Labour Practices in the Footwear, Leather, Textiles and Clothing Industries

Report for discussion at the Tripartite Meeting on Labour Practices in the Footwear,
Leather, Textiles and Clothing Industries

Introduction

At its 273rd Session (November 1998), the Governing Body of the International Labour Office decided to organize a tripartite meeting on labour practices in the footwear, leather, textiles and clothing industries.

At its 274th Session, in March 1999, it decided to invite the Governments of the following 20 countries to appoint participants: Bangladesh, Brazil, China, Colombia, Czech Republic, India, Indonesia, Italy, Malaysia, Mauritius, Mexico, Morocco, Portugal, Romania, Sri Lanka, Thailand, Tunisia, Turkey, United Kingdom, United States. In the event that one or more of these Governments did not accept the invitation, a replacement representative from the same region was to be invited from the reserve list drawn up at the same time. That list comprised the following countries: Argentina, Belarus, Belgium, Canada, Costa Rica, Dominican Republic, Egypt, El Salvador, Germany, Honduras, Hungary, Pakistan, Philippines, Poland, Russian Federation, South Africa, Spain, Venezuela, Zimbabwe. The Governing Body also decided that 20 employer participants and 20 worker participants would be invited to the Meeting on the basis of nominations by the Employers’ and Workers’ groups of the Governing Body.

The Meeting is part of the ILO’s Sectoral Activities Programme, which is intended to facilitate exchanges of information between constituents on the changing social situation in the different economic sectors and on the results of practical research on specific sectoral issues. Tripartite sectoral meetings are traditionally organized with a view to promoting exchanges of opinion and experience. The objectives of this exercise are: to promote better understanding of sectoral issues, promote international tripartite consensus in this area and identify general principles concerning policies and measures at national and international levels; to encourage the harmonization of all the ILO’s sectoral activities and provide liaison between the ILO and its constituents; to provide technical advice and practical assistance and support to the constituents with a view to facilitating the implementation of international labour standards.

The purpose of this Meeting is to exchange views on labour practices in the footwear, leather, textiles and clothing industries, using a report prepared by the Office as the basis for its discussions. The Meeting will adopt conclusions that include proposals for action by governments, by employers’ and workers’ organizations at the national level, and by the ILO. It will adopt a report on its discussion and may also adopt resolutions.

The present report considers recent developments in labour practices in the TCF industries (textiles, clothing, leather and footwear). These developments reflect the increasing globalization of these sectors, in which international subcontracting is widely practised, both by the multinational enterprises and major distribution groups and by smaller enterprises. The statistical analysis of recent trends in production, trade and employment contained in the first chapter provides an overall picture of this phenomenon, even if official statistics are sometimes incomplete (particularly in Africa) and do not reflect the importance of the informal sector, which accounts for a significant proportion of production and employment. The importance of small enterprises and the informal sector in the subcontracting which characterizes the TCF industries also tends to prevent the social partners from organizing effectively and, consequently, hinders social dialogue.

The second chapter contains an analysis of labour practices in relation to the ILO Declaration on Fundamental Principles and Rights at Work. This part of the report in a sense constitutes the core of the analysis, in that it concerns the practical implementation in the TCF industries of the fundamental rights at work, highlighting the progress made in certain areas – for example, child labour – as well as the difficulties that remain in certain others. The chapter also contains a section dealing with the particular situation of export processing zones (EPZs) and a section on private voluntary initiatives, which highlights the growing importance of ethical practices in the TCF industries. The third chapter is devoted to changes in labour practices resulting from technological change and training requirements. The final chapter contains a summary and suggested points for discussion.

The report is published under the authority of the International Labour Office. It was prepared by Jean-Paul Sajhau of the Sectoral Activities Department. The information on which the report is based comes from a number of sources. In response to a questionnaire, the ILO received valuable information from a number of governments, employers’ and workers’ organizations. The Office would also like to thank the European Observatory for Textiles and Clothing in Brussels for its invaluable contribution to the statistical analysis contained in the first chapter. Mr. Auret van Heerden of the ILO contributed the section on export processing zones.

The textiles, clothing and footwear (TCF) industries are global; global inasmuch as production activities are worldwide and connected through various arrangements and strategic decisions to serve the world market; global in so far as as trade, which is expanding more rapidly than the average of the manufacturing sector, is highly influenced by the changing characteristics of international competitiveness and the relocation strategies implemented by global companies; and global because the geographical distribution of world employment is affected by the rapid changes in production and trade. TCF industries can be regarded, accordingly, as a “one-world employer”.

Before analysing the changing patterns of labour practices, it would, therefore, seem relevant to paint a broad picture of production, trade and employment changes that have occurred during the past two decades. Broadly speaking, this presentation may be divided into two major sets of data: a first set presenting the long-term trends over the period 1980-95; a second set providing up-to-date information on the most recent developments over the period 1995-98. These two sets are combined in the following analysis.^[1]

1.1.1. Production trends^[2]

World output of textiles has always been much greater in US dollar terms than world output of clothing – which in turn has been much greater than world output of footwear.

In 1995 world textile output amounted to US$517 billion; world clothing output to US$336 billion; and world footwear output to US$60 billion. The ratios were therefore respectively 8.6 to 5.6 to 1.^[3] World output of textiles in 1980 was US$418 billion. Output fell between 1980 and 1985, rose by 27 per cent between 1985 and 1990 and registered a slight rise between 1990 and 1995. In 1995 world textile output was 24 per cent higher, in US dollar terms, than in 1980.

Although world price rises for textile output over the period are not known, increases in general producer prices in a number of countries suggest that the volume of textile output over the period may have changed little, or may even have fallen, when allowance is made for price increases.

More significant than the change in total output over the 1980-95 period was the change in the distribution of output between regions. Between 1980 and 1995 the textile output of Asia rose by 97.7 per cent, and that of the Americas by 76.3 per cent. But European output fell by 32.4 per cent. Whereas in 1980 European output represented 53 per cent of world output and Asian output 27 per cent, by 1995 Europe’s share had fallen to 29 per cent and Asia’s share had risen to 44 per cent. The share of the Americas rose from 18 per cent to 25 per cent during that period.

