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1 ActionAid: who pays? www.actionaid.org.uk

“All day I sit and make school uniforms for foreign children. It makes me feel
so sad that I can’t afford to send my own children to school, because I want
a better life for them than the one I have.”
Sirin Ankar, a 24-year-old garment worker and young mother, Dhaka, Bangladesh.1

SUMMARY “When a big order comes in our supervisors


scream at us if we can’t increase our targets.
It’s ‘back to school’ time and UK supermarkets We don’t drink water because that would mean
are engaged in a fierce price war as they fight to having to go to the toilet and often we only have
dominate the £450 million school uniform market.2 a couple of bites of food at lunchtime because
As prices drop as low as £9.96 for a complete otherwise we won’t finish our work in time.”
school uniform, an ActionAid investigation uncovers Chaturi Salman, a 22-year-old machine operator
the hidden cost that cheap schoolwear – made for making school uniforms for Marks & Spencer in
Asda and Tesco in Bangladesh and for Marks & Colombo, Sri Lanka.4
Spencer in Sri Lanka – is having on the lives of
thousands of women workers. “When Marks & Spencer cut their prices we had
no prior warning, even though most of us had
already completed orders before we were told the
Despite assurances that school uniforms are payment was going to be 5.5% lower than we had
produced ethically, our investigation found: agreed.” Sri Lankan factory owner who supplies
Marks & Spencer, speaking to ActionAid on condition
IN BANGLADESH AND SRI LANKA of anonymity.5

• Pressure on suppliers to deliver large orders of • Threats to take business elsewhere


school uniforms quickly and cheaply
“Our costs are increasing year by year by about
“When a large order comes we are made to 30% but the buyers want to keep the same order
work day after day of night shifts and then after or even reduce the prices of orders. The buyers
finishing at 5am we have to be back at our tell us they are businessmen and if we can’t
machines by 8am. There is no choice, the manage they will go where the cheapest prices
supervisors say it just has to be done.” are.” Bangladeshi factory owner supplying UK
Sumiya Rahmen,* a 22-year-old machine operator retailers, Bangladesh.6
making school uniforms for Asda in Bangladesh.3
“There is always the threat that buyers will go
to cheaper markets. At the same time they are
expecting more from us in terms of ethical
compliance without paying more, so the pressure
is doubled.” Sri Lankan factory owner who supplies
children’s wear to Marks & Spencer, speaking on
condition of anonymity.7

*Some names have been changed to protect identities


2 ActionAid: who pays? www.actionaid.org.uk

£450 million
The value of the UK school uniform market

• School uniform workers paid poverty wages • Poor health

“I’ve been working as a machine operator for “I have to stand for 12 hours a day. When I get
six years and I make 1,633 taka (£12)8 basic salary home from work I am so exhausted my whole
a month. How can I live on this? Prices are rising body is numb. I get pains in my legs all day but
so much I’d need double to be able to properly we’re beaten if supervisors find us sitting down
feed my family.” Anita Akbar, a migrant 20-year-old at all.” Amora Kbria, an 18-year-old factory helper
machine helper and mother of three from Dhaka, making school uniforms for Asda in Bangladesh.12
Bangladesh, making school uniforms for Asda.9

“It’s not fair the factory is making so much money IN SRI LANKA
off us. We work all day and at the end of the
month I have nothing to show for it.” Anishka • Discrimination and stigma
Ratwatte, a 25-year-old factory operator who makes
school dresses for Marks & Spencer.10 “Garment women get called juki badu, meaning
they are slaves to the sewing machines. There is
an assumption because they get worked so hard
IN BANGLADESH for so little money that they are worthless.”
Padmini Weerasuriya, ex-garment worker and director
• Negative impacts on the families of Bangladeshi of the Women’s Center, a Sri Lankan civil society
garment workers producing school uniforms for organisation.13
the UK market

“I am a working parent so I spend my days


making school uniforms for other people’s ACTION:
children, but I only see my own twice a year.
Sometimes they don’t even recognise me when ActionAid is not calling for a boycott of school
I visit.” Sirin Ankar, a 24-year-old migrant garment uniforms made by UK supermarkets – that
worker and mother of three in Bangladesh who works could be counterproductive. We want the UK
hundreds of miles from her family, making school government to establish an independent
uniforms for Asda.11 regulator to monitor supermarkets’ supply
chain practices. Given sharp enough teeth,
it could relax the intense buying pressures
faced by overseas suppliers and open up
negotiating space for workers to improve their
pay and conditions.
3 ActionAid: who pays? www.actionaid.org.uk

“After finishing at 5am we have to


be back at our machines by 8am.”
Sumiya Rahmen, 22-year-old machine operator in a factory
making school uniforms for Asda, Bangladesh

