Country Strategic Plan India 2011 - Fair Wear Foundation

Fair Wear Foundation
Country Strategic Plan India 2011
Introduction
Garment exports from India dropped 2.64 per cent to about 8 billion euro in 2009-10,
according to India Apparel Export Promotion Council (AEPC). Clothing brands sourcing
from India experienced the unprecedented rise in price of raw materials (cotton & yarn)
and the increase in all other costs due to hike in duty of petroleum products. The
government of India is urged by business associations to a fast implementation of the
Indo-EU Free Trade Agreement (FTA), which is expected to boost India’s textiles and
clothing exports to the EU by over 2 billion euro and create 2.5 million jobs. 1
Price hike of raw materials and other commodities for garment production might result in
further squeezing down workers’ wages, which has been one of the main concerns in
India. Most manufacturers in India do not pay living wages. Consequently workers have
to work excessive overtime to earn enough for necessities. Audit results and
stakeholders consultations in 2010 showed that a significant number of factories still
struggle to pay minimum wage and overtime compensation, especially in Maharashtra,
Gurgaon and West Bengal.
Forced labour, particularly under the Sumangali Scheme, is identified as highest risk in
Tirupur and Coimbatore. In Bangalore as minimum wage is said to be realised in most
factories, violence against women has become prevalent. Verbal abuse in public from
line managers to production workers is the most common form, while physical violence
such as throwing garment piece to women is often seen.
Garment women workers are among the least organised. Workers are in general not
aware of their rights and the benefit of joining trade unions. Local and international
organisations such as FWF working on labour issues have made major efforts to
facilitate local social dialogue. Some improvement has been observed last year. A
locally organised regular meeting “India Garment Sector Roundtable” bringing together
trade unions, government and business associations is established.
In 2011, the focus of FWF’s work in India will be contributing to tackle forced labour in
Tirupur/Coimbatore, facilitating and supporting social dialogues, conducting audits and
improving the complaints handling system.
Country study
FWF is working with a local NGO- Civil initiatives for development and peace (Cividep)
to update the country study for India in the end of 2010. The study will cover most areas
in India where garment is produced. Data regarding legal requirements and compliance
status in Bangalore, Tirupur, industrial zones around Delhi and Mumbai would be
available in the report.
Deliverables 2010
o Update country study on India
1 India Garment Exports Down 2.64%, Indiaexpress.com,
http://www.indianexpress.com/news/indian-garment-exports-down-2.64/644820/2
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Fair Wear Foundation
Audit training and audits
India has one of the most experienced FWF audit teams. Difference in languages and
regulations in different states can be a challenge to social audits. There are eighteen
recognised official languages, thought the principal official languages are Hindi and
English. Most documents are written in English while workers usually speak only the
local languages. FWF plans to organise an auditors training in North India (Hindi
speaking area) to expend the capacity of the audit team.
FWF will conduct 7 verification audits in India. Five of these will be done in the whole
production chain of a fair trade certified garment in Tirupur. This is part of a pilot project
of FWF and Fairtrade Labelling Organizations to explore how verification approach can
be applied further in the supply chain and how it contributes to improving working
condition. The project is expected to contribute to solving the problem of forced labour in
the area, as most cases happened in knitting mills which are seldom covered by social
audits.
Number of audits on behalf of affiliates is dependent on the companies themselves. This
number will be available once the affiliates confirmed with FWF.
Deliverables 2011
o Auditors training in North India
o Seven audits will be carried out in India
Stakeholder consultation and engagement
Engagement with local stakeholders is an essential part of FWF’s strategy. It will
maintain cooperation with stakeholders and include their perspectives in updating the
country study. Some stakeholders will continue to participate in audits and complaints
handling.
FWF will focus our work in South India on forced labour. Local and European
stakeholders will be consulted on updates on the issue. Information and suggested
strategies will be communicated to member companies who source from high risk areas.
Deliverables 2011
o Stakeholders consultation results will be available at the website of FWF
Complaints procedure
There are currently three FWF complaints handlers based in Karnataka, Tamil Nadu and
North India respectively. Complaints handlers are able to communicate in Karnataka,
Tamil and Hindi.
FWF has not received many complaints in India in 2010. One of the basic requirements
for an effective complaints system is an accessible and trustable complaints handler. To
strengthen the complaints handling system and encourage workers to report on forced
labour, FWF will recruit an extra complaints handler in Tirupur working with a local
NGO-Social Awareness and Voluntary Education (SAVE). Addresses and names of the
suppliers will be accessible to the complaints handler on a confidential basis. Logos of
FWF members will be made available to all complaints handlers and local key
stakeholders.
Deliverables 2011
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Fair Wear Foundation
o New complaints handler will be recruited in Tirupur
o Small-scale pillot projects will be tested to improve the effectiveness of the
complaints procedure
Promotion of social dialogue
FWF will keep contact with local initiated roundtable meeting organisers, such as the
Tirupur Steering Group and the Garment Sector Roundtable. FWF will also provide
support to the meetings by exchanging information and knowledge.
Deliverables 2011
o Updates on the activities regarding social dialogue will be reported on FWF’s
website
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