Prison industries, using inmate labor to manufacture goods for private firms, were thriving enterprises in the first quarter of this century. However, the sale of open market prison made products was banned in the 1930’s and 1940’s by Congress and the States, in response to protests from both competing industries and labor unions. In 1979 legislation was enacted to restore private sector involvement in prison industries to its former status, provided certain conditions of the labor market are met.
This Program Focus describes how companies in South Carolina, California, and Connecticut have formed successful partnerships with State and local correctional agencies. Some positive features of these collaborations include:
• A cost-competitive, motivated work force, which can continue to work after release from prison.
• The proximity of a prison-based feeder plant to the company’s regular facility.
• Financial incentives, including low-cost industrial space and equipment purchase subsidy, that are offered by corrections officials.
• Safe work environment due to the presence of security personnel and a metal detector that keeps weapons out of the shop area.
• The partial return to society of inmate earnings to pay State and Federal taxes, offset incarceration costs, contribute to the support of inmates’ families, and compensate victims.
Challenges encountered include:
• Absenteeism and rapid turnover of employees.
• Limited opportunities for training.
• Logistical problems, such as appropriate access for deliveries.
Representatives of companies interested in joint venture arrangements should consider such issues as:
• Federal and State laws regulating the markets, types of permissible business relationships, and rights and responsibilities of inmates, staff, and private companies.
• Appropriate goals for the joint venture that are consistent with the mission of the corrections agency.
• Support of the warden of the host prison.
• Qualification of the joint venture manager, who should have prior experience in corrections as well as an understanding of business operations.
This Program Focus describes how companies in South Carolina, California, and Connecticut have formed successful partnerships with State and local correctional agencies. Some positive features of these collaborations include:
• A cost-competitive, motivated work force, which can continue to work after release from prison.
• The proximity of a prison-based feeder plant to the company’s regular facility.
• Financial incentives, including low-cost industrial space and equipment purchase subsidy, that are offered by corrections officials.
• Safe work environment due to the presence of security personnel and a metal detector that keeps weapons out of the shop area.
• The partial return to society of inmate earnings to pay State and Federal taxes, offset incarceration costs, contribute to the support of inmates’ families, and compensate victims.
Challenges encountered include:
• Absenteeism and rapid turnover of employees.
• Limited opportunities for training.
• Logistical problems, such as appropriate access for deliveries.
Representatives of companies interested in joint venture arrangements should consider such issues as:
• Federal and State laws regulating the markets, types of permissible business relationships, and rights and responsibilities of inmates, staff, and private companies.
• Appropriate goals for the joint venture that are consistent with the mission of the corrections agency.
• Support of the warden of the host prison.
• Qualification of the joint venture manager, who should have prior experience in corrections as well as an understanding of business operations.