1. THE GARMENT INDUSTRY IN Women make up more than 80% of the garment
workforce in both countries. Working in the sector is
BANGLADESH AND SRI LANKA a route into employment for many poor women with
few job opportunities and has the potential to pull
millions of workers and their families out of poverty.
BANGLADESH
However, poverty pay and poor working conditions
The garment sector provides a huge proportion still characterise the lives of garment workers,
of exports from Bangladesh. The £5.5 billion whose family life, education prospects, health and
industry employs more than 2 million workers personal safety are being compromised by retailers’
and represents 68% of all product exports, a high demands for ever-cheaper school uniforms.
percentage of which are sold to the UK.14
Local factory owners bear much responsibility for
Bangladesh's garment industry is built on its ability poor employment conditions. They can be greedy,
to provide clothing cheaper than anywhere else, but unscrupulous and incompetent, often taking
in an increasingly liberalised industry, prices are advantage of vulnerable women who have little
falling around the world and its market share is choice but to accept poor quality work in order to
under pressure. Dismal pay and factory working feed themselves and their families.
conditions have been attacked by local unions and
campaign groups over the past decade. However, even in Sri Lanka, despite greater
regulatory capacity and a higher level of economic
development, commercial pressures from foreign
SRI LANKA buyers are making it harder to raise working
conditions.
In Sri Lanka, more than £50 million worth of clothing
is exported to the UK every year and the sector
represents 35% of overall employment.15 The
country has built a reputation for producing good
quality products and markets itself as a higher
wage, more ethical and skilled garment
manufacturer. Though working conditions in Sri
Lanka are still unacceptable, they are generally
better than in Bangladesh. Unions acknowledge
there have been improvements in factories
producing clothing – including school uniforms –
for the UK market; these include better working
conditions, enforced overtime limits, medical
facilities, fire escapes and transport services.
4 ActionAid: who pays? www.actionaid.org.uk

Andrew Biraj/Panos Pictures/ActionAid


Anita Akbar with
her one-year-old
son. She works
ten hours a day
making school
uniforms for Asda

• Increased competition
SCHOOL UNIFORM PRICE WARS Global markets are more competitive since trade
quotas were lifted and the world textile regime
The fight to produce the cheapest school was liberalised in 2005. China, India and Vietnam
uniform has seen market leaders Asda and have also stepped up competition.19
Tesco consistently reduce prices on their
school uniforms by up to 50% year on year.16
In May this year Asda launched its new offer of VOLUNTARY MEASURES AREN’T ENOUGH
an entire school uniform, including shoes, for
£9.96. Its ‘George’ label is currently selling polo Asda, Tesco and Marks & Spencer insist that their
shirts for 75p, trousers and skirts for £1.75 and low-cost school uniforms have been sourced
shoes for £4.50. Tesco is countering Asda’s ethically and that cheap price tags are the result of
prices by offering a 3-for-2 deal on school high volumes and low profit margins for retailers,
uniforms, while high street retailer Woolworths not cheap labour.20
is selling shirts and blouses for £1, jumpers
and cardigans for £2 and shoes for £8. Marks All three supermarkets have signed the Ethical
& Spencer, a traditionally more expensive Trading Initiative’s (ETI) voluntary code, which sets
brand, is currently selling school shirts from out a series of rights for supplier employees, such
£4 and school skirts at £7. as payment of a ‘living wage’, a 48-hour working
week and overtime limited to 12 hours a week.21
All three supermarkets also cite regular independent
factory audits as demonstration of their
WIDER PRESSURES commitment to a fair deal for workers overseas.

Other factors combine to keep school uniform However, the ETI code focuses on getting factory
garment workers trapped in poverty cycles. bosses to improve working conditions, not the
These include: buying practices of retailers that are a root cause
of poor conditions and undermine the very
• Inflation labour standards that UK businesses claim to
Rising inflation in Bangladesh and Sri Lanka has be promoting.
seen the cost of living double in recent years,
with workers’ wages decreasing in real terms To highlight the need for a new supermarket
month on month.17 regulator to monitor the relationship between
UK supermarkets and their overseas suppliers,
• Union busting ActionAid worked with unions including the
Unions represent the best chance for workers to SBGSKF in Bangladesh and the Free Trade Zone
negotiate for better pay and conditions in their and General Services Employees Union in
factories, but unions in both Bangladesh and Sri Sri Lanka.
Lanka report that their members are consistently
harassed and intimidated.18
5 ActionAid: who pays? www.actionaid.org.uk

We interviewed ten workers at five factories and 2. UNDER PRESSURE FROM UK


three factory owners producing school uniforms for
Asda and Tesco in Bangladesh during two research SUPERMARKETS: SCHOOL
phases in December 2006 and July and August UNIFORM FACTORIES IN
2007. We also interviewed 12 workers from one BANGLADESH AND SRI LANKA
factory producing school uniforms, and two factory
owners producing clothes for Marks & Spencer in As school uniform price wars escalate and the
Sri Lanka in July and August 2007. We interviewed demand for cheaper school uniforms grows, it is the
civil society and trade union representatives in both workers who ultimately bear the brunt of buyers’
countries in July and August 2007 and also demands for lower prices and shorter lead times.
attempted to interview the owners of the factories
where we spoke to workers, but all declined to ActionAid’s initial Who pays? report revealed the
meet us. impact of UK supermarkets’ buying practices on the
lives of poor workers across the globe (see
box below), and the school uniform market is
no exception.

