Indonesia Increases Minimum Wage for 2022

ASEAN Briefing

December 14, 2021  

by Ayman Falak Medina

 

Indonesia has increased the average minimum wage of each province by 1.09 percent for 2022. The figure was obtained through the new guidelines on minimum wage under Government Regulation 36 of 2021 (GR 36/2021) — one of the implementing regulations of Indonesia’s Omnibus Law.

Under GR 36/2021, the minimum wage is based on the economic and employment conditions, which are:

• Purchasing power parity;
• Manpower absorption levels; and
• Median wage variables (the margin between the 50 percent of the highest wages and 50 percent from the lowest 50 percent of the lowest wages from employees in the same position).

(...)

What are the new rates for 2022?

The following rates represent the minimum wage of each province in Indonesia. The rates in cities or districts are normally higher than the provincial minimum wage.

Read full article:

https://www.aseanbriefing.com/news/indonesia-increases-minimum-wage-for-2022/

 

 

 

Partners to safeguard the health of workers

BWI

Although the high health risks for workers in the garment sector, our assessments show that most factories were non-compliant in the requirement to have on-site medical facilities. By the end of 2019, 66% of our factories did not meet this requirement. Before the launch of our programme, none of the factories had doctors on site. Workers
were taken to the nearest hospital or clinic for medical assistance.

Read more

Social dialogue yields powerful results

BWH

July 21, 2020

In 2019, Better Work Haiti prioritised worker-management relations by introducing platforms for participation in social dialogue within factories. Such initiatives contributed to the promotion of more advanced HR management systems and demonstrated that worker-manager communication could be an essential competitive asset for firms.

In collaboration with tripartite representatives from the private sector, workers and the government, Better Work Haiti organised the second edition of the ‘Building Bridges’

Read more

    

Partners to safeguard the health of workers

BWH

July 21, 2020

lthough the high health risks for workers in the garment sector, our assessments show that most factories were non-compliant in the requirement to have on-site medical facilities. By the end of 2019, 66% of our factories did not meet this requirement. Before the launch of our programme, none of the factories had doctors on site. Workers
were taken to the nearest hospital or clinic for medical assistance.

Now, factories are investing to comply. To raise awareness on this, we have launched initiatives that:

♦ Urged partner organisations to designate 100% of their profits for social programmes to Haitian workers, to engage in discussions
with their sourcing factories to address health issues;
♦ Organised free medical consultations for more than 2,000 workers — 77% of whom are women — in ophthalmology, prenatal and maternal health, dermatology, gynaecology, HIV testing, and internal medicine;
♦ Launched a pilot project with Share Hope to train nurses on different types of actions and activities they can offer inside the factory.

Read more

Factory Ambassador

BFC

July 21, 2020

The Bigger Picture

Better Factories Cambodia’s (BFC) long-term objective is to focus on sustainability of factory-level services and increased engagement with partners and stakeholders to find solutions for garment sector issues. We have seen through our interventions over the years improvements in labour compliance in Cambodia, but there is still room for growth.

BFC’s newly launched ‘Factory Ambassador’ programme aims to accelerate these improvements. Our focus today is on collaborations with manufacturing groups and factories to drive change in the garment sector. We believe that through these partnerships and by embedding and driving ownership in factory, we can maximise our positive impact.

Read more

MAST inspectors join forces to tackle sexual harassment

BWH

July 21, 2020

According to a study by Tufts University in the United States, at the launch of the Better Work Haiti programme, around one-in-three garment workers, the majority of them women, reported problems with sexual harassment at their workplace. This is a notoriously difficult and sensitive issue to uncover during compliance assessments. Better Work Haiti has strengthened its policies to prevent sexual harassment by publicising the types of behaviour considered to be harassment, as well as zero-tolerance policy. All workers and employers, including middle and top management, received compliance training regarding this Zero Tolerance Policy and methods to prevent sexual harassment.
In addition, labour inspectors joined this group of trainees. In our 2019 assessments, 6% of factories reviewed indicated that workers had been subject to sexual harassment.