World output of textiles continued to be dominant among the three sectors in the second part of the 1990s. In 1998, it accounted for 55.9 per cent of the total value of output of the three sectors, followed by clothing with 38.6 per cent and footwear with 5.5 per cent, estimated at some US$485 billion (no data were available for Africa and Oceania, which together account for about 2 per cent of world textile output). From 1995 to 1998, there was a fall in the value of production (in US dollar) of 6.2 per cent, following a slight increase of 1.3 per cent in the 1990-95 period. This decline was mainly due to a fall in the value of production in Asia of more than 10 per cent during the period in question.

This decline was one of the consequences of the Asian financial crisis, and of substantial falls in the value of a number of Asian currencies. Since China did not devaluate the yuan during the 1995-98 period – and China dominates the textile output of Asia – the fall in the value of Asian textile output was lower than it might have been.

Asia, which dominates the world production of textiles, saw its share in the world total decline from 43.6 per cent in 1995 to 41.6 per cent in 1998. During the same period Europe’s share remained unchanged (about 29 per cent), while the Americas increased its share, to reach some 29.5 per cent of the world output of textiles in 1998 (figure 1.2).

Between 1980 and 1995, clothing output rose more than that of textiles. In 1980 world output of clothing had accounted for some US$211 billion. It declined in the 1980-85 period but rose 38 per cent between 1985 and 1990 and 19 per cent between 1990 and 1995. Over the whole 1980-95 period world clothing output rose by 59 per cent.

The pattern of change in the regional distribution of clothing output was similar to that of textiles. Between 1980 and 1995 Asian output rose by 177 per cent, while that of the Americas rose by 67 per cent. European clothing output, on the other hand, fell by nearly 13 per cent in US dollar terms during this same period. Whereas Europe had 48 per cent of clothing output in 1980, its share had fallen to 26 per cent in 1995. The share of Asia rose from 27 per cent to 46 per cent over the period, but that of the Americas changed little.

World output of clothing was estimated to be some US$335 billion in 1998 (no data were available for Africa and Oceania which together account for just over 3 per cent of world clothing output). The value of world output of clothing remained virtually unchanged between 1995 and 1998. Increases in Asian and American output were offset by a 17 per cent decline in European output in the same period.

The effects of the financial crisis in Asia were less visible in clothing production than in textiles, partly due to the fact that China and India together account for more than two-thirds of Asia’s clothing output, and that there were no substantial changes in the value of their currencies vis-à-vis the US dollar in 1997 and 1998.

In 1998 Asia – for the first time – accounted for more than 50 per cent of the world output of clothing. The Americas also increased their share in the world total, after an increase of 14.3 per cent in their clothing production between 1995 and 1998. Developments in Latin American countries, such as Brazil, were responsible for this trend; in the United States or Canada, there was a fall in the production of clothing (figure 1.3).

During the period under review, world footwearoutput lagged considerably below that of either textiles or clothing in value terms. In 1980 world footwear output accounted for some US$42 billion. Output fell between 1980 and 1985, but rose during the 1985-90 and 1990-95 periods. In 1995 world footwear output was 44 per cent higher than in 1980.

Between 1980 and 1995, changes in the regional distribution of footwear output followed the same pattern as that of textiles and clothing. Asian output rose by 424 per cent and that of the Americas by 16 per cent. European output did not fall in this case, but rose only 10 per cent during this period. The share of Asia in total world output rose from 7.5 per cent to 27.5 per cent, but that of the Americas fell from 23 per cent to 18 per cent, and that of Europe from 67 per cent to 51 per cent. Europe still remained by far the largest producer – but with a diminished share. It therefore no longer totally dominated world production, as had been the case in 1980.

World output of footwearin 1997 was estimated to be US$48.2 billion (no data were available for Africa and Oceania which together account for 3 per cent of world footwear production). The value of world output of footwear fell by 19.5 per cent between 1995 and 1997. Output fell in all three regions for which data are available – in Asia by nearly 31 per cent, the Americas by nearly 17 per cent and Europe by nearly 10 per cent.

However, Europe continues to dominate the world production of footwear (in US dollar terms), with well over 50 per cent; this may be attributed to the production of products at the higher end of the market, in countries such as Italy and the United Kingdom. In 1997 the United Kingdom was among the top ten footwear producers in the world, due to a 17.5 per cent increase in its output between 1995 and 1997. Asia encountered a dramatic fall in the US dollar value of its footwear production during this same period, after an 80 per cent increase in production between 1990 and 1995. This fall can partly be explained by the fact that China does not statistically report footwear output separately from clothing, and therefore its impact on Asia, as a whole, is not identifiable. Furthermore, footwear production declined by 36 per cent in Japan and 34 per cent in the Republic of Korea between 1995 and 1997. These two countries are among the top ten world producers of footwear, and their trends strongly influenced developments in Asia as a whole.

Trade in textiles and clothing has expanded far more rapidly than has production. Between 1980 and 1997 world exports of textiles rose from US$55 billion to US$155 billion – an increase of 182 per cent. However, due to the financial crisis in Asia, they fell to US$151 billion in 1998.

Asia and Western Europe are the dominant regions for trade in both textiles and clothing. Until the mid-1990s, Western Europe was the largest exporter of textiles. In 1980 it accounted for some 53 per cent of world exports (including intra-trade), while Asia had some 27 per cent. In 1990 Western Europe’s share was the same, while Asia’s share had risen to 35 per cent. By 1997 Asia had become the leading region, with 44 per cent of world exports of textiles, as opposed to 41 per cent for Western Europe. Over the whole 1980-97 period, Asian exports rose by some four-and-a-half times, as compared with the 1980 level, while Western European exports more than doubled.

In 1998, the share of Asia declined to 40.2 per cent and Europe again became the largest exporter with 44 per cent of the world total.

