1Precarious Work in the Gap Global Value Chain - Asia Floor Wage Alliance
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Precarious Work in the 1 Gap Global Value Chain
2 3
Asia Floor Wage Alliance (AFWA) was oicially
formed in 2006 and includes up to 71
organizaions, which consitute a network from
17 countries across Asia, Europe and North
America to represent garment industry trade
unions, NGOs, consumer groups and research
insitutes.
The Center for Alliance of Labor & Human
Rights (CENTRAL) is a local Cambodian NGO.
The organizaion empowers Cambodian working
people to demand transparent and accountable
governance for labor and human rights through
legal aid and other appropriate means.
Sedane Labour Resource Centre/Lembaga
Informasi Perburuhan Sedane (LIPS) is a non
governmental organizaion in labor studies. LIPS
works to strengthen the labor movement by
documening knowledge through paricipatory
research and developing methods of popular
educaion in labor groups and unions.
SLD is a Delhi-based labour rights organisaion,
that believes in equitable development through
social and economic well-being of labour,
migrants, and women workers; and through
cultural renewal among disenfranchised people.
SLD is a naional organisaion that originated
with a focus on the Naional Capital Region and
works with partners in Utar Pradesh, Bihar,
Jharkhand, and Kerala.
The Naional Centre for Development
Cooperaion, or CNCD-11.11.11, includes
nearly 80 development NGOs, trade unions and
associaions engaged in coninuing educaion
for internaional solidarity in the French
Community and Community of Belgium.
The United Workers Congress (UWC) is a
strategic alliance of workers that are either
by law or by pracice excluded from the right
to organize in the United States. This naional
network represents a base of workers, and also
regional networks and individual organizaions
in industries where there is no naional
network.
EXECUTIVE SUMMARY 4 5
that physical punishment and illegal terminaion— commitment. To date, Gap has refused to make
especially of pregnant women who were also a contractual commitment to work with their
denied maternity beneits—were normal suppliers and local and internaional trade unions
occurrences (IGLHR 2013). to ensure that repairs are made and workers have
the right to refuse dangerous work.
Working condiions like those reported in Next
Collecions are far from isolated incidents. Gap Due in no small part to this egregious refusal to
lags far behind other brands in their commitments join the Accord, in 2014 Gap earned the Public
to decent work and safe workplaces. For instance, Eye Jury Award from the Berne Declaraion and
more than 200 brands signed the legally binding Greenpeace Switzerland—an award that aims
Accord on Fire and Building Safety following the to shine a light on the current and most serious
collapse of the Rana Plaza Building in Bangladesh, cases of human rights violaions and disregard for
killing 1,127 workers. Instead of signing the environmental protecion and sustainability (CCC
Accord, Gap together with Walmart, founded the 2014a).
Alliance for Bangladesh Worker Safety. Unlike
the legally binding Accord on Fire and Building Gap currently operates 3,300 stores and employs
Safety, the Alliance for Bangladesh Worker Safety more than 150,000 employees across their
is a voluntary measure rather than a contractual global producion network. (ILO 2014; Donaldson
Campaigners on Oxford Street, London call on Gap to ensure beter safety in their Bangladeshi factories.
To date, Gap has refused to make a contractual commitment to work with their suppliers to ensure that
repairs are made.
by Trade Union Congress licensed under CC 2.0. jpg
Gap 5th Avenue, New York
by Ingbruno licensed under CC3.0
In March 2014, U.S. President Barack Obama garment workers in overseas producion hubs.
made headlines by ceremoniously shopping Although Gap has also publicly announced a
at a Gap store on East 42nd and Third Avenue. commitment to set humane working condiions,
Obama’s decision to visit the store followed an just months before Gap announced an increase
announcement by Gap that they would raise in wages for U.S. workers, the Insitute for Global
minimum wages for U.S. workers to USD 10 per Labour and Human Rights exposed sweatshop
hour by 2015. Gap’s decision to raise minimum condiions in Gap supplier factory run by the
hourly wages broke with U.S. retailers and Ha-Meem Group in Bangladesh—where together
business groups that urged lawmakers to maintain Gap and Old Navy account for 70% of producion
the federal minimum wage at USD 7.25 an hour (Boyer 2014). The 3,750-worker Next Collecions
(Banjo 2014). factory in Ashulia, Bangladesh, on the outskirts
of Dhaka, rouinely forced workers into 14-17
Gap—the parent company of Gap, Banana hour shits, seven days a week amouning to
Republic and Old Navy—has commited to raising workweeks of over 100 hours. Workers were paid
wages for U.S. workers but this commitment poverty level wages: just USD .20 - .24 per hour.
does not extend to establishing living wages for Workers in the Next Collecions factory reported
6 7
2016a). Brands like Gap wield the potenial to
transform working condiions through their
Secion one provides a brief overview of global
producion networks in general and the garment Recommendaions chains, the ILO should set new standards and
enforcement mechanisms and encourage naional
supply chains. Gap has not, however, commited global producion network in paricular. It governments to do the same.
to ensuring a living wage for workers beyond U.S. outlines key shits in employment relaionships for the ILO at the
employees and fails to disclose their suppliers—
creaing signiicant barriers to allowing labour
as producion processes evolve to include several
companies across muliple countries. This secion
Internaional Labour The ILO Triparite declaraion of principles
concerning mulinaional enterprises and social
rights groups, the government and other paries
to monitor labour rights in their direct supplier
also traces the concentraion and distribuion of
control over producion processes across various
Conference, 2016 policy (MNE Declaraion), 2006 provides a
good staring point. However, within the MNE
and subcontractor factories. Rather than actors in the garment global producion network. Declaraion, MNE refers only to subsidiaries or
upholding rights and work for garment workers The ILO—the only global franchises. Accordingly, GVCs and GPNs in their
overseas, Gap maintains high pressure sourcing Secion two reviews Gap public commitments to tripartite institution—has a current form are not covered by this Declaraion.
models within the garment global producion promoing decent work in their supply chains, The need of the hour is for the ILO to clarify and
network that create overwhelming incenives for including through the Gap Code of Conduct and unique role to play in setting update its standards and mechanisms to protect
factories to reduce costs and speed producion by partnership programs. Where possible, it includes standards for all of the actors workers employed by transnaional corporaions
ignoring labour standards. discussions and research on the eicacy of these (TNCs) across vast GPNs.
iniiaives to date. that impact fundamental
In recent years, the status of Gap commitments principles and rights at work. The following recommendaions emerge from
to human rights at work has been the subject Secion three provides a brief overview of the our experience promoing rights at work in global
of numerous studies by labour unions, human market share of Asian garment value chains and As detailed in this report on the garment global value chains.
rights organizaions and their allies—ranging more focused country proiles on the Cambodian, producion network (GPN), due to the scale
from Human Rights Watch to the Insitute for Indian and Indonesian garment industries. These of global trade accounted for by Global Value
1. Given the well-documented and rampant
Global Labour and Human Rights. In the lead up secions aim to contextualize empirical indings on Chains (GVCs) there is an urgent need for global
exploitaion of workers and resources by MNEs
to the 105th Session of the Internaional Labour working condiions presented in the inal secion mechanisms to monitor and regulate GVCs
operaing through GVCs, and noing the limits on
Conference, focused for the irst ime on decent of the report. and GPNs. The ILO—the only global triparite
regulaion under naional legal regimes, the ILO
work in global supply chains, this report revisits insituion—has a unique role to play in seing
should move towards a binding legal convenion
the status of Gap’s commitments to decent work Secion four discusses, in detail, the intensive standards for all of the actors that impact
regulaing GVCs.
through the lens of rights at work as they are labour exploitaion and abuse faced by workers fundamental principles and rights at work.
