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NEWSLETTER 21, May 2006

Asian Garment Producers Expand in Africa

Workfloor Experiences Highlight Problems

African governments, under intense competition to attract foreign investment, offer investors incentives such as duty-free imports, tax breaks, and relaxed labour laws. Companies have also been encouraged to set up there by the US Government's African Growth and Opportunities Act (AGOA) which gives dutyfree access to the US market for goods produced in the continent.

Photo: Workers at a jeans factory in Lesotho.

As a result, Eastern and Southern Africa became very attractive to the global garment industry at the beginning of this century, especially for Taiwanese and other Asian producers supplying international buyers. Operating virtually without restrictions, they enjoy low costs and high production rates. Yet they return little of their profits to their host African countries through decent employment or government revenues. Incentives for foreign investors may create some jobs. However, since the phase-out of the Multi-Fibre Arrangement (MFA) system of quotas, factories supplying international buyers have increasingly been shutting down. Therefore if these factories are here-today/gone-tomorrow, offer below subsistence wages and unhealthy working conditions, and meanwhile displace African domestic industry, the global garment industry will bring no solutions to poverty in Africa.

On average, about 80% of garment workers in Eastern and Southern Africa (except for Malawi and Zimbabwe) are women. They face high exploitation, with poverty wages and forced overtime in unhealthy workplaces, along with verbal, physical and sexual abuse.

There is union success in some locations. However, unions face restrictive labour legislation and many companies unwilling to sign recognition agreements. Workers are often afraid to join unions for fear of losing their jobs. There is also a need for more skills development and equipment for union organisers.

Support for African Garment Unions

In May 2005, the International Textile, Garment and Leather Workers' Federation (ITGLWF) and the Amsterdam-based labour research organisation SOMO (part of the Dutch CCC) held a workshop in Swaziland focusing on conditions at Asian-owned factories in Eastern and Southern Africa producing largely for international retailers such as Wal-Mart. Participants included shop stewards and union organisers from nine Eastern and Southern African countries, as well as Taiwan, along with labour researchers and campaigners from South Africa, Kenya, Europe, the US, and Asia.

The workshop proved to be an excellent opportunity to exchange information, develop collaboration and integrate these African developments into global campaigns. Plans were developed in particular for Asian organisations to help support their African counterparts. Shop stewards produced repeated reports of verbal and physical abuse of workers, forced overtime, low wages and obstruction of union activity. The following account of the Asian-owned Tri-Star factory in Tanzania is one example of the information shared at this gathering.

Tri-Star in Africa

"On the invitation of the African government and as a new venture of the Tri-Star Group I have started a major operation in the African regions specially to take advantage of the African Growth Opportunities Act (AGOA) where there is no quota and duty restrictions for the exports of garments to the USA and as a result to produce garments for very attractive prices."

Deshabandu Kumar Dewapur, chairman of Tri-Star, Sri Lanka (Quoted on www.lankae.com/lankae/yellowpages/Tristar/abroad.htm)

Tri-Star is a Sri Lankan garment company that closed a number of its home country factories and shifted to Africa in recent years, to benefit from investment incentives and AGOA trade preferences with the US. However, here too it has already closed down again when it suits, with little regard for the impact on its workforce or the host countries' economies.

In Kenya, the Apparels Tri-Star factory in the Athi River Export Processing Zone, benefited from a ten-year tax holiday. According to the Kenyan Human Rights Commission, workers suffered from overcrowding, poor ventilation, insufficient protective equipment, and sexual harassment. In August 2001 there was a strike, after which several workers were summarily dismissed. Once the tax holiday was over, Tri-Star closed its Kenyan operation.

In Uganda, Apparels Tri-Star started producing in 2002. Here it continues to expand. It has a new joint venture worth US$20 million with ISIS Pacific Capital Inc., a New York-based textile and garment company, to set a spinning, weaving and dying mill up at its facility at Bugolobi, Kampala. In 2004, the ITGWLF filed a complaint to the ILO against the Ugandan government for Tri- Star's failure to recognise the Uganda Textiles, Garments, Leather and Allied Workers' Union. At the end of 2005 management finally recognised the union.

In Tanzania, the Tri-Star Group set up its Star Apparels factory in 2003 in an export processing zone in Dar Es Salaam. At its height, Star Apparels produced around 6,000 pieces a day, mostly shorts, pants, and skirts for companies such as Wal-Mart in the US.

Star Apparels' workforce, largely women, grew to 1,000 by the end of 2004. During a factory visit by a labour research organisation, the factory had adequate light and ventilation, workers' stations seemed comfortable, safety procedures were posted, and facilities for meals and healthcare were provided. The executive director told the researcher that conditions were good because of stringent requirements from buyers.

When it came to labour relations, however, the executive director was less clear. "Trouble" had been "instigated by trade unions" in Tri-Star operations in Kenya and Uganda, he said. If his workers chose to become members, he would be "open," though these proved to be empty words.