UK SUPERMARKETS’ BUSINESS PRACTICES We also showed that supermarkets often place


KEEP WOMEN WORKERS IN POVERTY orders at the last minute, or make changes at
short notice. Pressured to meet tight turnaround
ActionAid’s Who pays? report, published in April times, suppliers demand that workers put in
2007, highlights how UK supermarkets use their excessively long hours, and increasingly hire
colossal buying power to pressurise farm and women on temporary, insecure contracts that
factory suppliers into producing goods faster, prevent them from enjoying their basic rights.
cheaper and more flexibly.22 Suppliers, in turn,
pass on these pressures to their workers – the “Buyers pressure factories to deliver quality
majority of them usually women – in the form of products with ever-shorter lead times,” says
dangerous working conditions, poverty pay and Rosey Hurst, a business consultant who works
job insecurity. with retailers on labour rights issues. “Most
factories just don’t have the tools and expertise
Our research found supermarkets forcing to manage this effectively, so they put the
suppliers’ prices down, demanding additional squeeze on the workers. It’s the only margin
payments from them and expecting higher they have to play with.”23
quality standards without increasing prices.
Faced with these extra cost pressures, suppliers
make savings by lowering workers’ pay, or
cutting corners on health and safety.
6 ActionAid: who pays? www.actionaid.org.uk

“I get so tired but if I even put my


head on my machine to ease the
exhaustion I get badly scolded
or beaten.”
Sumiya Rahmen, 22-year-old machine operator in a factory
making school uniforms for Asda, Bangladesh

BANGLADESH “The supervisors are afraid of making mistakes


because if they do their salaries are cut or they are
While unscrupulous bosses bear much beaten themselves,” says Anita Akbar, a 20-year-old
responsibility for poor pay and conditions in school uniform worker for Asda in Dhaka. “They are
garment factories, corporate buyers’ demands for under so much pressure from higher authorities,
larger orders with tighter deadlines at cheaper which is why they force us to work harder and they
prices add to the pressure on workers. discount our extra working hours.”26

“CM [cutting and making] prices have reduced When asked about its buying practices, Tesco
about 5 to 10% compared to two years ago,” said insisted that it has not threatened to take orders
one Tesco supplier in Bangladesh who spoke on away from factories in Bangladesh unfairly. The
condition of anonymity. “Tesco has reduced its company claims to work with suppliers to identify
prices in the UK market so they offer us a lower opportunities for lowering costs.27
CM to maxmise the profit.”24
ActionAid wrote to Asda about allegations on unfair
Another factory owner who started supplying buying practices, but received no reply.
Tesco with school uniforms in 2001 says that buyers
also engage in price-reducing strategies such as
‘reverse bidding’ auctions, which force factories to SRI LANKA
compete against each other to offer the lowest
price on an order.25 The value of Sri Lankan apparel exports, including
school uniforms, has declined by 7% in the first half
In an increasingly competitive marketplace, of this year and prices to factories had dipped by
factories are also threatened with buyers taking around 10%.28
their business to cheaper locations.
Last year, for example, Marks & Spencer suddenly
“Often now before placing the order buyers are cut all its suppliers’ payments by up to 5.5%. The
asking whether we can ship in 60 rather than 90 price reduction wasn’t negotiated with suppliers,
days and if we say no then threaten to take their and applied to orders that had already been placed,
business to China,” says one garment factory or even delivered.29
owner in Bangladesh who claims that some UK
buyers will cancel an order half-way through “When Marks & Spencer cut their prices we had no
completion or ask for discounts of up to 50% prior warning – most of us had already completed
once the order is finished. orders before we were told the payment was going
to be 5.5% lower than we had agreed,” said one
Many of the Bangladeshi school uniform workers Marks & Spencer supplier in Sri Lanka who spoke
we interviewed say their supervisors are under huge to ActionAid on condition of anonymity. “Such is the
pressure to get large orders completed in short power that foreign buyers have over us.”30
time periods.
7 ActionAid: who pays? www.actionaid.org.uk

70 hours 5p an hour
The weekly hours that Bangladeshi women garment The wage for which Bangladeshi women garment workers
workers are routinely expected to work are routinely expected to work