1.1. Standards under this convenion must
protected under Internaional Labour Organizaion in Gap supply chains in Cambodia, India and
be at least as efecive and comprehensive
(ILO) convenions and other instruments. Indonesia. Recent empirical indings are Transnaional Corporaions (TNCs) and their
as the UN Guiding Principle on Business and
supplemented with evidence of rights violaions suppliers have a duty to obey naional laws and
Human Rights and exising OECD mechanisms,
Shedding light on the gaps in implementaion of drawn from exising studies. In this secion the respect internaional standards—especially those
including the 2011 OECD Guidelines for
Gap commitments, violaions of internaional human rights violaions and consequences of pertaining to realizaion of the fundamental
Mulinaional Enterprises.
labour standards and challenges Gap may face precarious work in the Gap supply chain are principles and rights at work. A number of
1.2. The Convenion should include the
in upholding commitments to decent work, ariculated themaically in order to surface the ILO core labor standards, such as the Forced
following components, among others:
this report contributes new research collected patern of rights violaions across Cambodia, India Labour Convenion, 1930 (No. 29), Protocol
1.2.1. Imposiion of liability and sustainable
through interviews with 150 workers in India and Indonesia. to the Forced Labour Convenion, 2014 and
contracing, capitalizaion and/or other
and Indonesia engaged in Gap supply chains. accompanying Recommendaion, already protect
requirements on lead irms to ensure
These recent indings, collected between August workers in value chains. However, as this report
accountability throughout the GVC.
and October 2015, are situated in context of details, changes in the modern workplace and
1.2.2. Establishment of a Global Labour
both previous studies on Gap supply chains in globalizaion of value chains has opened up new
Inspectorate with monitoring and
Cambodia, India and Indonesia and the broader gaps in the protecion of fundamental principles
enforcement powers.
context of the global producion network. and rights at work. In addiion to clarifying the
1.2.3. Publicly accessible transparency and
applicaion of exising standards in global value
8 9
traceability provisions. 4. Convene research to inform ILO global supply 5. Organize a Triparite Conference on the
1.2.4. Speciic provisions that address the chain programming, including: adverse impact of contracing and purchasing
special vulnerability of migrant workers in 4.1. Research on adverse impacts of TNC pracices upon migrant workers rights. This
GVCs. purchasing pracices upon conference should focus on:
1.2.5. Speciic provisions that address the 4.1.1. Core labour standards for all 5.1. Protecion of migrant rights as conferred
special vulnerability of women workers in categories of workers across value chains. under the UN Internaional Convenion on the
GVCs. 4.1.2. Wages and beneits for all categories Protecion of the Rights of all Migrant Workers
1.2.6. Limits on the use of temporary, of value chain workers. This research should and Members of their Families.
outsourced, self-employed, or other forms aim to saisfy basic needs of workers and 5.2. The intersecion of migrant rights and ILO
of contract labor that limit employer their families. iniiaives to promote Decent Work in Global
liability for worker protecions. 4.1.3. Access to fundamental rights to food, Supply Chains.
housing, and educaion for all categories of
value chain workers and their families.
2. Pursue a Recommendaion on human rights 4.2. Research into the range of global actors
due diligence that takes into account and builds that may have leverage over GVCs including
upon exising due diligence provisions that are investors, hedge funds, pension funds and GVC
evolving under the United Naions Guiding networks that deine industry standards such as
Principles on Business and Human Rights and Free on Board (FOB) prices.
the 2011 OECD Guidelines for Mulinaional 4.3. Research into the types of technical
Enterprises. advice needed by OECD government
paricipants taking a muli-stakeholder
3. Take the following complementary measures approach to address risks of adverse impacts
to protect workers employed in global value associated with products.
chains: 4.4. Research into mechanisms deployed
3.1. Recognize the right to living wage as a by authoritaive actors within GVCs that
human right and establish living wage criteria contribute to violaions of fundamental
and mechanisms. principles and rights at work, including but not
3.2. Promote sector-based and transnaional limited to atacks on freedom of associaion,
collecive bargaining and urge countries to collecive bargaining, forced overime, wage
remove naional legal barriers to these forms of thet and forced labour.
collecive acion. 4.5. Since women represent the greatest
3.3. Expand work towards the eliminaion majority of garment workers, the situaion
of forced labour, including promoing of women should be urgently included in
raiicaion and implementaion of the Forced monitoring programmes to assess the spectrum
Labour Convenion, 1930 (No. 29), Protocol of their clinical, social and personal risks.
to the Forced Labour Convenion 1930 and 4.6. Require an urgent, epidemiological study
accompanying Recommendaion, 2014. into deaths and disabiliies resuling from
3.4. Coninue programs to ensure social condiions of work and life of garment workers.
protecion, fair wages and health and safety at This informaion should be made available
every level of GVCs. publicly and to internaional agencies.
ACKNOWLEDGMENTS 10 11 ABBREVIATIONS AND ACRONYMS
This report is one in of a series of reports, Center for Alliance of Labor & Human Rights AFWA Asia Floor Wage Alliance
enitled Workers Voices from the Global Supply (CENTRAL) in Cambodia. AFWA-C Asia Floor Wage Cambodia
Chain: A Report to the ILO 2016. Invesigaion of
AFWA-I Asia Floor Wage Indonesia
producion condiions in Gap factories in India This report was edited by Anannya Bhatacharjee.