“Factories must ensure that zero-tolerance policies against sexual harassment are well communicated and well understood by all workers and do not remain on paper and simply displayed on a notice board.” Pierre André, factory worker

“Before, there was a supervisor who was harassing a worker. The worker complained. The management found that it was true, and the person was fired.” A bipartite committee member

Read more

Marks and Spencer giving away free miniature replicas of food as part of Little Shop collection

Marks and Spencer is offering customers free miniature replicas of some of its most popular food items as part of its new Little Shop collection.
Individuals who frequently venture to the British high street shop for their weekly food shop will likely have a favourite food item that they like to purchase from the supermarket.

PH garments can grow

Malaysia Business Insight
Written by AMADO P. MACASAET
15 June 2012

The local garments industry is picking up, leading export growth in the first four months of the year and helping compensate for the downturn in electronics exports.

Industry leaders said that the Philippine garments industry has bigger chances of growing faster.

Garment exports improve

Bangkok Post,
12 May 2012

A surprise increase in first-quarter exports of textiles and garments to Japan, China and Hong Kong, if sustained, could help to offset an anticipated contraction in the local textile industry later this year, says the Thai Garment Manufacturing Association.

Vice-president Yotsaton Kijkusol said the second half is the traditional peak season for these exports, and this determines the overall direction of the textile and garment industry.

"If the second half sees a contraction, then the entire year will likely see one too," he said.
However, Mr Yotsaton predicts only a single-digit contraction.

If the increase in exports to those Asian markets can be sustained, then that may balance at least some of the losses from EU and US markets, he said.

First-quarter exports to China and Hong Kong grew by 15% year-on-year.

Wiwat Hirunpruk, manager of the Thailand Textile Institute's Fashion Knowledge Creation Center, said China has moved some orders to Thailand. China has far too many orders to handle.

Some Thai companies like the Central Group have invested in department stores in China, and these have also placed orders from Thailand.

Exports to Japan also spiked, with 36.3% year-on-year growth last quarter.

"Japan wants to avoid being overly dependent on China," said Mr Wiwat.

Businessmen from both countries are also taking advantage of tariff reductions under the Japan-Thailand Economic Partnership Agreement.

Mr Yotsaton said both the government and the private sector are looking hardest at the Japanese market.
Traditionally, exports to the US account for 30% of the total, followed by 20% to the EU.

But financial crises have led to a fall in demand, causing first-quarter textile and garment exports to contract by 7% year-on-year to US$750 million.

Mr Yotsaton expects the hike in the daily minimum wage will prompt 15 large and 10 medium-sized firms to move to neighbouring countries.

However, he said since the new wage level has just been implemented and companies are still trying to adjust it is still too early to know exactly how many really will move.

Some textile companies are paying 700 baht a day now for labour, he said.

He said the wage hike will cause a 4.4% increase in production costs for textiles and 8.8% for garments.

Is H&M the new home of ethical fashion?

Source: Guardian.co.un, 7 April 2012
By Lucy Siegle


The world's second largest clothing retailer is trying to remake itself as a greener option. Lucy Siegle reports from Stockholm.

H&M is not just a big player in "fast fashion", it's a giant. Estimates (fast fashion behemoths do not give out many production figures as the sector is intensely competitive) suggest it sells more than 550 million garments every year. It recently announced net quarterly profits of $412m. It is second only to Inditex, owner of Zara, as the world's largest clothing retailer. The great fast fashion war pits Sweden's richest man, Stefan Persson, chair of H&M, against Spain's richest man, Amancio Ortega, co-founder of Zara.

And now, in an audacious move, H&M is positioning itself as the ethical solution, the retailer that can make ethics and fast fashion synonymous. It wants to be an ethical giant, too. I say "audacious" because, to concerned consumers and activists, fast fashion's rapid-response production system, reliant on low-wage production in some of the poorest countries on Earth, is pretty much held responsible for environmental and social degradation in the global wardrobe. Indeed, having spent a large amount of time railing against it myself, it felt pretty audacious for me, too, to be sitting in the Stockholm headquarters of H&M last week.
The Observer was given early access to the brand's latest sustainability report that will be published on 12 April. Few corporate CSR reports are read so widely. From activists to analysts, everyone will be keen to see if H&M can really crack it. I am no different. However much I bang on about alternative ways to fill your wardrobe to ethically aware audiences – small brands, swapping, vintage, knitting – the top question I still get asked is: "So which high street stores can I go to?"

