12.07.2015 Views

From Poverty to Power Green, Oxfam 2008 - weman

From Poverty to Power Green, Oxfam 2008 - weman

From Poverty to Power Green, Oxfam 2008 - weman

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

3 POVERTY AND WEALTH THE CHANGING WORLD OF WORKcountries, setting national and provincial governments <strong>to</strong> bid againsteach other, so reducing the gains from investment for them all.Cheap labour may produce a short-term boost <strong>to</strong> a company’sprofits, but it is a poor development strategy. Since jobs are the keysource of income for poor people, low wages drive up inequality andundermine social cohesion; underpaid workers consume less, and soreduce the domestic market for goods and services that is vital formany firms. Impoverished families are unable <strong>to</strong> spend as much onhealth and education, undermining the prospects and productivity offuture generations. In addition, an economy whose competitive edgederives from low wages is always vulnerable <strong>to</strong> competition from evenlower-wage rivals entering the same markets.In sec<strong>to</strong>rs such as food, clothing, and electronics, global supplychains are driving the push for flexible labour practices. Retail giantshave responded <strong>to</strong> cut-throat competition by pushing risks and costsdown the supply chain, as shown in Figure 3.3, and evading theircorporate social responsibility.<strong>Oxfam</strong>’s study of 11 garment fac<strong>to</strong>ries in Tangiers found evidenceof the pressure on suppliers. Together the fac<strong>to</strong>ries employ more than6,500 women, producing shirts, trousers, dresses, skirts, and children’sclothing for several of the largest Spanish retailers. All the fac<strong>to</strong>riesreported falling prices, on average around 30 per cent over three years.‘Prices fall every year … a pair of trousers worth €3.30 ($3.90) threeyears ago is now worth €2 ($2.40),’ said one fac<strong>to</strong>ry manager. ‘Theyalways want higher-quality garments, the price goes down due <strong>to</strong>competition, and you’re in no position <strong>to</strong> argue.’ In the previous threeyears, lead times had fallen from 14 days <strong>to</strong> five or seven days, someof the shortest in the industry. 117At the sharp end of this frantic drive for cost-cutting are the weakestac<strong>to</strong>rs in the supply chain – casual workers. Employees interviewed inBangladesh’s proliferating garment fac<strong>to</strong>ries work a seven-day week,often putting in 15 hours a day or more. In a busy month, workerscarry on through the night before snatching a couple of hours’ sleepon the fac<strong>to</strong>ry floor. If a worker puts in over 100 hours overtime amonth on <strong>to</strong>p of her normal 63-hour week, she gets a bonus, whichbrings her monthly earnings <strong>to</strong> barely $60. 118157

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!