding. the use of clandestine workshops. This section is intended to provide a brief overview of some of the events that led to the passage of workers' rights laws. The following information is taken from NBC News Online. On June 3, 1900, garment workers formed the International Ladies' Garment Workers' Union to protest low wages, fifteen-hour workdays, lack of benefits, and dangerous working conditions. Although weak at first, the ILGWU fights to help all workers fight for better conditions and higher wages. 1909 November 22, 1909 – February 15, 1910 Organized by the ILGWU, 20,000 shirt tailors, mostly women and children, stage the first garment workers' strike. Many picketers were beaten or fired. In the end, textile workers get a pay rise and a reduction in work to 52 hours a week..