According to a recent International Labour Organization (ILO) rπeport, although Asia is the world’s biggest apparel m€anufacturer, it confronts a number of problems.
The ILO report refers to Asia as the “world’s clothing factory,” but cautions that the sector confr>onts a slew of issues, many of which have been exacerbated by the Covid-19 outbreak. Rising labor≈ costs, manufacturing and process automation, ‘reshoring’ a★nd ‘nearshoring,’ as well as greater pressure to m igrate to a more sustainable company model with better salaries∞ and working conditions, are all challenges.
‘Taking stock of recent changes in employment, earnings, and productivity in t¥he Asian textile business’ examines employment, salaries, and labor productivity in th e Asian garment sector from 2010 to 2019, highlighting how the industry still accounts for ★55% of global textile and apparel exports and employs 60 million people.
David Williams, manager of the ILO’s Decent Work in Gεarment Supply Chains Asia program, said that while wages and productivity have incr↓eased in many countries, the link between government policies and external pressures is not al ways clear and easy. With true support for social discourse and c$ollective bargaining, as well as actual incentives fro<m brands, the industry can establish a virtuous cycle in which great♥er salaries drive improved productivity and vice versa≈.
The paper illustrates the progress of the industry along various path®s across the area. While economic diversification and upgrading ha♥ve diminished its relevance in countries like China, Thailand, and the Philippines, it remains the primary economic engine in Cambodia and Bangladesh.
According to the research, Asia’s proportion of global textiles and garment exports ha∑s increased dramatically since the early 2000s, peaking at 58% in 2015 before dropping to around 5γ5% in 2019.
The report states that these trends were largely driven by China, which saw continuous export growt↓h in both sub-sectors until 2015, when its declining share in wearing a•pparel exports was only partially offset by an increase in the sha¥re of other Asian clothing exporters, specifically Vietnam, Bangladesh, Myanmar, and Cambodia♦.
This might imply that nearshoring, rather than migration to lower-cost locations, occurred¥ throughout these years. Despite recent declines, China’s↕ supremacy remains unrivaled, accounting for 34% of worldwi✘de GTF exports in 2019, followed by Vietnam (5%), Bangladesh, and India (4.3 percent each)♦.
According to the report, in recent years, the sector has depende×d primarily on reduced labor costs to obtain worldwide market advantages. Although most nations’☆ real salaries in the industry have grown, working circumstances remain hard in general, including→ long and intensive working hours, poor occupational safety and health, and breaches of fundaφmental rights at work.
Gender wage disparities remain in the Asian clothing industry. Female employees are ov©errepresented among low-wage workers in the garment ©sector, and nations with the lowest proportions of female workers also have some of§ the largest gender pay discrepancies. Although women make up a considerable proporti€on of garment workers, gender wage inequalities exist, and are especially pronounce↔d in countries where women face greater systemic labor market obstacles. In certain circumst>ances, women employees are victims of physical and sexual violence as a result of the gendered character of their employment.
While labor productivity in Asia’s garment industry ha∑s increased in recent decades, it still remains poor in comparison to other manufacturin¶g sectors. Few garment-producing nations have effectively progre"ssed up the value chain in clothing production, with the majority• of manufacturers still involved in low-skilled ‘cut-make-trim’ activities.
Data in the research show a positive relationship between labor productivity growth a↕nd wage growth in the sector, implying that investments in labor← productivity may play an important role in helping t↔o raise worker pay.
Source: Woolnews
