A scene on a British High Street. A woman goes into Marks and Spencer’s to buy a pair oftrousers. That week’s newspapers have been full of the news that M & S has decided to buyup to 70% of its clothes abroad, making thousands of UK workers redundant. M & S hadpreviously been proud of its policy of mostly buying from British factories. The woman trieson the trousers and sees on the label that they were made in Indonesia. As an active tradeunionist, she feels bad about the job losses. On the other hand, she has read a War onWant pamphlet which said that poverty in Indonesia has meant children, especially girls,being taken out of school and that jobs are badly needed there. What should the womando?

This is an everyday dilemma in today’s globalised world for consumers and trade unionistsliving in the UK.

In order to come closer to a solution War on Want organised a forum in Dhaka,Bangladesh, in which garment workers from all over the world came together to discuss thebest way forward for workers in the industry. What is the future of solidarity in a GlobalEconomy which often seems to force workers to compete? How do we reconcile the factthat the wealth which is gradually lifting workers in the developing world out of poverty,often comes from the same corporations who are laying workers off in droves in thedeveloped world?

If globalisation is to work in a fairer way which benefits the many rather than just the few,workers will have to reconcile these dilemmas. A common cause must be found, and thiswill mean going back to the basics of trade union solidarity, but making it relevant to the21st century world, a world which is inter-dependent and inter-connected like never before.This report aims to help that task. It provides a starting point for workers concerned aboutthe process of globalisation. It is intended that it will encourage fruitful relationships,discussions, campaigns and other activities which will lead workers across the globe towardsthe creation of a more just world.

Catherine MathesonDirector, War on Want

June 2001

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Globalisation in the Garment Sector

ForewardForeward

Globalisation affects workers everywhere.It is a term used to describe economies,culture and technology across the globebecoming more integrated and inter-dependent; a process which hasaccelerated tremendously over the last 20years. Distance and national boundariesare no longer obstacles to trade orinvestment, and this allows corporationsmore freedom. Removing such barriers,together with new technology such as theInternet, has made it much easier fortransnational corporations (TNCs) toproduce and transport goods almostanywhere in the world.

In the textile and garment sector it seemsthat, all too often, workers have paid theprice for this process. Proponents ofglobalisation believe that the best way tocombat poverty is through employmentand growth, and that increased trade andinvestment will facilitate this. But in thelast 20 years the gap between richcountries and poor countries hasincreased, as has the gap between the richand poor within those countries. Workersin countries like the UK have seen jobsdisappear at an alarming rate, whilst inthe developing world workers faceexploitation as corporations employpeople for very little in appallingconditions. Globalisation has createdwealth and opportunities, but if thiswealth is to benefit the majority of peoplein the world, workers need to act togetherto challenge the direction in which theglobal economy is moving.

Is Globalisation New?

International trade is nothing new. Indiaused to export cotton, which was shippedto England where textile factories madeclothes which were then exported back forsale in the colonies. This gave the UK oneof the largest textile sectors in the world.In a similar way, developing countries nowimport the raw materials and they makethe garments for export to the developedworld. What is new in all of this is thespeed with which international trade andinvestment has increased.

The textile and garment sector have beenin the front line of globalisation becausethey do not require large investment intechnology and depend heavily on labour,which can easily be found across theworld. This has led companies to havetheir clothes made as cheaply and easily aspossible – wherever employment costs arelowest. Developing countries havedoubled their share of world clothingexports in the last 30 years.

The growth of the garment industry hastransformed the lives of workers in thedeveloping world. Whilst conditions andpay in garment factories look poor to us,they represent a radical improvement onthe alternatives available to workers,especially women. Women, mostlyescaping rural poverty, have experienced arevolution in their lives, and for the firsttime are able to earn independentlivelihoods and make their own day-to-daydecisions. Lipi, a Bangladeshi garmentworker, testified "Before joining thefactory I was very timid but now I have

2

Part OnePart One

What does Globalisation Mean forGarment Workers?

some confidence. I’m working in the cityand at night I can go out. I evenparticipate in demonstrations sometimes".

But it’s not that simple. These workersoften find themselves working very longhours for below subsistence wages and inconditions which endanger their health.When workers form trade unions to pressfor better conditions, this threatens toerode profits, and corporations simplymove to countries with cheaper labour.Workers are thereby set against workers ina ‘race to the bottom’ to offer thecheapest and most exploited workforce inthe world.

Garment Factories in Bangladesh

In Bangladesh in the last 15 years almost amillion jobs have been created in thegarment industry, mainly performed bywomen. There are an estimated 2,700factories.1 The garment sector is extremelyimportant to Bangladesh’s economy,comprising roughly 73% of exportearnings.2 Approximately 55% of exportsgo to the US, and 41% to the EU. Morethan 65% of the workforce are youngwomen under the age of 25.

Problems include a failure to implementthe minimum wage, long hours, childlabour, restrictions on freedom ofassociation, and poor health and safetyconditions. The government has set aminimum wage at 930 taka (£13.29) permonth,3 but the National GarmentWorkers’ Federation estimate that this isnot sufficient to run a household, forwhich 1,700 taka (£24.29) is needed.4

Wages are often paid several months inarrears, which means that workers canfind themselves unable to resign from aposition without losing money.

Industrialising the Globe

Many industrialised countries have had animportant textile and garment

manufacturing sector at some point intheir history. Frequently, the growth of thegarment sector has been seen as a firststep on the road to industrialisation,bringing growth and prosperity.Developing countries can offer cheaperlabour than industrialised countries, andthe garment sector gravitates towards thischeap labour, giving new opportunities forthese countries to develop. Meanwhile,the developed countries use their newindustrial base to move into moreprofitable, high-technology products suchas cars and electronic goods.

