Source:
Choike
Labour rights in the apparel industry, where 75% of the 23 million workers in that sector are women, are basically a women's issue. The next two years are crucial for women garment workers because wholesalers in the North are reorganizing their global chains of supplies in order to adapt to new free trade agreements and obtain the largest benefits with the progressive withdrawal of the quotas. In this session, experimented international leaders of the trade union movement discussed the progress and regress in the last ten years, assessed the different strategies that have been used and how they have complemented -or opposed- each other.
Junya (Lek) Yimprasert, Thai Labour Campaign, Thailand.
Lynda Yanz, Maquila Solidarity Network, Canada.
Magaly Pineda, Centro de Investigación para la Acción Femenina, República Dominicana.
May Wong, Asia Monitor Resource Center, Hong Kong.
The issues analysed in this workshop were: the rights and situation of women workers in the apparel industry, the new Free Trade Agreements (FTA), the Multi-Fibre Arrangements (MFA) and the end of the quota system. Below, we offer detailed information about the MFA and the quota system(1). In a decade, not enough changes have been made and working conditions remain the same or tend to worsen.
The International Labour Organization (ILO) held a meeting on 25th October 2005 on the end of the quota system and its impact in the textile and clothing industries. The meeting analysed the consequences of the finalization of the Multi-Fibre Arrangements and called to address the transformation of the textiles and clothing sector "in a socially responsible way"(2).
Four women from different parts of the world spoke to us about these issues and how to confront corporate policies and corporate-friendly governments. Junya Lek Yimprasert, from the Thai Labour Campaign spoke about globalization strategies; Magaly Pineda from the Centro de Investigación para la Acción Feminina (Dominican Republic) lectured about free trade zones; May Wong from the Asia Monitor Resource Center, Hong Kong and Gita Soe, member of a grassroots group of women in Cambodia. The panel was presented by Lynda Yanz, from the Maquila Solidarity Network, Canada.
Trade union leaders from Thailand and members of Mexican maquiladora factories were amongst the audience.
The clothing industry in Thailand
Changes in the supply chains, not only the elimination of quotas, are causing trouble. We have to analyse these changes very carefully, basically because no one wants to take responsibility for this process. Many products that say for example: "Made in Thailand" are in fact made in many more countries, they are handed over to small sweat shops of 20 or more workers that finalize the product for sale.
Furthermore, we can see that the Thai currency (baht) has been at a standstill since 1997 and the salaries have been reduced 50%. Immigrant workers are the worst hit as they receive lower salaries, are not protected, they cannot organize themselves according to the law, and all this process hinders even further the situation of Thai workers.
Corporate accountability
To make sure that companies adopted these codes, many efforts were made during the 90s until many of these companies started to hire external consultants to comply with these responsibility codes. The creation by the United Nations of a "Global Compact" - ten universal principles in the areas of human rights, labour, the environment and anti corruption that corporations must respect- marked a change in global labour rights. NGOs must work more on this issue, we have demanded for some time now that worker's participation in the whole of the control system is essential.
NIKE's lies to its clients
A trap to corporate responsibility. Clothing industry workers work seven days a week, way past the 8 hours a day. We have seen and listened to several recordings of these workers that state how they are forced to give false testimony whenever a labour inspection comes to the fabric.
Moreover, corporations have increasingly contacted NGOs in the North in order to lobby against any aggressive campaign, creating strong tensions between organizations in the North and the South. It is necessary to continue discussing and affirm solidarity between all organizations.
Dominican Republic
Export Processing Zones began to establish in the Dominican Republic in the mid 1960s. Organizations working on that issue came not from trade unions groups but from the women's groups. In the Dominican Republic, Export Processing Zones are one of the most important sources of labour, with a high percentage of all national employees (35%). More than 130 thousand are working on that sector.
The Multi-Fibre Arrangement changed the situation because a link between the national production and the Export Processing Zones was formed. It changed the way in which conflicts were solved between trade unions, governments and the private sector. It is important to say that even though the private sector chose to support the Free Trade Agreement with the United States, the workers could not arrange a unified participation.