Trade within Western Europe is very important – and included in the above calculations. In recent years trade within the EU 15 (intra-trade) has been growing, although more slowly than extra-EU 15 trade. In 1997 intra-EU 15 trade in textiles amounted to US$35.8 billion, as compared with extra-EU exports of US$22.7 billion.

World exports of clothing are now somewhat higher than world exports of textiles, and they have grown more rapidly. They accounted for US$41 billion in 1980 and rose to US$177 billion in 1997, an increase of 335 per cent (figure 1.5). By 1998, they had reached US$179.6 billion, an increase of 14 per cent over 1995.

In clothing, Western European exports were higher in 1980 than those of Asia. By 1990 Asia was ahead, with 44 per cent of the total, as compared with 42 per cent for Western Europe. Asia made further progress in the 1990s, and in 1997 had 45 per cent of world exports, while the share of Western Europe had dropped to 33 per cent. Over the whole 1980-97 period, Asian exports rose well over five times, compared with 1980, while Western European exports rose just over three times.

The relative importance of individual countries in world exports of textiles and clothing changed dramatically between 1980 and 1997.

As regards textiles, in 1980 the leading exporter was the Federal Republic of Germany, accounting for 11.4 per cent of world exports. It was followed by Japan (9.3 per cent), Italy (7.6 per cent), the United States, Belgium, France, China (including via Hong Kong, China) and the United Kingdom. By 1997 China had become by far the largest world exporter of textiles, followed by the Republic of Korea, Germany, Italy, and Taiwan, China. Japan had fallen to ninth place. China’s exports saw large increases, as did those of the Republic of Korea and Taiwan, China. Other large increases, from a low base in 1980, were recorded by Indonesia, Malaysia, Turkey and Mexico.

In clothing, Hong Kong, China, had been the main exporter in 1980, accounting for 11.5 per cent of the world total. It was followed by Italy (11.3 per cent), the Republic of Korea (7.3 per cent) and Germany (7.1 per cent). China had 4.8 per cent of world exports (including via Hong Kong, China) in 1980. By 1997 the position had been transformed, with China far outstripping Italy, Hong Kong (China), the United States, Germany and Turkey. In US dollar terms very large increases were recorded by China, and other large increases, from a low base in 1980, were recorded by Turkey, Mexico, Bangladesh, Indonesia, Thailand, Pakistan and Malaysia.

The very substantial increases in both textile and clothing exports by Asian countries over the period occurred in spite of the limitations imposed on the basis of the Multifibre Arrangement (MFA). In the case of Mexico the large increases in textile and clothing exports were clearly linked to the formation of the North American Free Trade Agreement (NAFTA).

Substantial increases in clothing exports, from a low base in 1980, were also recorded by countries, such as Tunisia, Poland, Romania and Hungary; these were linked to the outward processing trade activities of the EU industry.

Between 1980 and 1995 a number of countries, including several in Asia, registered substantial increases in both their textile production and their share of world textile output. During this period, the share of China in world output increased from 7.9 per cent to 10.7 per cent; that of India from 2.6 per cent to 3.1 per cent; that of the Republic of Korea from 1.8 per cent to 5 per cent; that of Taiwan, China, from 1.3 per cent to 2.6 per cent; that of Brazil from 1.2 per cent to 2.2 per cent; and that of Turkey from 0.8 per cent to 2.5 per cent. In addition, Indonesia, coming from a very low base, accounted for 2 per cent of world production in 1997. Apart from Indonesia, the increases in the 1980-95 period were particularly marked in Turkey (3.7 times) and in the Republic of Korea (3.4 times).

World export shares for textiles also rose significantly during the period in question for several Asian countries, plus Turkey. The share of China (including trade via Hong Kong, China) increased from 6.2 per cent to 17.3 per cent of the world total; that of the Republic of Korea from 4 per cent to 8.6 per cent; that of Taiwan, China, from 3.2 per cent to 8.2 per cent; that of India from 2.1 per cent to 3.2 per cent; that of Pakistan from 1.6 per cent to 3 per cent; and that of Turkey from 0.6 per cent to 2.2 per cent. The greatest increases among these countries were registered in Turkey (9.8 times the 1980 level), China (7.9 times), Taiwan, China (7.2 times) and the Republic of Korea (6 times). Pakistan and India also saw large increases – greater than for any Western European country.

But Indonesia accounted for the largest increase in trade. By 1997 it had achieved 1.5 per cent of world textile exports. From a very low base in 1980 its textile exports increased 49 times over the period under consideration. Other countries which had started from a very low base in 1980, but expanded their trade considerably by 1997, included Malaysia, Mexico and Thailand. It was therefore generally the Asian countries which either newly emerged over the period or greatly strengthened their previous positions.

By 1995 a number of Asian and other countries had achieved a larger share of the increased world output of clothing. The share of China went up from 15.2 per cent to 24.9 per cent;^[5] that of Brazil from 1.2 per cent to 4.2 per cent; and that of the Republic of Korea from 1.1 per cent to 4 per cent. Of these countries Brazil and the Republic of Korea had especially large increases in output – at 5.6 times the 1980 level in both cases. In addition, several countries who were not in the top 30 in 1980 had achieved this rank by 1995. These included Turkey with 1.9 per cent of the world total in 1995, Thailand also with 1.9 per cent, Indonesia with 0.9 per cent, and India with 0.8 per cent. In all these cases there were very large increases in clothing output.

The same pattern may be observed with regard to world trade in clothing; here again increases in Asian exports from 1980 to 1997 were especially marked, although all Asian countries did not share in the expansion that took place.

By 1997 the share in world clothing exports of China (including via Hong Kong, China) had risen from 4.8 per cent to 21.5 per cent; that of Turkey from 0.3 per cent to 3.8 per cent; that of India from 1.5 per cent to 2.4 per cent; that of Thailand from 0.7 per cent to 2.1 per cent; and that of Malaysia from 0.4 per cent to 1.3 per cent. In 1997 Indonesia also accounted for 1.6 per cent of the total. The largest increases in clothing exports in this group were in Turkey (51 times the level of 1980), China (20 times), Indonesia (30 times), and Malaysia (16 times). However, there were also large increases in exports among some countries which had been very small exporters in 1980, or had not exported at all. Among these were Bangladesh, Mexico, Tunisia and Pakistan.

