19th March, 2013 Marco Biagi Foundation University of Modena & Reggio Emilia, Italy

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1 Rights of Women Workers in the Global Manufacturing Enterprises: The case of Bangladesh Readymade Garments Industry Presented by Md. Ismail Hossain PhD candidate in labour Studies University of Milan 19th March, 2013 Marco Biagi Foundation University of Modena & Reggio Emilia, Italy 1

2 Scholarly Debate Changes in lives of women workers particularly by providing employment opportunities, such opportunity to be self-reliant, increased social status and decision making power, greater personal freedom and autonomy (Barrientoes, 1995; Razavi, 2001; Kabeer, 2004; Lim, 1997) However, this employment is characterized by the violation of worker rights. Women are resource for globalizing capital. (Elson & Pearson, 1981; Stiglitz, 2002; Acker, 2004; Jaggar, 2001). 2

3 Specific Research Question(s) i. What is the current state of working conditions and labour rights of women workers at Readymade Garment Industry (RMG)? ii. How do the workers respond with the existing labour practices? ii. What are the roles played industrial and other actors to improve the situation of women workers rights? 3

4 The context: women as agents of Development (1) Year Table: Employment in RMG Industry Number of enterprises Employment (million) Both (men and women) women Percenta ge of women Table: Export income and Contribution of RMG Year Export of RMG (Million US$) Total Export (Million US$) % of RMG s to Total Export

5 Design of the Study (1) 1. Research Type: Qualitative research substantiated by quantitative data 2. Sample: Eight cases (Garment factory) have been selected as sample considering the following issues: 2. Table: Distribution of sample factories Size/ Area (ownership) Non EPZ *Area (National) EPZ* Area (international) Large Factory 2 2 Small Factory * Export Processing Zone (EPZ) is an industrial area protected by the government to attract foreign investors.

6 Design of the Study (2) Table: Distribution of Interviews and FGDs 6 Type of Respondent No. of Respondents Women Workers (05 from each factory) 4x8 = 32 Employers and management staff (03 from each factory) 3x8 = 24 Trade union leader (01 from each) 1X6 = 06 Government Representative (03) 3 x1 = 03 Representative from Employers Association (02) 2X1 = 02 NGO staffs (02) 1X2 = 02 Representatives from buyers (Brand companies) (04) 1X4 = 04 Labour experts (research, academic and ILO) (04) 1x4 = 04 Total interviews (77) 77 Focus Groups Discussions (FGD) 03

7 Theoretical Approach (1) Social Justice Approach: The idea of Justice (Sen,2009) A just society is one where people are free to be and to do what is valuable to them. It focuses on the opportunity of functioning of the individual. Key element of Sen s Approach Freedoms: the person is able to choose from a set of possible alternatives (the more the opportunities, the more opportunities for functioning and choices) In showing the link between capability and wellbeing of a person, Sen focusses on two important issues; wellbeing freedom and agency freedom. Wellbeing freedom: passive recipients of policies designed to remove inequalities and achieve better conditions for them Agency freedom: To become active agents to promote and achieve social and political transformation 7

8 Theoretical Approach (2) Why Sen s theory of Social Justice for this study? i. Sen s capability approach is much more able to cope with globalization. It is an incremental-adaptable approach which is widely used in inequality analysis. He refers to a contextualized and historical concept of justice, related to the real society (opposite to the Rawls theory, a transcendental idea of a perfectly fair society, decontextualized). ii. iii. Capability theory is an action oriented theory because it shows a way of reducing un-justice (expansion of freedom or the removal of various types of unfreedoms. Provides a room for the role of collective actors because capability enhancement is linked with the conversion of societal resources 8

9 Findings of the Study (1) Workers Rights at RMG industry: Just or Unjust? Well-being freedom of the women workers 1. Long and odd working hours:12 to 14 hours in day, from dawn to midnight (National and international Law allows maximum 10 hours per day/60 hour per week). 2. Minimum wage, but insufficient for subsistence/ Lowest wage for RMG workers in the world According to interview data, average income of EPZ and Non EPZ s factory workers are US$ 70 and 65 respectively, but US$ 100 is required for living standard in subsistence level 9

10 Findings of the Study (2) 3. Little respect for maternity leave but no pay (according to law, 4 months leave with pay) 4. Unhealthy and less equipped childcare room (childcare centre at the factory if it employs at least 250 women workers). 5. No accommodation or transport facilities (long distances between workplace and residence) 6. Not free from sexual harassment: physical and verbal abuse 7. Higher incidence of illness but no permanent doctor at the factory (paramedics are available), no leave for sickness or refreshment 10

