Research Summary

The Rights of Women Workers in Garmant Industry Sub-Contracting Chains
A research, education and action project with workers organisations in Asia and Eastern Europe
January 2002 - January 2004

This page presents an overview of the findings of a year long research programme carried out by ten NGOs in nine countries: Bulgaria, Hong Kong, Thailand, Philippines, Sri Lanka, India, Bangladesh, United Kingdom, Pakistan. The project developed from WWW's previous work with partner organisations on subcontracting chains and codes of conduct in the garment industry. The findings of the reports provide evidence that reinforces the impact that the major issues and trends in the garment industry are having on workers in these subcontracting chains. This page provides an overview of the key research findings. These come under three headings:

The operation of subcontracting chains in the garment industry

1. Four tier manufacturing subcontracting chains

One of the key research findings is that, despite the differences between the various groups' focus, is that the subcontracting chains of large brand names and retailers appear to have four manufacturing tiers. Orders from large brand names and international retailers come through their sourcing offices and are contracted out to the largest manufacturers in the producing country. These manufacturers subcontract either all or parts of the garment to medium sized manufacturers. They, in turn, subcontract work out to smaller units and homeworkers.

2. Blurring of the distinction between employer and employee

Although the blurring of distinctions between formal and informal work is well-known in the garment industry, another key finding from the research is the blurring of the line between employee and employer. Research from WWP, shows that line leaders are acting as agents to homeworkers during peak times. Line leaders within large manufacturing units subcontract out work to homeworkers or to another subcontractor (they earn more if they do it this way). The researchers discovered that they pay homeworkers 20-3% of the price they receive for the tasks. The homeworkers earn about P88 ($1.64) per day, during peak season, while one line leader, who has 80 homeworkers, earns $316.80 per day during peak season. The line leaders act as agents for homeworkers even though they are employees themselves, this overlap between employee and employer can create tensions at work and in the community. This happens at work because management allocate additional quotas, which can be subcontracted out, to line leaders they like - some line leaders have enough to subcontract out to four or five homeworkers while others get enough to subcontract out to eighty homeworkers. It also happens in the homeworkers' community because most homebased work comes from personal connections; this can create tensions within the community and within families who view line leader as source of income, but also recognise the exploitative nature of the relationship.

Trends in Subcontracting

1. The decentralisation of production

The primary motivation behind this relocation of production is to reduce costs. Many manufacturers are now relocating either internationally, regionally, or nationally. At the international level UK manufacturers are subcontracting garment production overseas. Regionally, manufacturers are relocating to cheaper countries, as seen by the rapid increase in Hong Kong-based investment in Guangdong Province, China. Nationally, manufacturers are either relocating to smaller towns or to the provinces, where wages are lower and trade unions are less active.

2. The increased informalisation of the workforce

Production in all nine countries is dominated by small-scale factories and workshops, frequently employing workers on short-term contracts or without contracts. In Pakistan and Bangladesh 95% of those interviewed have no contract letter, so they cannot prove that they are employed and consequently denying them of their rights as a worker. In several countries national labour laws implicitly support the information of workers as the laws do not apply to small companies so workers are unable to protect themselves. The research in Sri Lanka highlights another method used by employers to avoid their responsibilities. Some of the workers interviewed described themselves as 'self employed' even though their hours, pay and work were clearly organised by others. This may be because their employers tell the workers that they are self-employed in order to avoid paying these workers social welfare payments and other contributions.

3. The exploitation of gender and ethnic inequalities.

The garment industry already has a highly feminised workforce. Rather worryingly, the research highlights a hardening of hierarchies, biases and discrimination in the workplace. Gender, age and ethnicity are being used against workers in order to further fragment worker solidarity. This has severe imp lications in a climate where trade unions are under such sustained threat.

Issues for Workers in Subcontracting Chains

1. Underpayment of wages and social welfare

Workers are frequently underpaid and paid late. Payment methods are very complex, in several cases they are based on a combined, time and piece-rate payment. This complicated system makes it very difficult for workers to calculate their wages in advance or to check that they have been paid what they are owed. Many workers report signing a blank sheet of paper when given their wages, which means that their employers are not declaring the actual earnings of the workers. There are also many cases where workers who are entitled to social welfare contributions find that their deductions have not been remitted, but kept by their employers, leaving them without medical or social welfare cover.

2. Hours of work

The research shows that working hours fall between two extremes: either too much work or too little. Workers frequently work 10-16 hours a day with no days off during peak season months. Equally, as a result of increased informalisation, many workers are either on short-term contracts or have no contracts, so they are retrenched during the low season. Overwork is linked to subminimum wages. In Bulgaria a family wage is E650 - E700 ($555 - $598) per month, but the average salary of a seamstress is about E115 - E130 ($98 - $111) per month. To compensate for the low pay levels, they work 12 - 16 hours a day without breaks. In this way they can earn up to E225 ($192) - just 30% of the living wage.

3. Health and safety Issues

The health and safety issues covered in the reports are almost identical. They include: excessively high temperatures - or very low temperatures in Britain; dust; inadequate ventilation; inadequate lighting; excessive noise; lack of fire-fighting equipment; blocked exits; bad sanitation; unhygienic canteens; and lack of drinking water. Apart from specific illnesses brought on by these conditions, many workers complain of constant fatigue, headaches and reoccurring fevers, yet workers find it very difficult, if not impossible to take time off due to illness.

4. Harassment

Harassment is an issue that often has a very gendered impact, as female workers are more likely to be harassed than male workers. It was highlighted in four of the ten reports and has been included because it is an issue that, though frequently ignored, needs to be highlighted. Workers are subject verbal, sexual and physical harassment. An interesting link was highlighted in the reports from Pakistan and Bangladesh between excessive overtime and sexual harassment. Long overtime mean that women finish work late at night when there is no secure transport, so they are more vulnerable to sexual harassment and attacks at this time.

5. Trade unions and organising

All the reports highlight the increasing pressures faced by trade unions, from Bulgaria and the UK to Bangladesh and the Philippines. Activists are being retrenched and blacklisted, undermining any form of unionisation in factories. While increased informalisation, combined with management intimidation, makes it harder for workers to join unions. In many cases, where Collective Bargaining Agreements have been concluded, unions are finding it increasingly difficult to improve them.

Conclusion

There are clear indications in the research that increased worker insecurity is a common theme in all the participating countries. The findings highlight the disintegration of laws, codes and standards throughout the chain. Excessive working hours, or lack of work, sub-minimum wages and the denial of the right to organise and negotiate are all deeply interwoven. Increased flexibility leads to increased informalisation and job insecurity. While workers are afraid of losing their jobs they are more willing to accept lower wages in order to keep their jobs. When wages are low, workers have to work longer hours in an attempt to earn anything like a decent wage. Insecure jobs mean that workers are unable to organise, as they can lose their jobs for organising.

Despite the many challenges facing workers in the garment industry, there are ways forward. The purpose of this research project is to inform workers in garment industry about how that industry is structured, so that they can see the links from their work to the global economy. Through education comes awareness, which is a vital step in helping workers organise themselves in order to reclaim their rights.