Junya Lek Yimprasert Thai Labour Campaign IGTN-Asia Email: lek@thailabour.org www.thailabour.org
Presentation flow!
Corporation/ Brands The Politic of the Industry The Global Supply Chain
Reality
Thailand Example
Belief it or not! these brands are producing by same factories and same workers
Current Outsourcing pattern of global Brands! Agent Agent Agent Supply Chain Management/ Logistics Approach
Brand
Brand Brand
GOVT
Factories
Driving by BRANDS!
AGENTS BRANDS
Yarn
Textile
Materials
Fabric
Knitting Manufacturing
Home base
Responsible for manufacturing operation costs and direct employers to ten of millions workers in the industries
Informal employment, no real figure of how many million of women workers involved in clothing production at the home base level, with no protection.
North
North
South
South South
North
South South
North
South
North
US/EU
Mexico
NICS Taiwan, Hong Kong, Korea
Central America
1960- 1970s Expanding shipped production/ manufacturing toNICs - Korea, Taiwan, Hong Kong
1974s - MFA Relocation; North/NICs to South 1980s FDI EPZs Export promotion Zones
Southeast Asia
Africa
1995 China
After China Return to SEZs condition, facilitate by FTA? South Asia Manufacturing relocation North to South.Facilitating by trade subsidy/ promotion and Agreement
Eastern EU
India?
China
Long-term Arrangement Regarding International Trade in Cotton Textiles (LTA]. Extended 2 times.
MFA Phase-out
The MultiFibre Arrangement (MFA)
LDCs
FTA
After 2005
Most of the time are under some kind of trade Agreements, huge manufacturing subsidy and facilities, some how- some way but in differences name!
Thailand Example!
This is a REALLY low added value in return!
COUNTRY
1. U.S.A 2. JAPAN
2002
1,959.7 309.1
2003
1,868.6 372.6
2004
2,083.2 429.7
2005
2,120.2 413.6
3. CHINA
4. UNITED KINGDOM 5. FRANCE 6. GERMANY 7. HONG KONG 8. U.ARAB EMIRATES 9. INDONESIA 10. NETHERLANDS TOTAL 10 COUNTRIES OTHERS TOTAL EXPORTS
119.3
251.5 102.8 134.4 154.1 132.3 85.7 98.1 3,347.0 1,795.6 5,142.6
180.0
251.2 119.9 156.3 172.9 137.3 95.4 104.0 3,458.2 2,007.1 5,465.3
266.1
295.1 181.7 162.8 191.5 161.6 126.7 128.4 4,026.8 2,373.0 6,399.9
283.3
270.4 227.1 184.5 177.4 175.4 152.6 128.0 4,132.5 2,588.7 6,721.1
product
country
2001
Clothing China Hong Kong Italy 2,714.3 421.8 114.8 2,465.2 501.9 139.6
2002
2,668.7 491.6 205.8
2003
3,256.2 718.5 227.3
2004
2,588.2 544.9 352.3
2005
Cotton Fiber
USA
Australia Zimabwe
4,514.0
7,077.3 2,108.3 3,092.3 1,004.6 937.4 3,766.9 5,855.1 1,523.9 1,116.7 1,661.7 2,024.7 4,757.8 1,345.1 1,849.6 3,719.8 2,110.5 816.5 4,807.8 8,967.7 1,819.5
6,307.4
4,948.7 1,075.4 3,533.5 1,428.9 1,104.5 3,569.3 4,395.8 1,534.0 1,327.1 1,997.6 1,862.4 3,933.3 1,460.8 2,183.6 19.2 976.5 309.8 6,512.7 7,293.7 1,829.9
7,154.5
3,405.2 731.6 4,155.7 1,343.2 1,060.5 3,701.6 3,342.5 1,416.4 1,635.8 1,789.3 1,337.8 3,964.9 1,759.1 1,884.8 1,143.9 1,040.1 302.9 7,308.7 5,724.2 1,502.6
7,214.1
3,982.6 1,649.6 5,007.1 1,072.1
8,639.5
4,140.2 1,685.4 5,623.7 1,489.3
cotton fabric
Man-made fabric
3,749.6 3,198.0 1,413.6 2,232.7 2,021.7 1,523.5 3,802.0 2,614.8 2,079.7 90.5 990.1 461.4 7,435.5 6,374.4 1,504.4
423.4 2,361.0 1,326.2 2,514.3 1,935.7 1,843.9 4,195.2 2,621.1 1,977.5 1,246.9 733.8 409.7 8,872.9 6,057.6 1,803.2
Man-made Yarn
Yarn
Knitted Fabric
Fiber
Upstream
midstream
downstream
2,500.0
2,000.0
1,500.0
1,000.0
500.0
160.0 140.0
120.0 100.0 80.0 60.0 40.0 20.0 0.0 2005 2004 2003
NA M
NE S
NE SI A
LA O
G AP O R
M AR
IA
BO DI
AL AY S
PH IL IP PI
VI ET
IN DO
YA N
SI N
CA M
BR UN
EI
Family C
Family D
Family - B
Factory A in Bangkok
Family -E
Sub-contract
Sub-contract Bangkok
Sub-contract Bangkok
Sub-contract Bangkok
Sub-contract Bangkok
Sub-contract Korat
1.1 million workers, 20% of [registered] manufacturing workforces are in the garment and textile industries, with the GDP value of only 5 billions USD. Nike sale value each years is about 9 billion USD! With over 1 billion USD net profit!