11 Findings of the Study (3) Agency Freedom of the Workers 1. Forming association and collective bargaining: No existence of workers union at the factory level/ workers participation is very low 2. Free from forced and compulsory labour: compulsory overtime work, restriction on workplace movement through delay payment Table: Total unions in RMG sector Total Number of Federations 15 Total Number of Unions/Associations 80 Total Women Garments Workers Total registered activists in Unions Participation rate of workers in Unions 1.74 Source: Faruque, A. (2009), Current status and evaluation of industrial relation system in Bangladesh, ILO, Geneva 11

12 Findings of the Study (4) 3. Workplace discrimination through Job segregation Women are involved in low paying sections (sewing and finishing). No women was found as senior operator or line-chief which have higher wages (Grade 2 and 3) Workers freedom in respect of income earning, family decision making, sending children to school is increased slightly; but high turn over, average length 3-5 years. 12

13 Findings of the Study (5) Workers Response: Conformity or Resistance? Workers are not satisfied with current labour practices but the workers response is between conformity and resistance. Major constraints that limit workers voices Job insecurity/temporary workers/no legal rights Limited opportunities but more precarious job Repression of workers (false case, torture) Non-existence of unions at the factory level In absence of unions, workers raise their voice sporadically, and sometimes take the form of violence and aggression (Vandalism, road blocking, strike) 13

14 Findings of the Study (6) Role of the Actors for labour Justice: Responsible or irresponsible? 1. Workers Union: stay in the bottom rung 14 There are some workers union in this RMG sector, but none have the wing at the factory level Ineffective collective bargaining and absence of educational role: Corrupt practices of the leaders; Political affiliation of the unions; Lack of financial solvency of the unions/ arbitration or compromising role We never try to form and join association inside the factory because our employers do not like it. They don t allow us to form any association. If anyone takes initiative to organize workers, employers will take immediate action to discharge him from the job. Moreover, union leaders do not take stand against our injustices taking undue privilege from the employers (Shefali, a woman worker)

15 Findings of the Study (7) 2. Employers association: derive for profit Employers reluctances for increasing capacity of workers through skills training and education: price competition in the global market; Lack of CSR of the employers 15

16 Findings of the Study (8) 3. State: Important but limited control State role is important for enactment and enforcement of new law to maintain labour standards But state role is weak Very weak enforcement of law/ broken law Lack of proper inspection and monitoring Influence of the industrialists/ 50 industrialists (who are directly involved with RMG industry) are the members of legislative body. 16

17 Findings of the study (9) Role of Other Important Actors 1. Multinational Corporations Mechanism: Inspection and monitoring of the factory; Cancellation of work orders if codes of conduct are not followed. Inspection of codes of conduct by MNCs is very weak: Corrupt role of compliance officer; Distant relations between MNCS and Workers (subcontracting) The changes that have so far made in the worker rights are surely the contribution of global pressure. However, buyers always don t care about worker rights, rather maintaining codes of conduct is a strategy of buyers. If they find any discrepancy in compliance issues, they reject the whole order which in turn compel us to sell the product with discount rates to them (Abu Sayeed Khan, Senior Human Resource Officer of the factory) 17

18 Findings of the Study (10) 2. NGOs, Human Rights Organizations and Citizen s Groups Putting pressure to MNCs for respecting labour rights (Clean Clothes Campaign, United Students Against Sweatshop) Providing labour welfare : Organizing and training of the workers (Karmajibi Nari); Providing legal support for labour court (BNWLA, ASK); Providing low-cost housing services (Nari Uddog Kendra);Health and awareness (Awaj Foundation) We do not get any opportunity to talk with the buyer. When buyers wish to talk with workers, they directly come to the manager office and management call their preferred workers. If we fortunately get any chance to be here, we can t tell them the truth being frightened by job losses. If we tell them our real picture, certainly I will not be here few days later (Amina, a woman worker). 18

19 Concluding Remarks Women workers are crucial agents of development for Bangladesh. Broken law/ violation of women workers rights. Women workers awareness regarding rights and role of union is gradually increasing. They are raising their voices against injustices. IR actors role is insufficient but important for improving the labour rights situation in Bangladesh. Consumers and HR groups pressures on corporations have strong influence for respecting labour rights. It is a hope for unfortunate workers. 19

20 Thanks for your Kind Attention Questions and Comments.? 20