On October 25, 2010, FLA convened a second stakeholder forum on wages in Hong Kong. Titled “Wages Along the Supply Chain: Developments and Responses,” it brought together academics, practitioners, and representatives of international organizations, companies, trade unions, and monitoring organizations to discuss recent wage developments (with emphasis on Asia) and responses to address wage issues.
This post was originally a contribution to the Institute for Human Rights and Business of which I am a member of it’s international advisory board. For more info on IHRB’s work please visit www.institutehrb.org.
The global economic crisis has shaken the manufacturing industry to its core over the last couple of years, and the impact on workers has been palpable around the world.
Authored by Marsha Dickson, PhD
How many young fashion designers graduate and take their first jobs having had the opportunity to visit an apparel factory? As a professor of fashion and apparel studies involved with several different design programs over the last two decades, my educated guess is that “virtually none” have had this experience. This number is even smaller when asked if the apparel factory is in one of the developing countries where over 95% of clothing sold in the United States is manufactured.
On November 23, 2009, FLA held a follow-up roundtable discussion about Malaysian migrant workers in Singapore. Participants focused on issues of migrant workers in four priority areas: recruitment of migrant workers; freedom of movement; retrenchment process; and overtime. The first three priority issues were the same as those highlighted at the August multi-stakeholder roundtable meeting; overtime was added as a new priority discussed by suppliers. For more information about the follow-up roundtable discussion, please download the attached report.
Within global trade, wage practices along the supply chain are characterized by a number of serious problems which have long gone unaddressed and have been further exacerbated by the current global economic crisis. On October 26, 2009, FLA's Stakeholder Forum aimed at enhancing the mobilization of CSR actors on wage issues and improving their ability to address wage issues along the supply chain.
The conference sought to discuss:
On August 5, 2009, FLA and the Malaysian Bar Council held a multi-stakeholder roundtable discussion in Kuala Lumpur, Malaysia. Participants discussed issues surrounding migrant workers in Malaysia and included 37 representatives from international brands, local garment suppliers, and representatives from local and international nongovernmental organizations (NGOs), and trade unions.
Break-out sessions allowed attendees to discuss:
Many countries have adopted plans designed to help their economies recover from the global financial crisis. Unfortunately, those have mostly concentrated on saving banks and companies on the one hand, and on stimulating consumption on the other. Amazingly, there has been relatively little emphasis on the labor market policies needed to save jobs and protect wages. One wonders who is meant to do all the consuming if unemployment keeps rising and wages keep falling (at least in real terms)?
China has been through 30 years of unbridled growth based on its low-cost labor market structure. During this period, the state’s priority was employment creation. The laws and regulations issued were intended to support the low value-added processing industries that were flourishing at the time, but they were poorly enforced and created an unstable labor supply.
Many companies have internal audit teams that are truly dedicated to making human and labor rights a reality in their global supply chains, often by working with local civil society groups. So why are there still so many factories that do not pay the hourly minimum wage and work 60, 70 or more hours per week? The first reason is that they operate in jurisdictions where there is no culture of compliance. None of their competitors is paying the hourly minimum wage or sticking to the legal limits on working hours, so why should they?