Thailand Textile Institute
Average wages of textile and garment workers in Thailand in difference wage systems
12,000.0 10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 Series1
wages
wages
wages
earnings
earnings
earnings
wages
Piecework
baht/day daily
Daily baht/day wages earnings
baht/month monthy
Monthly baht/month wages
baht/month piecework
baht/month Average
Average baht/month wages earnings
earnings
160.5
188.2
8,612.8
9,747.6
2,930.9
3,064.2
earnings
5,364.3
6,100.5
Minimum wages in Thailand has 18 level in 2006 from 143 184 Baht (USD 3.5 4.5)
7 6 5
19 94 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05
When comparing of USD, the wages has declined since 1997 economic crisis
4 3 2 1 0
27
181/186
Phuket
11
provinces
30
Chonburi Saraburi Nakornratchasima Rayong Ayudhya, Ranong and Chachengsao Chiengmai, Pang-Nga Krabi Kanchanaburi, Chantaburi, and Lopburi
10
Ratchaburi, Samutsongcram and Srakaew Trang, Prachaubkirikhan, Prachinburi, Singhaburi, Songkla, and Angthong Loei and Udonthani Chumporn, Trad, Lumpang, Lumpoon, Sukhothai, Suphanburi
4/6
Kalasin, Khonkean, Nakornpanom, Nakornsrithammarat , Naratiwat, Burirum, Pattani, Yala, Loei, Songkha, Satoon and Nongkhai 40/ 45
provinces
Kampaengpetch, Tak, Nakornnayok, Nakornsawan, Pattalung, Phitsanulok, Petchaboon, Suratthani and Uttraradit Chainat , Chaiyaphum, Chaingrai, Mahasaracram, Mugdahan, Yasothon, Roi-ed, Srisaket , Sakonnakorn, Nongbualumpoo and Uthaithani Pichit, Maehongsorn, Surin, Ubonratchatani and Amnatchareon Payao and Phrae
28
Corporation
Criminalization of Citizens
H e g e m o n y A p p r o a c h
U n e q u a l
Donors/loan/aid money/charity
Fashionable short term Project
T r a d e
O f f
P o w e r
Down South
World of diversities Rights-Freedom of Association
Huge gab of profit sharing from brands to workers! Workers around the world are exploited! Most of the them are women
CEO
Philip Marineau
Company
Annual Salary
Hourly Wage
$11,971
$22.4 million
$10,769
$2,163 $1,500
Paul Fireman
Philip Knight
Reebok
Nike
$3.1 million
$2.73 million
$1,490
$1,312
www.sweatshopwatch.org
Levi Strauss & Co. Tommy Hilfiger Polo Ralph Lauren Liz Claiborne Inc. Reebok Nike -
Susan George
The North-South differential was about 2 to 1 in the 18th century, 30 to 1 in 1965 and is now 80 to 1 and rising. Many of you will also have heard the comparison between the billionaires and the billionsnot a scientific comparison, but striking. The combined assets of the world's 440-some dollar billionaires is equivalent to the net worth, as measured by GDP share, of roughly half the world's people.