Be in no doubt, we are addicted to fast fashion. So, if H&M have solved all labour rights and environmental issues then I can pack up my soap box and toddle home, picking up some David Beckham underpants from his H&M Bodywear collaboration from one of the brand's 199 UK stores with total impunity. But how clean are H&M's Beckham pants? (On Twitter Joey Barton splendidly articulated lingering consumer unease: "Do one, Becks. They cost about 1p to make in a sweat shop in the Third World.") Indeed, what guarantees does H&M offer across its ranges?

"I don't think guarantee is the right word," says Helena Helmersson, head of sustainability, brightly. "A lot of people ask for guarantees: 'Can you guarantee labour conditions? Can you guarantee zero chemicals?' Of course we cannot when we're such a huge company operating in very challenging conditions. What I can say is that we do the very best we can with a lot of resources and a clear direction of what we're supposed to do. We're working really hard."

I believe her. Thursday's report will show some impressive sustainable figures: for example nearly 2.5 million pairs of shoes were made last year using lower-impact water-based solvents; all building contractors have signed a code of conduct to ensure "good" working conditions; recycled polyester equivalent to 9.2 million plastic bottles has been used, and H&M uses more organic cotton in production than any other group. This year I am told, 7.6% of its cotton was organic (an industry insider estimates H&M's overall cotton use to be around 200,000 tonnes a year). By 2020 100% will be sustainably sourced cotton.
"H&M has definitely got better," admits industry expert and CEO of Clothesource, Mike Flanagan. "From some presposterous moments in the recent past they have moved to being in a small clutch of four or five brands, including Nike and Gap, who believe that they have no alternative but to be as good as possible at sustainability. It's a marked change."

(The official word on the Beckham cruds is that this time they were made using conventional cotton and Elastane, but that H&M hasn't ruled out "using other [eco] materials for future collections" and didn't publish a list of factories used in China and Cambodia due to commercial confidentiality.)

Does Helmersson still wake up worried they'll be the subject of a sweated labour expose? "Yes, I worry about that sometimes. I lived in Dhaka for two years. You see how things happen down the chain in a country like Bangladesh. Remember that H&M does not own any factories itself. We are to some extent dependent on the suppliers — it is impossible to be in full control."

And therein lies the rub. While H&M talks about responsibility, in the supply chain where retailers devolve power to factories it can be easy to distance yourself. Helmersson says H&M has invested in 100 people in CSR, 75 of whom are auditors (assessing social and now some environmental conditions in factories) and produced a series of groundbreaking short films, including one on fire safety that it claims more than 400,000 garment workers have seen.

Sam Maher, of the NGO Labour Behind The Label, the UK platform for the international Clean Clothes Campaign, is not so impressed (although she is yet to see the latest 2011 report). "I'd like to be at the point where unions can phone H&M and talk through any labour disputes. The Clean Clothes Campaign should no longer need to exist. Sadly that's far from the case. DVDs 'educating' garment workers are all very well but I think workers know there is a problem. They aren't stupid. What's needed is proper dialogue with unions and freedom of association, long term investment and proper resources. It's not good enough to act unilaterally and say: 'We're Swedish and we do things very well.'"

What would change her mind? "For starters I would like to see them signing the Clean Clothes Campaign's memorandum of understanding on fire and building safety in Bangladesh. PVH [owners of Tommy Hilfiger] has just signed but three more big signatories are needed. H&M is currently considering it."

There is of course another fashionably attired elephant in the fitting room: a business model predicated on producing millions of units and on a fashion cycle that favours 30 to 50 trend-driven fashion seasons a year (the original spring/summer and autumn/winter cycles are alien to fast fashion) are hardly a recipe for sustainability. Isn't ethical fast fashion just a big fat oxymoron?

Helmersson says: "It's a question of how can we make the fashion more sustainable? That's what we are working on in many ways to do that."

To that end Thursday also sees the launch of the new Conscious Collection, with pieces made from eco-fibres ranging from organic cotton and recycled plastic bottles to Tencel (derived from plant cellulose) and a glamorous adjunct of "eco" pieces including a silky hemp, pieces that have been worn by celebrities on the red carpet (coincidentally this is a similar idea to the Green Carpet Challenge I co-founded with Livia Firth in order to up the profile of sustainable style).

