supply chains for education

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Garment Industry

Supply Chains

a r esource for worker education and solidar it y

Women Working Worldwide


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Writ ten / edit ed by Celia Mather f rom materials produced by Women Working Worldwi de and partner organisati ons.

Graphics by Angela Martin.

Designed at MMU Design Studio. Design and artwork by Steve Kelly.

Printed by Angela Cole and staff, MMU Reprographics, St Augustines .

2004

Acknowledgements

Women Working Worldwide would like to thank the following organisations for their financial support which made

this education pack possible:

The Community Fund

Department for I nternational Development, Brit ish Government

Fondation des Droits de l'Homme au Travail

European Commission

We would also like to thank the International Textile, Garment and Leather Workers' Federation (ITGLWF), Asia

Monitor Resource Centre, Clean Clothes Campaign, Maquil a Soli darit y Network and Unit e for the use of quot es and

case studies.

FeedbackWomen Working Worldwide is always interested to hear feedback on how and where our materials have been used,

including suggestions for improvements.

Women Working Worldwide

Manchester Metropolitan University

Manton Building

Rosamond Street West

Manchester M15 6LL UK

Tel: +44 (0)116 247 1760Fax: +44 (0)116 247 6321

Email: [email protected]

Internet: www.women-ww.org


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Contents

IntroductionWhy this pack was produced and how it was developed.

Facilitators' NotesWho t hi s pack is for, what it contains, and how i t can be used.

Unit 1: What's my role as a garment worker?This Unit explains who t he world's garment workers are and t he dif fi cult ies they

and how to start mapping a supply chain.

Information Sheets

Faci li t ators' Guide

Unit 2: The world of garment production - wherThis Unit focuses on how t he garment indust ry supply chain works. I t assist s wo

a picture of t heir own global supply chain, and asks why soli darit y in t he supply

be important .

Information Sheets


Unit 3: Gap: example of a global supply chain

This Unit describes the global supply chain of the Gap company, and gives case solidarit y buil t by and for workers who produce Gap clothes. I t is an example t ha

used t o develop a picture of ot her supply chains.

Information Sheets



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Unit 5: Solidarity between workers locallyThis Unit looks at the growing 'informalisation' of employment, and how to build soli

between 'formal' and 'in formal' garment workers, as well as wit h ot hers in t he local co

Information Sheets


Unit 6: Solidarity along the supply chainThis Unit concerns international solidarity within a supply chain, describing the garm

workers' solidarity organisations and networks that exist. It looks briefly at company

Codes of Conduct.

Information SheetsFaci li t ators' Guide

Unit 7: Drawing up a plan of actionThis Unit helps workers t o plan and implement a campaign t o improve their sit uati on

Information SheetsFaci li t ators' Guide


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Introduction

Why this pack was produced

I n t odays era of globalisati on, many goods are produced in c

subcont ract ing that st retch across t he world. I t is happening o

many industries - both i n manufacturing and i n services.

The increasing informalisation of the workforce is a key feature o

Informalisation means the practice by employers of hiring worke

they are not recognised as employees under labour law, t hat is to

Informal workers may be on repeated short -t erm contracts, or

as homeworkers, for example. Such workers have li t t le chance o

right s. Many do not know who they are really working for. Mean

avoid t heir l egal responsibi li t ies, reduce their costs, and i ncrea

Employers are not necessarily breaking the law; they are simplBut the hard-won employment rights of workers are being deep

Subcontracti ng supply chains can be quit e diff icult to underst

t heir i mpact on workers organisati on. The sit uati on i s present

for the trade union movement around the world.

The garment i ndustry is one that i s parti cularly mobile, and it

become truly gl obal and compli cated. The indust ry is constantvulnerable sectors of society f rom which t o draw it s workers, a

location to avoid trade unions. Garment workers are finding it

t o organise to defend their right s.

So, this pack focuses on the garment industry. The main aim is

workers, t he majori t y of whom are women, to understand the

they are working. We believe this will help them to maximise

to organise and build solidarity t o claim their right s.

Strong, local organisation of workers is the essential first step

support from the local communit y. But when working in a sup

important to build l inks between workers at diff erent poi nt s a

chains even between many countries


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How this pack was developed

This pack is one out come of a year-long acti on-research project on garment s

chains carried out by Women Working Worldwide and some of its partnerorganisations during 2002-2003. These partners are:

Hong Kong Christ ian I ndustri al Council, Hong Kong/ China

Friends of Women, Thail and

Karmojibi Nari, Bangladesh

Phi li ppines Resource Cent re

Baguio Women Workers Programme, Philippines

Transnationals Information Exchange Asia (TIE-Asia), Sri Lanka

Working Womens Organisat ion, Pakistan

Union Research Group, I ndi a

Bulgaria Gender Research Foundation

The acti on-research project involved WWW and t he partner organisat ions i n fout in great detail about how supply chains operate. They uncovered in part i

the extent of subcontracting by large manufacturers to smaller factories, and

managers oft en engage thei r own employees to act as agent s to place work o

wit h homeworkers in t he surrounding communit y.

Much of t he information and most of t he case studies in t hi s pack are taken f

the results of t his act ion- research project.

I ndivi dual modules for t he educati on pack were t hen developed by the partn

organisat ions, exchanged, t ranslated, and pilot ed with groups of workers in t

various count ries. Feedback from t he pi lot ing was shared at a seminar in Man

in October 2003, from which Celia Mather compiled this resource pack.

Part of a wider WWW project

The action-research project was part of a wider WWW project called The righ

workers in garment industry subcontracting chains running January 2002 t

2004. This involved research also on garment supply chains involvi ng t he UK


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Facilitators Notes

Who this pack is for

This pack is for use in workers education and organisation by tuto

and organisers.

It is designed for use with garment workers, primarily but not only

factory-based workers workers in small production units such as sweatshops

homeworkers.

I t can also be used in a wider range of educat ional sett ings, fo

retail / shop workers who sell garments

consumers who buy garments

transport workers who deal with garments as cargo

students who are studying t he world economy globalisation campaigners, as an example of a key global in

What this pack contains

The first Units concentrate on developing the skills to map theparticular groups of workers are in, piecing together the puzz

Unit 1 encourages garment workers to begin analysing t hethey are in, from their own sit uation

Unit 2 assists workers to analyse their supply chain in moreint ernat ional nature, and who/ where the other work

Unit 3 looks at t he Gap global supply chain, for di rect use wGap supply chain, or for others to use as an example

Unit 4 explores t he wider context of developments in the g


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What this pack does not cover

The pack is mostly about the relationships between employers and workers. T

some discussion of i nt ernational t rade, i nvestment and labour policy. Howevpack barely goes int o t he role of nati onal government s in passing and enacti

employment legislation, creating jobs, and supporting investors. Facilitators

fi nd it useful t o add in di scussion of t hese issues relevant t o your own count

The structure of the unitsEach of t he seven Unit s contains two secti ons:

Information Sheets:

These sheets contain analysis, case studies, graphics, and sources of f urther info

The sheets aim t o provide useful background reading for t hose facili t ators fothe issues may be relatively new.

We anticipate that facilitators will select individual sheets to use educationa

taking into account the nature of the educational programme and the interes

background and capacit y of t he parti cipants.

Somet imes selected I nformati on Sheets can be used wit hin t he educat ional sas a basis for discussion. The case studies are particularly intended for this p

Selected Informati on Sheets can be given to t he parti cipants to t ake home t

discuss wit h ot hers, and use in organising f ellow workers.

Facilitators Guide:

The facili t ators guide in each Uni t gives ideas for how the materials might b

educati onally. They give:

The aims of t he Unit / session


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How this pack can be used

WWW does not anti cipate t hat f acilit ators will use all t he mate

pack, nor necessaril y in t he order that they are given. Rather, select materials flexibly, according t o your educat ional needs.

Overall, however, t he pack is designed t o start wit h and bui ld

of garment workers, i ncluding t hose for whom workers organis

is relatively new. This can be the case, for example, for homew

work in i solat ion, or for workers where repression makes it ver

t rade unions.

