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Decent Work and Economic Growth in the South Indian Garment Industry (Sept 2019)

This report focuses on the South Indian garment industry clustered around Tirupur and specifically on the labour challenges faced by the industry. We conducted 135 interviews and engaged in a series of consultations with around 100 further participants (including business actors, workers, NGOs, unions, and government agencies) in South India during 2018-19 to explore these challenges and potential solutions. We found that the industry is at a crossroads. Despite decades of growth it faces three main labour challenges-competitive threats from lower cost producing countries, labour shortages, and reputational challenges around decent work. There is a widespread belief in the industry (including among employers, unions and workers) that pay and working conditions in the cluster have improved and that the worst forms of exploitation have declined in prevalence. However, exploitation persists in a variety of forms. The most common forms of exploitation are restrictions on freedom of movement, health and safety violations, low pay, lack of contracts, gender discrimination, verbal abuse, and limited opportunities for collective bargaining and association. There is some, but more limited, evidence of forced, bonded and child labour. These problems are a result of persistent structural conditions that give rise to exploitation. These include demand-led factors (namely, the cost, time and flexibility pressures experienced by producers) and supply-led factors which lead to vulnerability of workers (namely gender inequality, limited economic choices, and limited knowledge of relevant rights and protections among workers). To tackle these challenges, local actors have experimented with a range of different approaches. We identify four main alternative pathways to change: (i) Economic upgrading; (ii) Responsible migration; (iii) Relocation of manufacturing; (iv) Diversification. Each offers its own set of opportunities and challenges for addressing decent work and economic growth. We recommend that the industry and its stakeholders should collaborate to develop a shared Vision 2030 and accompanying goals to address decent work and economic growth in the sector. This should be used to drive alignment around a common strategy and provide a means for external branding of the cluster. A multi-stakeholder taskforce should be formed to lead the Vision 2030 initiative. We recommend that this process be formalized and inclusive and led by an independent organization or chair.

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