May 2009


 

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1.8 million worldwide job losses in textile and garment sector

The impact of the economic crisis on the textile, garment, leather and footwear sectors has been dramatic. Since June 2008, over 8,200 factories have closed and an estimated 11.8 million workers have lost their jobs. As many as a further 3 million jobs are estimated to be at risk.

The situation is particularly tragic for workers in developing countries where there are no social safety nets. In addition, as many as 80% of the workers involved are women and again the vast majority are less than 24 years old and often the only breadwinner in their extended family.

Migrant workers are, as always, among the most vulnerable of these workers. Migrant workers typically owe recruitment fees - sometimes as high as US$5,000, the equivalent of ten years wages at the local minimum wage and losing their jobs leaves them unable to pay off their debts. Bangladesh alone has some 6 million migrant workers, many employed in overseas textile, garment or shoe enterprises and their forced return to their country will further increase pressures.

Those workers who are employed are often reduced to short-time working, face demands from employers for wage cuts, longer working hours and unpaid overtime, and this in an industry where wages for a standard working week usually fall well below what is needed to survive.

This situation has been made worse by the fact that many buyers from brands and retailers have been demanding price cuts, often in mid-contract.

The International Textile, Garment and Leather Workers Federation noting that in this crisis, as in those that preceded it, workers are being asked to make sacrifices without any guarantee of reward when economic recovery returns.

 


 
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