Therefore the pack uses the inductive method of drawing on th

experience of the participants, and then adding further inform

encourage them to deepen their analysis and consider acti on t

at t he local level and bui lds outwards to t he nat ional and int

The pack encourages action-research where workers actively

about their own situation and how it fits into the wider supply t o look for t he labels and brand-names on the cloth ing t hey m

the enterprise they work for, and how thi s enterpri se is linked

and companies, even across the world.

Acti on-research can be very challenging. There is usually a l im

can find out . However, t hi s should not be allowed to di scoura

The process of t rying t o fi nd out is a learning experience in i t sof t ime.

Facil it ators can and should play a key role in support ing t hi s a

workers. A number of WWW partners found t hat providing extr

right moment gave great encouragement to t he workers to con

The I nformati on Sheets in t his pack provide some of t his back

sources of more information, particularly through the Internet

from researchers in the trade unions, NGOs, and academic ins

country, government publi cat ions, and so on.


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The role of the facilitator

WWW anti cipates or expects that facili t ators will :

(a) Find and use background research that already exists on the garment in

in your own country, and on your national employment laws, so that you

add in i nformat ion t hat t he parti cipants may not already have.

(b) Use the pack flexibly, responding to the needs and experience of each

parti cular set of parti cipants. Where they are experienced union acti vists

example, it may be more appropriate to start with Unit 4 on the global gindust ry. Diff erent I nformati on Sheets may be appropriate for di ff erent w

(c) Adapt the educational methods according t o the culture of l earning whe

are. I n some places parti cipants become more involved in learning throu

energetic role-plays, elsewhere through discussion in small groups, and y

elsewhere through drawing pictures. Where literacy levels are low, asking

parti cipants one-by-one to read aloud a few paragraphs allows all parti ci

to grasp the contents of a written text at a similar speed. What is well knthat people rarely learn much from a long presentation of new informatio

someone standing out front.

Some Units contain drawings and diagrams with blank spaces. These are tem

to be used educationally. You can fill in the blanks before the session. Or you

ask the parti cipants t o help fi ll i n t he blanks. The second method helps to dr

the information that participants already have, even if they are unaware of th

Obviously, t hi s means that t he maps and diagrams produced wil l di ff er depen

the employer, country and type of workers participating in the training. Diffe

groups of part icipant s wil l have diff erent types of i nformati on. Therefore exa

given i n t his pack may not always be appli cable. We expect facili t ators to us

own experience to adapt t hem.

Evaluation

It is always useful to find out what participants felt they learnt from a sessio

is one method whi ch could be used at t he end of each session.


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Whats my rogarment w

Information Sheets

Millions of workers around the world make clothes. There acloth. There are those who sew seams, make buttonholesfinish off by cutting threads and sewing on labels. The cloth cu

The rest are mostly women.

Garment workers work in many different places. Som

hundreds of others in big factori es. Others are in sm

say, 50. There are many in small units of just a few w

there are homeworkers, working unseen and isolated

Most of t hese workers are linked t ogether, supplying

world market . Most suff er very low wages, l ong and

job insecurit y.

A woman in her t iny home in the slums of M

finishing the finger ends of gloves. The wo

homeworker through an agent working out of a lo

the factory, she doesnt know, though she does kn

there, cutting and sewing. None of them know w

to produce these gloves, but the factory worker

gloves are going to the UK and Germany. La

British shop worker is selling the gloves. She sh

Made in India label. They are good qualit y gloves

warm in the harsh European winter. The womanmay give a passing t hought t o the Indian wor

I n t hi s way, garment workers in poor countri es acros

li nked int o global chains that supply shirt s, j eans, s

kinds of clot hing to markets that are most ly in the

What type of garment workdo you do?

Do you work in a big factory,

a small factory, a small

workshop, or at home?

Does your pay cover what you

need for living adequately?

Do you have to work overtime

when you dont want to?

Do you face health or other

problems at your workplace?

Why do you think the garment

industry employs so many

women workers? Have you ever got together

with other garment workers to

try to improve your situation?

Key Questions:


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Difficulties faced by garment workers

Low wagesGarment workers are usuall y very poorl y paid. I n many cases,

these wages are below the legal mini mum wage in t he country

concerned. Even the legal mini mum is it self of t en well below a

living wage, t hat is to say enough money to buy adequate food,

housing, clothi ng, education for children, etc.

The majority of garment workers are women. They have skills

which t he garment employers need. But most ly women are

employed rather than men because they can be paid less than

men, because of gender discriminati on.

Many garment workers also report they are paid late. Sometimes

wage calculations are very complex, based on a combination of

time and piece-rate payment. This makes it very difficult to work

out what workers should be paid. Many report signing a blank

sheet of paper when t hey are given t heir wages, whi ch means

that their employers are not declaring the real wage bill to

the government.

1

Typical monthly wages of garment factory workers(converted into US$)

Country Monthly wages including Overtime

overtime in US$

Bangladesh 26-55 51-125 hours a month, co

Bulgaria 113China Peak times: 84

Slack times: 20 100 hours a month, comp

India 23-35

Indonesia 53 100 hours a month

Lesotho 83-133 108 hours a mont h, most l

Wdemanded tthe compan

to oth

facto

recently

much

servic

a

48

Union a


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Job insecurityMil li ons of garment workers are vulnerable t o losing t heir j obs

Even workers who are paid very badly for l ong hours and high o

as orders are moved to places where other workers can be emp

Garment workers also face daily insecurity. Employers want to

they have many orders and fire them again when work is scarc

people on short fixed-term contracts, as seasonal workers, or a

they send work out to home-based workers, to whom they can

when there is work to be done. Many garment employers fail t oemployment, meaning t hat t he workers have no legal ri ght s.

Irregular work/long hoursThere is eit her too much work or too l it t le. During peak orders

be 10 -16 hours a day or even more, and no days off. To make

must accept overt ime. Sometimes overtime is unpaid but work

fear of losing t heir j obs. I n all count ries, garment workers worover 6 days each week.

Lack of social welfareMany workers report t hat employers are faili ng t o make social

and keep the money themselves. This leaves the workers witho

welfare cover.

Health and safety issuesGarment workers often face: very hi gh t emperatures and/ or no

vent ilat ion; i nadequate light ing; l ack of fi re-fi ghti ng equipme

sanit ati on; unhygienic canteens; and lack of drinki ng water. Il

asthma can be brought on by these condit ions. Many workers

constant fatigue, headaches and fevers. Yet most find it very

off due to illness.

HarassmentWomen workers are more likely to be harassed than men worke

verbal, sexual, and physical abuse. Workers may be threatened

do not submit. Long overtime means that women finish work l


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1 AH WENS STORY

Ah Wen was born in a small city in Guangdong province, China. Herfamily was poor and in 1983, aged just 15, Ah Wen left home to work

in garment factories in bigger cities. Her first workplace was a

state-owned factory in Guangzhou producing dolls clothing. She

was considered lucky to work there but she felt discriminated

against as a country woman and the wages were very low.

Ah Wen moved to another factory. This one was Hong Kong-owned and was

constantly taking in new workers, many of them young women from the

rural areas like Ah Wen. The factory provided a dormitory

bed and food, and the pay was reasonable. So they put

up with the poor working and living conditions, and the

abusive behaviour of managers. But something was

wrong with her breathing. Ah Wen thought it was due to

fatigue but it was difficult to ask for sick leave. So she

bought medicine from the pharmacy and did not see the

doctor. Her health got worse. Eventually she suspected it

could be due to dust in the factory. She had spent most

of her savings on medicine, and so she moved on.

By 1989, Ah Wen followed her friends to work in an electronics factory in

Shenzhen. There they earned about the same wages but the working

conditions were much better. After two years she went home to get

married. Ah Wen now worked as a homeworker to supplement her familys

income. She received semi-finished garments from the factories nearby.

But the factory was always finding some excuse to deduct money from her

pay. In 1996 Ah Wen stopped working at home and went back into a

garment factory. Her experience meant she could work as a supervisor.