Unions in Sri Lanka say that poor prices offered by Sumiya Rahmen, a 22-year-old machine operator
foreign buyers have a negative impact on the lives in a factory making school uniforms for Asda in
and pay of women school uniform workers. Bangladesh, says that when the factory receives a
large school uniform order, she is often expected to
“When we negotiate with the factory owners they work 18-hour night shifts for up to 15 days in a row.
say they can’t increase salaries because they are
getting a very low price from the buyers,” says “Sometimes by the time I have walked home it
Anton Marcus, president of the Free Trade Zone is 5.30am but I’m always expected back at my
and General Services Employees Union in Sri machine at 8am,” she says. “I get so tired but if
Lanka. “The workers then get pressurised to hit I even put my head on my machine to ease the
higher targets to make up the losses suffered by exhaustion I get badly scolded or beaten.
the factory owner.”31 I don’t want to work these night shifts but refusing
isn’t an option.”32
In response to ActionAid, Marks & Spencer stated
that the prices agreed with Sri Lankan suppliers had School uniform factory workers also say that
not been cut without prior notification, but were supervisors will try to find ways not to pay proper
renegotiated with two months’ notice. overtime rates and that if workers fall sick, their
wages are cut.

“If we get sick we get marked as absent, not paid


3. BANGLADESH: EXPLOITATION, for the day, and then we have to make up the work
ABUSE AND NEGATIVE IMPACTS we have missed the following day with no extra
payment,” says Anita Akbar, a 20-year-old machine
ON FAMILY LIFE FOR SCHOOL helper in Bangladesh. “If we complain or say we
UNIFORM WORKERS don’t want to work then they tell us they don’t want
us as workers in their factory.”33
Our investigation found:
BANGLADESHI SCHOOL UNIFORM GARMENT
EXCESSIVE OVERTIME AND WAGE CUTS WORKERS PAID BELOW A LIVING WAGE

Even though Tesco and Asda insist their factories Women making school uniforms in factories
are audited to prevent worker exploitation, supplying Tesco and Asda are struggling to survive
ActionAid’s investigation found Bangladeshi women on wages that fail to cover their basic living costs.
garment makers in factories supplying school
uniforms to Asda and Tesco are routinely expected “In our factory workers are started on 930 taka (£7)34
to work up to 70 hours a week for around 5p a month for three months, which is considered a
an hour. trainee salary. I get a monthly wage of 2,500 taka
8 ActionAid: who pays? www.actionaid.org.uk

Workers in a

Andrew Biraj/Panos Pictures/ActionAid


garment factory in
Bangladesh

(£18), which is above the minimum wage but even SCHOOL UNIFORM FACTORY WORKERS
with overtime it only just pays for my food costs UNABLE TO SEE THEIR CHILDREN OR PROVIDE
and my rent,” says Sirin Ankar, a 24-year-old THEM WITH AN EDUCATION
factory worker making school uniforms for Asda
in Bangladesh.35 Tacked to a wall of her one-room shack on the
outskirts of Dhaka in Bangladesh is a photo of
Following protests in 2006, Bangladesh’s minimum Sumiya Rahmen’s 18-month-old son. Since she
wage was raised for the first time in 12 years from started working in a factory making school
930 to 1,663 taka (£12) a month. But unions uniforms for Asda six months ago, she has seen
estimate that because of rapid inflation, workers him only once.
would need basic salaries of at least 4,500 taka
(£33) to be paid anything near a living wage. “Of course I miss him but what can I do?” she says.
“The factory won’t allow us to have our children
“I work as a helper in a factory and my basic salary with us, there is no day care centre and costs are
of 1,600 taka (£12) is not enough to live on,” says too high to have him live with us.”40
Bani Shaidur, a 22-year-old machine operator,
who works making school uniforms at a factory Low wages and long hours mean that tens of
supplying Tesco. “I am unable to help support my thousands of women garment workers are
family and don’t earn enough to live on myself.”36

In response to ActionAid, Tesco acknowledges that WHAT’S A LIVING WAGE?


issues around living wages and excessive overtime
remain a challenge for the company in Bangladesh A living wage is defined as one that allows
and other developing countries. workers to cover the costs of food, clean
water, housing, clothes, education, health and
They cite wider social and economic factors transport for themselves and their dependants,
beyond their control as barriers to tackling these with a small amount of discretionary income.38
issues. Tesco states its commitment to working Workers on a living wage shouldn’t have to rely
with local unions, NGOs and others “on the on excessive overtime payment to supplement
methodology for defining the appropriate living a basic salary. Even though Asda, Tesco and
wage” in Bangladesh.37 Marks & Spencer have all pledged to work
towards providing their workers with a living
Asda did not reply to ActionAid’s invitation to wage under the Ethical Trading Initiative,39
respond to worker allegations on low wages and none of the school uniform workers ActionAid
excessive overtime. interviewed for this report is earning anything
close to one.
9 ActionAid: who pays? www.actionaid.org.uk

