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7/30/2019 Actionaid Garment Workers Booklet
1/13
Productivityand workers rightsA booklet or workers in the global garment industry
This booklet is or workers,
trade unions and other
labour organisations that
have day-to-day contact with
garment workers.
Garment actories otenmake changes to the way
their employees work inorder to save money and
increase the amount o
clothes they produce. Theseare called productivityschemes.
Sometimes productivity
schemes can be good or
workers, as the money
saved can be spent on better
pay and conditions.
But, all too oten, the changes
are harmul or workers.
People are laid o and lose
their jobs, or have to work
harder and longer hours.
This booklet explains whatthese changes are, and what
the dangers are or workers.
It includes discussion points
that can be used in workers
education.
It suggests questions that
workers and their union
representatives can ask
managers when productivityschemes are introduced into
the actory.
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ActionAidProductivity and workers rights
Garment workers in actories across the world
make clothes that will be sold by companies in
countries very ar away.
The companies who sell the garments place
their orders with actories like yours to produce
their clothes. And they have a lot o power in
their dealings with your employer.
Every time a buyer company places an order
with your employer, it strikes a deal over the
price, delivery date and payment terms. These
deals can have an enormous impact on whether
or not your employer pays you a decent wage
or asks or reasonable hours o work. They can
aect how the production line runs, and the way
that you are treated by your supervisors.
Oten your
employer has
little choice
but to accept
the buyer
companys
terms, or the
order will go toa actory that
will accept the
lower price.
The drive to increase
productivity
Discussion pointWhat is it like, working on your line?
Areyoupaidabonusforreachinga
productiontarget?
Orareyouexpectedtostaybehind
tocompletethequotasetbyyour
employer,withoutanyextrapayfor
overtime?
Ifso,whydoyouthinkyouremployer
isdoingthis?
1
The buyer companies generally want to lower
their costs. This means that sometimes they
reduce the price they pay to your employer or
the garments you make.
Oten your employer has little choice but
to accept the buyer companys terms, or the
order will go to a actory that will accept the
lower price.
Your employers oten try and cope with this by
reducing their costs wherever they can. They
want to produce more clothes or less money.
This is what productivity is all about.
I you nd that changes are happening in your
actory such as re-organisation o the shop
foor, new machines being installed or new work
processes being brought in they are probably
being done to improve productivity.
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Discussion pointDo any o these things happen at
your place o work?
Domanagerstimeworkerswitha
stopwatch?
Areworkersconstantlybeingchanged
aroundontheline?
Haveanychangesbeenmadetoyour
workstation,suchastotheseat,bench
ormachine?
Aretherefewerbundleswaitingtobe
workedonbyyourassemblyline?
Areyouconstantlybeingurgedto
producemore?
Hasyourproductiontargetbeen
increased?Ifso,howmanytimesin
thelastyear?
Iswhatyoumakemeasuredonan
hourlyorweeklybasis?
Haveyounoticedanyotherchangesto
theworkprocessatyourfactory?
ActionAidProductivity and workers rights
Some changes may be very big, changing the
whole way that the actory is operating, rom
top to bottom.
They may even aect the way that managers
communicate with workers, by bringing in new
systems or handling disputes.
What is LEAN?LEANisperhapsthemostradicalwayof
improvingproductivity.Itisbasedonasystem
developedbythecarmanufacturerToyota.
LEANfocusesoncontinuouslyimproving
thewayafactoryworks,tomakeitever
moreefcient.
UnderLEAN,workersmaybeorganisedinto
cells.Thesearegroupsofworkerstrainedin
severalskillswhocanmakeawholeproduct.
Cellshaveproductiontargetsforthewhole
groupratherthanforindividuals.
Thisisdifferentfromtheproductbeingmade
onanassemblyline,whereworkerswith
differentskillseachdoaparticulartask.
LEANisintendedtochangethecultureofa
factoryaswellasthephysicalwaythatthe
factoryandworkstationsareorganised.
LEAN is
intended to
change the
culture o a
actory as
well as the
physical
way that theactory and
workstations
are organised.
The drive to increase
productivity continued
2
Inputswhat it costsyour actory
in labour,machines,rent, etc
Outputwhat youractory makes
in value
Productivity
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ActionAidProductivity and workers rights
Who wants higher
productivity?
3
The companies argumentgoes like this: i you canproduce more clothes in less
time, the actory can earnmore money, and thereore it
can pay you more.
This all sounds reasonable
doesnt it?
But there are dangers in this
or the workers.
I you are experiencing these kinds o changes
in your workplace, your employer may be
making them or his or her own reasons.
Perhaps they think that the current ways o
working are too slow, and lead to excessive
overtime in your actory.