Some supervisors like Ah Wen are paid monthly getting RMB 800 (about

Ah Wen sees howpaid jobs to their frienthe difficult, dirty

those coming from


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JEANS STORY

Jean is a white woman in the UK, in her ffor the same garment company for 16 ye

to floor supervisor. Jean places a great

her work as supervisor and does not have

h

But the company has just moved most of its prod

massive redundancies in its UK workforce, reduci

around 12. All the employees were women besides

who worked in the cutting room. The owner lik

people on a full-time, permanent basis. But Jea

worked part-time, and many were let go wh

restarted later w

The redundancies caused a lot of tension as som

there for many years were retrenched before others

than a year. Who was kept on was d

multi-task. Jean described the time as

the workers blamed the work from ab

the factory. As work was sent out an

had to pack and check it. They do

from offshoreThey class it as differe

same company. And its work and you are going

not got a l

The biggest problem for Jean is that the future f

workforce is so insecure. I think we have just got

things will pick up. Because there is not a lot

going to be done (here). Its all small orders and th

moment I dont feel secure because I dont kno

I dont feel secure because Idont know if I am going to be sathere this time next year.


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1 VEENAS STORY

Veena is a homeworker in India, mostly working on thread-trimming.She has many grievances, but has never got to the point of organising.

Piece-rates are set at a level which make it impossible for one worker alone

to earn anything like the minimum wage. So other members of the family,

especially the girls, get drawn in. Veena thinks there are also hidden

deductions. She has to buy the thread-cutter for trimming, and

thread if she is button-holing, and this eats into her pay. She has

to carry the heavy bundle of clothing from the factory to her

home in a sack on her head, and then back to the factory and up

several flights of stairs when the work is finished, and this time

is not compensated. Even the meagre wages are not always there. If she

arrives late at the factory or there are few orders, she might have to go

home empty-handed.

But when there is an urgent order to be completed, the employer expects

them to put aside everything else to complete it. He doesnt consider our

problems. If we cant complete an urgent order, he yells at us or threatens

not to give us orders in the future. We have to tolerate his behaviour,

Veena complains.

Homework is said to be suitable for women because they can

combine it with domestic duties. But Veenas experience of no work

followed by too much work shows what a myth this is. They do not get any

paid leave or holidays, and are often forced to work extra on festival days

when they would prefer to relax with their families. On top of everything,

the supervisors and men workers at the factory often make

dirty remarks, making the women feel treated with no respect. Veena

feels that there should not be discrimination between factory

workers and homeworkers: We are workers and there should

We are wobe equal respe


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Whats my role as a garmentworker?

Facilitato

Aims:

Taking workers reali t y and experiences as the start ing poin t , t his Unit aims t

encourage garment workers to think about their own work situation, and t

for their problems;

provide in formati on about garment workers elsewhere who may be experie

similar sit uations;

start mapping t he supply chain and the other workers who are in thi s cha

Methods:

Identifying problems at work1

What problems are we facing at

work?

Which of the problems we face

are currently getting worse?

Key Questions:


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Identifying the reasons for problems at work

Select a case study in this Unit and ask a participant to read it out aloud to the otfol lowed by discussion. Or small groups can take a case study each, read aloud, dis

report back to t he whole group.

Ah Wens Story shows:

Discrimination against migrant workers

I nadequate factory wages

Bad work conditions and ill health

Payment dif fi cult ies for homeworkers

Management favourit ism

Jeans Story shows:

Lay-offs and reduced work due to

int ernati onal subcontracting

Job insecurit y leading to resentment

among workers

Veenas Story shows:

Low piece rates and hi gh quot as

Addit ional cost s incurred by homeworkers Family involvement in fi nishing quotas

I nsecure work - eit her too much

or too l i tt le

Harassment from employers

List responses on whiteboard/flip-chart, group

similar responses, and clarify.

2

What are the similarit

situation that this gar

worker is facing with o

situation? What are thdifferences?

Why are we and other w

even in far off countrie

experiencing these pro

at work?

Why are so many garm

workers women?

Who causes/is respons

these problems?

Key Questio

1


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Starting to map the supply chain

This is a group parti cipatory exercise to encourage the parti cipants t o begin bof the supply chain in which they work.

You can start by asking t rigger quest ions about what t hey know about t hei

such as:

What is t he name of t he company your work for?

Who owns the company you work for?

Where do t he cloth, t hread, zips or but t ons come from?

I s work going out from the local factory t o sweatshops and/ or people in t

Where do the goods go when the leave the local factory? Are they going t

countri es or companies?

Whose labels are on t he goods?

Who are the workers who make the clothes we buy, and where are they?

As the participants answer, write up their contributions on a flip-chart or big on t he wall, and develop a diagram of t heir chain.

On page 17 there is an example of what the chain couldlook like. Each chain

by workers will be different.

Page 18 has small pictures of factories and other production units, of cloth,

and zips, and of trucks and ships, etc. These can be used visually to trigger id

the parti cipants.

Conti nue to build t he chain unt il the group fini shes contribut ing. The facili ta

key missing elements.

The diagram need not be t oo complex. I ndeed, the part icipants may not have

at t he start. This should not be a cause for worry or crit ici sm. You can poin t o

the beginning.

Time should be given for questions and discussion.

Make sure you keep a copy of t hi s map for use in lat er sessions.

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How can we find out more?

There will be gaps in the parti cipants diagram of t heir supply chain . This is an optalk about how workers can f ind out more.

What else do we want t o fi nd out about our supply chain?

Where can we look for in formati on?

Who can we ask?

List t he responses. The facili t ator can add in wit h extra examples.

The addresses of other companies are often written on the packages and boxes

sent from the factory. There are addresses also on the boxes of materials and p

we receive at t he factory. Sometimes there is writ ing in other languages, but w

to copy things down.

There are many documents, let t ers, receipt s and orders in t he factory which ha

names and addresses, figures, quantities, etc. Office workers may be willing to this information.

We can also fi nd out more about foreign and local managers, and f ind out who

are and which count ries/ companies they are from.

We often see the names of the products we make on the labels.

So, there may be a lot of information in front of our eyes. But perhaps we just don

is important, and so we have not noticed it before.

What did we learn?

Take the opportunit y to fi nd out what t he participants felt t hey learnt f rom this U

in Asian countries, it was repeatedly found that this session provided the first oppworkers t o consider t he global supply chain, and to t hink about similar workers t o

other countries.

Follow-up action:

41


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1


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The world of garment produwhere do I

Information Sheets

All over the world, clothes were traditionally manufactureBut over the past thirty years, the garment industry has binvolving workers - mostly in the poorer countries - in makingnear and far. Most of their work is for big companies, also call

corporations, that are based in the r ich countries.

About 20 big companies dominate world produ

13 from the USA, 5 from Europe, and 2 from Jap

The clothing and textile industry is worth about

(thousand million) a year (2001).

How garments are produced around the world has b

compli cated. The big companies that sell garment s

other companies to make them. This is called subc

subcontractors oft en subcontract t o smaller compa

subcontract again. Many companies are involved, a

It is known as the garment supply chain. At the vchain are workers in sweatshops and women worki

It means that garment workers in many different fa

many dif ferent countri es, can be making clot hing f

They are linked t ogether i n t he same supply chain,

dont know it .

Most garment workers have no idea who t hey are really workin

the goods they make are sold. They usually dont know who th

their supply chain. Garment workers oft en feel alone in t heir s

and job securit y.

What isSubcontracting?

Subcontracting is the term used

when a company agrees a contract

with another company to manufacture

a product or part of it, or to carry out

a service. The second company is

known as the subcontractor or

the supplier.

A contract to manufacture garments

usually states the quantity, type,

quality, deadline, and price for which

the subcontractor must deliver the

garments. The first company will

then sell the final product as its own.


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How does the supply chain work?

Clot hing retail ers place orders wit h bi g manufacturers who t hen subcont ract t o small

in t urn oft en outsource to homeworkers. This is the basic supply chain in t he garmen

There are many ot her players who are part of t he supply chain. I n order for workers t o

effectively, it may be important to know who all the players are.

Retailers are the companies which sell to the public or consumers. Retailers mown chain of stores, somet imes in many countri es. Or t hey may sell their goods in ot

mail order, or t hese days through the I nt ernet. Retailers do not make the goods; t heSome have brand-names or labels which are famous worldwide, which help to sell th

Others are much less known. Retai lers are most ly based in Western Europe or North A

their main markets are.

The head office of a retailercomes up wit h new designs for fashionable clothes. I t a

information on sales from it s shops. I t t hen sends out orders for the new designs, or

garments t hat are selli ng well, t o the companysregional offices

inAsia, South AmeEurope. These are also known as the buyers.

