Private Sector Prison Industry

Kaanapali Beach - photo by JoAnn Sturman

Finally Some Good News

by Alan Hopkins

Here is the problem.... The turnstile rate (recidivism) among inmates at the Central California Women's Facility (CCWF) in Chowchilla, California is around 70%. That means 70% of the inmates will return to prison after they are paroled.

I am a private businessman employing female inmates since 1992 in my electronics assembly business inside CCWF. Since I started, the recidivism rate for the inmates I have employed never has exceeded 4%. The difference is that my employees left prison with job skills necessary to find and retain good jobs. All of them departed prison with a substantial savings account that allowed them to get established on the outside.

My employees are paid $8-$11/hour under an agreement with CDCC (California Department of Corrections and Rehabilitation). After they pay taxes, their wages are divided into five parts:

1. The first 20% goes into an individual savings account available upon release.
2. The next 20% goes to their family. If there is no family, these funds are applied to the savings account.
3. The third 20% goes to Victims' Restitution. If restitution is not required, the money is placed in a Battered Women's Fund.
4. The fourth 20% goes to the State of California to assist with their upkeep while in prison.
5. The last 20% goes into a commissary fund for their personal needs at CCWF.

All of the women love their jobs. They are well adjusted, happy employees. All are well trained, enthusiastic workers. When the economy is strong, we employ 50-75 women. Our waiting list is 300-400 names long. Absenteeism and tardiness are non existent. If an employee falters, there are plenty off other eager applicants to take her place.

We produce products that compete favorably with competitors in Mexico and China. Our clients appreciate our quality. Some labor unions are not in favor of what we do. They argue that union workers cannot compete against the wages paid to our prison employees. The do not get it! We bring jobs back from off shore. Without us these jobs would leave our country.

When properly managed, programs like ours greatly add to the rehabilitation of inmates and produce manufactured products that compete successfully with Mexico and China.


Mr Hopkins is President of Allwire, Inc., Joint Venture Electronics