Convention 87
Convention 98 Convention 29 Convention 105 Convention 100 Convention 111 Convention 138 Convention 182
Freedom of Association and the Right to Organise The Right to Organise and Bargain Collectively Forced Labour Abolition of Forced Labour Equal Remuneration Discrimination (Employment and Occupation) Minimum Age Convention Prohibition and Immediate Elimination of the Worst forms of child labour
No forced labour No discrimination of workers No child labour Freedom of association and the right to collective bargaining Payment of a living wage (i.e., a salary that covers the basic needs of an average family, based on local standards) No excessive overtime Safe and healthy work environment Legally-binding labour relations
Freedom of Association
19 counties yet to ratify both convention US, China, India, Thai, Laos, Vietnam, Korea, Timor, Africa, Emirate, Iran, Samoa, Solomon, Somalia
Convention C14 Weekly Rest (Industry) Convention, 1921 C19 Equality of Treatment (Accident Compensation) Convention, 1925 C29 Forced Labour Convention, 1930 C80 Final Articles Revision Convention, 1946 C88 Employment Service Convention, 1948 C100 Equal Remuneration Convention, 1951 C104 Abolition of Penal Sanctions (Indigenous Workers) Convention, 1955 C105 Abolition of Forced Labour Convention, 1957 C116 Final Articles Revision Convention, 1961
Country Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand
Status ratified ratified ratified ratified ratified ratified ratified ratified ratified
Thailand
Thailand Thailand
26:02:1969
05:04:1968 26:02:1969
ratified
denounced on 11:05:2004 ratified
Thailand
Thailand
11:05:2004
16:02:2001
ratified
ratified
dominated industries, Automobiles, Textiles, State enterprises, reduction of unionized sectors, through
Privatization Union
women
concentrated industry
busting
In
Unionized sectors are male dominated the national labour congress/center is being co-opted by state and employers
the informal sector employed vulnerable migrant workers FTA floating of rights, wages, welfare to facilitate FDIs and local capitalists
Reducing risks, used less workers, cheapest wages, no liability, no responsibility, no direct employment, etc.
CAPITALISTs
INCREASE PRODUCTION
Employment in temporary, parttime, contract system Target/ piece rate system, home base workers Subcontracting , push pressure to workers Investment privilege package, EPZs Flexible labour law for investment ATC, Free Trade
Supply Chain Management Multi skills/ less workers In crease speed, work like robot, no time to eat, to pee, to rest. Using vulnerable workers, children, immigrant, prisoners Too many OT, no time to participate in union
workers are suppressed -- no time to eat [nothing to eat], to rest, to have family life, etc.
Hong Kong and China Business groups become the biggest producers of Garment
Over 50 South countries were made to complete with other to keep the sweatshop industry! On the expenses of their women populations
Burmese Sri Lanka Vietnam pakistan Cambodia Indonesia US$ India China Malaysia Thailand Philippine Taiw an 200 400 600 800 1,000
Low wages is the push factor for labour migration both domestic and regional level.
The personnel will inform us in advance that customers will monitor the factory. Told us that Haddad, that Nike will monitor the factory and that we have to be ready and have to lie to the customer. He said that the customer will ask us, Do you work OT? We have to say No! The customer will ask that Do pregnant workers work OT we have to say that No. But in reality pregnant workers work OT and on Sunday as well. We work sometime 2 AM or till dawn, but we have to say that we work OT only at 8 PM. Whatever we can lie, they said that we have to lie. Also what is important that we have to have cloth-mask and a glass. If we can lie we will get paid 400 Baht.
Government
Welfare State!
Social Welfare system
Enforce laws
Freedom of Association
local action
Consumers NGOs Donors
Global solidarity
Others
Movements
Individuals
Academics
Women
Diversity
Natural resources Cultures politics Ways of living
Sovereignty
Rights
Self subsistence Self determination Land Water Forest Costal Food etc.
Human rights Labour rights Women rights Environmental rights Participatory democracy Social welfare and security etc.
Peoples
Tribes/ believes/ Religions, LGBT, etc.
Political Rights
Workers party Democratic laws Strike Union office/ facilities CBA Learning/ Education Organizing Activities leaves
Economic Rights
Living wage Bonus Pension Subsidy Food allowance
Workers
Transportation, etc. OS&H --Safe and Healthy work Sick leaves Leaves- holiday, annual
Social Welfare
Unemployment Security
Family benefit
Maternity benefit
Legal Rights
Social Rights
Freedom Of Association
Western TUS/NGOs pressuring brand names and retailers Asian TUs/ ATNC monitoring groups pressuring manufacturers
Solidarity Group!
Dignity Returns
Factory by workers, for workers and of workers. Stop subcontracting ethical made Honor international standard Paying living wage promote their own brands Dignity Returns
WE have to.
OPEN our EARS to listen to people cries. OPEN our EYES to see the oppression in our society! And OPEN our MOUTHS to shout STOP!. It is ENOUGH!.
...
Su Mai Su ... Su Su Will we Fight Fight, Fight