Cambodia
Industry in Cambodia is basically textile and clothing, exporting mainly to Europe and the US. Considering the changes that have been announced, the whole of the country's industry will suffer the consequences. More than 90% of investments are in foreign hands and they will probably withdraw from the local industry and establish elsewhere. The last year, we saw how big brands fled from the country or reduced their production: Gap or Levi's, for instance. With the end of the quota system, fabrics close and those than continue, do so in far worse working conditions.
Most of the fabrics in our country are located in cities. Their workers are mainly poor women from rural zones that come to the city and then send money to their families. With the current situation, even the right to organize is in jeopardy.
Another element of delay is that according to the new trading system, the companies no longer have the obligation to transfer technology or provide learning programmes for its workers. Furthermore, there is no more protection of the worker's salaries and things only seem to get worse.
China
The situation of China is at the centre of debate now that the Multi-Fibre Arrangement is over. "China is the ogre" it seems. I don't know what to say, I have no solutions. I do seize this opportunity to inform you about the conditions of Chinese workers...about the quality of their jobs in their own country.
Comparing with the previous year, China's exports to the US and Europe increased 40%. However, what is often overlooked is the fact that the Chinese government started to rebuild the clothing industry that had been previously subsidized by the state. In the last 10 years of reforms 40% of the workers have been fired (a total of 4.5 million workers) and, at the same time, agreements are being made with foreign companies in the southern Export Processing Zone. But who works there? Not the ones that are unemployed, but poor peasants that are paid very little.
The government changed the situation of the working force: it shifted from a stable working force to an unstable one. This happened after the Multi-Fibre Arrangement. In this scenario, Chinese workers and workers in developing countries are the most harmed.
It would be more appropriate then, to say that in China all fabrics are sweat shops. Since 1949 the Chinese working force has been controlled by the government. There are no independent trade unions that could now confront this situation.
Addtional information
-->The abolition of textile quotas is causing the predicted social catastrophe
Just as the international trade union movement predicted, the liberalisation of world trade in textiles has turned the sector on its head and had a devastating social cost, according to a report published by the International Confederation of Free Trade Unions (ICFTU). December 2005.
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(1)
What is the MFA?
The Multi-Fibre Arrangement (MFA) was established in 1974 to regulate global trade in textile and apparel products. Under the MFA, Canada, the US, and the European Union (EU) could set limits, called quotas, on the amount of foreignmade apparel and textiles they would allow into their countries from any specific producing country. Since 1974, import quotas have been applied to 73 countries in the global South, mostly in Asia. In 1995, the Agreement on Textiles and Clothing
(ATC) came into effect, under which quotas were phased out in four stages over a ten-year period and eliminated on January 1, 2005.
January 1, 2005 marked a new era in the world garment industry.
What does the end of the quotas mean for the apparel industry?
Quotas were adopted to protect apparel and textile production in the North. The result, however, was the internationalization of the industry. Apparel production was set up in many different countries in Asia, Latin America and Africa that did not have restrictive quota limits on the amount of clothing that could be exported to the North. The end of quotas means a larger amount of apparel and textiles will be produced in the global South, but in fewer countries and fewer factories. Without quotas, countries and companies will be in more direct competition. This increased competition will produce three main effects:
1. Country consolidation:
It is cheaper and more efficient for brands and retailers to source from fewer countries. One industry survey found that brands now sourcing clothes from 40-50 countries plan to consolidate
production in 12-15 countries.
2. Fewer and larger suppliers:
With open competition, suppliers will be pressured by brands and retailers to reduce costs. Multinational suppliers with large factories and “full package production” will win out over small and assembly-only factories. However, the use of small subcontract sewing facilities by the larger factories will likely continue.
3. Drop in costs:
Brands and retailers will get more production for less money because the price of garments will no longer be inflated by quota fees and companies will be able to select those manufacturers and countries that offer the greatest efficiency for the lowest cost.
Source: Maquila Solidarity Network
See complete text in PDF
(2) Promoting fair globalization in textiles and clothing in a post-MFA environment Opening address by Juan Somavia, Director-General of the International Labour Office to the Tripartite Meeting, Geneva, 24 October 2005. (PDF document).
10th AWID Forum - Bangkok, October 2005
On October 27-30 will be held -supported by AWID- the 10th. International Forum on Women’s Rights and Development, that is both a conference and a call to action. |
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reports on key issues. |
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Millennium Development Goals - MDGs
A comprehensive list of resources from the United Nations and civil society organizations.
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