and Indonesia was coordinated by the Society for Recommendaions for the ILO at the Internaional CCAWDU Coaliion of Cambodian Apparel Workers
Labour and Development (SLD). Labour Conference, 2016 were formulated by a Democraic Union
group of organizaions, including the internaional
CCC Clean Clothes Campaign
Desk research and wriing was completed by Asia Floor Wage Alliance, Jobs with Jusice (USA),
Ananya Basu and Shikha Silliman Bhatacharjee, Naional Guestworkers Alliance (USA), and Society CENTRAL Center for Alliance of Labor and Human Rights
JD. Data analysis was conducted by Ananya Basu for Labour and Development (India). GMAC Garment Manufacturers Associaion in Cambodia
and Vismay Basu. Primary data collecion was
HRW Human Rights Watch
undertaken by Syarif Ariin, Lembaga Informasi We extend graitude to the workers who shared
Perburuhan Sedane (LIPS), in Bogor Indonesia; their ime, experience and materials for the ILC Internaional Labour Conference
Vismay Basu, Delhi-NCR based Society for Labour purpose of this study. ILO Internaional Labour Organizaion
and Development (SLD) in India; and Joel Preston,
ILRF Internaional Labour Rights Forum
MLVT Ministry of Labour and Vocaional Training
NCEUS Naional Commission on Enterprises in the
Unorganized Sector
FIGURES NCR Naional Capital Region
Figure 1: Basic needs included in Asia Floor Wage calculaions SLD Society for Labour and Development
Figure 2: Asia Floor Wage calculaions consider inancial dependents and corresponding TATA Texiles and Apparel Trade Agreement
responsibility of workers
TCLF Texile, Clothing, Leather and Footwear
Figure 3: Progressive increase in Cambodian minimum wages, 2012-2016
USAS United Students Against Sweatshops
WRC Worker Rights Consorium
TABLES
Table 1: Overview of study respondents in Delhi-NCR, India
Table 2: Overview of study respondents in Indonesia
Table 3: 2015 Asia Floor Wage Figure in local currencies
Table 4: Asian countries’ share of global apparel exports, 2000-2013
Table 5: Average minimum wage increase across sectors for selected provinces in Cambodia,
2010-2013
METHODOLOGY 12 13
Analysis of structured interviews aimed to idenify names of paricular producion units have been
violaions of rights at work protected under withheld.
Internaional Labour Organizaion standards,
naional laws and the Gap Code of Vendor In total, we interviewed 100 workers engaged in
Conduct. producing Gap garments within Indonesia and
surrounding areas.
These indings have been situated in context
of the global garment producion networks Table 2: Overview of study respondents in
and previous research on Gap supply chains. Indonesia
Secondary sources included reports on producion
condiions in the garment industry, academic Supplier No. of respondents
aricles and newspaper reports. Panca Prima 30
Putra Pilar Sejai 30
India Sandraine
Tainan Enterprises
20
20
In India, research included invesigaion Indonesia
of working condiions in four Gap supplier Total: 100
companies (Table 2). In order to protect the
idenity of workers interviewed for this study, in
some cases the names of paricular producion
Documening rights violaions in Gap factories is paricularly challenging because Gap refuses to disclose
units have been withheld. In total, we interviewed
basic informaion about its suppliers.
50 workers engaged in producing Gap garments
Asia Floor Wage Alliance
within the Delhi, Naional Capital Region (NCR).
This report is based upon 150 structured supplier factories, including 4 supplier factories Table 1: Overview of study respondents in Delhi-
interviews conducted between August and in Indonesia and 4 supplier factories in the Delhi- NCR, India
October 2015 with garment workers in Phnom NCR, India. Supplier No. of respondents
Penh, Cambodia; Bogor, Indonesia; and the Delhi, Orient Crat 20
Naional Capital Region (NCR), India. Structured Interviews lasted between 30 and 65 minutes. All
Pearl Global 12
interviews were conducted by Sedane Labour worker interviews were conducted in person with
Resource Centre/Lembaga Informasi Perburuhan full consent from workers. Interviews took place in
Sedane (LIPS) in Indonesia and the Delhi-based workers’ residences, ater working hours or during Pyoginam 8
Society for Labour and Development (SLD) in ime of. In order to protect the idenity of workers Tets N Rai 10
India. Invesigaive ieldwork was conducted who paricipated in this study, all individual names Total: 50
in Cambodia by Center for Alliance of Labor & have been changed. To ensure that workers
Indonesia
Human Rights (CENTRAL). This informaion was cannot be ideniied based upon idenifying case
contextualized through further interviews with informaion, factories are referenced by company
workers and trade union acivists. name but in some cases locaions of paricular
producion units have been removed. In India, In Indonesia, research included invesigaion of
New empirical indings on working condiions interviews were conducted in Hindi. In Indonesia, working condiions in 4 Gap supplier companies
Interviews with workers were conducted at worker housing colonies such as this one in Gurgaon, India.
in Gap factories are based upon data collecion interviews were conducted in Bahasa. (Table 2). In order to protect the idenity of
Society for Labour and Development
and analysis of working condiions in 8 Gap workers interviewed for this study, in some cases,
14 15
This secion aims to situate new empirical indings TNC-coordinated GVCs
on working condiions in Gap factories in India,
Indonesia and Cambodia within the broader account for some 80 percent
context of global producion networks in general of global trade.
and the garment global producion network
in paricular. This basic overview outlines key
shits in employment relaionships as producion As described by UNCTAD, GPNs shit market
processes evolve to include several companies relaionships between irms from trade
across muliple countries. It also ideniies trends relaionships to quasi-producion relaionships
in concentraion and distribuion of control over without the risks of ownership. Within this model,
producion processes across various actors in the TNCs drive coordinated producion of goods while
garment global producion network. disbursing risk associated with market luctuaions
across global value chains.
Global producion Garment global
networks
Part 1
Global garment producion
The Global Producion Network (GPN) is a
term that describes contemporary producion
systems, characterized by producion processes
producion networks
As described by the Internaional Labour
Organizaion (ILO), the Texile, Clothing,
Leather and Footwear (TCLF) is characterized
that involve several companies across muliple
countries. Companies linked through GPNs by geographically dispersed producion and
are related through various legal forms, with rapid market-driven changes (ILO 2016). Brands
exchanges between irms structured so that engage in high value market research, design,
transnaional corporaions (TNCs) do not legally sales, markeing and inancial services. They
own overseas subsidiaries or franchisees but typically outsource garment producion to Tier
only outsource producion to them. The UNCTAD 1 companies. Tier 1 companies may, in turn,
World Investment Report 2013 notes the structure subcontract some or all of the garment producion
and prevalence of this mode of producion: process to manufacturing companies known as
suppliers. This producion structure allows brands
Today’s global economy is characterized and retailers to drive coordinated producion
by global value chains (GVCs), in which of goods by capitalizing upon new technology,
intermediate goods and services are traded relaxed regulatory frameworks and a supply of
in fragmented and internaionally dispersed low wage labour in developing countries (Ghosh
producion processes. GVCs are typically 2015). While brands and retailers do not carry out
coordinated by TNCs, with cross-border trade producion, they drive sourcing and producion
of inputs and outputs taking place within their paterns overseas. This producion model has
networks of ailiates, contractual partners and been characterized as a buyer-driven value chain
arm’s-length suppliers. TNC-coordinated GVCs (Barria 2014).
account for some 80 per cent of global trade.