H&M acknowledges there is more to do: "We must close the loop on fibre. How can we see waste as a resource?" emphasises Helmersson. "You see my dream is to be perceived as a company who can offer all people in the world – even those without much money – the possibility to dress really well and sustainably. That's how I want people to perceive us, not as a brand connected to mass consumption."

Full marks for ambition. But do I buy H&M as an ethical paragon? Not quite yet. They are still clinging to too many parts of the fast-fashion supply chain to bring anything revolutionary. But I'm enjoying their new attitude and I remain open to persuasion.

FAST FASHION IN NUMBERS

80 billion
Estimated annual number of garments from virgin resources made worldwide.

2,500
Number of H&M stores worldwide, in 44 countries.

40 million
Estimated number of garment workers worldwide, predominantly producing fast fashion.

10-15
Percentage of stores H&M intends to increase by every year globally.

$43
Average monthly wage for a garment factory worker in Bangladesh (the lowest in the world).

5 million
Square feet or 90 football fields – the size of Zara's warehouse and logistics centre.

Apparel Group Calls For End To Cambodian Violence

Source: Advertising Specialty Institute (3/13/2012)

Major apparel and footwear brands have banned together with workers’ rights organizations and the American Apparel & Footwear Association to call for an end to the violent unrest – including a recent shooting – that has caused havoc in Cambodia’s garment industry. What happens in Cambodia is relevant to Western supply chains. In 2011, Cambodia was the sixth-largest supplier of apparel to the United States, accounting for some $2.6 billion.

As such, Puma, Columbia Sportswear, American Eagle Outfitters, Gap and H&M were among the Western brands that joined the Fair Labor Association and the Ethical Trading Initiative in sending a letter to Cambodia’s Minister of Commerce, H.E. Cham Prasidh, expressing concern over the violence. The letter was sent in the wake of a February 20 incident in which three female garment industry workers were shot and injured by a gunman. The incident occurred at a rally in which thousands of workers were calling for better conditions at factories in the eastern Svay Rieng province. Bavet City governor Chhuk Bundith, since named by government officials as the suspected perpetrator, was removed from his post last week and will reportedly be summoned for questioning. However, he remains at large.

“We are alarmed that the state of unrest has become increasingly violent and is continuing across other industrial sites,” the industry coalition's letter said. “We respectfully urge the Royal Government of Cambodia to conduct a full and transparent investigation…and hold those responsible for injuring workers accountable. We hope the government will redouble efforts to create a safe and stable environment for workers and businesses in the country. We will continue to stand by Cambodia through this period and support constructive dialogue between all parties that respect the rule of law and guarantee workers a fair and safe working environment.”

A major source of income for the Cambodian economy, the textile industry employs more than 300,000 people, predominantly women. Conflict between bosses and workers exploded in 2010 when tens of thousands of industry employees went on strike until the government arranged talks with manufacturers.

More information, visit:


Language Choice in a Nation Under Transition: English Language Spread in Cambodia (Language Policy)
c1920 CAMBODIA SAMPOT GARMENT CATAFALQUE MONUMENT
Making the Cut?: Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World (World Bank Studies)
Textures of Struggle: The Emergence of Resistance among Garment Workers in Thailand

 

Garment Sector: Global news roundup

Source: Just-Style

Author: Petah Marian | 9 December 2011

The following is a round-up of apparel and footwear news from the world's local media. just-style has not checked these stories so cannot guarantee their accuracy.

The Lao garment industry has been hit by slowing output due to a shortage of raw materials, said the Lao Garment industry president Onesy Boutsivongsackd. He said that a number of major garment factories in Laos had stopped overtime operations due to textile shortages due to the flooding in Thailand. "The shortage of raw materials is due to the flooding in the Thai capital Bangkok and neighbouring provinces," he said, saying that textile factories have been inundated, making it impossible to supply Lao factories. He added that exports have also been affected as Lao garment firms use Thailand as their major transit country. While factories have stopped overtime operations, they do not plan to lay of any staff. VIENTIANE TIMES.