Following the Industrial Revolution, Britainwas the most important manufacturer oftextiles and garments in the world,gradually to be challenged by the US andGermany in the late nineteenth century.Japan became a major exporter ofgarments in the 1920s. From the 1960s,the level of wages and skills in Japan roseand hundreds of thousands of garmentworkers lost their jobs as garments workspread to ‘Newly Industrialised Countries’(NICs) like South Korea, Taiwan, HongKong and Singapore. Japan became moredependent on high-skill and high-investment technological products. Morerecently, garment production has movedout of the NICs, who also developedhigher technology production, into a widerange of countries including India, thePhilippines and Indonesia.

At this point, globalisation accelerated therate of change, and this meant that theseeconomies did not have time to developthe production of higher-value goods,before they were undercut by the next setof countries in Bangladesh, Pakistan,Mexico and Central America. Now, thesecountries are being undercut by evencheaper labour in China, Cambodia andVietnam, before their economies have hadtime to develop.

3

Globalisation in the Garment Sector

1 CAFOD, "The Asian Garment Industry and Globalisation", p.12.2 Robin Robison and Millius Palayiwa, Quaker Peace Service, "Report of a visit to Dhaka, Bangladesh, May 2000.3 Taka 38 = $1 (1995 rate).4 Clean Clothes Campaign, Unstitching the Child Labour Debate , 1998.

To woo corporations into their countries,governments have established ExportProcessing Zones (or Free Trade Areas)which carry incentives for foreigncorporations to source there. For example,corporations usually enjoy tax holidays andlabour laws are frequently suspended. By1998, China, offering some of thecheapest and least regulated labour in theworld, had become the world’s foremostgarment exporter, and 42% of Britain’sgarment imports came from China.

Export-Processing Zones

The Bangladesh Export-Processing Zone,an hour’s drive from Dhaka, is a walledand guarded industrial estate which existsto tempt transnational corporations intothe country by offering zero taxes, 100%repatriation of profits, and exemptionfrom many national laws such as freedomto organise into trade unions. The EPZundoubtedly offers some of the bestconditions for workers in Bangladesh. Butwhere labour is so cheap, there is littlepoint in risking consumer campaigns withpoor conditions. The EPZ promisescompanies some of the cheapest labour inthe world – 15 cents an hour compared toMexico’s $1.60.

Better factories in the EPZ promiseparticipation via ‘Workers’ Reps.’; full-timepositions appointed, paid and responsibleto the management. Otherwise, workers’attempts at organisation have been metwith legal action and even jail. Manyworkers do not dare to try and join aunion, not wanting to jeopardise theirjobs.

The garments sector is one of the bestexamples of how globalisation has pittedworkers against one another. Since 1970,developing countries have doubled theirshare of world clothes exports - from 30%in the early 1970s to over 60% in the

mid-1990s. In the north the effects ofglobalisation have been largely in terms ofunemployment. Europe saw a fall inemployment of nearly 50% between1990-98. In the EU, it is predicted that upto 850,000 jobs could be lost in the nextfew years.5

Even within developing countries, thethreat of relocation is the most pressinglong-term concern for garment workers,creating feelings of competition anddivision. Key to arresting this ‘race to thebottom’ - to make globalisation work forthe many rather than the few - isincreased understanding and solidarityamongst workers across the world.

World employment in clothing 1995-98

(in millions)

Mexican workers beaten

The clothing sector in Mexico has grownenormously since the signing of the NorthAmerican Free Trade Agreement (NAFTA).In 1996, jobs in ‘maquila’ factoriesaccounted for 42% of jobs in the apparelindustry. Union rights are restricted, andwhile labour laws in Mexico are good,they are not enforced in these factories.Workers who attempt to organise unionsin the export sector are generally fired.

On 9 January 2001, 800 workers at theKuk Dong international garment factory inAtlixco, Puebla, which produces for Nikeand Reebok, stopped working to protestagainst illegal firing. Workers had been

4

5 Source: ILO. Does not include employment in textile and footwear.

opposing wages of $30 for a 45-hourweek, rotten food in the cafeteria and afailure to pay the Christmas bonus. On 12January, police in riot gear attacked 300workers then occupying the factory. 15required hospital treatment.

The Multi-Fibre Arrangement

An essential element of globalisation hasbeen the reduction and removal of tradebarriers, like tariffs and quotas. This allowscorporations to move their capital aroundthe world more easily. In the garmentssector, however, a short-term measure wasput in place to protect the industry indeveloped countries from being floodedwith cheap imports. This is the Multi-FibreArrangement (MFA).

The MFA places quotas on imports ofvarious textile and clothing products,helping developed countries maintainsome of their industrial base. But it hasalso inadvertently helped very poorcountries like Bangladesh, which are givencertain trade preferences because of theirLeast Developed Country status. The MFAexpires in 2005 and though this willundoubtedly benefit some developingcountries, others fear they will suffer.

Health & Safety

Marie works in the Formosa garmentfactory in El Salvador,6 owned by anAmerican textile group, producingsportswear for brands such as Adidas. InJune 1999, they employed approximately934 people, 80% of whom were women.Women workers are obliged to take apregnancy test when applying for work,and in 1998, one worker was dismissedwithout compensation for becomingpregnant.

The basic wage is not enough to live on,and workers are therefore reliant onovertime or second jobs. They are set aproduction target, which it is impossible to

fulfil within normal working hours. If theymeet it during overtime hours, they arepaid a productivity bonus, but if theydon’t, they are not paid for overtime. Theproduction targets are so high that mostworkers reach them only once or twice aweek.