separated from their children or only manage to see HIGH RENTS AND DEBT
them for a few hours a day.
Inflation and rising rents are exacerbating the
Sirin Ankar, a 24-year-old garment worker making financial problems of many Bangladeshi women
school uniform trousers and shirts for a factory workers struggling to cover basic living costs and
supplying Asda, has three young children who live support their families. Rent for a single room is
with her mother in her home village, two day’s travel roughly half the household income for a school
from Dhaka. She rarely sees them for more than two uniform garment worker in Bangladesh.
days a year. “My husband and I are working
parents, and there is no alternative but for our Like many other women workers in garment
children to live with my mother,” she says.41 factories in Bangladesh, Shoma Kalpur, who works
at a factory supplying school uniforms to Tesco, is
None of the Bangladeshi school uniform workers heavily indebted and forced to borrow money from
interviewed for this report could afford to send her landlord to cover costs.
their children to school. Those who had their
children living with them said they couldn’t afford “Lots of the women in my factory are in debt,”
to feed them properly and that many suffered from she says. “For every 1,000 taka we borrow we have
health problems, including malnutrition and to pay 100 taka a month until we can pay it back.
breathing difficulties. If we don’t pay after six months the landlord comes
and takes all of our things and we get thrown out
Contrary to International Labour Organization on the street.”46
maternity standards, pregnant women in the
factories featured in this report were given no
maternity benefits other than three months unpaid
leave, and many pregnant workers were expected
to stand for 12-hour shifts while up to eight
months pregnant. 42
10 ActionAid: who pays? www.actionaid.org.uk

“They use foul language and slap us


in front of everyone if they don’t think
we’re working hard enough.”
Shoma Kalpur, Bangladeshi garment factory worker
supplying school uniforms to Tesco

CASE STUDY: BANGLADESHI SCHOOL money home as possible to buy food for their
UNIFORM WORKER children.

It takes Sirin Ankar a day and night to travel from “We’re working parents so we can’t afford to look
Dhaka to her home village of Kumilla to visit her after our children here in Dhaka,” she says. “It
three young children. Aged one, eight and ten, just isn’t possible for us to have our children here
her young family lives with her mother and because there are no childcare facilities at my
sisters. If she’s lucky she sees them three or four place of work and we can’t afford to run a family
times a year. Often it’s only once or twice. of five on garment worker salaries.”44

“It takes us a day to get there, then we have one She hopes one of them will get a promotion so
day with our children and then we have to spend they will be able to send at least one of their
another day travelling back,” she says. “It’s children to school.
difficult because don’t get paid for the time we
take off so we can never stay longer.”43 “Even though neither of the eldest are in school
at the moment, at least in my village they have a
Both Sirin and her husband, who also works in chance of being educated. I don’t want them to
garment factories, work 12-hour days making have to live in the conditions we live in,” she
clothing, including school uniforms, for UK says. “It’s hard because every day I feel bad for
supermarkets. Half of their household income is my children. I spend my days making school
spent renting a one-room shack that costs 2,500 uniforms for other families but I can’t afford to
taka (£18) a month. They try to send as much give my own children clothes or an education.”45

BANGLADESHI SCHOOL UNIFORM WORKERS “They use foul language and slap us in front of
FACING PHYSICAL ABUSE AND SEXUAL everyone if they don’t think we’re working hard
HARASSMENT enough,” she says. “It’s shameful but you can’t say
anything because the beatings get worse if you
On top of poor pay, long hours, poor working talk back.” 48
conditions and dismal housing, workers such as
Shoma who make school uniforms for Tesco also Garment workers in two factories supplying
say they suffer physical assault and sexual school uniforms to Asda said that workers are
harassment from their male supervisors. routinely beaten for not working fast enough or
for making mistakes.
“It’s not so bad during the day but if you have to
work nights when a big order comes in there are Asda did not reply to ActionAid’s invitation to
always problems,” says Shoma. “If it happens to respond to worker allegations on the issue
you it’s best to keep quiet.”47 of harassment.
11 ActionAid: who pays? www.actionaid.org.uk