(UNCTAD 2013)
16 17
According to this model, the structure of garment subcontracts. Unauthorized subcontractors downward pressure on the prices paid to suppliers through the use of lexible job
value chains can be divided into ive main may also be unregistered and therefore combined with increasingly unpredictable
segments: outside the purview of government regulaion. and extreme seasonal variaion in producion, contracts, unemployment due
Due to diminished government and brand together, require garment suppliers to reduce to luctuations in production
• Segment 1: raw material supply, including accountability—especially among unregistered producion costs. Contract workers cost less to
natural and syntheic ibers; suppliers, working condiions among garment employ per unit because they oten receive lower and downward pressure on
• Segment 2: component supply, including yarn subcontractors have been found to deteriorate wages and rarely receive non-wage beneits, wages.
and fabrics; (Kashyap 2015). Within this structure, employers including paid leave and social security beneits.
• Segment 3: producion networks, including and workers engaged in assembly operaions, These terms of employment leave contract Due to the structure of garment value chains,
domesic and overseas subcontractors; including primary sitching and embellishment, workers paricularly vulnerable to exploitaion, workers bear the brunt of global uncertainies
• Segment 4: export channels established by have comparaively litle negoiaing power with poorer working condiions and a higher within the industry. Industrial uncertainty caused
trade intermediaries; (Ghosh 2015). risk of serious abuse when compared to directly by buyer purchasing pracices is displaced upon
• Segment 5: markeing networks at the retail employed workers (Chan 2013). workers through the use of lexible job contracts,
level. (Ghosh 2015) unemployment due to luctuaions in producion
Rise in employment of
Industrial uncertainty caused and downward pressure on wages. Obstacles to
Firms that control design, branding and markeing contract workers has freedom of associaion and collecive bargaining
(segment 5) also control sourcing decisions. been attributed to buyer by buyer purchasing practices further undermine workers’ negoiaion power.
Producion costs are one signiicant factor in is displaced upon workers
determining sourcing preferences. Decisions purchasing practices:
regarding how value addiion aciviies and proits downward pressure on Indonesian workers rally for decent work
are distributed along the value chain, in turn, have by AFWA
a signiicant impact upon employers, workers and the prices paid to suppliers
markets in producing countries. Proit generaion combined with increasingly
by capitalizing upon price diferenials between
markets has been referred to as “global labour
unpredictable and extreme
arbitrage”(Roach 2004). seasonal variation in
Assembly (segment 3) is typically separated
production, together, require
organizaionally and geographically from other garment suppliers to reduce
value generaing aspects of the value chain. production costs.
Product suppliers and their workers (segment 3)
depend upon orders from markeing networks, Since 2010, garment brand and retail members
irms and brands (segment 5). Tier 1 companies of the UK Ethical Trading Iniiaive (ETI) have
holding primary contracts with brands oten reported an increasing reliance on contract labour
subcontract producion to smaller suppliers. At within garment value chains, marked by a growth
this level of the value chain, Tier 1 companies in the proporion of the workforce that consists
compete for contracts with buyers. In a parallel of contract workers. Contract work is paricularly
process, subcontractors compete for contracts widespread in Bangladesh, India, Pakistan and
with Tier 1 companies (Ghosh 2015). Turkey. These trends have been associated with
the onset of the global inancial crisis in 2007-
Brands typically draw a disincion between 2008. Rise in employment of contract workers has
their liability for authorized and unauthorized been atributed to buyer purchasing pracices:
18 19
Brand and retail codes of conduct establishing Gap outlines its principles and standards of work
social and environmental principles have in two documents, the Gap Human Rights Policy, a
developed in response to ani-sweatshop and broad framework containing principles governing
consumer-driven accountability movements in Gap work spaces and employment relaionships;
Europe and the United States. In some cases, and the Code of Vendor Conduct, that establishes
these codes of conduct have been developed standards that supplier factories need to meet
through muli-stakeholder iniiaives, including in order to work with Gap. According to the Gap
corporate, non-governmental organizaion, trade Human Rights Policy, these principles are binding
union, state and academic representaives (Barria for all direct employees and global suppliers.
2014).
The Gap Code of Vendor Conduct details model
Gap has commited to several iniiaives for guideline for business with suppliers across
improving the lives of employees worldwide. Their coninents. As a rule, Gap claims to engage
public commitment to promoing decent work in business with only suppliers that are in
has been announced in the Gap Code of Conduct, compliance with all guidelines outlined in the
Part 2
Overview of Gap iniiaives to promote
Gap Human Rights Policy, Alliance for Bangladesh
Worker Safety and partnerships with the ILO
and other industry stakeholders. While codes of
conduct and other measures described in this
report consitute declaraions of intent they do
document. Suppliers are also explicitly required
to invest in building monitoring systems that
facilitate assessment of sourcing factories. The
document also spells out requirements for decent
working condiions that must be followed by
not generate binding legal obligaions. suppliers and applied to all workers, including
those hired on contracts. Further analysis of the
decent work This secion reviews Gap’s public commitments Code of Conduct and enforcement of the same
to promoing decent work in their supply chains. informs the secion on rights violaion.
Where possible, it includes discussions and
research on the eicacy of these iniiaives to
date.
Gap support for
California Transparency
GAP Principles and
in Supply Chains Act
Standards of Work
In January 2012, Gap supported the California
Our team talks extensively with workers at Transparency in Supply Chains Act. The Act seeks
factories where our clothes are made, and we to abolish child, bonded labour and human
follow up on the issues we ind. We focus much traicking in global supply chains. It requires
of our ime on complex issues such as tackling companies to publicly disclose the steps they are
the use of unauthorized subcontracing, ire taking to idenify and eradicate forced labour in
and safety issues inside factories, freedom of their supply chains.
associaion and excessive overime. –Gap 2016
To uphold the clauses in the Act, Gap has publicly
declared stringent monitoring mechanisms,20 21
including periodic social audits and review into the product comply with laws regarding • Based upon a 2016 search, no monitoring We remain commited to the principle that
processes for each of their sourcing factories slavery and human traicking in the country of reports have been released for 2013, 2014 or wages for a standard working week should
aimed at ensuring the absence of traicking and business. Finally, Gap claims to provide training to 2015. meet the basic needs of factory workers and
bonded labour. employees and management with responsibility • Monitoring is conducted by an internal set of provide them with discreionary income. Our
for supply chain management (Gap 2016a). Social Responsibility Specialists hired by Gap. approach to wages is aligned with internaional
Gap has outlined several steps designed to This monitoring structure does not produce legal standards set by the ILO and in accordance
protect contract workers. These include locally- This approach has signiicant shortcomings: external evaluaions. with the ETI’s Base Code, as well as with SAI’s
hired Social Responsibility Specialists tasked • Monitoring reports are impossible to verify principles (CCC 2014).