The Jordan Ministry of Labour has signed a co-operation agreement with the Jordan Garments, Accessories and Textile Exporters Association to increase the number of Jordanians recruited in this sector. Minister Maher Wakid said the proportion of workers in this sector is currently less than 25%, with the agreement looking to increase this rate. The sixteen association companies to sign the agreement plan to offer 1,800 jobs, while the ministry will offer JOD45 a month for each recruited worker for a year to support the recruitment process. JORDAN TIMES.

A boiler explosion at a garment factory in Bangladesh has left two people dead and 50 more injured. The explosion sparked fears of a fire, which set off a stampede in the seven floor building in Dhaka. As thousands rushed out of the building, many were trampled underfoot. CNN-IBN.

Hanes is set to close a facility in Chillicothe, Missouri, barely a year after requiring the sports-wear manufacturing factory. The company plans to move the manufacturing to Mexico, said  Chillicothe mayor Chuck Haney, saying that jobs at the plant paid between $8-12 an hour "much more than in Mexico". FOX4 NEWS

Cambodia to guard garment exports amidst EU crisis

Source: Fibre2fashion News Desk - India  December 17, 2011 (Cambodia) The Cambodian Government is worried that the Greek economic crisis could affect the country’s garment exports to the EU, and it will take measures to absorb external shock, Keat Chhon, Minister of Economy and Finance said at a trade exhibition in Phnom Penh. The Government has expressed concern in spite of it upgrading the Kingdom’s gross domestic product outlook for 2011. The concern stems from the fact that EU is the second largest importer of Cambodian garments, and hence crisis in the EU countries could hurt our exports, the Minister said. The Government will take measures to absorb external shock arising from the EU debt crisis. These will include those related to strengthening domestic laws, human resources and financial institutions, he added. However, Cambodian garments being less expensive in nature, there may not be much decline in orders from European countries, according to Minister of Commerce Cham Prasidh. He hoped that Europeans would not stop buying Cambodian clothes even in the midst of financial crisis.

Japanese apparel makers eye Thailand as supply base

Source:Fibre2fashion News Desk - India
December 16, 2011 (Thailand)

Japanese apparel producers are more keenly considering Thailand to serve as a supply base for their Asean operations, Kazuo Niijima, Senior Division Manager for the Japan Apparel Fashion Industry Council, said during his visit to Bangkok.

Owing to high competency for hi-tech production techniques and value-added creativity, Thailand is now developing into a raw material and designing hub from just being a production hub for Japanese apparel firms earlier.

Mr. Niijima highlighted that increasing number of Japanese apparel producers are considering setting up their factories in Laos, Cambodia and Vietnam, due to low cost of labour there.

After serving the domestic apparel producing industry for long, Thailand has now established itself as a key supplier, supporting manufacturing operations of Japanese apparel firms in neighbouring Asean countries, he said.

He further stated that with great competency to cater to the middle and upper segment market, Thailand has now also developed into a hub for design and technology transfer from Japan.

Mr. Niijima said, Japan is trying to reduce dependence on other countries, particularly China for apparel imports, and hence Asean nations like Thailand would slowly occupy a position of strength, with reduction in imports from China.

Japan each year ships in apparels worth US$ 27 billion, 90 percent of which was contributed by China till recently, while Thailand contributed a meagre one or two percent.

Six well-known Japanese apparel firms – Sanei Production Network, Renown Incorporated, Onward Kashiyama, Japan Scope, World Production Partners and Decente – are visiting Thailand to attend the third Thailand-Japan Textile and Apparel Business Matching organized by the Export Promotion Department of the Commerce Ministry.

President of Thai Garment Manufacturers Association, Mr. Sukij Kongpiyacharn, said he foresees Thai apparel exports to Japan rising gradually.

Japanese market already serves as the third biggest apparel export destination for Thai garment producers, contributing around 10 percent of the overall value of Thai apparel exports.

The US and the EU are the two leading importers of apparels from Thailand, each respectively contributing around 40 and 30 percent of the Thai garment export value.

Mr. Sukij said Thailand’s apparel export growth for the current year is likely to remain stable at US$ 3.2 billion.

