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NEWSLETTER 14, JULY 2001

Inside Roska's Cooperative

clothing factory in BulgariaThe following story of an Eastern European seamstress, a former factory worker, was told to a CCC researcher. For more information on CCC activities in Eastern Europe, contact Bettina Musiolek <B.Musiolek@knuut.de> or the CCC International Secretariat.

Roska V. founded a small sewing shop together with three of her former colleagues. Proud of their final decision after years of hesitation towards this step, the four refer to their microenterprise as a "cooperative." Since late 2000 they work on common accounts. The shared risk and burden eases the shift into self-employment. They also say it is not possible to work alone as a seamstress because a production line is necessary for manufacturing garments. Single home-based workers do not operate in the area.

All four women represent more than 10 years of experience in garment factories in the Southern Bulgarian town of Sandanski - a Bulgarian spa town on the Greek border. During the past 10 years is has become a haven for Greek garment manufacturers. The whole city and area literally lives off of the outward processing of garments for mainly Greek manufacturers and for mainly German retailers. Outward processing trade (OPT) refers to production when all or part of the material, utilized is "temporarily exported" by the buyer to the processing region. This set up is advantageous for foreign buyers because they avoid paying tax on the entire product when it is re-exported to the EU. Additionally, the area survives financially from on prostitution, and sometimes through the kidnapping of girls who are then trafficked into the Balkans and further into EU countries.

Roska's sweatshop is located in a small room in the basement of a private house in Sandanski. These workers are part of the 10% of the total employment in the area that is based in such "garage shops" that produce for OPT. In the Sandanski region 60 to 70 % of employment is connected to this trade. The workers set up small production lines, lease or rent machines and borrow the money they need such shops going from relatives and friends. Loans from banks are unaffordable. For Roska and her colleagues, getting loans from banks requires impossible securities and would drive them into bancruptcy. When they began their own business she felt very insecure and uncomfortable. But working in the factory for repressive foreign bosses was too much for them. Now they feel more self-determined though the exploitation and the earnings - around 230 DM a month -- are the same. For 10 years they worked in garment factories. They had initiated a strike in 1996 in one factory because of unbearable working conditions, were successful but after that were intimidated by employers and almost blacklisted. They gave up and left the place for another factory. Because of the high demand for qualified seamstresses in the area, they found new jobs. Younger women work in factories, middle-aged women like Roska and her friends prefer their own small "cooperative" - and are not prefered by management, who prefer younger women, even though they have to be trained. Younger women have to contend with sexual abuse and harassment, though sexual harassment has decreased as have other major rights' violations in the area since an article exposing the awful working conditions in the area was published in London's Sunday Times in November 1999.

Roska and her three colleagues are working on an order of 1,050 T-shirts, which they have to finish within four days by working eight hours a day. The label says "H.I.S." - Henry I. Siegel. The four women receive 0.40 DM per T-shirt. For more complicated work, making blouses, they received 1 DM each. They receive these orders from a Bulgarian woman , who also supplies them with the necessary cloth (already cut), yarn, and the other materials. She works for a Greek buyer/manufacturer. They either the send garments directly to Western Europe, or via Greece to Western Europe.

Greek buyers/manufacturers monopolize the OPT business in the Southern region of Bulgaria and Macedonia. The new businesswomen's most serious concern is that Greeks not only keep the price down and even lower it, but they also prevent efforts by the "cooperatives" to jointly negotiate the price and to set up larger cooperatives (more than 10 workers) by not paying for orders. There are around 100 cooperatives like Roska's in Sandanski alone, hence fierce competition. The four women tried to negotiate with the buyer, but the buyer would not accept their price. Roska reports that another cooperative of 20 women got orders but then were not paid for their work. They had finished the order, but as they became a source of comptition for the client, the client did not pay them, citing a frivolous quality excuse. This is the way Roska believes the Greek employers control the sweatshop industry and prevent serious competition.

The tax authorities closely follow the activities of the cooperatives. But they are just interested in monitoring that their taxes and license fees are paid on time. Nobody within local government appears to be interested in working conditions. The seamstresses feel that if there was more understanding by local authorities, then organizing workers wouldn't be a problem. When thinking about organizing, the four mention a trade union active in the sector in their area. One of the women is resigned to the current situation and says it is not possible to trust anybody, anyway.

For more information on the garment industry in Bulgaria, Romania, and Poland, take a look at Made in Eastern Europe, a report on garment production in those three countries. This 45-page report can be found on the CCC website, or copies can be ordered from the CCC Secretariat.

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