Some retailers also have national offices in t he countri es where their garments are m

is to carry out factory checks to monitor quality, and help with scheduling and shipp

fi nished garments.

Manufacturers organise the making of the clothes. But first they must winthe retailer. The regional of fi ce of t he retailer asks a number of manufacturers t o comorders. They negotiate on price, materials and deli very. The retailer selects the manu

offers t he best deal.

Big retail ers li ke to work wit h big manufacturers who can produce large volumes of g

qualit y, and t hat have text il e wings to supply the clot h. Clot h and suppli es such as t

buttons come in from other suppliers too.

Smaller factories: Oft en a big manufacturer subcontracts producti on t o It may do this when it cannot handle the volume, meet the deadline, or do the work f

price. Qualit y standards and working condit ions are worse in smaller factories. They k

2


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Back up the supply chain

Then the fi nished garments go back up the chain. They cross t

t heir markets.

Transport and distribution is subcontracted ouspeciali se in the movement of goods across the world. The garme

truck and van drivers, port workers, seafarers on ships and wareho

Retailers receive the goods they ordered into t heir depots ansend t hem out i nt o the shops and stores, where shop workers se

Quit e often some of the garments go to shops and markets in t he

made. This happens when too many garments are produced, or an

the garments did not pass the quality control. Often they are sold

creates unfair competition for local manufacturers by forcing dow

Agents operate all along t he subcont ract ing supply chain. Some a

on behalf of other big companies, dealing with very big volumes o

small, handling low volumes, for example taking work out of factoFor all of them, their money comes from the difference between w

contract and what they pay others to do the work. They increase th

as little information as possible to those above as well as those be

This is how well-known brand-name garments are made and so

The Story of a Glove gi ves an example of a supply chain of the

Who Gets What Profitfrom a Shirt?


26/80

The Story of a Glove

I n t he headquarters of Gap USA, designers are

designing gloves to sell in stores across the US

during the winter months. At the same time,

buyers are looking at t he sales figures for gloves

from t he year before to decide how many pairs

of gloves to order.

When the design and number of gloves are

agreed, t he order is sent t o Gap InternationalSourcing. The Asian headquarters are based

in Singapore.

From this office they send the order to national

offices based in different Asian countries. In

our example they send t he design and order tothe off ice in t he Phili ppines offi ce - Gap

International Sourcing (Philippines).

The order is then sent t o Red Garments. The

gloves are made up in the factory. From July to

October, Red Garments have so many orders

that t hey hire piece-rate workers to supplementtheir permanent workers.

Fini shing off the gloves - closing the ti ps,

li nking, and hemming - needs to be done by

hand. This procedure t akes a long t ime, so it is

not done inside the factory. Line Leaders takeextra work from the factory and give it to

friends and relations in their community.

These women are homeworkers They do the

Line Leader

Red Garme

Red Garme

Gap InternatSourcing Phili

Gap InternatSourcing

Asian Headqu

Gap - USA

2


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MELODYS STOR

Melody used to work for a garment firm in the

Zone in the northern Philippines. The factory

national and produced bags for export. Melody

who led in the formation of a trade union in th

support of most of the workers. Issues th

benefits, and a high quota system lead

Then the company filed a no

financial losses. This left no opti

go on strike. But in fact it

another export-processing zone

it shifted production. It ran awa

While the labour case was pending, many worke

and deprived of the money and benefits due the

two months searching for new job. She and oth

discriminated against. They were not hired by

because they were

Being a single parent, with a 4 year old son, Me

Now she takes in work at home, closing tips and fin

line-leader from the local factory subcontracts th

peak season, when they are producing for the wint

Melody gets the equivalent of US$0.06 for each pa

It takes her about 8 hours to do 20 pairs, and so

(less 20% tax). This barely sustains her familys d

leader gets US$0.14 per pair just for subcontracting

Melody gets the equivalent of US$0.06 for

each pair of gloves she finishes. It takes her about

8 hours to do 20 pairs, and so she gets US$1.20 a

day (less 20% tax).


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PARVEENS STORY

Parveen is a separated mother of three, living in the UK. She has never

worked in the garment industry outside her home although she would

like to. She recently left the supplier for whom she had been making

clothes for four years. She now makes punch bags for another supplier.

She knows the name of her supplier, who is another Asian woman. But

she knows very little about her suppliers company. She knows that

the punch bags are sold by a major retailer because she saw them for

sale in a catalogue.

Parveen was very happy to move to this new supplier as she now gets paid

regularly. But she still only earns around 3 (US$4.8) per hour, which is

below the national legal minimum wage. Payment from her old supplier

was very irregular but it wasnt necessarily her fault. The company used to

pay her money to her husband and at first she did not know how much she

was earning. When she found out she was getting less than others, she

rowed with her employer but they told her if you dont like it, dont work

(i.e. you can quit). Parveen says: It is like that if you fall out with them.

My supplier worked for pennies and still never got the money. Her supplier

was her husbands relative. She was really running around.

Despite all these problems with homeworking, Parveen says the biggest

issue is that the homeworking is disappearing. All

the local factories are importing goods direct from

Pakistan and China, and they say they cannot pay the

homeworkers more than they do or they would close.

If her employer were to be prosecuted for theminimum wage, he would not be able to pay the bills,

would close down, and she would not get any work, she believes. Ideally

Parveen would like to work in a factory because the pay is better, but she

cannot as she cannot speak good enough English

...she still only 3 (US$4.8) per hour, wthe national legal minimum

2


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The world of garment producwhere do I fit in?

Facilitato

Aims:

Buildi ng on t he ideas and act ivit ies developed in Unit 1, t his Unit aims to:

map the global garment supply chain of which the participants are part;

help them understand t heir posit ion and role in t his chain;

ident if y who are the key players/ major stakeholders in t he chain, and wh

the chain;

start t o explore where and how is it possibl e for workers to bring pressure

the chain so as to overcome their problems.

Preparation:

Background reading/ research on the garment indust ry in your country, and o

that t he parti cipants may be involved in. I t will be helpful if t he facili t ator h

information about the countries supplying components and where the finishe

being sold.

Methods:

Building a picture of our global garment sup

Begin with the local map that was drawn up in Unit 1, recapping the major po

Ask the participants to add to their map any information they have gathered

from labels on their goods, from factory signboards, f rom company docum

1


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Our place in the world of garment production

This is another way of vi sualising t he global supply chain, t aking a map of t he wo

basis. I t can help t he parti cipants become more aware of t he other countri es wher

workers in t heir supply chain.

Famili arise t he parti cipants wit h t he map Journey of an Embroidered Shirt on pag

Note t he key features:

The orders come from the industrialised countries, in this case the USA;

Components such as clot h, but tons and zips oft en come in from ot her count rieI ndia, the Phil ippi nes and Malaysia, i n t his case China;

I n Pakistan, where these shi rts are assembled, t he work is done by diff erent un

factori es, whi ch also subcontract t o smaller factori es, who in t urn use homewo

The shirts are exported to the USA and Europe to be sold.

You can then use the blank world map on page 30. Ask t he parti cipants to work i n

and fill it in as much as t hey can with information about their own supply chain. A

draw arrows and boxes showing components/ raw materials coming i n - where a

butt ons, etc. coming from?

draw arrows and boxes showing local production - by workers in factories, swea

their homes;

draw arrows and boxes showing where the finished goods go to.

The facilitator can add in information to help complete the map.

22

In which other countries a

workers in our supply cha

What kinds of work are th

doing?

Key Question


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How does the supply chain work?

The aim is to help part icipants consider who benefit s most from t he global su

dif ferent power of: retailers, manufacturers, small subcontracti ng factori es, a

workers, homeworkers.

The facilitator can use the diagram The Story of a Glove on page 22 and the

does the supply chain work? on page 20 - 21 to present in formati on on t he k

global garment supply chain.

You can also use the graphic Who Gets What Profi t from a Shi rt ? on page 21 how the profit s of t he garment i ndustry are distri buted. A simi lar graphic for

found at: htt p:/ / www.cleanclothes.org/ campaign/ shoe.ht m

The diagram shows that there are big profi t s going t o t he retail ers and brand

the top of the supply chain. These profits could be redistributed to the workf

The retailers and brand-name owners take a much larger share, and have mor

manufacturers. These points have an impact on the campaign strategies of wodiscussed i n l ater Unit s.

