Money Heist: COVID-19 Wage Theft in Global Garment Supply Chains

Page 68

Section 5: An Unfolding Humanitarian Crisis

1. A Push Below The Poverty Line

The business practices by brands precipitated extensive wage theft during the Covid-19 crisis in 2020, pushing workers into severe poverty. Despite both male and female workers having an average 5 years of work experience, all workers sampled in this research stated that they did not have enough savings to tide over even a one-month layoff period without 1) reducing consumption, especially cost of children’s education 2) incurring debt, or 3) selling assets. Ten cases of increase in child labour in families of terminated garment workers were also noticed.

• As the wages of garment workers in Pakistan dipped by 60-70% in April, the debt taken by workers increased by around 113% for the same period (Figure 4.12). Figure 7.10: wages, consumption andand debt, Figure 4.12:Trend Trendinin wages, consumption debt, 2020 Debt

Wage

Consumption

200

USD

150

“I tried to commit suicide soon after I was laid off in May, as I was four months pregnant and had no money to feed myself or my two other children. The company did not provide any financial support for laidoff workers, even if they were pregnant or had young children to feed at home. My landlord saved my life and helped me secure 30,000 PKR (193 USD) as loan from an NGO, to take care of my family’s basic needs and to pay for my medical expenses. I have removed my children from school, as I could not pay for their books or their school fees. In October, I had to take on more debt to meet my pregnancy related expenses. As repaying these debt became difficult, I asked my 15-year-old son to find work in a neighbourhood shop. In January, 2021, I was forced to return to the factory when it reopened as I did not want my family to starve to death. I leave my two-month-old baby with my 12-yearold daughter and come to work. I work for more than 10 hours a day, without break and the factory gates are locked to make sure we don’t leave before the production targets are met. Also, since January, the management has been constantly making us do unpaid overtime and is threatening us with termination, if we refuse to do it. I keep feeling suicidal.” - Sadia, 32-year-old-garment worker at a

100

Levi’s supplier factory in Faisalabad 50

0

yuar Jan uary r b Fe

ch Mar

il

Apr

May

ber

cto

e-O

Jun

ber

cem

e er-D emb Nov

Source: Primary data, n = 605

55


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11. Conclusion and Way Forward

13min
pages 190-196

Table 9.2: Cascading effect of brand actions on suppliers’ employment practices

2min
pages 170-171

in Global Garment Supply Chains

1min
page 168

8. Bangladesh

2min
pages 148-149

Figure 8.10: Trend in monthly household consumption, 2020

1min
page 162

Figure 7.18: Percentage of workers who received Covid-19 support from various sources

3min
pages 145-147

Figure 6.20: Percentage of workers who received Covid-19 support from various sources

3min
pages 123-125

7. Cambodia

1min
pages 126-127

Figure 6.6: Trend in wages by social category, 2020

3min
pages 111-112

Figure 6.5: Trend in monthly wages by gender, 2020

6min
pages 108-110

Figure 6.3: Trend in RMG exports from India - 2019 vs. 2020

2min
page 105

5. Indonesia

1min
pages 76-77

Table 5.2: Cuts in bonus payment by region, 2020

2min
page 92

Figure 5.20: Percentage of workers who received Covid-19 support from various sources

3min
pages 97-99

Figure 5.7: Monthly wages by contract type across minimum wage regions, 2020

2min
page 87

Figure 4.18: Percentage of workers who received Covid-19 support from various sources

2min
pages 73-75

Figure 4.12: Trend in wages, consumption and debt, 2020

2min
page 68

6. India

2min
pages 100-101

4. Pakistan

2min
pages 55-56

2. Methodology

1min
page 24

Table 2.2: Summary of key concepts and variables

5min
pages 28-31

Wage Theft in the Supply Chains of 15 Global

0
page 23

Typology of Managerial Practices and Wage Theft

1min
page 22

Table 2.1: No. of factories and workers surveyed across 6 countries

6min
pages 25-27

3. Sri Lanka

2min
pages 32-33

1. Introduction

15min
pages 14-21

Figure 3.19: Percentage of workers who received Covid-19 support from various sources

3min
pages 51-54
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