It also rejected a complaint brought by the Teamsters against Honeywell regarding a similar situation in Chihuahua. In both cases, the basis of the ruling was the fact that the maquiladora workers, out of economic necessity, had accepted company offers of severance pay for agreeing to termination of their employment and suspension of union activity. While the trade-related structures created by government have proved disappointing, a new vehicle for attacking substandard labor and environmental practices has emerged in corporate codes of conduct adopted by major US retailers which pledge that the retailing firms will not purchase goods from manufacturers that mistreat workers. In today's economy, the power has generally shifted from manufacturers of brand-name products to the retailer because retailers control access to customers. The more successful retailers tend to sell products at a low-profit margin and depend upon a favorable public image to draw customers to their stores.
Customers tend to look with disfavor upon retailers linked to sweatshop production.
Thus, an unfavorable public image with respect to labor standards becomes a point of leverage in convincing retailers to discriminate against suppliers who exploit labor. Their discrimination comes in the form of refusing to purchase goods from such suppliers and of canceling contracts when violations come to light. Thus, an unfavorable public image with respect to labor standards becomes a point of leverage in convincing retailers to discriminate against suppliers who exploit labor. Labor Secretary Reich held a meeting with representatives of the major retailers to discuss labor standards on September 12. Few retailers went on record against the crackdown per se.