Background Study Tirupur - Fair Wear Foundation

labour which exist within firms. In the latter case, an owner often employs a
work contractor for each unit. This person is a kind of production manager who is
also responsible for employing labour for a particular job. This organizational
system within the firm then parallels the process divisions found in the industry
as a whole and seems almost identical to older forms of inside contracting. “
(Cawthorne, page 10).
This speeded up the process that existed already since the 1960’s, whereby the factory system
was being replaced by a system of in-contracting relations between smaller units, where
the owners worked alongside the workers. Long term workers were often turned into labour
contractors or semi-independent subcontractors. This forces the process of informalization of
production and subsequently it forces the emergence of casual labour system in large scale.
This is one of the main reasons behind the volatile labour market conditions and lack of unionization.
The export boom of the 1980’s was mainly based on this system, whereas the larger factories
of the earlier period were producing for the home market.
The fluctuating labour market conditions create frequent mobility of the workers and affects
the permanent status of employment for workers. This factor is also an impediment for the
trade union’s attempt to unionize the workers.
Most of the workers avoid trade unions and they do not wish to enroll as members of the
trade unions. They feel that their membership in trade unions may hamper their employment
and livelihood.
Central Indian Trade Union (CITU) is the main trade union in the garment sector. It is affiliated
to the CPI (M). It claims to have about 10.000 members in the Tirupur Garments industry.
Besides them there are the following unions: All India Trade Union Congress (AITUC),
affiliated to the CPI (7000 members); The Labour Progressive Front (LPF) affiliated to the
DMK regional party (4500 members); Marumarchi Labour Progressive Front (Marumarchi
means rejuvenation in Tamil), affiliated to the (M) DMK regional party (3100 members); Anna
Labour Federation, (ATP) affiliated to the AIADMK regional party (2000 members); Indian
National Trade Union Congress (INTUC), affiliated to the national Congress Party (6000
members), National Labour Organization, Hind Mazdoor Sabha and some small trade unions
are operating in Tamil Nadu.
(additional information added from a CCC-Switzerland 2001 research report)
There are moderate labour relations between employers and workers, since the workers are
not assertive about their rights and they are under frequent threat not to get regular working
hours in non-peak season. In extreme cases of fines, non-payment or deduction of wages or
physical assault, workers approach unions and demand their intervention. Through negotiations
process most of the cases are solved. Then through Labour Court, some of the cases
are resolved.
The tremendous growth of the local industry and the positive outlooks for further growth have
somewhat strengthened the position of labour: ”The perceptible shift in outsourcing of readymade
garments by the European retailers from Far-Eastern production centres towards India
of late and the louder perception that the cotton knitwear capital of India, Tirupur, will be the
major beneficiary of such a shift, in view of the increasing share of knitwear in the overall
garment export basket, have proved too strong pointers for the workmen’s unions to miss.
The leaders of the workmen unions say that while the survival of the Tirupur industry is as
important as the welfare of the workers.
Contrary to the exporting units, the knitwear producers, manufacturing the basic knitted
goods catering to the local market, who are not bound by strict delivery schedule as exporters,
feel confident that some solution could be found for the labour wrangle sooner.” (Hindu
Business Line June 03 2003)
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