3

Who benefits and

in the supply cha

Why do workers g

proportion of the

Is this fair?

What arguments

use to win a grea

the profits?

Key Ques


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Why might we build solidarity in our supply cha

The case studies in t his Unit can be used t o il lustrate the impact of the supply cha

They show how product ion i s moved so as to weaken workers demands for decent

bett er condit ions, or for t heir union to be respected.

Melodys Story shows:

Union-bust ing - by shif t ing producti on to another location

Seasonal homeworking

I nadequate wages

Subcontracti ng from t he factory t o homeworkers

The profit made by subcontracti ng

Parveens Story shows:

Importance of personal contacts in getting home work

Husband cont rolli ng wages Non-payment of outstanding wages

Fear of losing your job if you ask for an adequate wage

This is an opportunity to begin discussing why knowing about the

int ernat ional garment supply chain might be useful t o help

overcome such problems.

The issues are explored in greater depth in later Units and so for

now t he aim can just be to sti mulate awareness.

If the partcipants have developed a map of their supply chain, this

can be used as an aid to discussion about who else is in our supply

chain wit h whom we could bui ld alli ances.

What did we learn? Evaluation of the session.

4

Why

supply c

own diff

Who build all

What

could bu

How

K

2


33/80

Journey of an Embroidered Shirt

1

2

2

5

5

3

4

2


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2


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Gap: exama globa

Information Sheets

Gap is a chain of well-known stores spanning the globe. Gap slike jeans, T-shirts and shirts - for men, women and childreany clothes itself. It is a retailer - it only sells clothes. Instead o

sells, Gap subcontracts production to thousands of manufacture

Gap is based in San Francisco, USA.

I t has 4,200 stores throughout t he world.

It employs 165,000 people altogether.

I n 2002, Gaps sales were US$13,848 mi ll ion.

I n 2001, Gap bought clothes from 3,600 companies in mor

Gap has several brand names that are sewn on the labels of th

them. They are: Gap, GapKids, babyGap, Banana Republic and O

Pressure on Gap from international ca

People around the world have become aware of

garment workers. They include t hose who buy c

countries very far away from the garment worke

Famous brand-names such as Gap have come u

that t hey have a responsibil it y t o ensure that w

in a humane way, wi th respect for t heir ri ght s.

Gap has responded by issuing a Code of Conduc

respect. This includes no forced labour, at least a safe and healt hy working environment , and m

special department, wit h staff i n 25 countries, t

Code is implemented by i ts suppli ers. Gap says it

term partnerships with campaigners and local o

Do you work in the Gap supply

chain? If so, do you know where

the orders come from and where

the goods you make go to? If you dont work for Gap, can you

build a picture of your global

supply chain like the one for Gap?

Key Questions:

3


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Whos Who in the Gap supply chain

Maps 1 and 2 show the many diff erent people, companies, agents, of fi ces, f actories

and ot her workplaces involved i n t he Gap supply chain . Who are t hey, and what do

they do?

Gap Store: This is where garments are sold. Information on sales from everystore are continuously sent to Gap headquarters.

Gap-USA: This is Gap headquarters for the USA. There, GAP organises design,ordering, and re-ordering of garment s that are selli ng quickly.

Gap International Sourcing regional office: The regionalsourcing office gets the orders from Gap-USA and is responsible for sending out

contracts to manufacturers. They choose the manufacturers.

Gap International Sourcing national office: The nat ionalsourcing off ices are generally responsible for qualit y control and moni toring

condit ions for workers in factori es. Sometimes they are also responsible for shippi ngfinished garments to the regional office or to Gap-USA (or Gap-Europe, Gap-Canada,

Gap-Japan).

Blue Textile and Garment Manufacturing: The is theheadquarters of a l arge texti le and garment manufacturing company. Large

companies like Blue oft en have factories in several dif ferent countri es. They get

orders from big companies li ke Gap, do all t he admin istrat ion and planning in t heir

headquarters, and then send t he orders and deadlines to their subsidiaries.

Blue Textiles: This is a subsidiary of Blue Texti le and GarmentManufacturing. I t makes some of t he text il es that will be used by Blue Garment s.

Blue Garments: Thi s is also a subsidiary of Blue Texti le and GarmentManufacturing. I t makes up the garments.

Blue small factory: Big compani es like Blue Texti le and GarmentManufacturing oft en have smaller factories that employ women on short cont ract s

and pay pi ece-rat e wages.

Purple small factory: Thi i ll f t t h t i t d b Bl

3


37/80

Map 1

Supply Chain Showing The Downward Flow of Prod

Raw

di

butt

Purp

Gap Stores in USA

Gap USA

Gap International Sourcing Regional Office Singa

Gap International Sourcing Regional Office Singa

Blue Textiles & Garments

Orange Textiles

Blue Garments

Blue small factoryAgent

Blue Textiles

3


38/80

Map 2

Supply Chain Showing The Upward Flow of Product

Gap Storesin US

Gap Storesin Canada

Gap Storesin Europe

Gap USA Gap Canada Gap Europe

Sm& Fle

DReta

Gap International Singapore

Gap International Sourcing -country office e.g. Pakistan

AgentPur

fBlue small factory

Blue Garments

3


39/80

RANIS STORY

Rani works in the finishing department

Lahore, Pakistan, which exports T-shirts and je

500 women work there, aged between

department, there are 15 women

Although she has been working there for t

temporary worker. She has no fixed working hou

finishing at 10-11 pm. We go home when boss

We work long hours but we dont get any overtime

harasses me by making unwelcome remarks. He

the young girls and threatens them he will stop th

If I refuse to do overtime, they will ask me to leave

not allowed

In her factory, very few women are married

maternity leave. She wo

severe headaches and e

proper air ventilation system

suffer asthma and luseparate toilet for women and no place to eat

lunchtime to eat the foo

Rani does not get an equal wage for equal work

which each month totals about RS. 1200 (US$

wages, she has to sign a blank piece of paper. Runion in the factory. If any worker tries to

dismissed w

Rani has five sisters and two brothers Her fat

Although she has been working there forthree years, Rani is still a temporary worker.

3


40/80

UNION VICTORY IN A GAP SUPPLIERIN EL SALVADOR

In April 2002, managers at the Tainan garment factory in El Salvador

announced that workers who had been suspended at the beginning of

the month would not be rehired and the factory was closing. Tainan,

which is Taiwanese-owned, claimed the layoffs and plant closure were

due to a lack of orders from North America. They blamed the union for

the drop in demand.

Gap was one of the companies placing orders, but denied it had a problem

with the union. In fact, Gap had successfully persuaded Tainan to reinstate

fired workers a year earlier.

The Tainan workers union had obtained legal recognition in July 2001. The

union had just submitted a request to the Labour Ministry for collective

bargaining rights when the management made the announcement that it

would close the factory.

An international campaign was initiated. Campaigners called on the parent

company Tainan Enterprises to re-open its El Salvador factory, rehire the

workers, and negotiate in good faith with the union. In the US, they lobbied

Taiwanese government officials and Tainans customer headquarters.

Hundreds of letters were sent to Gap and other buyers including those who

source garments in Tainans factories in Asia such as Philips-Van Heusen,

Footlocker, Ann Taylor, Dress Barn, and Columbia Sportwear.

This pressure succeeded in getting Tainan Enterprises to begin discussions

on reopening the El Salvador plant. Meetings were held between senior

management and the union. The international campaign was thensuspended because Tainan Enterprises was engaging in negotiations.

As a result of the talks, the company agreed to finance a new factory that

would have a unionised workforce with a collective bargaining agreement

3

Facilitato


41/80

Gap: example ofa global chain

Facilitato

Aims:

t o look in detail at Gaps global supply chain ; t o use the Gap example to bui ld a pi cture of the workers own supply chai

t o look at some cases of soli darit y in the Gap supply chain;

to discuss the possibilities of solidarity in the participants own supply ch

Preparation:

Try to f ind out whether there is production for Gap in your country/ region, an

Methods:

Understanding Gaps global supply chain

The two maps of Gaps supply chain in thi s Uni t can be used wit h workers who

Gap supply chain. Or they can be used with other participants as an example

Famil iarise the parti cipants wit h t he two Gap maps. Go through t he key featu

on what was learnt about the supply chain in Unit 2.