13,000
The number of audits carried out by Asda globally
in 2006

INADEQUATE AUDITS “The identification of a factory for an order by


Asda does not depend on a compliance audit.
When challenged on their business practices and A compliance audit is only conducted by a factory
workers’ conditions, supermarkets including Tesco just as a procedure.”52
and Asda cite their use of factory audits. Asda
says it carried out more than 13,000 audits last When buyers do demand higher standards of
year alone.49 ethical compliance, factories are expected to
cover the total cost of improving facilities and
But evidence suggests that factory audits simply worker conditions.
aren’t enough to ensure that decent working
conditions are met. Bangladeshi school uniform “If we say we need to raise our prices to meet
workers interviewed by ActionAid say that factory these standards they tell us they need to go where
owners often fake factory audits, and that some the cheapest labour is,” says one factory owner in
workers are given two time cards: one that registers Bangladesh supplying clothes to major UK
how many hours they work, and the other to give to retailers.53
the auditors to make it appear they are working
fewer hours. When asked by ActionAid, Tesco said that the
company strives to ensure they get as accurate a
“Buyers never see the reality because in my factory, picture as possible of conditions in the factories
owners always know when the audits are going to that supply them around the world.
happen,” says Nazma Apman, a school uniform
garment worker from Dhaka.50 Tesco said it had completed unannounced audits at
59 of its garment factories in Bangladesh since April
Factory owners claim incomplete or failed audits 2007, and in addition says it has interviewed 1,252
are also not always a barrier to orders. garment workers on an anonymous basis in
Bangladesh to understand their working conditions.
“Most of the suppliers do not have an ETP (effluent Tesco told ActionAid that its audits had revealed
treatment plant), which is a compliance issue but only one instance of garment workers from supplier
Tesco gives them the orders anyway,” says a factories in Bangladesh being paid below the
factory owner who has been supplying school minimum wage.54
uniforms to Tesco since 2001.51
ActionAid invited Asda to respond to claims that
Another supplier who produces school shirts for their audits in Bangladesh may be giving a
Asda says that although most factories are asked misleading or distorted picture of current factory
to conduct annual audits, the buyer does not take conditions, but received no response.
them seriously.
12 ActionAid: who pays? www.actionaid.org.uk

Andrew Biraj/Panos Pictures/ActionAid


Garment worker,
Bangladesh

4. SRI LANKA: SCHOOL UNIFORM “When it gets really busy many of us are crying at
work because we can’t handle the pressure,” says
WORKERS TRAPPED IN POVERTY Chaturi. “If we are behind schedule then the
CYCLE workers who do the ironing and packing have to
work through the night to get the orders done.”
ActionAid’s interviews with workers in Sri Lankan
factories producing school uniforms for Marks &
Spencer revealed that even though pay and SCHOOL UNIFORM WORKERS BEING PAID LESS
conditions are better than those in Bangladesh, THAN A LIVING WAGE
young women workers making school dresses for
UK children are still working long hours for poverty Women making school uniforms for Marks &
pay, forced to live in poor housing and face stigma Spencer are struggling to survive on their
and discrimination. monthly wages.

Our investigation found: School uniform workers interviewed by ActionAid


for this report receive around only 2% of the retail
price for a £6 school uniform dress sold at Marks &
LARGE SCHOOL UNIFORM ORDERS LEADING Spencer outlets in the UK.56
TO HEAVY PRESSURE AND INCREASED
TARGETS FOR SCHOOL UNIFORM WORKERS At one factory that supplies Marks & Spencer with
school dresses, workers claimed that inexperienced
Workers at a factory making school uniforms in workers started on a basic salary of 3,650 rupees
Sri Lanka say that their daily targets increase when (£16) a month, well below what unions consider
a large order comes in. enough to cover basic living costs. 57

“When a big order comes in our supervisors scream “Trainees start on 3,650 rupees (£16) and after six
at us if we can’t increase our targets,” says Chaturi months if they meet their targets their wages are
Salman, a 22-year-old machine operator who works increased 500 rupees (£2) every six months,” says
in a factory in Colombo. “We don’t drink water Anishka Ratwatte, a 25-year-old factory operator
because that would mean having to go to the toilet who makes school dresses for Marks & Spencer.58
and often we only have a couple of bites of food at
lunchtime because otherwise we won’t finish our Anishka says that even though she has eight years
work in time.”55 experience, her wage – including attendance bonus
and 60 hours of overtime a month – is usually only
Although the women workers said that extra around 11,000 rupees (£48).
overtime to complete large orders is not
compulsory, it is a de facto requirement because
they feel pressurised to do the extra work needed
to meet order deadlines.
13 ActionAid: who pays? www.actionaid.org.uk

10p
The amount of the retail price received by school uniform
workers from a £6 Marks & Spencer school uniform dress

“Almost daily our living costs are increasing and our “When I first became a garment worker I thought
wages are not enough for us to have a decent life. that in five years I’d be able to save enough to go
home and start a family of my own,” says Renuka
We work all week and yet we can’t afford the basic Sulman, a 26-year-old garment worker from
things that we need on our salaries.” Colombo who makes school uniforms for Marks &
Spencer. “I’ve been working here for nearly ten
Unions in Sri Lanka argue that with the rapidly years now and every month I am getting poorer.”60
increasing cost of living, garment workers should be
paid a basic salary of at least 11,000 rupees (£48)
per month to cover basic living costs. WOMEN GARMENT WORKERS FACING
DISCRIMINATION AND STIGMA
When asked by ActionAid, Marks & Spencer said
that their recent audits had not highlighted any Women garment workers in Sri Lanka also face
particular issues regarding unfair overtime. considerable social stigma and discrimination.
They also confirmed that all their suppliers are Over 60% of women garment workers are under
expected to pay their workers at least the legal 25 and the majority migrate from rural villages to
minimum wage. find work. They live away from their families in
shared accommodation, which contributes to
their vulnerability.61
SCHOOL UNIFORM WORKERS TRAPPED IN
A POVERTY CYCLE According to the Women’s Center, a Sri Lankan
NGO, low wages and long hours for women
All of the women workers we interviewed who make garment workers are a significant contributing
school uniforms for Marks & Spencer were living factor to this.
five or six to a room in run-down boarding houses
close to their factories. “Garment women get called juki badu, meaning
they are slaves to the sewing machines,” says
More than 70% of women garment workers in Sri Padmini Weerasuriya, an ex-garment worker and
Lanka are single and childless.59 Many we spoke to director of the Women’s Center. “There is an
say they are too poor to start a family of their own. assumption because they get worked so hard for
so little money that they are worthless.”62
14 ActionAid: who pays? www.actionaid.org.uk