These changes may also be asked or by thebuyer companies that place orders in your
actory. In some cases, the buyers might be
concerned about quality perhaps they are
having to return too many aulty garments to your
actory. Some may be concerned about your
actory ailing to meet delivery dates. All these
things can aect the buyer companys prots.
Recently, some buyer companies have been
trying to make sure workers get a higher wage.
They claim that the best way to get higher wages
is to make changes in the workplace to increase
productivity.
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ActionAidProductivity and workers rights
The risks or workers
4
I workers dont come together and get involved
when management brings in major changes at
your workplace to increase productivity, you
could end up:
with job losses, leading to a smaller workorce
with a aster pace o work
with extra pay, but not in line with how
much extra you are actually producing
working in an unsae environment.
So lets pause and think about this or a
moment, as workers...
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ActionAidProductivity and workers rights
Calculating labour
productivity
5
One o the arguments that buyers use in their
negotiations with your actory management is
that the labour productivity or line eciency
in your actory is too low. What do they mean
by this?
In your actory, the workplace changes you
identied earlier (see page 2) are usually carriedout by industrial engineers the so-called IE
department. It is their job to maximise the number
o garments produced in the time available.
You will probably have seen a board hanging
up at the end o your assembly line, monitoring
your output against a target, usually on a daily
and hourly basis.
One o the tasks done by the IE department is
to calculate the time taken to make a specic
garment. This is usually called a SAM (Standard
Allowed Minute), although some actories call
this the Standard Minute Value (SMV).
SAM (or SMV) means the time (in minutes)
that it takes a worker to complete a specic
operation or produce a specic garment. The
SAM is oten calculated by using a stopwatch.
Sometimes its done by looking at a special
table o times that have already been calculated,
or every task needed to make a garment.
Once the buyer company and employer know
how long it takes a worker to complete a
specic operation, they can compare this with
other actories, or with a special table o times,
to see how productive workers are.
Standard Allowed Minute/Standard Minute Value.What should it cover?
SAM(orSMV)shouldcoverthetimetaken
toperformanoperationatnormalor
standardpace,plusanallowancefor
relaxationandpossiblestoppages.It
shouldalsoberatedtoallowworkersto
earnanincentivebonus,iftheywork
abovetheirexpectedperformance.
Butbecareful.Sometimesthese
calculationscanbedoneincorrectly.
Workersshouldaskmanagementfor
traininginthesemethodsofwork
measurement,sothatyoucancheckthecalculationsdonebytheIEDepartment.
Buyer companies and employers can also use
SAMs to calculate how much it costs them
to pay wages and benets or each minute
worked. This is called the Labour Minute
Value, that is to say, what the wage cost is or
each minute it takes to make a garment.
We have seen that buyer companies and
employers can work out how long it takes to
make a garment. This means that they should
also be able to set realistic targets or workers.
So now we need to ask: why is it that targets
oten cannot be reached?
Buyer
companies and
employers can
also use SAMs
to calculate
how much it
costs them to
pay wages andbenets or
each minute
worked.
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ActionAidProductivity and workers rights
Usually, managers and the IE department say
that targets cannot be reached because o
labour ineciency. That is to say, they blame
the workers or low productivity.
But is this right?
In act, when we look more closely at the
causes o so-called labourineciency, we
oten nd that its the ault o management, and
not the workers.
For example, problems in the actory might be
caused by:
a lack o proper training or workers
atigue and lack o concentration among
workers caused by excessive overtime
an unrealistic incentive scheme where the
production target at which a bonus can be
earned is ar too high
an unrealistic time being calculated to
produce the garment properly.
So really the correct term should bemanagement ineciency and not labour
ineciency.
This is an important distinction, especially when
we come to discuss the payment o a living
wage (see overlea).
The correct
term should be
management
ineciency
and not labour
ineciency.
The myth o labour
inefciency
6
Discussion pointWhat causes downtime in your
actory?
Lowlevelsofproductionfromanassembly
linecanbecausedbyvariousfactors,
suchas:
machinebreakdown
abuildupofunsewncomponents(the
technicaltermisWorkinProgress,orWIP)
components,suchasfabricorzips,
notavailablewhenneeded
ahighnumberofrejects/faulty
garments,whichreducesproductivity
worker(s)performingbelowstandard
worker(s)absentfromtheline
changesingarmentstyles
powercuts.
Whichfactor(s)is/arethebiggestcause
ofdowntimeinyourfactory?
Whodoyouthinkistoblameforthis
downtime:managers;supervisors;
workers;factorysuppliers;orsomeone
else?
Discussion pointWorkers and productivity
Usually,productivityproblemsliein
thehandsofmanagement.Sodoyou
thinkworkersshouldbeinvolvedornot
whenchangesarebroughtintoimprove
productivity?
Even imanagementineciency is the cause o
excessive overtime, poor product quality and
low wages, workers do need to be involved
in improving productivity. Otherwise, the only
ones to benet will be your employer and the
companies that it sells clothes to.