The ‘Race to the Bottom’

Formally owning factories overseas hasbeen a severe disadvantage for largecorporations, hindering their ability tomove around at will because they wouldhave to buy and sell property andmachinery, as well as having responsibilityfor workers in those factories. Therefore,corporations started to sub-contract. Acorporation signs a contract with a localfactory owner to supply a certain amountof goods at a certain time. This allows thecorporation to move elsewhere at the endof the short contract if they find cheaplabour elsewhere, or if the workers aredemanding wage rises or improvedconditions. What is more, the corporationdoes not have to deal with any aspect ofmanaging people.

A typical chain might be the following: aUK retailer contracts a buyer in Hong-Kong to supply an order. The buyer thenmakes a contract with a South Korean-owned factory in Bangladesh to make theclothes. The cloth itself comes fromMalaysia. This complex chain can meanthat the retailer will never see the factoriesin which the goods are made. There mayeven be an extra stage in the process bywhich the factory contracts out somework to home-based workers. A medium-sized US retail company sources textileproducts from 13,000 suppliers, which inturn use on average five sub-contractors,resulting in the retailer sourcing from78,000 different suppliers.7 The companiesat the heart of this are truly transnationalcorporations (TNCs) which divide up the

5

Globalisation in the Garment Sector

6 Source: Henrike Henschen, "Formosa Evergreen: Hoping for Justice", Christian Initiative Romero, Clean ClothesCampaign.

7 "Company codes of conduct: what are they? Can we use them?", Women Working Worldwide, July 1998.

world into a production line – sourcingproduction where it is cheapest and sellingfinished goods where they are mostexpensive.

Codes of Conduct

Kimoy produces clothes supplied to Disneyat a factory based in Guangzhou.Although the factory has a Code ofConduct which is supposed to guaranteebasic workers’ rights, most workers areunaware that it exists for their benefit.When the Hong Kong Christian IndustrialCommittee monitoring team visited thefactory, Kimoy was told to help falsify thepayroll and rehearse a script aboutconditions, otherwise she would incurpenalties.

Workers are required to work an 8-hourday plus 3 hours overtime, but are onlypaid for their overtime if their basic wage,calculated by piece-rate, is insufficient toreach the minimum wage. At times of loworders, workers are required to take leave,in lieu of wages owed for theiruncompensated overtime. A survey foundthat more than half of foreign-ownedfactories paid their workers less than theminimum wage.8

If Codes are to be at all meaningful, theright to organise is essential. The only wayof verifying the truth about pay andconditions in factories is by listening to theworkers themselves, in forums whichallow them anonymity, protection andcollective strength.

Inequalities of wealth

Massive disparity in wage levels worldwideis the principal reason for the globalisationof the clothes industry. In industrialisedcountries, labour costs may form 75% ofthe total costs of a garment, while inBangladesh the figure is as low as 5%.

Workers in the UK

In the last 25 years, the total number ofjobs in the UK clothing and textile industryhas fallen from one million to 271,300people,10 largely as a result of retailersoutsourcing and companies relocating.The industry is currently losing over 2,000jobs a week. Over half the clothes sold inthe UK today are imported.

Corporations’ ability to use cheapersources of labour has been felt by all ofus. The real price of clothes has notincreased dramatically over the last 20years. In turn, this has caused an increaseddemand for clothing on the part of theBritish public. In 2000, consumers in theUK spent about £400 per person onclothes; this amounted to a sum of £23billion11 - larger than the UK automobilemarket.

Relocation from the UK

Sandy Rankin is a 55-year trade unionistrecently made redundant from aKilmarnock factory, in south-westScotland, where he made lace curtains. Hedoesn’t know if he will ever find anotherjob and he thinks he is too young toretire. When the factory was closed, allthe machinery was sent to China. TheGMB is looking at country-of-originlabelling to ensure workers’ rights areimplemented by forcing retailers to be

6

8 CAFOD, "The Asian Garment Industry and Globalisation", p. 15.9 Source: The Times (23 October 1999), p. 31, and Werner International.10 KFAT, The Garment Workers’ Project, 2000, p. 9.11 Retail Intelligence, UK Retail Report 116 (December 2000).

responsible for their suppliers.

Sandy started to become aware ofglobalisation about 5 years ago whencompanies started to close. His union hasworked with other unions to avoidredundancies and they held a mass lobbyof Parliament which led to the setting upof the All Party Group on the TextileIndustry, though he’s sceptical about itssuccess.

"We should campaign among westernconsumers to help people realise it’s Multi-National Corporations making big profitsand small companies not making much"Sandy says "The general public in theWest are the only people that can stopthis because the buying power ofconsumers is so important."

More recently UK garment exports havebeen adversely affected by a number offactors including: the strength of thepound; the Asian crisis which led to adrop in demand for UK products;competition from abroad and lack ofcapital investment. It is instructive to notethat companies which produce for nichemarkets reported that they had not beenadversely affected by competition.

Retailers

The UK has 30,000 independent garmentretailers which have less than five storeseach, but the top 4 retailers control over40% of the UK clothes market:• Marks and Spencer, which had 20% of

the market share in 1999.12

• The Arcadia Group (Dorothy Perkins, TopShop/Man, Burton Menswear, Evans,Principles, Racing Green, Hawkshead,Wallis, Warehouse, Miss Selfridge):10.5%.

• Storehouse: (Mothercare, Bhs): 6.4% • Next: 4.2%

By UK standards, garment sector wagesare not high. Wages are below thenational average for UK manufacturingindustries – 28% lower for men, and 14%for women. In some cases it is below thelegal minimum wage: 6% of all cases ofunderpayment of the minimum wageoccurred in the garment and footwearindustries.13 This underlines just how lowwages are elsewhere around the world.