“I spend my days making school


uniforms for other families but I can’t
afford to give my own children clothes
or an education.”
Sirin Ankar, 24-year-old Bangladeshi garment worker
making school uniform trousers and shirts for a factory
supplying Asda

5. PARENTS IN THE UK Labour costs are a tiny percentage of the overall


retail price and large supermarkets such as Tesco,
Asda and Marks & Spencer can afford to absorb
The price of school uniforms has long been a thorny the cost of increasing wages. Last year Tesco
issue in the UK retail market. A recent Which? report announced profits of £2.6 billion, Marks & Spencer
revealed that many parents were being overcharged made £965 million and Asda made £572 million.
for school uniforms from specialist shops that were
of comparable quality to those sold at much lower Even if costs to consumers did increase, the large
cost by high-street retailers.63 volumes of school uniforms sold in the UK would
mean that even a tiny increase on each item of
But providing a better deal for workers doesn’t uniform sold could transform the lives of countless
automatically mean higher prices for UK parents. women garment workers and their children. If an
extra 10p for each £6 school dress sold by Marks &
School uniforms are standard items of clothing, Spencer went back to the Sri Lankan women who
which, unlike fashion ranges, are not subject to produced them, their wages would double.
seasonal changes and consumer trends. This
should mean that unethical purchasing practices
on school uniforms could be tackled more easily by
buyers such as Tesco, Asda and Marks & Spencer.
They should be able to set longer lead-times and
reduce the pressure on workers to work long hours
in tough conditions.
15 ActionAid: who pays? www.actionaid.org.uk

RECOMMENDATIONS identify factories where they have the


combined leverage to influence wages
UK GOVERNMENT:
factor the living wage into the prices they pay
• Establish an independent regulator to end UK to these factories
supermarket buying practices that undermine
the rights of workers and damage producer ensure the benefits are passed on to workers
businesses in developing countries. The regulator by involving local trade unions and NGOs, for
should: example by facilitating collective bargaining
agreements.
pro-actively monitor relationships between
supermarkets and their suppliers of both food • Do not respond to the exposure of poor working
and non-food goods conditions in supply chains by ‘cutting and
running’. Work with other retailers, suppliers,
enforce a set of principles aimed at ensuring trade unions, local civil society groups and
contracts are fair and reasonable governments to improve conditions.

find remedies for breaches of those principles, • Do not engage in price wars that squeeze supply
and have the power to enforce its rulings chains to unsustainable levels.

have the flexibility to address issues as they


BANGLADESHI AND SRI LANKAN
arise, and to review the principles on a
GOVERNMENTS:
regular basis
• Ensure that all workers’ rights, including the right
operate a strictly confidential complaints
to a living wage, freedom of association and
procedure for suppliers
humane working hours are enshrined in law, and
strengthen regulatory capacity to enforce labour
operate a legally enforceable dispute
laws. Legal protections should be extended to
procedure.
cover temporary and informal workers.
• Work towards establishing independent,
• Strengthen women workers’ rights by enforcing
binding mechanisms to regulate UK business
laws and policies concerning discrimination,
purchasing practices outside the supermarket
sexual harassment, maternity benefits and
sector in industries of export importance to
childcare provision to reflect women workers’
developing countries, such as food, textiles,
needs.
electronics and toys.

CONSUMERS:
UK SUPERMARKETS:
• We are not asking people to boycott
• Publicly acknowledge the harmful impact of supermarkets.
purchasing practices on workers and suppliers,
and take concrete steps to address them. • Join ActionAid’s Who pays? campaign and
take regular action to make supermarkets
• Through the ETI, with other clothing industry play fair in developing countries. Sign up at
players, come up with a plan to: www.actionaid.org.uk/whopays or call
01460 238047.
develop working estimates of living wages in
key sourcing countries
16 ActionAid: who pays? www.actionaid.org.uk

ACKNOWLEDGEMENTS
AUTHOR
Annie Kelly

EDITOR
Alex Wijeratna

RESEARCH
Dipankar Aich, Santanu Dey, Dominic Eagleton, Martin Hearson, Anton
Marcus, Andrew Martin, Shamima Nasrin, Julian Oram, Jacobo Quintanilla,
Jenny Ricks, Shahidur Rahman, Prodip Kumar Roy, Laura Turquet, Patrick
Watt.