Textile exporters feel the heat of rising competition, costs

Textile exporters feel the heat of rising competition, costs
The Economic Time
Ranjit Shinde, ET Bureau Oct 3, 2011


India, once considered the leader in textile exports to the US, is now lagging behind Bangladesh, China and Vietnam, reveals the data from US Department of Commerce, Office of Textiles and Apparel (OTEXA). In fact, the country has lost a bigger share of the textile export market pie to Vietnam over the past three years.

Indian textile exporters are increasingly finding it difficult to match lower prices offered by Southeast Asian companies because of relatively higher labour and operating costs. The competition is more intense in the garment segment, which accounts for three-fourth of the total textile exports to the US. The garment segment offers better realisations compared to total textile exports.

According to the data, players in the other regions charge 11-22% lesser per square metre equivalent (SME) of apparels to US buyers when compared with Indian billing rates. For instance, in the first seven months of this year, India earned $3.6 per SME from garment exports to the US. This compares with $2.8 per SME for Bangladesh, $3 per SME for China, and $3.2 for Vietnam.

SOUTH AFRICA: Clothing factories raided for labour violations

SOUTH AFRICA: Clothing factories raided for labour violations
Source: Just-style
Author: Petah Marian | 4 October 2011


A number of clothing factories in Newcastle, South Africa, have been raided after allegations surfaced of serious violations of workers' human and labour rights, the Southern African Clothing and Textile Workers' Union (SACTWU) has revealed.

The raids on 12 Newcastle based clothing manufacturers was conducted by the Department of Labour, the Department of Home Affairs, the SA Police Service, the industry bargaining council and the SACTWU following widespread complaints from workers about the conditions they had to work under.

The Department of Labour said operations in one factory were stopped immediately for not having safety guards in place which posed a threat to the lives of workers. There were also claims of safety exits not being demarcated, no electrical certificates available for electrical installations, and no soap or toilet paper in toilets.

"In one instance it was found that only one toilet was shared by almost 60 male and female employees," said Abey Rasepae, provincial control inspector of the department in Kwazulu Natal.

SACTWU said yesterday (3 October) that at almost all of the companies it surveyed, workers were not supplied with toilet paper. Instead they were expected to use pieces of fabric supplied by the company.

"Instead of flushing these fabric off-cuts down the toilet, workers are expected to place these off-cuts in bags or boxes next to the toilet. These bags or boxes are often only removed once a week, resulting in filthy, smelly and unhygienic conditions. Where toilet paper is supplied, workers are often expected to pay for the use thereof, even though they receive very low wages," it said.

It was also reported to the union that in certain factories workers do not even have the use of toilets but are expected to use buckets. In some factories, workers have to pay penalties if they stay in the toilet for more than a couple of minutes. These penalties are deducted from their weekly wages.

The Department of Labour also found other serious violations like no fire fighting equipment or first aiders, first aid boxes with inadequate medical supplies, no health and safety reps or committees. It also found that employers were "on the wrong side of the law" when it came to paying contributions to the Unemployment Insurance Fund or Compensation Fund, said Rasepae.

The inspection also discovered that illegal foreign workers had been hired from countries like Lesotho, Swaziland and China, with immigration officers arresting and detaining some 46 foreigners.

"Recently, some commentators have rallied around certain Newcastle clothing employers and lauded their resistance to paying the legally-prescribed wages as holding the key to the future of South Africa's unemployment problem through a more flexible labour market with lower wages," said SACTWU general secretary Andre Kriel.

"As has been shown during these raids, this so-called key involves abusing workers' most basic labour and human rights and a return to the exploitation of workers seen during apartheid."

Speaking to just-style, SACTWU national organising secretary Chris Gina said the union is looking to speak to the brands who buy from the factories in an attempt to improve the situation for the affected workers.

He said this would be better than naming the brands publicly and having them pull their business, leading to redundancies for the workers. "As they work through agencies, the brands might not be aware of what's going on," he said.

Brands sourcing locally to become more competitive

Source: The Economic Times
29 Sep, 2010, 12.00AM IST, Durba Ghosh & Pramugdha Mamgain,ET Bureau

NEW DELHI: Several international fashion brands such as Cadini, DKNY, , which have been importing their entire merchandise for India, have started apparels locally to become more competitive and profitable in a booming market.