A contrast with trade in textiles, however, occurred in the case of Hong Kong, China; the Republic of Korea; and Taiwan, China. All of these countries lost export shares in clothing between 1980 and 1997, although all increased their exports over the period in a generally expanding market – by 100 per cent in the case of Hong Kong, China, 42 per cent in the case of the Republic of Korea and 40 per cent in the case of Taiwan, China.

A number of countries similarly increased their share of footwear world output between 1980 and 1995. The share of Italy rose from 8.5 per cent to 18.8 per cent; that of Japan from 4.4 per cent to 12.6 per cent; that of Spain from 4.6 per cent to 7.9 per cent; that of Brazil from 2.7 per cent to 6.9 per cent; that of the Republic Korea from 0.7 per cent to 5.3 per cent; and that of Portugal from 0.6 per cent to 4.2 per cent. The largest increases among this group were registered in the Republic of Korea (10.7 times 1980 level), Portugal (10.6 times), Japan (4.1 times) and Brazil (3.7 times). But here again a number of countries not among the major producers in 1980 entered the top 30 in 1995. These included Indonesia, with 4.1 per cent of world output in 1995, Hong Kong, China, with 1.8 per cent, India with 1.3 per cent, and Thailand with 1 per cent.

Generally speaking, most of the countries which joined the ranks of the top 30 producers in textiles, clothing and footwear during the 1980-95 period were in Asia. Other Asian and South American countries, which had been in the top 30 in 1980, also succeeded in improving their position by 1995.

However, increases in output in the developed countries were also significant during the period under consideration. In textiles this was especially true of the United States and Japan; in clothing of the United States, Japan and Italy; and in footwear of Italy, Japan and Spain. In spite of the rise of developing countries in Asia, the United States and Japan were the world’s chief textile producers in 1995, while China and the United States were the principal clothing producers, and Italy and Japan the world’s chief footwear producers.

As regards newly emerging countries in world trade, increases over the period in the exports of textiles by Asian countries were particularly significant although other countries such as Turkey and Mexico registered large increases in textile trade. Asian countries were also important gainers in exports of clothing, but other countries which did well included Turkey, Mexico, the Philippines and Tunisia.

What seems clear is that the more prosperous Asian countries did much better as regards textile exports over the period than they did as regards exports of clothing. In the labour-intensive clothing sector their relatively high wages clearly had a depressing effect on their export growth. It is the low-wage Asian countries which have been the main winners in the export of clothing over recent decades.

Some of the main players in the production and trade of textiles, clothing and footwear are members of economic blocs, but others are not. China, in particular, does not belong to any bloc; neither do India, Pakistan, Taiwan, China, the Republic of Korea, Bangladesh or Japan. Movements in economic blocs, therefore, can give only a partial explanation for movements in world textiles, clothing and footwear.

As regards the output of textiles, the European Union was still, in 1995, the largest bloc – as it had been in 1980; its share of world textile output also remained much the same during this period at 23 per cent. It was closely followed by NAFTA, and then at a distance by the other blocs. If the Central and Eastern Europe candidate countries (CECCs) and the Mediterranean countries are added to the European Union, as representing a largely free trade area, this whole bloc accounted for 29 per cent of world textile output in 1995.

Looking at movements over the 1980-95 period, the increase in textile output of the ANDEAN bloc was 46 per cent; that of the ASEAN countries 208 per cent; that of MERCOSUR 108 per cent; that of NAFTA 76 per cent; that of the European Union 22 per cent; and that of the “greater European bloc” 25 per cent. The CECCs registered a fall in output of 58 per cent, but the Mediterranean countries had an increase of 175 per cent, in US dollar terms.

As regards the output of clothing, the European Union was the largest bloc producer in 1995, accounting for 22 per cent of world output. The “greater European bloc” had 26.5 per cent of world clothing output. Looking at movements over the period, the increase in clothing output of the ANDEAN bloc was 92 per cent; that of the ASEAN bloc 756 per cent; that of MERCOSUR 292 per cent; that of NAFTA 46 per cent; that of the European Union 55 per cent; and that of the “greater European bloc” 62 per cent. The CECCs had a fall in output of 47 per cent, but the Mediterranean countries registered an increase of 512 per cent.

In the output of footwear, the European Union far outstripped the other blocs in 1995, accounting for 47 per cent of world production. MERCOSUR, the next largest, had only 8 per cent of world output. Looking at movements over the 1980-95 period, the increase in footwear output was 107 per cent for the ANDEAN bloc; 1,610 per cent for ASEAN; 186 per cent for MERCOSUR; 74 per cent for the European Union; and 59 per cent for the “greater European bloc”. There were falls in output of 30 per cent for NAFTA and 48 per cent for the CECCs; but the Mediterranean countries saw a rise of 164 per cent.

In the output of each of the sectors – textiles, clothing and footwear – it is clear that over the 1980-95 period ASEAN was the fastest growing bloc. However, this excludes the three large producers, China, the Republic of Korea and Taiwan, China, whose growth was even higher in some sectors. Other blocs with substantial increases in output were: the Mediterranean countries and MERCOSUR in textiles; the Mediterranean countries, MERCOSUR and ANDEAN in clothing; and MERCOSUR, the Mediterranean countries and ANDEAN in footwear. In all sectors the output of the European Union, in US dollars terms, continued to grow over the period, and that of the CECCs to fall. NAFTA registered increases in textiles and clothing, but a fall in the output of footwear.

In textiles and clothing, the share in world exports of the various economic blocs is rather small. This reflects the omission of such giant exporters as China; the Republic of Korea; Taiwan, China; Hong Kong, China; and India.

