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Wages and Working Hours in the Textiles, Clothing, Leather and Footwear Industries

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Wages and Working Hours in the Textiles, Clothing, Leather and Footwear Industries GDFTCLI/2014 Wages and Working Hours in the Textiles, Clothing, Leather and Footwear Industries Sectoral Sectoral Activities Department Activities International Labour Office (ILO) Department 4, route des Morillons CH-1211 Genève 22 Switzerland GDFTCLI/2014 INTERNATIONAL LABOUR ORGANIZATION Sectoral Activities Department Wages and working hours in the textiles, clothing, leather and footwear industries Issues Paper for discussion at the Global Dialogue Forum on Wages and Working Hours in the Textiles, Clothing, Leather and Footwear Industries (Geneva, 23–25 September 2014) Geneva, 2014 INTERNATIONAL LABOUR OFFICE, GENEVA Copyright © International Labour Organization 2014 First edition 2014 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Wages and working hours in the textiles, clothing, leather and footwear industries: Issues Paper for discussion at the Global Dialogue Forum on Wages and Working Hours in the Textiles, Clothing, Leather and Footwear Industries, Geneva, 23–25 September 2014, International Labour Office, Sectoral Activities Department, Geneva, ILO, 2014. ISBN 978-92-2-128773-5 (print) ISBN 978-92-2-128774-2 (web pdf) Also available in French: Salaires et temps de travail dans les industries du textile, des vêtements, du cuir et de la chaussure, document d’orientation en vue du Forum de dialogue mondial sur les salaires et le temps de travail dans les industries du textile, du cuir et de la chaussure, Genève, 23-25 septembre 2014, ISBN 978-92-2-228773-4 (imprimé) et ISBN 978-92-2-228774-1 (web pdf), Genève, 2014, and in Spanish: Salarios y tiempo de trabajo en los sectores de los textiles, el vestido, el cuero y el calzado, documento temático para el debate en el Foro de diálogo mundial sobre los salarios y el tiempo de trabajo en los sectores de los textiles, el vestido y el calzado, Ginebra, 23-25 de septiembre de 2014, ISBN 978-92-2-328773-3 (impreso) y ISBN 978-92-2-328774-0 (web pdf), Ginebra, 2014. wages / hours of work / employment / social dialogue / labour inspection / textile industry / clothing industry / leather industry / shoe industry / trend / developed countries / developing countries 13.07 ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications and electronic products can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected]. Visit our website: www.ilo.org/publns. Printed by the International Labour Office, Geneva, Switzerland Preface This paper is intended to serve as a basis for discussion at the Global Dialogue Forum on Wages and Working Hours in the Textiles, Clothing, Leather and Footwear Industries. At its 319th Session (October 2013), the ILO Governing Body decided that the Forum would be held from 23 to 25 September 2014, would be composed of ten Worker and ten Employer participants, selected after consultations with their respective groups of the Governing Body, and would be open to all interested governments; and that representatives of certain intergovernmental and international non-governmental organizations would be invited to attend. 1 Its purpose is to discuss ways to address wages and working hours in the textiles, clothing, leather and footwear (TCLF) industries, taking into account the national contexts and the related international labour standards, with a view to adopting points of consensus that would inform future policy development. The previous meeting relating to these industries was held in 2005. 2 This paper, published under the authority of the International Labour Office, includes information from sources including ILO publications, academic studies and statistical databases. It was prepared by the Sectoral Activities Department (SECTOR), with contributions from the Conditions of Work and Equality (WORKQUALITY) and Governance and Tripartism (GOVERNANCE) Departments. 1 ILO: Sectoral Activities Programme 2012–13 and 2014–15, Governing Body, 319th Session, Geneva, Oct. 2013, GB.319/POL/4. 2 Tripartite Meeting on Promoting Fair Globalization in Textiles and Clothing in a Post-MFA Environment (Geneva, 24–26 Oct. 2005). GDFTCLI-R-[SECTO-140505-2]-En.docx iii Contents Page Preface ............................................................................................................................................. iii 1. Recent trends and challenges in the TCLF industries ........................................................... 1 1.1. Background ................................................................................................................. 1 1.2. Production ................................................................................................................... 2 1.3. Trade ........................................................................................................................... 6 1.4. Employment trends ..................................................................................................... 9 2. Wages and working hours in the TCLF industries ................................................................ 13 2.1. Wages ......................................................................................................................... 13 2.2. Working hours ............................................................................................................ 19 2.3. Labour inspection/administration ............................................................................... 24 2.4. Private compliance initiatives ..................................................................................... 26 3. Social dialogue and labour relations ..................................................................................... 28 3.1. Social dialogue ............................................................................................................ 28 3.2. Collective bargaining agreements ............................................................................... 29 3.3. Global framework agreements .................................................................................... 32 3.4. Innovative mechanisms ............................................................................................... 33 4. Concluding remarks .............................................................................................................. 35 GDFTCLI-R-[SECTO-140505-2]-En.docx v 1. Recent trends and challenges in the textiles, clothing, leather and footwear industries 1.1. Background 1. Until the 1980s, the clothing and footwear industries – apart from haute couture – mass- produced standardized styles that did not change much from one season to another. The majority of production of materials and final goods took place relatively close to end consumers. The United States and many European countries had flourishing TCLF industries. Business was supply driven, production cycles were predictable, the supplier base was usually regional and relatively stable, and seasonal collections were divided into two (spring/summer and autumn/winter). 2. In the 1990s, TCLF retailers started expanding their product ranges. The combination of more fashionable designs, the development of distinct brands and the move towards lower production costs overseas proved a profitable formula. 1 Strong competition pushed retailers to consolidate, which enhanced buying companies’ negotiating power. Clothing and footwear brands and retailers began to move production offshore and to outsource manufacturing in search of low-cost labour and production opportunities. Today, competition between brands and retailers is sharper than ever, and most clothing companies design and market their products in developed countries and subcontract production to manufacturers in developing countries. The number of collections per year has increased significantly in the past 25
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