By shedding inhibitions towards sourcing from within the country, these brands can significantly cut down tax outgo and reduce production costs by about 20%, helping them to reduce prices and reach the market faster, say analysts.

Local sourcing will help companies do away with import duties, which are as high as 40% on apparels, and save on longer supply cycles, says Harminder Sahni, managing director of consultancy firm Wazir Advisors. “Besides, they can either bring down prices or make extra margins equal to the amount of customs duty,” he adds.

Donna Karan New York, or DKNY, already source about 6% of its merchandise from the country, says Ashesh Amin, president – and retail at S Kumar’s Nationwide, which has the global franchise for menswear in all geographies except Japan.

The US-based clothier Hartmarx Corp, which S Kumar’s acquired in 2009, sources merchandise worth about Rs 40 crore from India. The company, which shot into fame for designing a suit for US president Barack Obama, plans to increase its sourcing base in India further in next two years.

“Local sourcing is beneficial to us; it offers higher margin and better time-to-market,” says Mr Amin. “We are expecting additional business of over Rs 800 crore this fiscal on the back of local sourcing.”

Arvind Brands, a subsidiary of textile firm Arvind Mills, is in talks with the UK-based premium lifestyle brand Gant to start sourcing its merchandise in India. Gant currently imports the entire collection for sale here.
The firm is also set to launch Italian menswear label Energie in India, which will have 75% of its merchandise sourced locally, says J Suresh, CEO of the Rs 230-crore Arvind Brands.

The company already has a local sourcing model in place for its other international brands such as Arrow, Izod, USPA and Cherokee that are buying merchandise from suppliers in Bangalore, Chennai, Delhi and Ludhiana.

However, the international brands are playing safe while choosing suppliers in India after UK retailer Marks & Spencer severed ties with one of its local suppliers following allegations of unfair practices.

Anand Nair, brand head of Boggi Milano, says, “We are carrying out intense screening procedures to ensure that our Indian suppliers match our quality standards and working conditions.”

DLF Brands, the retail arm of top real estate firm DLF, retails the Italian premium menswear brand in India.
Marks & Spencer Reliance India, the joint venture between Mukesh Ambani-run Reliance Industries and the UK retailer, had recently announced plans to increase sourcing from India to more than 70% from about 40% now.

One of the earlier entrants to the domestic market, United Colors of Benetton sources its entire range locally.

Other than the tax savings, another factor driving fashion brands to India is the rising labour costs in China, say analysts. Recent labour unrest in places like Indonesia, Cambodia and Vietnam too may work in favour of India.

Most these brands have no immediate plans to source merchandise for their global operations from India, but will integrate their India supply chain with their global distribution network in the long term.

Blues Clothing, which has licence to retail Italian fashion labels Versace, Corneliani and in India, plans to leverage its source base is India for global operations soon. The company is currently sampling few export-oriented factories to source merchandise for premium menswear brand Cadini, according to its MD Abhay Gupta.

Brands such as Boggi Milano and Cadini, which import 100% of their merchandise, feel that local sourcing will help them expand faster.

“Local sourcing will certainly improve our logistic and supply chain, and the pace of expansion will improve,” says Mr Nair of Boggi Milano.

International brands are estimated to account for nearly 20% of the Rs 32,000-crore Indian organised branded apparel market, which is growing at 15-20% a year.

Cambodian unions say garment strike coul

Source: The Sydney Morning Herald
September 15, 2010 - 6:04PM

Tourism 4 Stars. Affordable Walk to Sydney's main attractions,

AFP

A mass strike by tens of thousands of Cambodian garment workers entered its third day on Wednesday, with unions warning the stoppage could go on for weeks if employers ignored their wage demands.

Estimates for the number of workers taking part in the industrial action varied wildly, but both unionists and employers agreed that more people had joined the strike since it began on Monday.

Kong Athit, secretary general of the Cambodian Labour Confederation, said more than 190,000 workers at 90 factories had taken part, up from 60,000 on Monday.

But that estimate was disputed by the Garment Manufacturers' Association in Cambodia (GMAC), which put the figure at just over 30,000.

The walkout is the latest in a string of recent strikes in Asian countries, as employees demand a larger share of the region's economic growth.