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ActionAidProductivity and workers rights
In recent years, garment prices have generally
been alling, both in the shops and at the actory
gates. Yet the cost o living or workers who
produce the garments has continued to rise.
Trade unions and other labour organisations,
in the producing countries and in the buyer
countries, have stepped up their campaigning.They are putting pressure on the buyer
companies to change the way they do business
with the producer companies, reeing up money
to pay workers like yourselves a living wage,
to reduce the length o your working day and
keep you ree rom harassment rom your
supervisors.
This pressure has made some buyer companies
take action. Many have adopted codes o
conduct, which say that workers who produce
their goods should be paid a living wage,
should not be orced to do overtime and should
have other rights respected.
However, the buyer companies are not giving
a bigger share o their prots to your employer
Labour productivity
and the living wage
7
What is a living wage?
Mostclothingworkersintheworldarepaidaminimumwage.Asyouknow,thisis
nowherenearwhatyouandyourfamilyneedtoliveon.
Youknowwhatlevelofwageisnecesarytocoverallyourbasicneeds,providesome
moneytopayforadditionalitemsandevensavealittle.Thisiswhatwecallalivingwage.
Theactuallevelofthelivingwagediffersfromcountrytocountry,becauselivingcosts
varyacrosscountries.
TherehavebeeneffortsrecentlytocalculatealivingwageforallworkersacrossAsiatheAsia Floor Wage.Tondoutmoreaboutthis,see:
www.asiafoorwage.org
so they can improve your pay and conditions o
work. Instead, buyer companies are looking to
their supplier actories, such as your employer,
to improveproductivityas a way o nding extra
money or the workers.
But can eorts to raise productivity also benet
workers?
Logically, i your actory can make more
garments in less time, it can make more money,
as long as orders continue to come in. I this
is done without increasing the pace o work,
and without job losses, then it can be a positive
thing or workers.
But experience so ar o productivity schemes
has been mixed:
In China, some schemes have succeeded
in bringing down working hours, while at the
same time raising wages. However, this only
ensured that the legal minimum wage was
paid, and workers were still not paid or any
aulty garments that were produced. Also, in
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ActionAidProductivity and workers rights
some cases, these schemes were short lived
and the employer only took more work on,
leading once again to excessive overtime.
In Bangladesh, some productivity schemes
have reduced the number o helpers on
assembly lines. They have been retrained as
machinists, thereby improving their skills andraising their wages through re-grading. This
is a good thing. However, buyer companies
have been able to claim that they are bringing
about wage increases or the lowest paid
workers, even though those same workers
are still earning well below a living wage.
Also, in China, one employer introduced a
productivity bonus to try and retain more
senior employees and reduce turnover.
However, the company insisted on an
unrealistic production target or these
workers. When the worker representatives
protested, the management did not change
the targets. Eventually, many o the older
workers quit their jobs at the actory, which
deeated the point o the scheme.
Where LEAN (see page 2) has been
introduced, and workers are grouped in cells
rather than on lines, workers are complainingthat they have been moved too close to the
hazardous chemicals used in production.
This is particularly prevalent
in ootwear actories.
I you have seen no benet or yoursel and your
ellow workers rom productivity schemes, and
in act you are working harder than ever, then
you need to do something about it
Key point:productivity
schemes
address
management
ineciencies.
They should not
be seen as away or buyer
companies to
deliver on their
responsibility to
ensure workers
are paid a
living wage.
Labour productivity
and the living wage continued
8
Discussion pointDoes higher productivity beneft
workers?
Thinkbacktoyouranswersintherst
discussionactivity(onpageone).
Nowconsiderthesequestions:
Whenmanagementchangedtheway
youwork,didyourwagesincrease?
Diditleadtoareductionintheovertime
youworked,atnolosstoyourtake-
homepay?
Wasthereareduction,orincrease,in
thepaceofworkinthefactory,and
specicallyontheassemblylinewhere
youwork?
Hastherebeenachangeintheway
youaretreatedatyourworkplace,
particularlybyyoursupervisors?
Haveanyjobsbeenlostinthefactory
asaresult,ordifferenttypesofcontract
beenintroduced?
Haveyouacquirednewskillsasa
resultofthechanges?Ifso,hasthis
ledtoanypayincreaseorregrading?
Whenchangesareintroduced,isit
usuallyonlyforaspecicgroupofworkers?
Arealltheworkersusuallyinformed
andinvolvedinthesechanges?
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ActionAidProductivity and workers rights
The act is that most labour productivity
schemes aect pay and working conditions.
So, you and your ellow workers should be
involved in any changes to improve productivity.
So what can
workers do?
9
Questions to ask management
1 How much money has the company saved as a result othis productivity schemes?
2 What are the workers going to get or their contributionto this schemes?
3 How many workers are working on the lines at present?
4 Are any jobs going to be lost?
5 I jobs are going to be lost, where will the workers be
transerred to?