There has also been a growth in Britishsweatshops. A BBC Watchdogprogramme14 recently explored the plightof women working in a factory, Olympiagarments, in Leicester. It spoke to awoman who said she had been locked inthe factory until she finished her order,and received £2.75 per hour, well belowthe minimum wage of £3.70. When shebrought up the issue with her employer,she was fired.

Workers’ Rights in Bangladesh

23-year-old Anya sews buttons ontoclothes at a factory producing garmentsfor big US chain stores. She worksminimum 12-hour days, 7 days a weekand enjoys one day’s holiday per month.Overtime often means 17 hour days.When the orders are urgent shesometimes works through the night,grabbing a few hours sleep on the factoryfloor before starting all over again. And allfor basic wages of 1,400 taka (about £20)per month.

Most women live between 1 and 2 hoursaway from the factory and walk bothways everyday. In monsoon season, thelack of changing rooms mean that theworkers are soaking wet all day. Walkingis also dangerous and cases of robberyand rape are frequent. Even resignation isdifficult because workers wages are inarrears, so it would leave workers out ofpocket and unable to pay their rent.

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Globalisation in the Garment Sector

12 Retail Intelligence, The UK Retail Rankings, 2000.13 Source: DTI.14 April 2000.

8

Introduction

As a union member you have a vital roleto play in creating a better world. Over thelast 200 years trade unions have helpedreduce poverty and improve the workingand living conditions of the poorest insociety. When workers combine intounions they gain the power to raiseincomes, improve conditions, expandaccess to education and health care and,through this, forge more equal and justsocieties. They show how people candemocratically work together, providing amodel for the rest of society.

The right to association is enshrined in theUnited National Declaration of HumanRights, and is central to War on Want’sstrategy of reducing world poverty. Whenworkers in the formal and informal sectorsare able to organise, they can play anactive role in reducing inequality. Theexistence of free trade unions is aprerequisite for a modern democracy. Itallows workers to speak with a singlepowerful voice. If trade unions are to playa similar role in the global economy,workers must realise their commoninterests - that they would all benefit froma fairer world. We also have to realise that

the global economy presents opportunitiesfor solidarity to be expressed in new ways.

What Does Solidarity Look Like?

Globalisation does not only make globalsolidarity more urgent – it also makes itmore possible. New communicationstechnology, like the Internet, allowsworkers to contact each other across theworld instantly. A global transport systemand culture makes it easier to undertakeexchange visits with partners across theworld. The growing reach of transnationalcorporations (TNCs) means that manypeople work for the same employeraround the world, giving workerssomething in common.

Diverse issues like the environment,human rights, poverty and defending therights of workers, often boil down to theunderlying problem that profits are beingput before people. Only by workingtogether can we effectively challenge this.

Changing Attitudes in Bangladesh

Garment sector employment is muchsought after in Bangladesh and thisreduces the willingness of workers to joinunions. Nonetheless, the experience ofworking together in a factory isgalvanising workers, in much the same

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Globalisation in the Garment Sector

Part TwoPart Two

Solidarity in Action

"There have been trade unions in Britain for over 150 years… working on asimple principle – that while employers might be able to ignore the views ofa single worker, they have to take notice if many workers speak with onevoice – unions have been at the forefront of social change in countries as farapart as South Africa and Poland."

UK Department for International Development ‘Trade Unions and DfID’, April 2000

way as it did when trade unions wereformed in the West.

Expectations are rising. One worker,Joinab, explained: "I never went to schoolas the family needed me to work. I earn1,500 Tk (£21) a month and so now mybrother and sister go to school as I cancontribute to the family income." WhilstRena told us: "Through my wages I amkeeping my mother and sister. Throughthe union activities I am getting some ideaabout society and here I am talking you."

Communication between developed anddeveloping world workers can have apowerful effect on these expectations andon the possibilities for change.

Making Contact

The first step in solidarity is talking topeople in similar positions to yourselfacross the world. War on Want recentlytook garment factory workers toBangladesh.

Learning is a two-way process. For onedelegate, Sandy Rankin, the visit toBangladesh clarified the fact that workersthere were not responsible foroutsourcing: "if the general public in thewest was confronted with what we haveseen in the last few days, they might startquestioning the companies anddemanding change". In this way,exchanges can be a valuable first steptowards change.

Improving the conditions of garmentworkers world-wide, and monitoringsuccess relies on accurate information. TheInternet helps to find this information andcreate world-wide communities. Localissues can be transformed intointernational ones, for example when thesame transnational corporation laying offworkers in one area of the world is alsoabusing workers in another. Knowledge

like this can link workers across the worldand lay the basis for powerful campaigns.

Organising in Bangladesh

Organising workers is not easy inBangladesh. Most women come from thecountryside and are pleased to have anymoney at all. Workers can find themselvesin much worse conditions than a garmentsfactory as is witnessed by streets packedwith beggars and children breaking bricksall day in the baking heat. This meansthere is an enormous pool of labourwhich, together with constant threats thattransnational corporations will startsourcing elsewhere if wages become toohigh, makes workers terrified of losingtheir jobs.

Employers in Bangladesh often deny thatthey have the power to improve thewages or conditions of workers, stating"it’s the western corporations that set theprice they give us. They tell us whatthey’re willing to pay for garments and wehave to deliver that price, otherwise theywill go elsewhere". Sometimes we can bemost useful to workers across the worldnot only in our role as trade unionists, butas consumers.