In textiles, the extra-trade of the EU in 1997 represented 14.6 per cent of world textile exports; intra and extra exports of all Member States accounted for 38 per cent. The next largest bloc was NAFTA (8 per cent), followed by ASEAN (4.5 per cent) and the Mediterranean countries (3 per cent). Between 1990 and 1997 the ASEAN bloc saw the largest increase in textile exports (97 per cent), followed by NAFTA (92.5 per cent) and the Mediterranean countries (80 per cent). The EU registered an increase of 50 per cent for its extra-trade, just ahead of the average increase for the world as a whole. Smaller increases were registered for the ANDEAN and MERCOSUR blocs.

In clothing, the extra-trade of the EU represented 9 per cent of world clothing exports in 1997; intra and extra exports of all Member States accounted for 28 per cent. The NAFTA bloc followed, with 7.7 per cent, and then the ASEAN and the Mediterranean countries.

Between 1990 and 1997, NAFTA experienced by far the largest increase in clothing exports among the trading blocs. Its clothing exports rose by 292 per cent, followed by the Mediterranean countries (with an increase of 83 per cent), ASEAN (41 per cent) and the EU (39.5 per cent). Available information on changes in CEEC exports is not sufficient to make any comparisons.

In trade, therefore, ASEAN again did well, but only in exports of textiles. NAFTA progressed over the 1990-97 period in exports of both textiles and clothing, as did the Mediterranean countries. Exports from the EU increased just above the world average for textiles, but the increase was below this for exports of clothing. This held true for both the intra and extra clothing exports of the EU. The ANDEAN and MERCOSUR blocs did only moderately well.

The changing world distribution of employment

In 1995 world textile employment was 16.8 million, clothing employment 8.7 million, and footwear employment 1.8 million. The ratios were 9.3 to 4.8 to 1, respectively. These are comparable with the ratios of 8.6 to 5.6 to 1 for the value of world output in 1995.

In 1998 world textile employment was estimated to be 16.4 million, clothing employment 11.2 million and footwear employment 1.7 million, making a total of 29.3 million. This represented an increase of 7.3 per cent between 1995 and 1998, due to a dramatic increase in clothing employment during this period.

Between 1980 and 1995, total estimated world employment in textiles and clothing changed relatively little; however, the distribution of employment changed radically, with large losses in Europe and the Americas, and large gains in Asia. The same pattern was observed for footwear, although estimated world employment in this industry declined by 13.5 per cent during the 1980-97 period. Here again, employment fell sharply in Europe and rose in Asia. The increase in Asia was particularly marked.

In textiles, world employment in 1980 was some 16.4 million. Employment declined by 1985, but then rose by 3 per cent between 1985 and 1990, and by a further 1 per cent between 1990 and 1995; it subsequently fell by 2.5 per cent between 1995 and 1998. Figures therefore remained relatively unchanged throughout the 1990s. However, there were major changes in the share of different regions. Employment in Africa declined throughout the whole decade, especially in the 1995-98 period. Employment in the Americas also fell by about 8 per cent in both periods under consideration. Europe saw a large fall of 31 per cent between 1990 and 1995, and a further fall of 15 per cent between 1995 and 1998. Asia, on the other hand, registered increases in employment in both periods – especially in the earlier one (table 1.1).


Countries in:	(in ‘000)		% changes		% share in total
	1995	1998	1990-95	1995-98	1995	1998

Africa	595	478	–1.2	–19.7	3.5	2.9
America	1 355	1 247	–8.1	–8.0	8.0	7.6
Asia	11 627	11 914	17.2	2.5	69.0	72.5
Europe	3 207	2 733	–30.9	–14.8	19.0	16.6
Oceania	65	62	12.1	–4.6	0.4	0.4
Total	16 849	16 434	0.9	–2.5	100.0	100.0
Source : ILO/UNIDO, OETH estimates.

The effect of these movements was to cause considerable changes in the share of total world employment. Comparing 1995 and 1998, the major changes were in the share of Asia and Europe. Asia’s share in employment rose from 69 per cent to 72.5 per cent, while the share of Europe fell from 19 per cent to 16.6 per cent.

Among Asian countries, China is by far the largest employer, followed by India. China experienced an increase in employment between 1995 and 1998, but India registered a decline. Among the large European employers, only Turkey saw a substantial rise in employment in the 1995-98 period.

When employment figures are contrasted with those of output, it may be seen that the concentration of textile employment in Asia is far higher than that of textile output. This difference reflects the far lower productivity in Asia, as compared with that in Europe or the Americas.

World employment in clothing rose between 1980 and 1990, declined by 16 per cent between 1990 and 1995 and then increased by a substantial 29 per cent between 1995 and 1998. Employment fell in the 1990-95 and 1995-98 periods in both the Americas and Europe. However, it rose in these periods in Africa. In Asia, after little change between 1990 and 1995, employment rose significantly between 1995 and 1997 (1998 figures not available) (table 1.2). However, this was mainly due to more recent estimates of total clothing employment in China.


Countries in:	(in '000)		% changes		% shares in total
Countries in:	1995	1998	1990-95	1995-98	1995	1998

Africa	507	570	12.5	12.4	5.8	5.1
Americas	1 531	1 283	–11.1	–16.2	17.6	11.4
Asia*	3 895	6 976	–1.4	79.1*	44.7*	62.2*
Europe	2 724	2 393	–35.2	–12.2	31.3	21.3
Oceania	47	-	–18.8	-	0.5	-
Total	8 704	11 222	–16.2	28.9	100.0	100.0
* Data for Asia are for 1997; changes are mainly due to new estimates of total clothing employment in China. Source:ILO/UNIDO, OETH estimates.

Clothing employment in Asia rose considerably between 1980 and 1990, when it was nearly 35 per cent above its 1980 level; it subsequently slightly declined between 1990 and 1995 but increased again between 1995 and 1997. Clothing employment in the Americas fell steadily throughout the whole 1980-98 period. Europe saw a more dramatic fall in clothing employment – more than 50 per cent from 1980 to 1998 – but this was concentrated almost entirely in the 1990-98 period, when the fall was 47 per cent; this was partly due to a sharp decline in Central and Eastern European employment. However, European clothing output fell by only 10 per cent during the 1990s, suggesting a substantial rise in productivity during the period.