6 Can you guarantee the transerred workers will not havetheir pay cut?
7 What changes, i any, will be made to line targets?
8 How can workers earnings refect any increase in productivity?Can we discuss bringing in a production bonus scheme or,
i one already exists, how it can be improved?
9 Can independent training in work study (SAMs) be providedto the workers and their representatives?
For this, you need to prepare some questions
or management.
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ActionAidProductivity and workers rights
Some productivity schemes try to involve
workers by establishing worker committees.
Both your employer, and the buyer companies,
might think that these are a suitable substitute
or a trade union.
However, you need to be careul about these
bodies. Worker committees oten representmanagements interests rather than workers,
and some may not permit discussion on
productivity.
Remember the buying companys code o
conduct should say that you have the right
to join a union, o your own choice, or the
purposes o bargaining with management.
I you work in a actory where there is a worker
committee rather than a trade union, there are
some questions you might want to consider.
So, i you are going to make any lasting
progress, you need to organise into a trade
union to negotiate and collectively bargain with
your employer. In some countries, managers
are obliged by law to respect and implement
any agreement reached with the union through
collective bargaining.
Your representatives are also going to need
training on these issues, since they can oten
get quite complex.
I you are
going to make
any lasting
progress,
you need to
organise into
a trade union
to negotiateand collectively
bargain with
your employer.
Why workers
need a union
Discussion pointWorker committees or trade unions?
Whatsystemisthereinyourfactory
forworkersandyourrepresentatives
todiscussmattersrelatingtopayand
productivitywithmanagement?
Isthereaworkercommitteeinyour
factory?Ifso,howwasitsetup?Was
itdemocraticallyelectedbyworkers?
Ordidmanagementnominatethe
members?
Whatissuesarediscussedinthe
workercommittee?Doesitmeet
regularlyandareminuteskept?Has
itreachedanyagreementsonworkers
payandconditions?Whatrightsdoyouhaveifmanagementrefusesto
abidebytheagreements?
Whatisthedifferencebetweena
workercommitteeandatradeunion?
Whichoneismorelikelytobringreal
improvementstoworkerspayand
conditionsofwork,andwhy?
10
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ActionAidProductivity and workers rights
You also need to make sure that your employer
does not bully or harass any workers who join
or become active in the union. This is known
as victimisation.
All workers across the world have the right
to join a trade union o their choice (called
reedom o association), and to bargain
collectively with their employer. These rights
are included in many o the buyer companies
codes o conduct.
Ask your employer, and any representative
rom companies that buy rom your actory,
or a written non-victimisation guarantee.
and no victimisation
11
A model non-victimisation guarantee
(Name o company), in accordance with national and international
law and the code o conduct o (name o buyer) governing reedom
o association, hereby guarantees you, as an employee o this
company, the right to join or orm a union o your choice or the
purposes o bargaining collectively with (name o company) onwages and working conditions.
(Name o company) will not discriminate against you, nor
victimise you, or exercising this right. Furthermore, (name o
company) will adopt a positive attitude towards any trade union
organisers granted access or the purposes o talking about the
benets o trade union membership.
(Name o company) also undertakes to permit the ormation o
an organising committee in the actory whose members shouldoperate without ear o hindrance, intererence or victimisation.
Signed Signed
----------------------------------------------- -----------------------------------------------
On behal o (name o buyer) On behal o (name o supplier)
Ask your
employer,
and any
representative
rom companies
that buy rom
your actory, or
a written non-victimisation
guarantee.
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ActionAidProductivity and workers rights
Key points
12
Intodayscommercialworld,youremployerwillalwaysbe
trying to cut costs. This may involve specifc schemes to
improve productivity. Workers need to be ully involved in
these schemes.
Anyschemesdesignedtolowercostsshouldnotresultin
workers losing out, such as job cuts, pay cuts, a aster pace
o work, or longer overtime.
Productivityschemesshouldnotbetheonlywaytomeet
a buyers commitment to making sure the workers get a
living wage, as set out in its code o conduct.
Cost-cuttingschemesorefcienciesareanopportunityfor
workers to sit down with the employer to negotiate better
pay and conditions.
Workersneedtorespondcollectivelytoproductivity
schemes. A unionised workorce, involved in all aspects o
workplace change, is the best way to deal with this.
Workersfacedwithchangestoworkingpracticesshouldseek
advice rom their local trade union.
ChatawayHouse, LeachRoad,Chard,SomersetTA201FR
ActionAidisaregisteredcharityno.274467.Printed onrecycledpaper.
www.actionaid.org.uk
ActionAid,
Publication date: 2012
Author: Doug MillerEditor: Celia Mather
ActionAid is a registered charity no 274467. Printed on recycled paper