Cambodia's garment industry -- which produces items for renowned brands including Gap, Benetton, Adidas and Puma -- is a key source of foreign income for the country and employs about 345,000 workers.

The strike follows a deal between the government and industry that set the minimum wage for garment and footwear staff at $US61 ($A65) a month.

Unions say the salary is not enough to cover food, housing and travel expenses, and want a base salary of $US93 ($A99).

Athit told AFP that the number of strikers had exceeded expectations because "the workers are having difficulties surviving on their low wages".

He also threatened to keep the industrial action going for weeks if necessary.

"If there is no response from the employers by September 18, we will have a meeting with our union representatives to decide to continue the strike for at least a month," he said.

Ken Loo, secretary general of the GMAC, said many workers had been prevented from going to work or stayed away because of threats they would be beaten up.

"It is quite sad that the police aren't taking action when these people are breaking the law," he added.

Manufacturers have warned that the strike will result in a loss of production and a drop in orders from buyers, harming Cambodia's standing among investors.

Cambodian garment workers strike for higher pay

Kyodo News

14 Sept 2010

Phnom Penh, Sep 14 (Kyodo) Cambodian garment workers have begun strikes seeking pay of up to USD 93 per month. Ath Thon, president of the Coalition of Cambodian Apparel Workers Democratic Union who leads the strikes, told Kyodo News yesterday that the unions want wages raised from the current minimum of USD 61 per month. He said the demand is "not extreme," particularly with daily expenses increasing due to hikes in food, gasoline and many other prices. Ath Thon added if there is no response from the companies then the strikes will go on for a week or longer. Ken Loo, secretary general of Garment Manufacturing Association of Cambodia, said he is still collecting data on how many of the estimated 300,000 workers at the association's 255 factories walked off the job yesterday. Ath Thon estimated about 50,000 workers from 40 factories took up the strike, but others sources suggested the number did not top 10,000. Free Trade Union of Workers of the Kingdom of Cambodia President Chea Mony, the biggest and most influential labor association in the country, said his union was not involved in the strikes yesterday, but it supports the move "as long as it is for the interests" of the workers. Ken Loo said the strikes would affect production and could be harmful to the garment industry, particularly if foreign orders are affected. In July, the base wage in the industry, Cambodia's biggest, was raised to USD 61 a month from USD 50 through consultations among the companies, workers' representatives and the government. Ministry of Commerce figures show there are 320,734 workers, 293,664 of them women, working in 269 garment factories across Cambodia. In 2009, garment exports -- worth USD 2.4 billion -- accounted for than half Cambodia's USD 3.91 billion in exports. (Kyodo)

Bangladesh Garment Workers In Wage Protest

Source: Sky News Online

UK, Sunday August 01, 2010

Katie Cassidy

Garment makers in Bangladesh who produce clothing for companies such as Marks and Spencer have clashed with police for a third day over a new minimum wage they say is too low.

Police threaten workers during a protest in Dhaka

Unions have rejected a government offer of 3,000 taka (£27) a month, which is nearly double the previous minimum, but far less than the 5,000 taka (£45) the workers asked for.

The garment industry is Bangladesh's second largest employer, with more than 3.5 million people - mostly women - working in thousands of factories all over the country.

International companies such as Wal-Mart, H&M, Zara and Marks and Spencer have their clothing made in Bangladesh.

Thousands of angry workers took to the streets of Dhaka in protest over their pay after union leaders said the rise did not match the cost of living.

Some 80 people were injured in the latest clashes with police, who fired rubber bullets and used their batons to clear away demonstrators.

Protesters throw pieces of bricks towards officers

Officials said a mob blocked a highway in the city's north for several hours, jeering at officers and pelting them with bricks.

In another part of the capital, protesters attacked vehicles and looted shops.

Nearly 250 people, including officers, have been hurt in similar violence over the past two days.

The Bangladeshi Prime Minister called on the workers to accept the new minimum wage and stop hurting the sector, which is worth some 80% of the country's annual £10bn export income.

Sheikh Hasina said the continuing unrest, which has forced the closure of 20 factories in Dhaka's textile hub, could threaten employees' livelihoods.

She asked workers to return to work peacefully while factory owners said they would reopen if order was restored.