with monitoring Gap commitments to decent • Monitoring year-round factories neither since Gap does not disclose factory locaions
work for contract workers. According to Gap accounts for working condiions for contract or paricular violaions disaggregated by Gap has not, however, released a formula or
reports accessed in 2016, in 2012, the team workers in factories that do not produce year factory. methodology for determining living wage rates.
monitored more than 923 acive, full-year round nor for producion units that receive
factories, allegedly through announced and subcontracts from Gap full ime factories. Filling this conceptual Gap, the Asia Floor Wage
unannounced audits—96.4 percent of the acive, Given the structure of the garment global Alliance (AFWA), a global coaliion of trade unions,
full-year garment factories produce Gap Inc. value chain, these types of producion Wage standards workers’ rights and human rights organizaions,
branded apparel. Gap also claims to require processes are both highly signiicant and also provides a detailed formula for calculaing living
that vendors cerify that materials incorporated the site of the most signiicant rights abuses. In a survey conducted by the Clean Clothes wages across naional contexts. The AFWA
Campaign, Gap declared that their concepion of deiniion of a living wage speciies that living
Figure 1: Basic needs included in Asia Floor Wage calculaions a living wage varies from the standard deiniion wage calculaions must include support for all
used globally. family members, basic nutriional needs of a
worker and other basic needs, including housing,
Figure 2: Asia Floor Wage calculaions consider inancial dependents and corresponding responsibility of
workers22 23
healthcare, educaion and some basic savings.
The Asia Floor Wage Alliance bases their Table 3: 2015 Asia Floor Wage Figure in local
calculaions on the following consideraions: currencies
• A worker needs to support themselves
and two other consumpion units. [One Country Asia Floor Wage in
consumpion unit supports either one adult or local currency
two children.] (Figure 2) Cambodia 1,630,045 Riel
• An adult requires 3000 calories a day in order
India 18,727 Rupees (INR)
to carry out physically demanding work in
good health.
Indonesia 4,684,570 Rupiah
• Within Asia, food costs amount for half of a
worker’s monthly expenditure. Sri Lanka 48,608 Rupees (SLR)
Based upon these assumpions, the Asia Floor The AFW wage calculaion method provides an
Wage is calculated in Purchasing Power Parity $ instrucive model for Gap and other brands in
(PPP$). This iciious World Bank currency is built seing living wages that correspond to workers
upon consumpion of goods and services, allowing needs and consider rising costs of living.
standard of living between countries to be
compared regardless of the naional currency. In
order to calculate annual Asia Floor Wage igures,
the AFWA carries out regular and ongoing food Iniiaives on working
basket research (AFWA 2016a).
condiions
Accouning for high inlaion, Asia Floor Wage Garment workers in India protest against Gap for unfair labour pracices.
Gap has partnered with Verite, a U.S. based non-
igures are calculated annually. As explained by Society for Labour and Development
governmental organizaion with the ariculated
AFWA Coordinator, Anannya Bhatacharjee:
objecive of improving working condiions. This working condiions that may have stemmed The espoused aims of these iniiaves, however,
iniiaive claims to measure and improve how from decisions at headquarters; are in stark contrast to Gap responses to worker-
The gap between the minimum wage and the
much workers feel valued and engaged at work. meeing regularly with strategic and led iniiaitves to engage the brand in improving
cost of living has widened in recent years. High •
The collaboraion allegedly aims to focus on low-performing vendors to assess their working condiions. For instance, Gap was invited
inlaion has sent the cost of living soaring in
workers and their voices in order to improve their performance against Gap’s Code of Vendor to engage with workers at the People’s Tribunal on
many Asian countries, but staring salaries
experience of work. Conduct and discuss how the iming and Living Wage as a fundmantal right of Sri Lankan
remain unchanged—oten for several years.
(Pasariello 2013) planning of Gap’s orders are afecing their garment workers, held from March 17-28, 2011 in
With similar claims to atending to workers’ workers; Colombo; Cambodian garment workers, held from
needs, in 2011, Gap Inc. created a Brand • training all new hires in inventory February 5-8, 2012 in Phnom Penh, Cambodia;
AFW annual PPP$ wage igures are therefore
Integraion and Vendor Performance project team. management, merchandising, producion, and Indian garment workers, held from November
calculated annually based upon up to date
Gap declared that the eforts would be directed sourcing on the importance of responsible 22-25, 2012 in Bangalore; and Indonesian garment
naional food basket research. For instance,
towards gathering data on vendors for efecing purchasing pracices; and workers, held from June 21-24, 2014 in Jakarta.
the 2015 Asia Floor Wage igure is PPP$ 1021.
change at the level of management in the supplier • highlighing case studies and tools to ensure Gap denied invitaions to engage with workers
These wage igures are then converted into local
factories. Stated iniiaives include: that factory orders are made with a full at each of these tribunals, despite being noiied
currency (Table 3)(AFWA 2016b).
understanding of their potenial impact on of persistent rights violaions in their supplier
• meeing with leaders in the Gap Inc. Sourcing workers. factories (Butler 2012; Barria 2014).
Department to examine any issues related to24 25
Beter Work Cambodia, workers reported being coached by
factory management and being unable to engage Personal Advancement For context, within the Gurgaon-Kapashera
producion area of India’s Delhi-Naional Capital
Programme with brand representaives, external monitors,
government oicials or Beter Factory Cambodia & Career Enhancement Region (NCR) just one garment factory may
employ up to 7,000 workers. Put another way, this
(BFC) monitors. As one worker reported to Human programme in aggregate reaches approximately
Gap irst engaged with the ILO in 2001 at the start Rights Watch:
(P.A.C.E) the number of workers in four Gap supplier
of the Beter Factories Cambodia programme. factories.
This iniiaive led to the creaion of the ILO Beter In 2014, Gap Inc. became the irst Fortune 500
Before ILO comes to check, the factory arranges
Work Programme in 2007, which Gap joined as Company to announce that it pays female and
everything. They reduce the quota for us so
a partner. This partnership between the ILO and male employees equally for equal work around
there are fewer pieces on our desks. ILO came
the Internaional Finance Corporaion (IFC) seeks
to help governments, workers and companies
in the aternoon and we all found out in the
the world. Currently women make up more than
70% of Gap Inc.’s worldwide employee base,
Alliance for Bangladesh
Worker Safety
morning they were coming. They told us to
achieve compliance with the ILO’s core labor including in sourcing factories. Addiionally,
take all the materials and hide it in the stock
standards as well as naional labor laws. women currently lead four out of ive Gap Inc.
room. We are told not to tell them the factory
brands. On April 24, 2013, the Rana Plaza, an eight-story
makes us do overime work for so long. They
In countries where Beter Work programs are also tell us that is [we] say anything we will lose commercial building, collapsed in Savar sub-
established, Gap subscribes to Beter Work In order to meet ariculated commitments to district in the Greater Area of Dhaka, Bangladesh.