Map 1 shows the downward flow of orders from Gap headquarters to the Ga(for example in Singapore), and the fl ow of raw materials, t o big manufacturethen pass the work on to smaller factories that they own, or often also subco

they do not own which are even more fl exible and cheaper, who may then fur

to homeworkers.

1

3


42/80

Developing the picture of our own supply chain

Ask the part icipants to const ruct an even fuller diagram of t heir own supply chain

information they have gathered and new ideas from the Gap supply chain maps. Th

blank maps provided with this Unit.

Map 3 Where on the diagram is our workplace? Can we fill in the name of our employe

Whose goods are we making? Can we fill in a retailers name at the top?

Who places the orders with our workplace on behalf of t hat retail er?

I s t here a retailers off ice in our count ry? How can we fi nd out ? Do unf in ished garments go f rom our workplace to ot her workplaces? If so, whe

Map 4 Where on the diagram is our workplace?

Where do the goods go when they leave our workplace?

Where are the retai lers stores where our goods end up on sale?

Solidarity along the Gap supply chain

Gap has a high profil e for selling fashionable clothes. I t has come under a lot of p

campaigners in the countries where it sells its clothes. Young people who buy Gap

act ively raised t heir concerns about t he working condi t ions in Gaps suppli er facto

Ask a part icipant t o read aloud Union victory in a

Gap suppli er in El Salvador on page 36.

Union victory in a Gap supplier in El Salvador

shows:

Manufacturer blames plant closure on ant i- union

pressure from retailers

Gap denies it is anti-union International campaign pressure on the

manufacturer and retail ers for workers right s.

Union-management negot iati ons

Agreement f or a unionised workforce wit h

2

23

Why was the campaig

the retrenched worke

Tainan successful?

How did internationa

campaigners help? Ho

think they found out a

situation in El Salvado

Key Questio

M 3


43/80

Map 3

Supply Chain Showing The Downward Flow of P

Map 43


44/80

Map 4

Supply Chain Showing The Upward Flow of Produc

3

Information Sheets


45/80

Thegarment in

Information Sheets

The garment industry is a key example of a globalised industr

The shirt I am wearing... The cotton couldSenegal. It might have been ginned in Egypwoven in China, the fabric then cut in India, a

stitching. The buttons might have bee

The thread could have come from the Philippine

finished in Hong Kong, put in packaging that orig

marketed in Singapore, and sold here in the Un

Neil Kearney, General Secretary of the international union f

workers (ITGLWF), talking to B

From: www.t gwu.org.uk/ TGWUInt ernatE

Many countri es are involved in producing garment s for t he big

sportswear company Nike sources from about 75 countries aro

The number of companies involved i s also huge. Take, for exam

chain of stores called Walmart. It sources its clothing, textiles

from 60,000 suppli ers around the world. Those are t he princi p

on average, have 5 or 6 subcont ractors each. So t his one mult

is sourcing f rom about 400,000, or maybe even half a mil li on,

more, Walmart changes it s suppl iers from season t o season.

Who benefits from the supply chain?4


46/80

Who benefits from the supply chain?

Retail ers and bi g manufacturers who subcontract work out get many advantages

from having a large number of suppliers:

They can use the specialised skills of workers from different regions and

countries.

If a subcontractor asks for a higher price because its workers are demanding

higher wages or bett er condit ions, orders can be shift ed to anot her suppli er

where standards are lower. Or it may be enough j ust to t hreaten to shif t t he

work, which may intimidate the subcontractor and its workforce into abandoningtheir demands.

I f a government wants to bring in st ronger labour laws or raise mini mum wages,

retailers and big manufacturers can threaten to shift production to other

countries. This may frighten the government into giving up its plans.

I n every case, the retail ers and big manufacturers are encouraging compet it ion

between small companies, between workers, and between governments. By this

means they have a lot of power in t he supply chain.

Retail ers oft en do not know about t he extent of subcont ract ing. They know about

the big manufacturers to whom they give their contracts. But the big manufacturers

often do not t ell t he retail ers that t hey are subcontracting t he work out f urther. So

most retailers cannot say exactly where or by whom their goods are being produced.

The sweatshops, small agents and homeworkers are especially invisible, and they arethe ones with least power in the supply chain.

More information:International subcontracting: the new face of the garment industry, Angela

Hale, Women Working Worldwide briefing paper, 2000.Notes on the Subcontracting Chain, Kelly Dent, TIE-Asia, 2002.

4

Why and how the garment industry w


47/80

Why and how the garment industry w

Most companies at t he top of the supply chains have thei r hea

and Europe. I t is from here that they manage thei r global oper

computer technology to send and receive designs, orders and s

the world, 24 hours a day. They can shift production from one

while keeping overall control.

Easy to move factoriesTo maximise thei r profi t s, companies want t o keep down costs

is labour int ensive - i t uses many workers. So, companies wanlabour cost s (including wages and social securit y costs). Othe

control include transport costs for cloth and components com

finished goods to go to their markets.

The garment indust ry can be easil y moved about. I t relies on s

around the world, especiall y womens sewing skill s. Also t he m

li ght and easy to move.

At fi rst, Northern manufacturers moved and set up their own f

particularly in Asia and Central America where wages are lower

buildings, installed equipment, and employed workers directly

had to t ake responsibil it y for employing t hose workers, and th

from t rade unions. So, f rom the 1980s they found another st ra

they contracted ot her companies t o t ake on t hose burdens and

They out sourced or subcont racted.

Today, famous sportswear and clothing companies such as Nike, Adid

promote and sell a name, a brand label. They get their profit from d

and they reduce their costs and risk by getting subcontractors to do

big retailers such as Marks & Spencer and Walmart, who used to buy

now send their own buyers overseas to place orders directly wit h sub

During the first phase of relocation in the 1960s and 1970s, Eu

companies went t o count ries such as Hong Kong, Singapore, So

where labour costs were lower t han in t he North . Later, t hey we

economies such as the Philippines, Indonesia and Thailand, an

and Cent ral America More recent ly t hey have moved to Viet nam

Easy to shift work between factories4


48/80

a y k b a

The global garments industry runs on fierce competition. Profits at the top of the

chain can be huge, but have to be maint ained year on year t o keep shareholders

happy. Consumers shop around for the best buys, and so retailers are in constant

compet it ion wit h each other to maintain t heir profi t margins.

So t he retail ers put pressure on t heir subcontractors, agent s and t rading companies

for l ower cost goods. This creates in tense compet it ion between companies and

countries, fighting to get the orders. The brand-name retailers from the North have

a lot of power to pl ay one subcont ractor off t he other. They often claim they can get

a better deal elsewhere, so as to drive down the price.

Rather t han t urn down an order, manufacturers accept unprofit able deals and make

them work by increasing pressure on the workforce for lower cost and greater

fl exibi li t y. Orders can fluctuate a lot . Retail ers get dat a in f rom their stores about

what i s selli ng well and want to re-stock thei r shelves quickly. Or t hey demand a

rapid response to changing fashion, such as last minute changes in f abric or colour.

Or t here are product ion delays caused by l ate arrival of cloth.

So manufacturers reduce their cost s and increase their f lexibil it y by reducing the

regular workforce. I nstead they employ contract l abour on very low wages wit h no

benefits such as paid holidays or sick leave, and they demand forced or unpaid

overtime. They also place part or all of t he orders t o smaller factori es, i .e. they

subcontract again. These smaller product ion unit s also increase their fl exibili t y

by hiring and firing temporary workers and putting work out to homeworkers, the

lowest paid workers at t he end of the chain.

Thi s does not mean t he end of large fact ories and Free Trade Zones. The number of

FTZs is still increasing, for example in China. But companies in zones are also

putting out work to local subcontractors, agents and homeworkers, even if the big

retailers dont know it .

Not all work goes to cheap labour count ries. The t ight demands of t he fashion

industry mean that it can be more efficient to produce some items in the country

where t hey will be sold rather than in a far-off place. Where thi s happens, t here is

st il l subcontracti ng and homeworking. Homeworkers play a key role also in t he

indust riali sed countri es of Europe and North America.