Using Structures

The trade union movement has a longhistory of internationalism, and canprovide formal structures and advice. Justas trade unions work together throughthe TUC at a national level, trade unionswork together internationally through theInternational Confederation of Free TradeUnion (ICFTU). There are also internationalorganisation for trade unions operating inspecific sectors. The International Textile,Garment & Leather Workers' Federation(ITGLWF) provides co-ordination andinformation to unions in the garmentsector. Asking for their advice and help,ensures that you are aware of already

10

existing arrangements, and keeping theminformed of your activity helps otherworkers.

European Works Councils provide goodopportunities for trade unionists. Thecouncils arose from the EU Social Chapterand affect trans-european corporationsemploying more than 1,000 workers.Through these councils employees fromdifferent countries meet together withmanagement and the corporation mustfund this meeting. Employees are thusgiven a formal say in the running of thecompany. These councils often lack teeth,but they are at least a basis forinternational co-operation. Afterappropriate consultation with southernpartners, European unions can use thesefora to raise issues on behalf ofcounterparts in the developing world.Again, your trade union should be able totell you how this might apply to you.

Discussing Issues

There is no one ‘right way’ to change theworld. Issues which seem quite clear to us,might have negative consequences onworkers in the developing world. Forexample, whereas we might want toboycott a company for employing childlabour, the effect of that boycott mightthrow workers out of work in thedeveloping world and leave them in evenworse poverty.

Around the world people are coming upwith new ways of securing workers’rights. Before discussing ways to getactively involved with workers around theworld, it is worth taking a look at some ofthese ideas.

The International SystemThe International Labour Organisation(ILO) was formed in 1919 to address"injustice, hardship and privation" inworking conditions. It gives representation

to governments, employers and tradeunions. The ILO deals with violations ofworkers’ rights and promotes the idea that"poverty anywhere constitutes a danger toprosperity anywhere".

The ILO believes there are 4 basic rightswhich every working person is entitled to:• The right to organise and bargain

collectively • The right to be free from slavery or

bonded labour • The right to one’s childhood • The right to be free from discrimination

Workers across the world can unite toensure that these principles areincorporated in legislation everywhere,and that every corporation follows thesestandards. One proposal is to empowerthe ILO so that it has the ‘teeth’ toenforce its conventions. Indeed, the ILOhas recently taken strong action againstBurma, where it is believed 800,000workers labour in conditions of slavery. InJune 1999, the ILO condemned Burma'srefusal to recognise workers' rights. TheBurmese regime entered talks with the ILObut took no concrete action. In November2000, for the first time in its history, theILO urged its 174 members to review theirrelations with Burma and advocatedsanctions.

Many still object that because the ILO isnot dealing with economic self-interest,member states will never have the will toenforce core labour standards. As a result,there has been a call to link labourstandards to trade.

A Social Clause The World Trade Organisation (WTO) isthe international body which enforcesglobal trading rules. A ‘social clause’ in theWTO would mean that all tradeagreements had fundamental workers’rights at their core. Although many trade

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Globalisation in the Garment Sector

unionists support this idea, others fearthat the social clause would betransformed into a form of protectionism,allowing developed countries to keepdeveloping country goods out by claimingthey are produced in sub-standardconditions. Developing countrygovernments argue that the west built itseconomy on cheap labour during theIndustrial Revolution, and that to denydeveloping countries the same opportunityis unfair.

Many people think that more attentionshould be concentrated on nationallegislation – for example fighting forminimum wages – but enforcement is thedifficult issue. Again, trade unions canlearn from one another in terms of thesestruggles. Other attempts are being madeto make corporations directly subject toregulation. A recent attempt to do this bythe European Union has shown initialsigns of success.

Child Labour Child labour has proved a contentiousissue for trade unionists. Whilst all wouldlike to see child labour ended, manydeveloping world trade unionists arguethat we cannot eliminate it immediately,and that by attempting this we actuallyrisk making poverty worse.

There have been campaigns to eliminatechild labour run by organisations in thedeveloped world. On the back of thesecampaigns, many Bangladeshi childrenwere dismissed from garment factories; asone Bangladeshi trade unionist told us, itwas like "throwing these children to thewolves". A scheme was established to putchildren in school, but this only helped aminority. Some have ended up in worsejobs such as brick-making, lugging bricksaround in scorching heat for 12 hours aday, or begging on the streets. Some trade

unionists in Bangladesh believe thatconsumers in the west are only concernedto ensure that their clothes are untaintedby children’s hands, rather than the actualfate of these children. War on Wantargues that the real enemy is poverty andchild labour is just a symptom.

Home-working Many workers in the garment sector nowwork from home. These workers are oftenpaid less than others and it is moredifficult for them to join forces in order toimprove their lives. They can poolinformation about their rights asproducers and details about access tohealth, education and credit. Collectivelythey have more power than as individuals.

HomeNet co-ordinates an internationalnetwork of groups of home-workers. TheSelf Employed Women’s Association inIndia successfully organised home-basedwomen garment workers in Gujarat topress the state government for theintroduction of a minimum wage; after ademonstration by 2,000 workers, themeasure was introduced in 1986. InMadeira, thousands of womenembroiderers have been organised in atrade union since the 1970s, which hasfought for their recognition and rights.

Putting Pressure onCorporationsCodes of conduct are voluntary guidelinesadopted by many corporations which setdown how that corporation will treat itsworkers, as well as its policies onenvironmental damage and other socialconcerns. They work by makingcompanies afraid of the impact ofnegative publicity, as well as the threat oftrade union action. Companies such asLevis, Reebok, Nike, Adidas, Walmart andthe Gap have adopted such codes.