business.
assessment reports and has stopped their own gender equality, Gap iniiated the Personal The Rana Plaza industrial factory ire that
monitoring. In 2011-12 Gap Inc. claims to have Advancement and Career Enhancement killed 1,139 workers and injured 2,500 more is
Workers in Cambodia called for mechanisms to
collaborated with Beter Work in Cambodia, programme. The P.A.C.E programme aims to considered the most serious fatal accident to have
report violaions of rights at work to BFC monitors
Haii, Indonesia, Jordan, Lesotho, Nicaragua, and secure skill enhancement for women employees. occurred in a texile factory in modern history.
of site wihtout fear of surveillance or retaliaion
Vietnam to monitor more than 90 factories. According to Gap, this programme is currently
by management. Conirming this narraive, BFC
The extent to which Gap engages with the Beter acive in 7 countries and more than 25,000
experts reported to Human Rights Watch that
Work assessment module varies according to women have paricipated in the program since
their monitors were aware of factories coaching
countries. For instance all registered branded its incepion in 2007. Gap Inc. has made a
workers and that they atempted to miigate the
apparel suppliers in Cambodia, Haii, Jordan and commitment to scale and expand the program to
impact of coaching as much as possible. Labour
Lesotho are legally required to paricipate in the reach one million women by the end of 2020 (Gap
rights acivists reported that the eicacy of BFC is
Beter Work program. However, in Vietnam, Beter 2016c).
further undermined because factory inspecion
Work monitored approximately 30 percent of reports are made available to managers and
the factories sourced from over that ime period According to a report by the Internaional Center
brands but not to workers or unions without prior
(2016b). for Research on Women (ICRW), conducted
factory authorizaion (Kashyap 2015).
by ICRW from 2009 - 2013 at six factory sites
Beter Work Programmes play an important role in where P.A.C.E. is implemented - two in India and
Finally, since Beter Work Programmes are limited
monitoring working condiions in export-oriented one each in Cambodia, Vietnam, Bangladesh
to monitoring and advisory services and lack
factories, including by producing factory reports, and China, P.A.C.E. is an efecive, sustainable
enforcement authority, labour rights acivists
providing technical guidance and supporing and scalable model that yields high returns for Thousands of garment workers and their unions
have criique the programme on the grounds that
remediaion of labour rights violaions when women, their families and the businesses where rally on the one-year anniversary of the Rana
lack of transparency and failure to release brand
factories engage their services. they work (ICRW 2013). Plaza collapse that killed more than 1,100
names reduces brand accountability for rights
violaions in their supply chains (Kashyap 2015). garment workers.
However, workers and labour rights acivists It is signiicant to note, however, that the number licensed by the Solidarity Center under CC 2.0
have voiced concerns about factory monitoring of women reached by this programme represents
methods, coverage and transparency. For a iny fracion of the number of women supply
instance, Human Rights Watch revealed that in chain workers employed by Gap worldwide.26 27
Following the devastating To date, Gap has refused
collapse of Rana Plaza, to make a contractual
200 brands signed the 2013 commitment to work with
Accord on Fire and Building their suppliers and local and
Safety in Bangladesh—Gap international trade unions to
did not. ensure that repairs are made
Following the devastaing collapse of Rana
and workers have the right to
Plaza, 200 brands signed the 2013 Accord on refuse dangerous work.
Fire and Building Safety in Bangladesh—Gap did
not. The Accord is a legally-binding agreement Due in no small part to this egregious refusal to
that commits signatory brands and retailers join the Accord, in 2014 Gap earned the Public
to require their factories to undergo essenial Eye Jury Award from the Berne Declaraion and
safety renovaion, provide inancial assistance Greenpeace Switzerland—an award that aims
to factories to conduct renovaions as needed to shine a light on the current and most serious
and stop doing business with factories that fail cases of human rights violaions and disregard fro
to undertake renovaions according to deadlines environmental protecion and sustainability (CCC
established by the Accord’s independent 2014a).
inspectorate. Accord inspecions are undertaken
by qualiied safety engineers with in-depth
experise in ire, building and electrical safety.
Just months ater Rana Plaza, eight workers
were killed during a ire at the Aswad factory in
Bangladesh, a known Gap supplier. Gap denied
having a relaionship with the company despite
documents clearly showing their involvement
(CCC 2014a).
Instead of signing the Accord, Gap together with
Walmart, founded the Alliance for Bangladesh
Worker Safety. Unlike the legally binding 2013
Accord on Fire and Building Safety, the Alliance
for Bangladesh Worker Safety is a voluntary
measure rather than a contractual commitment.
To date, Gap has refused to make a contractual
commitment to work with their suppliers and
local and internaional trade unions to ensure that An image of the Rana Plaza building ater the
repairs are made and workers have the right to collapse.
refuse dangerous work. Rijans CC 2.028 29
2000 2003 2008 2013
TOTAL (in billion 197.64 233.23 363.87 460.27
US$)
China 18.25 22.32 33.09 38.55
Bangladesh 2.56 2.42 3.21 5.11
Hong Kong, China 12.25 9.93 7.67 4.77
Viet Nam 0.92 1.49 2.40 3.74
India 3.02 2.71 3.01 3.66
Indonesia 2.40 1.74 1.73 1.67
Cambodia 0.49 0.69 0.83 1.11
Malasia 1.14 0.88 1.00 1.00
Pakistan 1.08 1.16 1.07 0.99
Srilanka 1.42 1.08 0.94 0.98
Export Share of top 43.54 44.41 54.95 61.57
10 Asians
Part 3
Asian garment value chains
Export Value of top
10 Asians
86.06 103.59
Table 4: Asian countries’ share of global apparel exports, 2000-2013
Globally, Asia tops apparel exports worldwide. In
199.94 283.38
than in China, Chinese irms retain a compeiive
2013, more than 60% of the 460.27 billion dollars advantage in the non-labour components of their
in global apparel exports originated from 10 Asian costs (Ghosh 2015).
countries, including—in order of market share:
China, Bangladesh, Hong Kong, Viet Nam, India, Due to a range of factors—including poor
Indonesia, Cambodia, Malaysia, Pakistan and Sri capacity, limited resources, infrastructural needs
Lanka (Table 3). and, in some cases, adverse disposiion towards
protecive labour standards—naional labour
Concentraion of garment producion in Asia can standards in producing countries remain weak.
be atributed to a range of factors. Low wages, Proclivity toward driving down labour standards,
government policies, trade pracices, transacion furthermore, is oten linked to dominant
ime, currency appreciaion and infrastructure global policy frameworks that prescribe labour
availability all inluence the locaion of global deregulaion as a prerequisite to atracing
producion network aciviies. For instance, China investment capital (Ghosh 2015).
has systemaically leveraged economies of scale
through major investment in the infrastructure The following secions provide an overview of
of supply-chain ciies. These global supply chain garment value chains in Cambodia, India and
hubs lower transportaion costs and increase the Indonesia. These country-level overviews provide
rate at which goods enter the market. Accordingly, basic informaion on market structure and
although labour costs are much lower in India workforce demographics.30 31
Cambodia At the time of writing, The US, EU, Canada and Japan are the largest
importers of Cambodian garments, texiles and
operaions, ranging from export licensed factories
with up to 8,000 workers to small, unmarked
top brands sourcing from shoes (Kashyap 2015). At the ime of wriing, top factories employing fewer than 100 workers.