The shares in world employment were much affected by these changes. From 1995 to 1998, the share of the Americas in total world employment in clothing fell from 17.6 per cent to 11.4 per cent, while that of Europe dropped from 31.3 per cent to 21.3 per cent; meanwhile Asia’s share rose very substantially, from 45 per cent to 62 per cent (1997).

In the Americas, the largest employer, the United States, experienced a substantial fall in clothing employment during the 1995-98 period. In Europe, one of the largest employers, Italy, saw little change in this same period; however, there was a substantial rise in Turkey, and apparently a large fall in Russian employment. Among large employers in Asia, China stands out; its clothing employment (which also includes employment in footwear) appears to have risen greatly between 1995 and 1997 (1998 figures not available).

In footwear, world employment rose slightly between 1980 and 1985, declined by much the same amount between 1985 and 1990, and then fell even more steeply between 1990 and 1995 (–7.2 per cent), to give a fall in employment of 8.2 per cent over the whole 1980-95 period. World employment continued to drop (by 5.3 per cent) between 1995 and 1997 (table 1.3).


Countries in:	(in '000)		% changes		% shares in total
Countries in:	1995	1997	1995-90	1997-95	1995	1997

Africa	94	-	17.6	-	5.1	-
Americas	307	325	–22.4	5.9	16.8	18.8
Asia	557	623	124.2	11.8	30.5	36.0
Europe	861	783	–30.2	–9.1	47.1	45.2
Oceania	9	-	–21.0	-	0.5	-
Total	1 827	1 731	–7.2	–5.3	100.0	100.0
Note: Regions and total cover countries only for which information is available. Source: ILO/UNIDO, OETH estimates.

Asia saw an enormous rise of 124 per cent between 1990 and 1995, followed by a rise of 12 per cent in the 1995-97 period. The Americas experienced a decline in the first period and a small rise in the second, while Europe saw falls in both periods.

Employment in the Americas rose between 1980 and 1985, but then fell sharply in the next two five-year periods; in 1995, levels were some 31 per cent below those of 1980. Between 1995 and 1997, there was a slight employment recovery with a growth of 5.9 per cent over the period. Footwear employment in Europe followed the same pattern as that of clothing, with relatively small falls in employment in 1980-85 and 1985-90, but a large fall in 1990-95, predominantly on account of Central and Eastern Europe. In 1995 European employment in footwear was some 35 per cent below its 1980 level. But output of footwear was 10 per cent higher in Europe in 1995 than in 1980, suggesting a substantial rise in productivity.

Between 1980 and 1995, the situation in Europe was paralleled by the experience of the Americas, where a fall in employment of 31 per cent during the 1980-95 period was accompanied by a rise in output of 16 per cent, suggesting a substantial rise in productivity. No doubt this was linked to changes in the product; indeed, a higher proportion of footwear was made from fabric, synthetics and rubber rather than from leather. However, employment continued to decline by almost 10 per cent between 1995 and 1997.

In Asia there were considerable increases in footwear employment throughout the entire period under consideration, with an especially large rise in employment of 124 per cent between 1990 and 1995. Asian footwear employment in 1995 was four times its 1980 level. Asian footwear output, however, rose just over five times in dollar terms from 1980 to 1995, suggesting relatively little change in productivity – and possibly a decrease, when price changes are taken into account. Employment in footwear increased by almost 12 per cent between 1995 and 1997.

In spite of the substantial decrease in European footwear employment since 1980, Europe still remained the largest employer in 1997. In 1980 it had accounted for 67 per cent of world employment, while the Americas had had 22 per cent and Asia only 7 per cent. By 1995 the share of the Americas in world employment had fallen to 17 per cent, that of Europe to 47 per cent and that of Asia had risen to 31 per cent. Between 1995 and 1997, the Americas’ share rose to 19 per cent, but Europe’s share declined to 45 per cent, while Asia’s share rose to 36 per cent.

Long-term employment trends by country
(losers and gainers)

In 1980 the largest textile employer was China, accounting for total employment of 3.1 million, i.e. 19 per cent of the world total. It was followed by the former USSR, with 14 per cent of the world total; India, with 11 per cent; the United States, with 5 per cent; Japan, with under 5 per cent; and then Poland, Brazil, Romania, the Republic of Korea and the United Kingdom, in that order. Other sizeable textile employers were Germany, Spain, Taiwan (China) and Italy.


Ranking	Countries	Employees ('000)

1	China	7 672.4
2	India	1 470.5
3	Bangladesh	679.1
4	United States	588.0
5	Indonesia	515.4
6	Russian Federation	495.0
7	Japan	432.0
8	Italy	341.1
9	Pakistan	279.6
10	Thailand	257.5
11	Korea, Republic of	248.8
12	Mexico	240.0
13	Turkey	227.5
14	Egypt	223.0
15	Brazil	188.0
16	Taiwan, China	159.4
17	Romania	159.0
18	Spain	151.4
19	United Kingdom	146.9
20	Germany	141.2
Source: ILO, UNIDO, Eurostat, OETH estimations.

There were considerable changes in the importance of individual countries as textile employers throughout the 1980-95 period. For instance, the USSR disappeared from the list of top employers. Among the larger textile employers, Indonesian employment (1.4 per cent of the total in 1980) rose by a multiple of 2.7 times, while that of China rose by 2.2 times, and that of Bangladesh doubled. By 1995 textile employment in China had risen to as much as 41 per cent of the world total. India was the second largest textile employer, but its employment was some 10 per cent below its 1980 total, and its share of world textile employment had fallen to less than 10 per cent.