Codes of conduct have not always been a

12

resounding success. Many are imposedfrom above, rather than being produced inconsultation with workers, which makesthem little more than a marketingexercise. Where workers are not involvedin formulation or implementation of thecodes, there is no independent guaranteethat codes will be enforced. It is generallyagreed amongst trade unionists that codesshould include the right to collectiveorganisation if they are to be effective.

The Ethical Trading Initiative (ETI)

The ETI is an UK-based alliance ofcompanies, charities, and trade unionorganisations working together to developcorporate codes of conduct which have areal effect on the lives of the poor indeveloping countries. It bases itself on thesuccess of consumer campaigns inapplying pressure to corporations.Corporations agree to work with tradeunions and charities in making codesmeaningful to workers, rather than justpublic relations initiatives.

The ETI is central to the UK Government’sstrategy of ensuring that workers’ rightsare taken seriously by corporations. Itfocuses on developing codes of conductwhich include ending forced labour,sweatshops, improvements in health andsafety, and labour rights.

Reinvigorating the GarmentSector Workers in the developed world arenaturally concerned with ensuring thecontinued existence of the westerngarment sector. A common suggestion isthat the industry in developed countriesneeds to move ‘up-market’ to produceclothes where labour cost is a lessimportant proportion of the final price. InItaly, for example, garment production hasbecome more specialised and jobs havebeen protected.

Workers in the UK believe that thegovernment should be more active inensuring similar initiatives happen here:encouraging specialised design, movingfurther into the fashion industry andbetter co-ordination between retailers andmanufacturers.

As well as national pressure for thegovernment to reinvigorate the garmentsector in the UK, international pressure isalso required to ensure that transnationalcorporations pay a fair price to theirdeveloping world contractors. The pricegarment retailers pay for clothes in mostdeveloped countries takes into accountthe costs of materials, the process (e.g.dyes, machinery), services (electricity),overheads and labour. In the developingworld, manufacturers do not need tocalculate this – they simply hand a finalprice to a contractor who must fulfil theprice or risk losing the business. Manycontractors claim that they are not givenenough money to pay their workersdecent wages.

Union Ban in Sri Lanka

Padmini works in a garment factory in SriLanka. Since 1992, factories everywhere inthe country have been given the sameprivileges as those in Sri Lanka’s Free TradeZones. Whilst this means better wages, italso means more stringent conditions. Inone German-owned factory the time limitfor going the toilet is 30 minutes a week,as well as a ban on trade unions.

Workers evaded the union ban in twoways. First, they used the new system of‘workers’ councils’ which allowed aminimum level of representation thoughlittle accountability. The unofficial unioncontacted all representatives of theworkers’ councils and formed a jointcommittee. Second, they set-up women’scentres and welfare groups, ostensibly as

13

Globalisation in the Garment Sector

support networks, but actually as fledglingtrade unions which allowed for collectivemeetings and education.

When a Hong-Kong factory threatened toclose down, the workers were in aposition to fight the decision. They weresuccessful and in the process receivedrecognition of the union. This type ofactivity can provide important lessons fortrade unionists around the world.

14

What does this mean to you?

Globalisation is driven from the developedworld. Bangladeshi workers have nocontact with the consumers for whomthey are producing. When asked aboutwages, Bangladeshi factory owners oftenreply: "Corporations based in yourcountries set these low prices, that’s whythey’re here". They drive down prices paidto manufacturers so that they can sellcheaper clothes. This presents us with anopportunity. Although we can helpchange the direction of globalisationthrough supporting the development oftrade unions in the developing world, wecan also use our position as consumers,pension-holders, or voters to help workers.Solidarity is about using whatever power isopen to us to help put people beforeprofits. This section of the report isintended to be a ‘toolkit’ for activists. Wehope it will be only a beginning, andwelcome your feedback at our solidaritywebsite: www.globalworkplace.org

Trade Unionists as International

Activists:

• Make a link with a union overseas -find a union which represents garmentworkers in the developing world. Yournational trade union should be able tohelp with this as well as the ITGLWF.Start off on a small scale. The Internet,allows you to instantly exchangeinformation with others around theworld. This is a two-way process.Information is the first stage to

launching joint campaigns, ormonitoring the real effects of codes ofconduct, or responding to attacks onunions overseas that might be ignoredby the traditional media. Equally,workers in the developing world canbenefit from our information. Forexample, a transnational corporationemploying workers in Bangladesh mayalso be giving poor pay and conditionsto its retail staff here. Only beexchanging information can we bringthe issues together.

• Organise an exchange - as flightsbecome cheaper, sending UK workers toa sister union overseas to see conditionsfirst-hand is a great way for workers onboth sides to better understand how theglobal economy works. It helps developstrong links and enables participants totalk with more knowledge andenthusiasm to colleagues when theyreturn. Fundraising activities can oftenhelp to raise money for such adelegation.

• Pass resolutions in your union -motions are good ways of spreading theword about the importance of globalsolidarity, as well as ensuring that yourunion is taking action to support unionsoverseas.

• Organise meetings on solidarity atlocal or regional level - if possible findan international speaker, or someonefrom a campaign group to address ameeting on globalisation. Even better, if

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Globalisation in the Garment Sector

Part ThreePart Three

Activists’ Toolkit

a member of your union has recentlybeen to the visit unions in thedeveloping world, try and organise aseries of meetings in your region tomake the most of their experiences.

• Coordinate with other branches -other branches or regions around thecountry might already be involved ininternational work. Find out what theyare doing and try to work with them.War on Want is establishing a series ofregional committees for activistsinvolved in international issues. Find outif one exists in your area. If not, findsome other people who might beinterested in setting one up.