Cambodia entered the export-oriented global brands sourcing from Cambodia included H&M, These smaller factories largely ill subcontracts
garment and texile industry in the 1990s with the
Cambodia include H&M, GAP,
GAP, Levi Strauss & Co., Adidas and Target (CCC for larger suppliers. Outsourcing of producion
passage of the 1993 Consituion of the Kingdom Levi Strauss & Co., Adidas 2016a). to smaller factories may be either authorized or
of Cambodia which established a free market in and Target (CCC 2016a). unauthorized by apparel brands (Kashyap 2015).
Cambodia (CCC 2016a; CCHR 2014). Between The Cambodian garment industry is largely
1995 and 2006, bilateral trade agreements with Today, garment and texile exports are criical foreign-owned, with Cambodians owning
the United States, the European Union and less than 10% of factories (Kashyap 2015). An
Women between the ages
to the Cambodian economy. In 2013, garments
Canada spurred growth in the garment industry. accounted for 13% of the Cambodian GDP (CCC esimated 85% of garment factories located in of 18 and 35 dominate
With the excepion of a downturn in 2008 during 2016a). Cambodian global exports amounted to Cambodia are foreign controlled, predominantly
the global economic crisis, the industry has show the Cambodian garment
roughly USD 6.48 billion, of which garment and by investors from China, Hong Kong, Malaysia,
consistent growth (Kashyap 2015). Between 1995 texile exports accounted for USD 4.96 billon. By Singapore, South Korea and Taiwan (Kashyap production sector, comprising
and 2014, the sector grew 200-fold (ILO 2015). 2015; CCC 2016). Foreign owned companies have
2014, garment exports totaled USD 5.7 billion. an estimated 90-95% of the
Women dominate the Cambodian garment producion sector, comprising an esimated 90-92% of the kept the producion processes within Cambodia
limited. The majority of factories undertake “cut- industry’s estimated 700,000
industry’s 700,000 workers.
Cambodian garment workers, exact locaion undisclosed, by Asia Floor Wage Alliance. make-trim” producion funcions—manufacturing workers
clothes from imported texiles based upon designs
provided by internaional buyers. This exclusive Women between the ages of 18 and 35 dominate
focus on producing garments circumscribes the the Cambodian garment producion sector,
range of employment available to irms and comprising an esimated 90-95% of the industry’s
workers in Cambodia (Ghosh 2015). esimated 700,000 workers (Barria 2014; Kashyap
2015). These numbers do not, however, include
Phnom Penh is a hub for garment factories. women engaged in seasonal, home-based
However, garment producion has expanded garment work (Finster 2015; Kashyap 2015).
to other areas, including the adjoining Kandal
province. In these areas, factories vary in size and
Cambodian garment workers
were found to intake an
average of 1598 calories
per day, around half the
recommended amount for
a woman working in an
industrial context
The garment industry has been a major source
of employment for young women from rural
areas who migrate for employment to garment
producion hubs (McMullen 2013). In a February32 33
2012 hearing before the Permanent People’s minimum wage of USD 66 in November 2011 is transparency in BFC monitoring and reporing.
Tribunal held in Phnom Penh Cambodia, Asia the result of signiicant wage protests in recent In March 2014, BFC launched a Transparency
Floor Wage Alliance-Cambodia (AFWA-C) reported years that succeeded in gaining progressive Database that publicly names 10 low compliance
that these internal migrants work far from their minimum wage increases between 2011 and factories every three months.
families and communiies and are thereby cut of 2015 (Figure 3). Wages are also increased through
from tradiional support networks. Despite their the addiion of bonuses, including transport, Brands can paricipate in BFC by endorsing BFC,
numerical majority within the garment sector, atendance, health and seniority bonuses purchasing monitoring reports, employing BFC
they remain within low skill level employment and (McMullen 2016). Current minimum wages, training and advisory services and joining the BFC
rarely reach leadership posiions in their unions however, sill fall short of the USD 177 per month buyers forum—a plaform that brings together
(Barria 2014). called for by garment workers and unions. buyers, government authoriies, factories and
Figure 3: Progressive increase in Cambodian unions to discuss key concerns and possible ways
Malnutriion is also prevalent among Cambodian minimum wages, 2012-2016 Beter Factories Cambodia forward.
garment workers. Data gathered by tracking
monthly food purchases by 95 workers employed Irrespecive of their size. Provisions of the 1997 In 1999, Cambodia signed the Texiles and BFC has been upheld as a model for the IFC-ILO
in a range of garment factories in Cambodia, law regulate working condiions in factories, Apparel Trade Agreement (TATA) with the United Beter Work Programme that operates in other
compared with recommended amounts and including protecion against discriminaion, States, under which the United States imposed garment producing countries, including Vietnam,
workers’ Body Mass Index (BMI), revealed that wages, overime work, minimum age, pregnancy quotas to imports from Cambodia. Under TATA, Indonesia, Bangladesha and Haii. Although BFC
workers were found to intake an average of 1598 enitlements, leave and occupaional health and Cambodia’s import quotes were to be increased monitors some subcontractors that supply to
calories per day, around half the recommended safety standards. The Labour Ministry has also annually in exchange for a gradual improvement export licensed factories, mandatory monitoring
amount for a woman working in an industrial issued model internal factory regulaions. Despite in working condiions in the factories, in is limited to export-oriented factories (Kashyap
context (McMullen 2013). these protecive measures, enforcement of these compliance with domesic and internaional 2015).