Countries with substantial increases in textile employment (measured in percentage terms) during the 1980-95 period included Lesotho, Botswana, Jordan, Kuwait, Tunisia and Mauritius, although they had all started from a very low base. Employment in textiles in Italy and Turkey, alone among European countries, also rose over the period.

Countries with the relatively highest losses in textile employment over the 1980-95 period included Poland, Hungary, the United Kingdom, Spain, France, Hong Kong (China), and Germany. Among the large employers, the United States, Japan and Brazil were also losers. In general, the less developed countries were the gainers in textile employment throughout the period under consideration, and the more developed countries the losers.

In clothing, the largest employers in 1980 were the former USSR, with 2.3 million persons (23 per cent of the world total); China with 1.6 million persons (17 per cent); and the United States with 1.3 million persons, (13 per cent). They were followed by Japan with 4.4 per cent, Brazil with 3.4 per cent, and the United Kingdom, Hong Kong (China), Germany, Poland, Romania, France, the Republic of Korea and Italy, in that order.

There were sweeping changes throughout the 1980-95 period. Among the larger employers of 1995, clothing employment in Indonesia had risen by more than 20 times during the period under review; Thailand had risen more than 10 times, the Philippines by 59 per cent, Portugal by 47 per cent, and Italy by 36 per cent. By 1995, China was already by far the largest world clothing employer, with 20 per cent of the world total (this covers, however, employment in state-owned enterprises only). It was followed by the United States, with 11 per cent of the total, and then some way behind by the Russian Federation, Japan, Indonesia, Brazil, Thailand, Italy, Bangladesh, and the United Kingdom. By 1998, Mexico had reached the third rank of major world employers in clothing, mainly as a result of the development of its trade with the United States within NAFTA.

Among the substantial gainers in clothing employment over the 1980-95 period were Indonesia, Bangladesh, Thailand, Turkey, Sri Lanka and Morocco, all of which had had very low employment in clothing in 1980. Nearly all the countries which gained clothing employment during this period were in the category of less developed countries. The only exceptions were Italy, Portugal and Turkey.

Among the main countries which lost clothing employment between 1980 and 1995 were the United States, Hong Kong (China), Germany, Brazil, Poland, the United Kingdom, France and Japan.

As may therefore be seen, low-wage countries generally increased their clothing employment over the period under consideration, while high-wage countries lost employment. This is scarcely surprising, given the high labour content in clothing production.


Ranking	Countries	Employees ('000)

1	China*	3 677.8
2	United States	793.0
3	Mexico	567.1
4	Russian Federation	392.8
5	Japan	319.0
6	Bangladesh	316.5
7	Indonesia	289.3
8	Poland**	250.0
9	Italy	213.5
10	United Kingdom	201.0
11	Brazil	185.9
12	Romania	180.0
13	Philippines	178.1
14	Korea, Republic of	177.6
15	Turkey	166.1
16	Thailand	160.0
17	South Africa	145.8
18	Portugal	136.7
19	India	133.2
20	Tunisia	125.4
* Data for China include clothing and footwear. **Based on nomenclature ISIC Rev.3-D. Source: ILO, UNIDO, Eurostat, OETH estimations.

In footwear (leaving aside China for which separate employment data are not available), the largest world employers in 1980 were the former USSR, with 494,000 persons, or 25 per cent of the total, and Brazil, with 163,000 persons, or just over 8 per cent of the world total. They were followed by the United States with 8 per cent, Romania with 6 per cent, Poland and Italy. The distribution of footwear employment among countries was a good deal less concentrated than that of either textiles or clothing.

As in the case of both textiles and clothing, there were substantial changes in footwear employment among countries during the 1980-95 period. Of all the countries that had been among the larger employers in 1980, only Brazil and Italy increased their employment during this period, accounting for just over 1 per cent and 5 per cent, respectively. On the other hand, there were very large increases in Indonesia and Thailand, which had become substantial employers by 1995, but which had started from a very low base in 1980. There were also large increases in employment in Portugal and Morocco.

Among the larger employers which lost employment over the period were the United States and Germany each (with a 66 per cent decline), Poland, Spain, the United Kingdom, France and Romania.

In 1995, Indonesia was the largest footwear employer after China – for which recent separate data are not available – and accounted for 16 per cent of the world total. It was followed by Brazil (with 9 per cent of the world total), the Russian Federation (6.5 per cent), Romania and Italy, It is relevant to note that Italy had half the employment of Brazil. Footwear employment remained in 1995 far less concentrated than was the case in either textiles or clothing. By 1998, India had become the fourth largest employer in footwear and the Russian Federation had declined in its share of world employment (see table 1.6).


Ranking	Countries	Employees ('000)

1	China*	923.0
2	Indonesia	273.1
3	Brazil	147.5
4	India	134.7
5	Romania	86.3
6	Italy	79.0
7	Poland	72.6
8	Thailand	58.2
9	Russian Federation	57.5
10	Portugal	54.9
11	Japan	51.2
12	Ukraine	50.8
13	France	50.2
14	Spain	47.6
15	United States	42.7
16	Morocco	40.7
17	United Kingdom	39.5
18	Korea, Republic of	33.2
19	South Africa	29.2
20	Hungary	26.7
* 1994 (latest available figure). Source: ILO, UNIDO, Eurostat, OETH estimations.

The major poles of employment creation over the 1980-95 period have already been analysed on a country basis; however, it is of interest to look at employment changes by economic blocs. But it should be borne in mind that these blocs do not contain such major employers as China, the Republic of Korea, Taiwan (China), Bangladesh, India, Pakistan and Japan.

As regards changes in textiles, employment between 1980 and 1995, by far the greatest increase in employment – 56 per cent – was registered in the ASEAN bloc. It was followed by the Mediterranean countries, with an increase in employment of 6 per cent. All other blocs experienced falls in employment over the period. The CECC countries registered a decline of 56 per cent, followed closely by MERCOSUR and the European Union. There was also a fall in employment in NAFTA (25 per cent).