4

Policies that encourage globalisati


49/80

g g

Developments i n t he garment indust ry are also related to econ

on governments of poor countries by international f inancial in

for loans, the International Monetary Fund and World Bank in

should produce for export rather than home consumption. Me

trade agreements established a system whereby poor countries

garments for markets in North America and Europe.

I nt ernational t rade agreement s say how many goods can be i m

count ry int o another (quotas), and the level of import dut y th

will put on t he imports (t ariffs). The garment industry expand

as a result of the North America Free Trade Agreement (NAFTA)

has a special agreement wi t h t he European Union. But t he mo

international trade agreement affecting the garment industry

Fibre Arrangement (MFA), which was established in 1974.

Under t he MFA, quotas have been negot iated between importi

countri es each year, stat ing t he exact quanti t y of each i tem th

Quota agreements have affected where garment factories are lo

Hong Kong and Korea have had severe quota restrictions. So ccountri es relocated to count ries like Indonesia, t o reduce cost

advantage of unused quotas there.

I n 1995, the World Trade Organisat ion ( WTO) was set up, and t

by the Agreement on Textiles and Clothing (ATC). This says tha

wil l be phased out in t en years. So, by 2005, companies will b

wherever they can maximise profit s. This will increase competi

highly competi t ive i ndustry. So some government s, f or exampreaching one-t o-one agreement s wit h Northern government s,

industry in t heir own count ry.

Many count ries were t old i n t he 1980s that their economies w

focussed on producing garments for export. Now some are like

losing out to count ries which offer eve

investors. Those hit t he hardest wil l of

garment workers laid of f and t heir compeople will be affected.

For t hose workers st il l get t ing garmen

sign yet that they can look forward to

It has been said that if exports couldcatapult our country to industrialisation, thenwe should have advanced by now through the

garment industry alone From 1989 to the

PRANOMS STORY4


50/80

Pranom works for MAP, a human rights organisation in northern Thailand. She suppo

who have fled the brutal military regime in neighbouring Burma which systematicall

labour. Over one million Burmese people have sought safety in Thailand, but they hav

rights there. Pranoms cases include gross exploitation of Burmese women in Thai ga

factories. Pranom says:

Burmese workers are harassed by employers and government officials and can be deporte

About 120,000 have temporary work permits, but if they leave an abusive employer, they calegal status. If they try to take any action, the employers blacklist them and they dont ge

At the Siriwat Garments factory in the Mae Sot area, women have to work up to 18 hour day

over the factory in very cramped conditions. After the employer takes deductions for accom

and the work permit fee, they receive 1400-1500 baht (US$35-37) a month including over

The factory is Thai-owned. We were told it sews clothing for export to Japan, but the signbo

says Next Retail Ltd., LE95AT England, and maybe they produce for that company. Recent

out they are subcontracted by a company in Bangkok to produce for Levis.

On 19 September 2003, the workers were ordered to work from 8am until 12 noon the next

altogether. If anyone disobeyed, they would be f ined and dismissed. That next day, the em

them continue until 1pm the following day. Then on the third day, he tried to make them g

11pm. Finally the exhausted workers refused. That evening, all of them - 64 women and 11

were ordered out of the factory and told to sleep elsewhere. The employer said that if they d

agree to work overtime, they would be laid off. Police came and threatened them with depo

back to Burma.

Levis told us they have a Code of Conduct. I told them we re not calling for a boycott but w

improve the negotiating power of the workers. The employer at Siriwat now says he will pay

minimum wages and abide by the law. He still asks them to work overtime to 11.00 pm, say

there are a lot of orders.

4

Facilitato


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The globalgarment industry

Aims: to understand how the garment industry developed in our own country

t o explore how the garments supply chain fi t s into t he bigger picture of g

t o di scuss the way the garment indust ry seeks out vulnerable people for it

Preparation:Before running the workshop, it would be useful to prepare information on:

how t he garment indust ry has developed in your count ry, especially i n t he

t he role of int ernat ional t rade and fi nancial organisations in t he economiyour country;

how your government has promoted

investment in export-oriented i ndustry;

t he garment industry in your country aft er

the phase-out of the MFA by 2005.

Methods:

Analysing the garmentindustry in our country

Start with discussion by the participants.

Depending on the part icipants, t he Facili tat ormay need to be prepared t o add in a l ot of

information.

h i d l b li i

1

How has the garmen

developed in our cou

Why has it develope

Who has benefited findustry in our counConsider in turn: (a)retailers, (b) local reforeign manufacturmanufacturers, (c) t(f) garment factory (g) non-factory garm(h) consumers.

Key Ques

Combating exploitation of vulnerable people34


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Combating exploitation of vulnerable people

Use Pranoms Story as an example of how the garment industry seeks out margin

workforce, why t hi s happens and what we can do about i t . Ask a part icipant t o rea

Pranoms Story shows:

Women migrant workers in

garment factories

Forced and excessive overtime

Subcontracted producti on for

big retailers Harassment of support workers

Role play: solidarity with migrant workers

The participants divide into three groups:

undocument ed migrant workers from another count ry who are working in a nea

factory

unemployed workers in t he local communit y organisers from a local trade union for garment workers.

Scenario: The migrant workers live in the factory and were forced t o work 18 hodays to finish an order. Now they are exhausted, on strike and locked out. They ha

local union for support but there is some resentment because many of i t s member

when t he migrant workers came. The migrant workers and union organisers want t

together to achieve a positive outcome for all. They hold a meeting in the commu

by unemployed workers. What arguments can t hey use to persuade the l ocal comm

support the migrant workers win back t heir j obs wit h decent working hours and w

What did we learn? E l i f h i

3

Why do garment factories in Thailand emigrant workers rather than Thai work

Does a similar situation exist in our coworkers are exploited in the garment in

What do we know about their situation

Why is it important for all workers to h

How can we build solidarity with migraeffective?

Key Questions

Information Sheets


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Solidarity beworkers

Only by working together can we improve our situation. Inhistory have workers won justice or respect for our rightstogether in solidarity.

The most import ant form of solidarit y is between workers in o

if we win support from the local communit y. Local solidarit y is

succeed in claiming our ri ght s.

But solidarity is very difficult when workers are in and out of e

Sometimes we are making clothing; somet imes we have to f ind

other way. I t is hard t o fi ght t ogether for bet ter condit ions whto change jobs.

Formal and informal workers

Many garment workers do not have a permanent job in a facto

work contract t hat says how many hours t hey will work and ho

paid. More and more employers, in garment s as in other indus

people on short-t erm contracts, as probati oners, as seasonal

t here are orders and f iri ng when t here are none. They are cutt i

increasing t heir f lexibil it y by shi rking t heir responsibil it ies to

being made to bear t he risks and insecurit y.

One t erm for t hi s sit uati on i s informal employment. This i s be

not being hi red through formal employment arrangement s whcountrys employment laws. The term informal covers all the m

who do not work in a defi ned workplace, for a known employe

employment contract.

Am I a formal or an informal worker?5


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Have you got a lett er of appoint ment or a work contract f rom your employer?

Are you on the payroll of t he company you work for?

Do you get a payslip?

I f you can answer yes to these quest ions, t hen you are a formal worker. Your

employment may not be secure but at least you have legal proof t hat you are an

employee of a part icular company. This means that you have legal righ ts under your

countrys employment laws. For example, you cannot be dismissed without a reason.

I f you answer no to all t hree quest ions, t hen you are an informal worker. You arenot seen as an employee under employment law. Your legal status is unclear, and so

your l egal ri ght s are very weak. You can be di smissed for any reason. You cannot

even prove that you were employed in t he fi rst place.

Why do employers prefer informal workers?

Employers say that t hey cannot employ workers on a formal basis because orders are

irregular and so t hey need flexibil it y. I t is t rue that t here are peak periods when

demand is high, and slack periods when demand is low. But in most cases where

workers are dismissed, production has not stopped. I t is carrying on wit h new

workers in the same place or somewhere else. In other words, employers could carry

on employing t he existi ng workers but choose to employ ot hers.

One reason for shif t ing from one set of workers to anot her is because the new onescan be paid lower wages or made to work in worse condit ions. Another is that t he

fi rst set of workers have formed a union.