ENDNOTES
1 ActionAid interview, 25 July 2007 33 ActionAid interview, 26 July 2007
2 Office of Fair Trading figures. Also see: Daily Telegraph (online) ‘Why 34 Calculated on a rate of 137 taka to £1 as of 14 August 2007
are uniforms so expensive?’, 7 July 2006 35 ActionAid interview, 25 July 2007
3 ActionAid interview, 26 July 2007 36 ActionAid interview 26 July 2007
4 ActionAid interview 1 August 2007 37 Tesco letter to ActionAid, 22 August 2007
5 ActionAid interview, 3 August 2007 38 Labour Behind the Label (2001) Wearing thin: the state of pay in the
6 ActionAid interview 27 July 2007 fashion industry 2000-2001, Norwich: Labour Behind the Label
7 ActionAid interview 2 August 2007 39 The Independent, ‘Ethical Trading Initiative has had little impact’, 19
8 Based on an exchange rate of 137 taka to £1 on 14 August 2007 October 2006
9 ActionAid interview, 26 July 2007 40 ActionAid interview, 26 July 2007
10 ActionAid interview, 1 August 2007 41 ActionAid interview, 25 July 2007
11 ActionAid interview, 25 July 2007 42 See: www.ilo.org/public/english/protection/condtrav/family/
12 ActionAid interview, 26 July 2007 maternity/standards.htm
13 ActionAid interview, 2 August 2007 43 ActionAid interview, 25 July 2007
14 Ethical Trading Initiative figures. See: www.ethicaltrade.org 44 ibid
15 Figures provided by the Joint Apparel Association Forum (JAAF). 45 ibid
See: www.jaafsl.com 46 ActionAid interview, 26 July 2007
16 The Guardian (online) ‘There’s no such thing as cheap clothing’, 31 47 ibid
August 2005 48 ibid
17 Based on workers’ testimony in interviews conducted by ActionAid 49 Hearson, M (2006) Let’s clean up fashion: the state of pay behind the
in Bangladesh and Sri Lanka, July and August 2007 UK high street, Norwich: Labour Behind the Label
18 ITUC (2006) Annual survey of trade union rights violations 2006, 50 ActionAid interview, 26 July 2007
Brussels, ITUC. See: 51 ActionAid interview, 26 December 2006
http://www.icftu.org/survey2006.asp?language=EN 52 ActionAid interview, 2 March 2007
19 ILO (2005), The end of the Multi-Fibre Arrangement and its 53 ActionAid interview, 28 July 2007
implication for trade and employment, Geneva, International Labour 54 Tesco letter to ActionAid, 21 August 2007
Organization 55 ActionAid interview, August 2007
20 The Guardian (online): ‘There’s no such thing as cheap clothing,’ 56 According to ActionAid interviews conducted on 1 August 2007, a
August 31 2005 production line of 55 workers earning an average of 10,000 rupees a
21 See: www.ethicaltrade.org month will make 1,000 school dresses a day for Marks & Spencer,
22 ActionAid (2007) Who pays? How British supermarkets are keeping retailing at £6 each. Daily wage is calculated at £2 (416 rupees) per
women workers in poverty, London: ActionAid day per worker and £110 for the whole production line, or 1.8% of
23 Cited in Raworth, K (2004) Trading away our rights: women working the £6,000 retail price.
in global supply chains, Oxford: Oxfam International 57 ActionAid interview, 1 August 2007
24 ActionAid (2007), ibid 58 ibid
25 ActionAid interview, 26 December 2006 59 Arai, E (2006) ‘Readymade garment workers in Sri Lanka: strategy to
26 ActionAid interview, 26 July 2007 survive in competition, in Mayumi Murayama ed., Employment in
27 Tesco letter to ActionAid, 22 August 2007 Readymade Garment Industry in Post-MFA Era: The Case of India,
28 Financial Times (Sri Lanka) ‘Workers unrest hurts productivity at Bangladesh and Sri Lanka, Chiba: Institute of Developing Economies
three Star garments factories’, July 22 2007 60 ActionAid interview, 1 August 2007
29 ActionAid interview with Sri Lanka factory owner, August 2007. See 61 ‘Apparel manufacturing industry in Sri Lanka & some characteristics
also Just-Style (online) ‘UK: M&S cuts supplier payments by 5.5%’, 3 of its workforce’, Social Dialogue and Workplace Cooperation Unit,
March 2006 Department of Labour, Sri Lanka, 2006
30 ActionAid interview with Sri Lanka factory owner, August 2007 62 ActionAid interview, 2 August 2007
31 ActionAid interview, 31 July 2007 63 Which?, ‘School uniforms prices taxing parents’, 14 September 2006
32 ActionAid interview, 26 July 2007
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