By April 2005, Star Apparels was placed under receivership, reportedly after failing to service its debts. A month later, after less than two years of operations, it closed down.

In Tanzania: A Supervisor's Story

Photo: Edward Seynia Makaranga was a supervisor and workers' representative at Star Apparels, a Sri Lankan owned factory in Tanzania. He shared his stories with participants at an ITGLWFSOMO workshop in Swaziland, in May 2005. Useful Resources on Organising in Africa

Edward Seynia Makaranga was a supervisor and workers' representative at Star Apparels. His view is that Tri-Star cut and ran because the Tanzanian workers got organised. Here he tells how optimism for the future turned to bitter disappointment.

"I was one of the first people to be hired as a supervisor at Tri- Star. That day I was very proud to get a job and the future looked good..."

After six months had passed, management gave workers probation contracts with a minimum wage of 48,000 Tanzanian Shillings (US$47) for six months, promising that workers would receive a wage increase and permanent job contracts after the six months. It seemed strange at the time that management did not allow any of the workers to read the probation contract's contents and whoever tried to attempt reading the contracts was told to leave the factory premises.

By the time the probation period had elapsed, the honeymoon was over. Life in the factory was tough. Below are some of the conditions that workers were forced to endure:

  • All pregnant women were ordered to write a resignation letter so the factory could get away without meeting the legal requirements of maternity leave;

  • Working hours were increased by 1.5 hours/day, to a total of 9.5 hours/day;

  • Overtime was compulsory, forcing workers to work from Monday through to Sunday, without rest days;

  • When workers had to work overnight as overtime after a full day's work, the hours were 6 p.m. to 6 a.m. and workers had to report back to work in the day after three hours of rest;

  • No leave was entitled to any worker; if there was a funeral of a close relative, only a day was given without pay;

  • There was verbal and sexual harassment of young women workers from Indian and Sri Lankan expatriate staff;

  • Trade unions were not allowed at all; if anyone was discovered having contacts with a trade union representative, you were immediately dismissed without payment;

  • Random and unfair dismissals of employees.

I did not like the things that were happening at the factory. Fellow workers would come to talk with me about problems because they knew I had a good relationship with management, as a supervisor. But management never took the concerns I raised seriously.

Management had refused to let the garment workers' union in and so our consultation with the union was done in secret, as we feared losing our jobs. On September 11, 2004, all the workers gathered in the canteen during the tea break to have discussions with the management in order to reduce some unfair conditions in the factory. The employer became very angry and ordered all workers to leave the company premises.

We did not hesitate. We quickly called in the media. Reporters and TV presenters came, giving us coverage on the television, in the newspapers and even on radio stations. After a few hours, all workers agreed to go home as the employer demanded.

The following day the workers found the gates closed and [were told to] report to work after three days. When we returned three days later, the Labour Commissioner Mr. Joggic was there and said the workers should appoint their representative to go and open the queries at the Ministry of Labour and Youth. That was how I, Edward Seynia Makaranga, came to represent the workers, together with 48 other representatives, although soon after this we were all suspended by the employer.

We consulted the trade union and began organising workers that were still employed at the factory. The trade union was not allowed inside the factory and so we recruited and held our meetings outside. After two months in suspension, we found a letter on the desk of the labour officer saying that we were fired.

Two months later, once the trade union began to pressurise the factory in an attempt to protect our worker rights, the factory was closed down. All the workers were out of work with no notice and no compensation.

Life has been hard for all the workers that lost their jobs from the closure… None of us had savings as we did not really earn very well in our jobs. The workers that were the sole providers for their families were the most distressed… Our dreams of a better future had been destroyed. We had been fooled by Tri- Star and many of us felt worse off than before we started working at the factory.

I have been looking for other work but have not had much luck. I am better off than others because my wife works, but we have a small child and the little money my wife gets is barely enough for us to survive on. But I do not regret choosing the side of the union over management for, despite management's attempts to win my loyalty, I would have lost my job along with all the other workers when they closed down. With the union, I at least did not betray my fellow workers and we tried to protect workers from terrible exploitation by Tri-Star."

Useful Resources on Organising in Africa

A series of four publications published by the ITGLWF, specifically to assist garment workers' organising in Asian multinationals in Africa is available online:

" Asian Multinationals in Africa: Information and Strategy Guide " www.itglwf.org/pdf/booklet1.pdf

" Asian Multinationals in Africa: Developing Union Strategy and Capacity " www.itglwf.org/pdf/booklet2.pdf

" A Story of Organising: A Shopfloor Workbook " www.itglwf.org/pdf/booklet3.pdf

" Africa-Asia Labour Networking ," report of the Swaziland workshop, May 2005 http://www.cleanclothes.org/ftp/05-Swaziland-report.pdf

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