19 June, 2011
In late 2010, the International Textile, Garment and Leather Workers’ Federation (ITGLWF) carried out research into working conditions in 83 sportswear-producing factories in Asia, together employing over 100,000 workers. One key finding of the research was that Contract and Agency Labour (CAL) is being routinely used by employers in the industry as a way to evade employment responsibilities.
In Indonesia, ITGLWF affiliates SPN and Garteks found that agency workers are being denied basic entitlements including written contracts, pay when taking annual leave and sick pay. In factories supplying multinational sports brands, up to 80% of the entire workforce were found to be on fixed term contracts.
In the Philippines, despite the fact that Article 280 of the Labour Code prohibits the use of contracts workers to perform core functions, a full 25% of workers were employed precariously. In one factory in Cavite, 50% of the workforce were employed on a contract basis. After five months, workers were forced to join the in-house manpower cooperative before being rehired on a new contract. The Filipino Labour Code prohibits the contracting out of work through an in-house agency.
In both Indonesia and the Philippines, the vast majority of CAL workers were not union members. The workers who were interviewed told researchers that the main reason for this was fear that if management found out they had unionised their contract would not be renewed.
A summary of the research findings is available here.