Also, when employers formally employ workers, they have legal obligations. They

may have to pay social insurance contri but ions, whi ch increases their labour cost s.

They may have to pay compensation to retrenched workers. If you are a formal

worker, you have right s, for example to t ake an employer to court or t o form a union.

I t may be very hard to exercise these right s, but many employers will do whatever is

possible to avoid their legal obligations and our legal rights.

So, employers who do not want to deal with unions, or want to be able to shift

d ti t h l ti t t id th i l l ibil it i t t h i

Building solidarity between formal informal workers


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informal workers

By making some workers in formal, employers undermine the c

all workers, i ncluding formal ones. So t hese quest ions are imp

and fighting to strengthen the rights of informal workers bene

means reaching out in soli darit y and organising together.

Trade unions are usually organisations of formal workers. All w

establish and belong to trade unions, and to negotiate collect

according to international Conventions of the International La

(I LO). But i n most countri es t hese right s are only specifi ed in workers, even if these right s are not well respected in pract ice

Informal workers find it even more difficult to organise than fo

you are an i nformal worker, you may be hidden or out of sight

or alone in your own home. You may move from one employer

intervals. You are vulnerable to losing your job at a moments n

hard t o get t ogether to buil d organisat ions.

Nevertheless, in formal workers organisat ions have been bui lt

They i nclude associat ions of homeworkers or st reet vendors. S

support women informal workers to get together to find soluti

Some trade unions have set up special sect ions and go out t o

workers. Other unions are trying t o include informal workers in

act ivi t ies. I n some places, all iances are being established betw

groups and t he t rade unions of f ormal workers.

I t is not important which model you foll ow, whether or not inf

t heir own organisati ons or are taken in as members of t he t rad

important is that there is joint action.

More Information:

Legal pressure on employers5


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Here is a list of demands that could be made to t ry to halt the increasing employment

of workers in i nformal sit uations. Are any of them appropriate in your situati on?

Labour laws protecti ng basic right s must apply t o all workers;

Employers must not employ informal workers in a job t hat is permanent or

perenni al; t he employment of all workers in such posts should be formalised;

Workers hired through an agency or labour contractor should be regarded as

employees of the company for the period they work for it, however short that is;

Employers must be legally obli ged to give an appoint ment l ett er to any workers who

are in t he same job for more than, say, 3-6 months, and make them permanent; Employers must not be allowed to create arti fi cial breaks in employment so as to

avoid making workers permanent;

Temporary, casual or cont ract workers must be pai d at least t he same as

permanent workers, wi t h pro rata benefit s and leave;

Informal workers must have access to social security and employers must pay

social security contributions for them;

All irregular workers, including homeworkers, should be issued with an attendance

card and social security card which the employer must stamp; this means that, even

if they dont get employment on a regular basis, their status as workers is recognised;

Employers should be obliged by l aw to recognise and negoti ate wi th

organisat ions of i nformal workers.

Such demands are aimed at changing laws to oblige employers to carry out certain duties. Only

then can there be legal sanctions against employers who fail to carry out their obligations.

With whom can you campaign for such changes to employment laws?

Solidarity within our community

Workers - whether formal or informal - are all part of the community where we

li ve/ work. So are other local workers involved in t he garment supply chain such as

off ice workers, t ransport workers, and shop/ retai l workers. Beyond that are also other

workers and members of t he communit y, i ncludi ng newcomers and migrant workers.

I t is always important t o make alli ances wit h members of t he wider communit y.

Many wil l be experiencing very similar sit uati ons, such as the l oss of permanent

j b l t S h i b th b i f b d b d it

CRISTIS STORY


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Cristi is an organiser with the Women Workers P

City, in the northern Philippines. In the citys expthe Baguio City Economic Zone (BCEZ), there are

factories and 14 small garment factories. At pea

workers are employed. But in November each yea

layoffs, until March when the factories start up a

how they have been campaigning in Baguio agai

contract labour that leaves the workers so insecu

In BCEZ, during the high season producing for the

North, many workers are employed and there is a lo

November, the garm

piece-raters so that t

the 13th month Ch

companies, one Kore

they actually shut do

laying off all the workers in November and rehiring

workers cannot afford to pay rent and have to go ho

look for other work in shops or as small traders.

In 2000, the national womens organisation Gabrie

to look at this question of contract labour. Represen

Inabuyog, the Womens Federation of the Cordillera

members organising in plantations, electronics, ga

department stores.

At the time, workers of the Shoemart chain of stores

20,000 employees (50% of whom are women), only

and 18,000 contractuals. We have been experienc

types of irregular employment - agency hiring, piec

At the time, workers of the Shoemart chain of stores wereon strike: out of 20,000 employees (50% of whom are women),only 2,000 were regular and 18,000 contractuals.

It was from the 2000 conference that the national Campaign Against

Contractualisation was born. In the campaign, we make contact with

5


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garment workers and carry out education programmes in the communities

where they live near the Zone. We introduce issues through testimonials

from the workers, and then carry out education on the subcontracting

chain. We have some small groups, but it is very difficult to encourage the

participation of new contacts. They will distribute leaflets but few attend

the education sessions because they fear contact with unions will lead to

them being kicked out of work.

Contractualisation affects so many sectors, especially the service

industries and government employees. In fact, the Government is the No.1

implementer of contractualisation. So in the campaign we reach out also

to teachers and university lecturers and other public employees. We have

built alliances with the Church, and take every opportunity to be on the

radio to make a noise. We have high prof ile activities on festive days such

as Baguio Day, International Womens Day and May Day, with big posters

saying We Need Jobs, Wage Increases and No to Contractualisation.

Our aim is to form an association of contractual workers. Before, we

organised unions in the factories. But they were shortlived; activists were

fired and left the area. Regular workers were dismissed and replaced by

contractuals. Now when workers in the Zone hear the word union it is

difficult. We do hope to transform the association into a union in the long-

term. Under Philippines law, an association has no bargaining power; only

a union does. It really affects the orientation of the workers movement, as

we have to shift to what is appropriate to the situation today.

From an interview with Celia Mather, October 2003

Facilitato


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Solidarity betweenworkers locally

Aims:

to understand the significance of informal employment in undermining tworkers, and why i t is important t o develop solidarit y between formal an

t o enable part icipant s to use mapping t o draw up a st rategy for organisin

claiming their rights

Preparation:

Before running t he workshop, you may like to f ind out what are the ri ght s unlaw in your country t hat are denied to in formal workers because they have no

as employees.

Methods:

Using mapping for organising locally

Take up again t he local map produced in Unit s 1, 2 and 3. Ask the part icipant

and where are the f ormal workers, and who and where are the i nformal worke

chain. I f needed, t he facili t ator can add in i nformat ion about what laws in yo

employers avoid if they employ workers on a non-permanent basis.

Ask a participant to read aloud Cristis Story.

Cristis Story shows:

Cont ract labour in garment factories

A broad campaign against cont ractualisati on

1

Organising formal and informal workers toge25


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Ask parti cipants to brainstorm the barriers to organising and how to overcome th

On whi teboard or paper on t he wall, make two columns:

Barrier to organising How to overcome the ba

Writ e up on the whit eboard/ wall. I t might be useful to priorit ise them, t o note w

dealt wit h fi rst.

Campaign Demands: Ask the part icipant s to make a li st of demands that could uncampaign for t he right s of i nformal workers. Compare the li st drawn up by t he part

t he list on t his Units informat ion sheet . Consider adding t o or changing the parti

Then priori t ise the demands, according t o which are appropriate i n your local sit u

parti cipants t o li st ways in which t hey could promote t hese demands.

Solidarity within ourcommunity

Look again at Crist is Story.

3

Are the formal garment workers in our area already members of atrade union?

Do the irregular garment workers in our area have any organisationor association that supports them?

How can formal and informal workers organise together in our area?

What are the barriers to organising and how can we overcome them?

Key Questions:

What are the lessons we can leastudy about organising within o

Who are the other sectors of oub th ti t th t

Key Questio

S lid it

Information Sheets


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Solidarity

the supply

It is essential to build solidarity locally between workers ancommunity. Solidarity can also be built between workers inand different countries. In fact, in a global industry like garm

solidarit

supply chains for education

Documents