Garment Workers Are Also Victims of September 11

Note: this article was written by the Maquila Solidarity Network (MSN) and originally appeared in Maquila Network Update, December 2001, vol 6 (4)

The tragic consequences of September 11 continue to be felt by people around the world - from the families of the immediate victims of the attacks, to the victims of racist assaults and harassment in the US and Canada, to the civilian victims of the war in Afghanistan.

The terrorist attacks and the US military response are also having serious economic consequences for working people around the world, including the young women who labour behind the labels in the globalized garment industry.While September 11 isn't solely responsible for recent layoffs and plant closures sweeping the garment sector worldwide, it has further weakened an industry hard hit by the downturn in the US economy.

New York
The garment industry was already suffering from the US economic slowdown when the two hijacked planes hit the twin towers of the World Trade Centre. Chinatown, the centre of New York's garment industry, only blocks away from the site of the attacks, was most immediately affected.According to the garment workers union UNITE, the terrorist attacks totally shut down Chinatown's garment industry, leaving as many as 12,000 mostly immigrant women workers out of work for the next two to three days, and 6,000 out of work for at least a week. Disruption of deliveries in and out of the area cut the manufacturers off from retail buyers that now demand just-in-time production.UNITE estimates that as many as 20 percent of garment shops in some areas of New York have shut down, and that "many other shops are expected to close within weeks, as purchase orders from apparel retailers rapidly decline."

Canada
Even before September 11, Canadian retailers were preparing to report a steep fall in third-quarter earnings, due to intense competition with their US-based rivals and the weak Canadian economy.Major suppliers of the Bay, most of them apparel manufacturers, now report that Canada's largest department store chain is cancelling orders that could add up to $75 million. The Hudson's Bay is expecting a loss of $3.5-$7 million or 5-10 cents a share in the third quarter ending October 31.Canadian apparel manufacturers exporting to the US market were also negatively affected by September 11 and the weak US economy. Despite the record low Canadian dollar, apparel shipments to the US fell in September.Since the signing of the Canada/US Free Trade Agreement (FTA) in 1989, many Canadian apparel manufacturers have geared their production to the US market, making them vulnerable to fluctuations in the Canadian dollar and US consumer spending.

Mexico
September 11 had an immediate impact on Mexico's export garment industry as stringent border inspections brought cross-border traffic to a virtual halt.The North American Free Trade Agreement (NAFTA) has transformed Mexico's garment sector into a maquila export industry totally dependent on a healthy US economy for its survival.As a result of the US economic slowdown, 17,094 textile, garment and leather workers' jobs were lost in a one-year period ending July 2001. As the US economy enters a possible recession, maquila plants are forced to slow production, laying off thousands of Mexican workers.

Central America
Central America's export garment industry has also been hard hit by the US slowdown and the fallout from September 11. Twenty-seven maquila plants have closed in Honduras and an equal number in Guatemala, leaving 16,000 mostly young women temporarily out of work in Honduras and another 11,000 in Guatemala.Since 90% of all apparel manufactured in Central America's maquila industry is destined for the US market, and the maquila sector produces one-third of the region's total revenue, their economies are extremely vulnerable to even minor fluctuations in the US consumer market.We saw on television the tragic destruction which occurred in America on September 11. Due to this calamity, thousands of workers may lose their employment, thus causing a great imbalance to the economy. Let's continue more strongly the struggles we make on behalf of workers at the factories and in other sectors as well.H.I. SamanmalieDabindu CollectiveSri Lanka

Pakistan
Pakistan is not only suffering political instability as a result of the US-led war in neighbouring Afghanistan, the country's garment industry is being decimated. Fearful of disruptions in deliveries, major US brands - American Eagle Outfitters, Tommy Hilfiger, Perry Ellis - are cutting orders.Approximately 18,000 jobs in the apparel and textile sectors have already been lost as a result of the war. A recent survey of 14 apparel manufacturers revealed a 64 percent drop in orders.Pakistan's textile and apparel industry employs 3.5 million workers, 60% of the countries industrial workforce. A prolonged war and/or political instability could have a devastating impact on the industry and the economy as a whole.In response to the current crisis, Pakistani textile and apparel manufacturers are calling on the US government to suspend all tariffs on imports from their country.

Bangladesh
US retailers are also cutting back orders to Bangladesh, forcing the closure of up to 1,000 garment factories and layoffs of as many as 300,000 workers. Industry officials warn that the plant closures could force laid-off women workers into prostitution. Nearly 45% of the country's garment exports go to the US market.

Globalized Crisis
One of the harsh truths learned from the tragic events of September 11 is that globalization and free trade policies have made workers and national economies everywhere much more vulnerable to economic and political instability anywhere.With China's entry into the WTO and the approaching phase out of tariffs in 2005 under the Multi-Fibre Arrangement, the tragic events of September 11 and the US "war against terrorism" are accelerating processes already underway in yet another round of global restructuring of the garment and textile industry.The challenge for garment workers and their supporters is to maintain our global alliances as we struggle locally to defend workers' jobs, incomes and rights.
For more information on the MSN, please see their website: http://www.maquilasolidarity.org