Garment factory managers find significant benefits from improved social dialogue in the workplace
In order to improve compliance with labour standards and promote competitiveness in global supply chains, the ILO-Better Work Indonesia Programme has been supporting many garment enterprises in Indonesia in implementing the ILO core international labour standards and national labour law.
JAKARTA (ILO News): In order to improve compliance with labour standards and promote competitiveness in global supply chains, the ILO-Better Work Indonesia Programme has been supporting many garment enterprises in Indonesia in implementing the ILO core international labour standards and national labour law. Since 2011, Better Work Indonesia (BWI) programme has been working with more than 70 garment factories which located in the greater area of Jakarta, West Java and Central Java.
The ILO-BWI Programme released the Better Work Indonesia Impact Assessment – Manager Report which assesses the impact of the BWI programme in garment factories in Indonesia, on Thursday, 18 July. The report focuses on the results from 78 factories reviewed in baseline and follow up surveys. This Report was officially released by Simon Field, Chief Technical Adviser of BWI.
The impact assessment – manager report is made to understand the problems and challenges faced by a factory from the perspective of managers. The BWI Programme does this by conducting manager surveys in all partner factories.
Managers reported their biggest business challenges as material costs and human resource management. The report also indicated that human resource management problems arose from the skill level of workers. Managers also perceived rush orders and the supply uncertainty created by them as a major concern. Factories responded to these challenges through product and human resources innovation. Instituting new grievance procedures and workers committees were the most common forms of this innovation. However, investment in skills training for workers and supervisors remains low as does emphasis on changing pay structure incentive.
“The manager survey report is central in understanding the concerns from factory management. Therefore it is important to look at both manager and worker concerns to identify innovative mechanism which can improve workers conditions while spurring productivity,” said Simon Field, Chief Technical Adviser of BWI.
Field also stated that the progress in business performance may be observed following factory engagement with Better Work. Despite all the challenges, the BWI has started to see some positive improvements.
The BWI Impact Assessment also includes following findings:
BWI is part of the Better Work Global Programme and one of the country projects under the ILO, which aims to improve both labour standards compliance and competitiveness in the apparel industry through advisory and training services tailored to the requirements of each factory. The BWI Programme started in 2011 with the focus on the JABODETABEK area: Purwakarta, Subang and Karawang. Currently, there are more than 70 garment enterprises enrolled in the BWI Programme and more than 100 factories which are aware of the existence of the programme in Indonesia.
To learn more about Better Work Indonesia Impact Assessment – Manager Report, please visit: http://betterwork.org/indonesia/wp-content/uploads/Better-Work-Indonesia-Impact-Assessment-Manager-Report2.pdf
For further information please contact:
Ms Josephine Imelda
Communication and Knowledge Management Officer, ILO Better Work Indonesia
Tel. +6221-391 3112 ext. 193
Email
The ILO-BWI Programme released the Better Work Indonesia Impact Assessment – Manager Report which assesses the impact of the BWI programme in garment factories in Indonesia, on Thursday, 18 July. The report focuses on the results from 78 factories reviewed in baseline and follow up surveys. This Report was officially released by Simon Field, Chief Technical Adviser of BWI.
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The impact assessment – manager report is made to understand the problems and challenges faced by a factory from the perspective of managers. The BWI Programme does this by conducting manager surveys in all partner factories.
Managers reported their biggest business challenges as material costs and human resource management. The report also indicated that human resource management problems arose from the skill level of workers. Managers also perceived rush orders and the supply uncertainty created by them as a major concern. Factories responded to these challenges through product and human resources innovation. Instituting new grievance procedures and workers committees were the most common forms of this innovation. However, investment in skills training for workers and supervisors remains low as does emphasis on changing pay structure incentive.
“The manager survey report is central in understanding the concerns from factory management. Therefore it is important to look at both manager and worker concerns to identify innovative mechanism which can improve workers conditions while spurring productivity,” said Simon Field, Chief Technical Adviser of BWI.
Field also stated that the progress in business performance may be observed following factory engagement with Better Work. Despite all the challenges, the BWI has started to see some positive improvements.
The BWI Impact Assessment also includes following findings:
- Between the first and second data collection, there was a 22 per cent increase in the proportion of managers of factories enrolled in BWI who reported they are the preferred supplier of their most important customer.
- Since the start of data collection, there has been 38 per cent increase in the proportion of factories selling directly to international vendors.
- Factories enrolled in BWI are receiving fewer factory visits from their most important customer. The average number of quality control factory visits has decreased from 81 to 41 per year.
- Serious obstacles to success as reported by managers remain, but have lessened somewhat. The biggest obstacles concern the cost and the reliability of factory inputs, such as electricity and material cost. Human resources management continues to present challenges, as more than 4 out of 10 managers continues to view labor management skills as serious obstacle to business success.
- Sourcing challenges remain fairly consistent over time, including challenges stemming from uncertain customer orders and increasing concerns with the frequency of rush orders.
- Factory managers report longer delays between the delivery of an order and payment from customers.
- Factories have addressed their labour management challenges first by introducing new grievance procedures and workers committees, and the proportion completing these innovations increases by the time of the second data collection.
BWI is part of the Better Work Global Programme and one of the country projects under the ILO, which aims to improve both labour standards compliance and competitiveness in the apparel industry through advisory and training services tailored to the requirements of each factory. The BWI Programme started in 2011 with the focus on the JABODETABEK area: Purwakarta, Subang and Karawang. Currently, there are more than 70 garment enterprises enrolled in the BWI Programme and more than 100 factories which are aware of the existence of the programme in Indonesia.
To learn more about Better Work Indonesia Impact Assessment – Manager Report, please visit: http://betterwork.org/indonesia/wp-content/uploads/Better-Work-Indonesia-Impact-Assessment-Manager-Report2.pdf
For further information please contact:
Ms Josephine Imelda
Communication and Knowledge Management Officer, ILO Better Work Indonesia
Tel. +6221-391 3112 ext. 193