• Write articles and web-pages - if youhave a link with unions overseas,encourage them to write articles foryour union journal, or to put detailsabout themselves on your local website,if you have one. If not, why not write anarticle yourself, particularly if you’rerunning a campaign on internationalissues. As well as raising awareness ofthe issues, articles in local newspaperscan help recruit new members to theunion.

• Train union branch members - allunions run training courses on beingeffective representatives. War on Wantbelieves that this should include theknowledge and skills to effectivelycampaign around globalisation. We’veproduced a model training course unitwhich can be used by activists. It’s alsoworth lobbying your union nationally toensure provision of training onglobalisation.

• Lobby union organisation at anational and international level - findout what your national union or theITGLWF is doing on international issuesand get involved. The more people youinvolve, the more effective your workwill be.

Trade Unionists as Consumers:

• Link up with campaign groups - a speople living in the West, we buy thegarments manufactured in the conditionsthat we are campaigning against. Thisdoes not mean that we need to feelguilty and try to boycott developingworld goods – that would only incre a s ep o v e r t y. But it does mean that we shoulduse our role as consumers to putp re s s u re on the corporations employingthese workers. Many organisations workto raise consumer awareness ofcorporate behaviour in the garments e c t o r, such as Labour Behind the Label.Open a discussion with theseorganisations about how you can worktogether – this helps your solidaritycampaigns and may also encouragepeople to join your union. You mightwant to start by looking at who pro d u c e sthe confectionery in your staff canteen.

• Put pressure on transnationalcorporations (TNCs) - linking up withcampaign groups and using the internetcan help us to think about solidaritymore pro-actively and open up newways of campaigning. One InternationalTrade Secretariat recently organised a‘Cyberstrike’ – an international solidarityaction against a TNC which had sackedworkers for striking. Other groups useshareholder action – purchasing a fewshares in a corporation so that they havethe right to turn up to an AGM andraise labour issues directly. TNCs do givein to pressure, so it’s the job of activiststo ensure that as many people aspossible raise their concerns with thesecorporations. In Haiti, War on Want rana campaign in solidarity with workerspicking oranges for the liqueur GrandMarnier. After trade unionists in thiscountry applied pressure to Marnier, thecompany backed down and gave in toworkers’ demands.

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Trade Unionists as Voters:

• Press for labour standards - we needto make politicians aware of ourconcerns about working conditions andtrade union rights across the world.When writing to decision-makers stressthe importance of the InternationalLabour Organisation; raise argumentsabout including a ‘right to organise’clause in the World Trade Organisation;and inform them of attempts underwayto regulate corporations directly.

• Organise a lobbying day - if you havealready met with your MP/ MSP/ MWA/MEP, you could always organise acollective lobbying day at their surgery,or even at the House of Commons. Linkup with other concerned branchesaround the country, be clear about whatit is you are asking for, and produceleaflets for everyone attending.

• Write letters to your local paper -more people read local than nationalnewspapers. They are a greatopportunity to get your point over toother people. Write a brief letter to yourlocal paper about the effects ofglobalisation, and what they can do toget involved in your work.

• Don’t forget local politicians - you maythink that local decision-makers canhave little effect on international labourstandards, but local government, likecentral government, is a significantpurchaser in its own right. LocalAuthorities should have guidelines whichrequire them to take internationalworkers’ rights into account when theypurchase public goods – this can leadtowards private purchasers doing thesame.

Trade Unionists as Pension-holders:

• Join the Invest in Freedom Campaign- many of us do not think of ourselvesas shareholders, but pension funds in

the UK account for $800billion in stock.Most of this money belongs to ordinaryworking people, but few know whichcorporations this money is invested in,what practices are being supported andwhat effect this is having on peoplearound the world. Through your pensionfund, you can question thesecorporations and use your power hereto work for some of the world’s poorestwithout damaging your pension fund.War on Want’s Invest in Freedomcampaign encourages trade unionists tobe more active in using their pensionpower to improve working rights.

Conclusion

Globalisation can pose a threat to workersacross the world, but it also bringsopportunities for practical global solidarity.It offers the opportunity for trade unioniststo work on different levels with groupsnot previously considered part of thelabour movement. This report aims to be apart of this process. We hope theknowledge and experiences contained inthis report will allow workers throughoutthe garments sector to make globalsolidarity a reality and to ensure thatglobalisation works for all of us.

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Globalisation in the Garment Sector

War on Want37-39 Great Guildford Street London SE1 0ESTel: 020 7620 1111Web: www.waronwant.orgEmail: ndearden@waronwant.org

Trade Union Movement

International Textile, Garment &Leather Workers' FederationRue Joseph Stevens 8 Bte 4B - 1000 Bruxelles BelgiumTel: (32) 25122606 25122833 Web: www.itglwf.org Email: itglwf@compuserve.com

International Confederation of FreeTrade Unions5 Boulevard du Roi Albert II, Bte 11210 BrusselsBelgiumTel: 32 02 224 0211E-mail: internetpo@icftu.orgWeb: www.icftu.org

Trade Union Congress (TUC)Congress HouseGreat Russell StreetLondon WC1B 3LSTel: 020 7636 4030Email: info@tuc.org.ukWeb: www.tuc.org.uk

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W h o c a n h e l p ?Who can help?War on Want works to eradicate poverty.It works closely with the trade unionmovement both in supporting grassrootsorganisations abroad, such as trade unionand women’s groups in Bangladesh, andin campaigning for the internationalenforcement of workers’ rights in thedeveloped world.

War on Want also promotes a solidaritywebsite at www.globalworkplace.orgwhich promotes links, actions, campaignsand background materials on globalisationand workers rights.

