PRESS RELEASE - Siegburg, 25 January 2005

New publication :

Women's work in Export Processing Zones and in the informal economy.
Country case studies China, Indonesia and Sri Lanka.
Fashion companies under examination

A considerable share of our clothes is produced in worldwide Export Processing Zones (EPZs) and in sweatshops in the informal economy. Most of the workers in the tax and tariff enclaves in more than hundred countries in the South and in Eastern Europe are women. Their labour conditions are scandalous: extremely low wages, long working hours, sex discrimination and union repression.

As the results of recent research from China, Indonesia and Sri Lanka in the latest SÜDWIND publication show, these labour conditions are still the order of the day of seamstresses in garment and sports shoe factories in these countries. The labour conditions result from short delivery times and the pressure on prices which are typical of current global sourcing systems of multinational importing companies. The phase-out of the WTO Agreement on Textiles and Clothing at the end of 2004 even threatens to aggravate this situation for the workers in this industry. The Tsunami catastrophe in Asia of December 2004 which especially hit Indonesia and Sri Lanka and also caused victims amongst garment workers and their families, now comes on top of these difficulties.

Although it is true that since the 90s, campaign pressure of unions and consumers has caused multinational fashion companies to improve labour conditions in selected supplier factories, there is a lack of sustainable, binding enforcements of labour rights in global supply chains. Above all, the SÜDWIND publication concludes, there is a need to integrate workers' representatives much better in independent verification systems of codes of conduct, next to the challenge to improve the work of public inspectorates.

"The cost of implementing codes of conduct of multinational companies", the author of the SÜDWIND publication Ingeborg Wick states, "should no longer be shifted to suppliers such as this mostly happens today. It is also necessary to extend the scope of application of codes of conduct to include the informal economy, so as to counter social divisions amongst workers", Wick says.

The SÜDWIND publication presents the results of recent case studies on working conditions of women in EPZs and sweatshops in China, Indonesia and Sri Lanka, with emphasis on supplier factories of KarstadtQuelle, C&A, Otto, adidas-Salomon and puma, as well as replies by these companies and comments by SÜDWIND. The author analyses trends on the world market of textiles and clothing, reflects practical experiences of unionists and consumers and offers proposals for action.

The SÜDWIND publication was financially supported by the Northrhine Westfalia Foundation for Environment and Development, by the United Evangelical Mission, as well as by the Protestant Churches of Rhineland, Westfalia, Hessen-Nassau and Kurhessen-Waldeck.

Further information:

This press release as well as the reports of HKCIC and PMK will shortly be posted on our website.
The price of the German publication is 5 EUROs each up to four copies, 4,50 EUROs each between 5-9 copies, and 4 EUROs each as from 10 copies.

Contact:
Ingeborg Wick, phone: +49 - 2241 - 259530, fax: +49 - 2241 - 51308, e-mail: wick@suedwind-institut.de

SÜDWIND Institut für Ökonomie und Ökumene
Lindenstr. 58-60
D 53721 Siegburg
Germany
Phone: +49 - 2241 - 53617
Fax: +49 - 2241 - 51308
e-mail: info@suedwind-institut.de
http://www.suedwind-institut.de

Introduction

1. Background information on export processing zones and the informal economy

1.1 Export processing zones - An overview

1.1.1 Basic information
1.1.2 Female labour in export processing zones
1.1.3 General working conditions
Box 1: Export processing zones and international trade agreements
1.1.4 Costs and benefits - An assessment
1.1.5 Perspectives

1.2 Informal economy - Sweatshops - Informal work

1.2.1 Reasons for the boom of the informal economy and informal work
1.2.2 Concept, definition and basic data
Box 2: Strategies of trade unions and non-governmental organisations on informal work
1.2.3 The link between export processing zones and the informal economy
1.2.4 Legislative and communal initiatives
1.2.5 Link to broader political campaigns

2. Working conditions in export processing zones and sweatshops - research from China, Indonesia and Sri Lanka

2.1 China

2.1.1 Special economic zones - An overview
2.1.2 "Conditions of women workers in special economic zones and labour standards in supplier factories of German garment retailer companies and brands in China" - Report of the Hong Kong Christian Industrial Committee
Box 3: The life of a female migrant worker in the special economic zone in the Guangdong province

2.2 Indonesia

2.2.1 Export processing zones - An overview
2.2.2 "Working and living conditions of women in export processing zones and sweatshops in Indonesia" - Report of the Urban Community Mission, Jakarta
Box 4: "Working in factories is like receiving the grace of God" - Profile of the worker Wadiha
Box 5: "I now feel on my own" - Profile of the worker Winarsih
Box 6: "Workers are left like machines which are no longer used"

2.3 Sri Lanka

2.3.1 Export processing zones - An overview
Box 7: Profile of S.A. Chandrawathi, seamstress in the export processing zone Katunayake
2.3.2 "Women in the garment industry and in export processing zones" - Report of the Centre for Women's Research Sri Lanka
Box 8: Profile of Soma, seamstress in the export processing zone Biyagama
Box 9: The Jaqalanka case in the export processing zone Katunayake

3. Codes of conduct and other instruments to improve labour standards in world trade

4. Multinational fashion companies under examination

4.1 Corporate social responsibility programmes of adidas-Salomon, C&A, KarstadtQuelle, Otto, puma and AVE
4.2 Replies of companies to the results of the research from China and Indonesia - Comments by SÜDWIND
4.3 Assessment and perspectives

5. Action proposals

5.1 What are the demands of the workers?
5.2 Main objectives
5.3 Is the hope for improvements not an illusion when we consider the power of structural economic violence?
Box 10: Demands of the European Clean Clothes Campaign on companies concerning the phase-out of the WTO Agreement on Textiles and Clothing
5.4 Demands on multinational companies and associations
5.5 Demands on the German government
5.6 Demands on trade unions and non-governmental organisations
5.7 Demands on churches
Box 11: "Covenanting for Justice in the Economy and the Earth" - Declaration of the World Alliance of Reformed Churches, 24th General Council, 11th August 2004, Accra, Ghana (Extracts)
5.8 Campaigns / Information materials

Service Section

Bibliography, abbreviations, glossary, currency information, contact addresses.