Swiss low-wage outsourcing raises questions

The Swiss Army has ordered CHF3 million ($3.1 million) of underwear that will be made by low-wage workers in India, Bulgaria and Hungary, in a decision that raises eyebrows among human rights campaigners. The federal defence procurement agency, armasuisse, contracted an Indian company and two Swiss companies that hire workers in Bulgaria and Hungary to fulfill the contract. The Swiss military ordered boxers, underwear and long johns for men and women, the NZZ am Sonntag newspaper reported (in German) on Sunday. Kaj-Gunnar Sievert, a spokesman for armasuisse in Bern, said CHF2 million of the order went to the Indian company, and CHF1 million went to the two Swiss manufacturers, after a public contracting process. Sievert emphasised the awarding process followed “sustainable procurement” principles. "Both the supplier and the subcontractor must comply with the local working conditions and environmental standards, and pay the state-set minimum wages,” he told ...