Mexico promoting prison factories to U.S. firms

CIUDAD VICTORIA, Mexico -- Prison officials in northern Mexico say their inmates are manufacturing furniture bound for Texas -- despite U.S. laws that ban the importation of goods made with prison labor.

And they'd like to contract with more American companies to produce all kinds of goods. One official said prison shops would even label their products to hide their origin.

Prison officials in Mexico's northern states are pointing to inmate workshops as a way to stem the loss of business as foreign-owned assembly plants abandon the border zone in search of cheaper labor in Asia. Convicts already do work for Mexican companies.

But prison labor is strongly criticized around the globe on the grounds it undercuts unions, steals jobs from law-abiding workers and poses risks of human rights abuses. Many countries, like the United States, bar imports of products made by prisoners.

The prison director for Tamaulipas state, Manuel del Riego, said Clint Hough of Austin, Texas, is the first foreign businessman to accept the state's offer of its inmates' services. Del Riego said Hough has been buying furniture made by prisoners for more than a year.

Chairs for restaurants

Inmates at the Ciudad Victoria prison said Hough ordered chairs for a Texas restaurant chain as well as dining room furniture. Hough, interviewed at the prison, would not confirm that he takes the furniture across the border. "That I would really rather not discuss because I'm afraid U.S. Customs would ruin it," he said.

Wiping sweat from his brow with a towel, Hough later denied ordering furniture from the prison at all, and said he merely teaches prisoners design and finishing techniques.

"You don't want to cause problems for people because the U.S. Customs can be narrow-minded in its views," said Hough, 49.

Del Riego said 150 foreign companies, including many in the United States, had expressed interest in setting up production lines at the 11 prisons in Tamaulipas.

"Companies will save tons of money," he said.

On average, Mexican inmates earn the minimum wage of 45 pesos a day ($4.50), half what free workers along the border make. Firms hiring prison labor also save on health insurance, retirement and other benefits.