The ITGLWF co-ordinates internationalaction between trade unions working inthe garment sector. It brings together 220affiliated organisations in 110 countriesand has a membership of over 10 millionworkers.

The ICFTU is an umbrella body set up in1949 to represent trade union centresacross the world. The British TUC is amember. The ICFTU provides informationand campaign tools on general or urgenttrade union matters such as enforcementof trade union rights.

The TUC brings together and represents alltrade unions in the UK. It deals specificallywith education and international issues.

Commonwealth TUCCongress HouseGreat Russell StreetLondon WC1B 3LSTel: 020 7631 0728Web: www.commonwealthtuc.org Email: director@commonwealthtuc.org

Global Unionswww.global-unions.org

The following unions all representworkers in the garments and textilesector, and have helped War on Wantin the compilation of this report:

KFAT55 New Walk Leicester, LE1 7EB Tel. 0116 255 6703Email: headoffice@kfat.org.uk Web: www.kfat.org.uk

Transport and General Workers Union128 Theobald's RoadLondon, WC1X 8TN Tel: 020 7611 2500Email: tgwu@tgwu.org.uk Web: www.tgwu.org.uk/

GMB22/24 Worple RoadLondon SW19 4DDTel: 0208 947 3131Email:

gmb.information@geo2.poptel.org.uk Web: www.gmb.org.uk

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Globalisation in the Garment Sector

The CTUC co-ordinates trade union activityin the Commonwealth

Global Unions is an action-based websitemanaged by a number of internationaltrade union organisations. It has a usefullist of links, urgent action releases, andcampaign documents.

Campaign Groups

Labour behind the Labelc/o NEAD38 Exchange StreetNorwich NR2 1AXTel: 01603 610 993Email: nead@gn.apc.orgWeb: www.labourbehindthelabel.org

Women Working Worldwide Room 4.12, Dept of Sociology,Manton Building, Rosamond Street West, Manchester M15 6LL, UKTel: 0161 247 1760Email: women-ww@mcr1.poptel.org.ukWeb: www.poptel.org.uk/women-ww

HomeNet24 Harlech TerraceLeeds LS11 7DX. Tel: 0113 270 1119 Email: homenet@gn.apc.orgWeb: www.homenetww.org.uk

No Sweat Web: www.nosweat.org.uk

Just Pensions37-39 Great Guildford Street,London SE1 0ESTel: 020 7620 1111Email: info@justpensions.orgWeb: www.justpensions.org

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LBL is the UK centre of the Clean ClothesCampaign, an international network whichbrings together workers, consumers andactivists to press for better workingconditions in the garments sector. Theypublish material and the website containsexcellent background information.

WWW is co-ordinating a UK network oforganisations working for theimprovement of labour conditions in theinternational garment industry. Thenetwork includes overseas aidorganisations, local support groups, andethical retailers and there is close liaisonwith the trade union movement.

Homenet looks specifically at the problemsof organising in the informal sector andbrings together those involved inorganising here. It works to build aninternational network for home-basedworkers and their organisations as welllinking them with NGOs, co-operatives,trade unions, researchers and women'sgroups.

No sweat! was launched in November2000 as a campaign against sweatshoplabour, both overseas and in the UK. Itorganises direct action campaigns tohighlight the their policies and practices.

This project provides advice to pensionfund and their trustees about theimportance of socially responsible pensioninvestment.

Anti-Slavery International Thomas Clarkson House The StableyardBroomgrove Road London SW9 9TLTel: 020 7501 8920 Email: info@antislavery.org Web: www.antislavery.org

Labour and Society International (LSI)Projects Office, Commerce House,Bridgeman PlaceBolton BL2 1DWTel: 01204 381810Web: www.lsi.org.uk/

Trade Union International Research &Education Group (TUIREG)Ruskin CollegeWalton StreetOxfordOxfordshire OX1 2HEEmail: enquiries@ruskin.ac.uk Web:www.oxfordshire.co.uk/data/017040.html

Sweatshop WatchWeb: www.sweatshopwatch.org

Labour StartWeb: www.labourstart.org

Ethical Trading Initiative2nd floor Cromwell House 14 Fulwood Place London WC1V 6HZ Tel: 020 7404 1463 Email: eti@eti.org.ukWeb: www.ethicaltrade.org

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Globalisation in the Garment Sector

Anti-Slavery works to combat slavery in alits forms throughout the world.

LSI works for human rights in the globalworkplace through advocacy, educationand research, in partnership with tradeunions and civil society organisations.

TUIREG aims to offer practical ways ofpromoting workers’ rights and ofincreasing trade union solidarity.

Sweatshop Watch is a US coalition oflabour, community, civil rights, immigrantrights, women's, religious & studentorganisations, and individuals committedto eliminating sweatshop conditions in theglobal garment industry.

An excellent site giving trade union news,actions, campaigns, discussion and plentyof resources from across the world.

The ETI is an alliance of companies, NGOs,and trade union organisations workingtogether to identify and promote ethicaltrade.

National and International Institutions:

International Labour Organisation 4, route des Morillons CH-1211 Geneva 22, Switzerland Tel: +41 2 2 799 6111E-mail: ilo@ilo.orgWeb: www.ilo.org/

Department for InternationalDevelopment94 Victoria StreetLondon SW1E 5JLTel: 020 7917 7000Web: www.dfid.gov.uk

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The ILO is the international body chargedwith monitoring and enforcing labourstandards. It has representation fromgovernments, employers and workers.

DfID is the UK Government Departmentresponsible for international assistanceand poverty reduction. It currently fundsprojects to help raise developmentawareness in trade unions.