standards is weak. This is due in part to ineicient labour laws and standards. In 2001, in order to
Sexual harassment is a signiicant concern labour inspecions, corrupion and rapid monitor compliance with TATA, the Internaional Garment Manufacturers
for women workers but due to lack of legal expansion of the number of factories in Cambodia Labour Organizaion (ILO) created Beter Factories Associaion in Cambodia
awareness, women rarely if ever seek access to (Kashyap 2015). Cambodia (BFC). BFC, a third-party monitor, is
jusice in cases of abuse (Barria 2014). tasked with monitoring factories with an export In 1999, the Garment Manufacturers Associaion
A 2011 government regulaion outlines a set of license. Although TATA expired in 2004, the BFC in Cambodia (GMAC) was established with the
Labour protecions permission and noiicaions for suppliers engaged coninues to monitor compliance with labour expressed purpose of increasing collaboraion
in subcontracing. The government also set up an laws and standards within the garment industry. between all stakeholders, including the
Aricle 36 of the 1993 Consituion of Cambodia inter-ministerial commission comprising members Paricipaion in the BFC monitoring programme Cambodian government, to create a beter
provides for basic labour rights, including the right drawn from Labour, Commerce and Interior is required in order to hold a government export business environment. GMAC was oicially
to freely chose employment, equal pay for equal Ministeries to trace unregistered subcontractor license (CCHR 2014). According to January 2015 registered with the Ministry of Social Afairs,
work, recogniion of household work, the right factories and ensure labour compliance. Under data, BFC monitors 536 garment and 12 footwear Labour, Veteran and Youth Afairs as an employer
to obtain social security and other social beneits these guidelines, factories with export licenses factories (Kashyap 2015). organizaion. In 2014, GMAC members included
and the right to form and to be members of trade subcontracing to unregistered factories can face 593 diferent garment and footwear factories
unions. temporary suspension of their export licenses and BFC publishes an overview of working condiions operaing across Cambodia. In pracice,
repeat ofenders may have their licenses evoked within factories through synthesis reports. GMAC acts as a powerful lobby for garment
The Cambodian Labour Ministry is responsible (Kashyap 2015). Factory-level monitoring reports are made manufacturers to inluence the Cambodian
for establishing policy standards and engaging in available to factories free of cost and internaional government to implement business friendly
monitoring and compliance. The 1997 Cambodian In October 2015, the Cambodian government brands for a cost. Third paries, including labour policies and legislaion (CCHR 2015).
Labour Law governs all garment factories. announced a revised minimum wage of USD unions and NGOs are unable to access monitoring
140 per month. This marked increase from the reports unless the factory authorizes access.
Labour rights groups have called for greater34 35
widespread informalizaion of the workforce. migrant workers. These employment strategies
India Within the texile industry, this trend has been are also used to restrict collecive bargaining
most apparent in the ready-made garment and reduce the bargaining power of unions. As
In 2014, the Indian textile and industry, which has become a leading outsourcing a result, jobs that were once associated with
desinaion for TNCs over the past two decades regulated wages and labour standards governing
garment industry employed (Sridhar 2014). paid leave, maternity beneits, workplace safety,
45 million workers. reirement and other non-wage beneits are now
Approximately 60% of garment workers in India uncertain, unpredictable and risky for workers.
Since the adopion of liberalized economic policies are women, although workplace demographics
during the economic reforms of 1991, the Indian shit depending upon the region (Kane 2015). Long In 2015, the Indian government proposed a
export garment industry has emerged as one working hours, hazardous working condiions, series of labour laws changes that would further
of the leading industrial segments in the Indian lack of basic services such as irst aid, drinking weaken protecion for workers in the garment
economy. Export earnings of the apparel industry water and sanitaion afect women workers more industry. The proposed 2015 Drat Code on Wages
alone were valued at USD 15.7 billon in 2014 and severely than men (Chen 2007). Women workers dilutes protecive standards, including minimum
combined texile and apparel export earnings are also paricularly vulnerable to lewd comments, wage standards, prohibiions on gender-based
were valued at USD 40 billion. In 2013, texiles sexist taunts and other forms of harassment discriminaion in remuneraion and protected
and clothing contributed 4% to the gross domesic from supervisors and male employees. Extended bonuses; opens the door to rights abuses,
product. In 2014, the Indian texile and garment A majority of workers are migrants who migrate hours in the informal garment sector also including arbitrary and illegal wage deducions
industry employed 45 million workers. Despite the to the industrial clusters from Andhra Pradesh, places women workers in extremely unsafe and and forced labour; and undermines accountability
signiicant segment of Indian workers employed Bihar, Jharkhand, Karnataka, Madhya Pradesh, precarious scenarios. They must travel at night by dismantling labour law inspecion and
in the garment industry, naional level data Maharashtra, Tamil Nadu, Utar Pradesh and through poorly lit areas where they face growing accountability mechanisms, restricing the
on economic and social proile of the garment West Bengal (ICN 2016). For instance, up to 80% incidences of rape, sexual assault and physical funcioning of workers organizaions and trade
workforce remain alarmingly thin (Kane 2015). of garment workers in Bangalore are believed violence. Women workers are also rarely given unions and systemaically undermining access to
to be migrant workers (Bain 2016). Despite the sick leave and denied pay during maternity leave jusice (Bhatacharjee 2016).
Today, the major hubs of staggering presence of low wage migrant workers in violaion of the Maternity Beneit Act, 1961.
The vulnerability of unorganized sector women The proposed 2015 Drat Code on Industrial
in the unorganized sector and their signiicant
garment manufacturing economic contribuions, there are large gaps in garment workers is heightened since most are Relaions undermines the rights of trade unions
are located in the industrial government and civil society services to protect from socially weaker or marginalized secions of by creaing barriers to registraion, imposing
their rights. For instance, India’s Inter-State the society. Their ability to bargain collecively restricions on union governance structures,
clusters of the Delhi-National Migrant Workmen Act, 1979, aims to regulate is further undermined by high levels of labour reducing obstacles to canceling union registraion
Capital Region (NCR), working condiions but is inadequate and mobility within the garment sector. and prohibiing strikes and lockouts. Workers are
unimplemented, with no gender perspecive (Roy also increasingly vulnerable to retrenchment and
Bangalore in Karnataka, 2015). Labour law changes changes in service without prior noice. The 2015
Ludhiana in Punjab, Mumbai Drat Code on Industrial Relaions simultaneously
Modernizaion of the Indian texile industry has Proliferaion of unorganized work within India’s weakens accountability for upholding labour
in Maharashtra, Jaipur in been pursued vigorously since the mid-1980s with garment sector has led to a sharp increase in standards by diluing government inspecion
Rajasthan, Kolkata in West the eliminaion of the licensing regime, quotas, the number of precarious workers engaged authority, removing exising arbitraion forums
and quanitaive restricions in an atempt to in work that was once protected. Common and appeals mechanisms and lowering incenives
Bengal and Tirupur in Tamil employment pracices to transform protected to speedily resolve industrial disputes. Finally,
atract state-of-the-art machinery and technology,
Nadu (Roy 2015). know-how and skill sets from abroad. The massive work into precarious work include use of short- standing orders—establishing condiions and
drive towards modernizing the texile industry term contracts, casualizaion, use of labour supply regulaions—no longer apply to establishments
has gone hand-in-hand with irms resoring to agencies and employment of foreign and domesic with less than 100 workers. Standing orders,You can also read