The ASEAN bloc also did well in clothing. Indeed, employment in clothing rose 343 per cent between 1980 and 1995, and the Mediterranean countries increased their employment by 288 per cent over the period. Apart from a rise of 32 per cent in the ANDEAN bloc, however, there were falls in employment in the other blocs. NAFTA registered the biggest fall – 24.5 per cent – closely followed by MERCOSUR, with a 23 per cent decline, and the European Union. The CECCs saw a fall of 20 per cent.

Generally speaking, the same picture applied to changes in footwear employment during the 1980-95 period, although the increase in employment in the ASEAN bloc was dominant – 1,637 per cent. The only other increases were in the Mediterranean countries – of 148 per cent – and the ANDEAN bloc. Otherwise decreases in employment took place. Much the biggest fall, of 63 per cent, was in NAFTA, followed by the European Union and the CECC countries, with roughly equal falls.

As far as changes in employment in the economic blocs are concerned, ASEAN countries far outstripped the other group for the 1980-95 period. The only countries which did well were those of the Mediterranean. All other groups either lost employment or registered only modest gains. Once again, it was the low-wage countries whose employment benefited – a trend that applied both to their output and their trade. Similar gains occurred in the low-wage countries outside the economic blocs, and notably in China.

Over the last decade, the decline in employment has been particularly marked within the European Union (EU) which is, at the same time, one of the most important markets for TCF products. Between 1988 and 1998, almost 1 million jobs disappeared in the TCF industries of the EU. A closer view of the details of this general trend provides useful indications on the speed and cyclical nature of employment losses in this particular economic bloc.

Following a continuous decrease in employment during the 1980s, at an annual average rate of 1.5 per cent, the EU experienced a sharp decline between 1990 and 1994. During this period, employment in TCF industries dropped by about 4 per cent per year, as compared with a decline in employment of 0.5 per cent per year for the manufacturing sector as a whole. In 1992 and 1993 alone, 290,000 jobs disappeared – a figure comparable to the loss in employment throughout the whole 1982-88 period. After a slight recovery in 1994 and 1995, the employment level in TCF industries continued to drop dramatically.

In 1998, for example, about 2.2 million people were employed in enterprises of all sizes in the EU textile and clothing industry. This was 2.3 per cent below the number employed the previous year – equivalent to a loss of some 52,000 jobs. This reduction in employment compares favourably with the nearly 100,000 jobs lost in 1996, but was greater than the 30,000 lost in 1997. Between 1997 and 1998, falls in employment in the textile industry were not experienced by all Member States. In Spain and Austria, textile employment actually increased by of 7 per cent and 0.5 per cent, respectively; employment remained stable in Belgium, Denmark and the Netherlands. However, all the other countries experienced falls. Greece registered the biggest decline – nearly 10 per cent. During the same period, employment in the clothing industry increased in Greece (4.9 per cent) and Spain (1 per cent). All other Member States experienced a fall (except Denmark where there was no change). Significant drops in employment occurred in Belgium (7 per cent), Germany (6.5 per cent), the United Kingdom (6 per cent), Finland (5.1 per cent) and France (5 per cent). As may be seen, employment fluctuations within a given economic bloc vary from one country to another; these are contingent upon certain economic and social conditions but also upon the quality and degree of specialization in the production of different types of products – as well as upon changes in productivity levels.

1.2.2. Women workers in TCF industries

General observations

The TCF industries have, traditionally, been important employers for women. Employment opportunities have generally been concentrated in the lower range of qualifications and, very often, in countries with limited alternative job opportunities. These factors have contributed towards maintaining wages in these sectors at relatively low rates.

While these industries are an invaluable source of employment, particularly for women, they have mainly provided opportunities for unskilled workers. Tending to occupy positions in simple production, women have not, until recently, played a significant role in higher positions of responsibility.

At the world level, the distribution of female employment among the TCF industries was the following in 1995: 46 per cent in the textile, about 47 per cent in the clothing and 7 per cent in the footwear industries. As seen in figure 18, this distribution had changed only slightly since 1985, when the shares were 47.5 per cent, 46 per cent and 6.4 per cent, respectively.

In industrialized countries, and in particular in Western Europe, increasing competition from low labour cost countries prompted a change in employment patterns. In particular, the unskilled jobs typical of the clothing and textile industries were greatly affected by the need to reduce the importance of labour costs in production costs. Attempts to introduce new technologies and automated manufacturing methods, as well as relocation of production, resulted in a restructuring process leading to considerable job losses. Women were the first to be affected, as machines replaced the low-skilled jobs which they had traditionally filled and they were not always sufficiently trained to cope with the higher skills needed for operating these machines.

These developments have been more pronounced in the textile industry than in the clothing industry. From a technical standpoint, it has been more straightforward to mechanize and automatize production in spinning and weaving – and the high cost of modernization has been borne with more ease by the large textile companies than by the many small and medium-sized companies that characteristically make up most of the clothing industry. Modernization has also meant that new working patterns are developing, with extra hours, shift work and working weekends allowing the machines to run almost continuously, to compensate for the high investment costs of the machinery. This type of working hours has proved to be less acceptable for female workers than their male counterparts, thus reducing their job opportunities further.

The share of women in employment varies considerably between the individual TCF industries, and within regions and countries. It is difficult to generalize about the reasons for these differences – although the share of female employment seems to be highest in the richer countries. In the poorer regions, where work opportunities for men are likely to be less available than elsewhere, the share of female labour is lower. But there are some poorer countries where the share of female employment is also high. These trends are undoubtedly linked to the specific social, economic and historical factors in these countries.

Whatever the share of female employment in total employment in these industries, one thing seems universal: women’s wages in the TCF industries are lower than those of men. It seems rather surprising that even in Europe, where there has been much discussion in recent years of equal pay for equal work, men in the TCF industries receive wages which are 20-30 per cent higher than those for women.

Women receive their relatively highest wages in the textile industry, followed by the footwear and clothing industries. In textiles the ratio of men’s to women’s wages used to be the highest until 1990 – between 1.4 and 1.6 – but this dropped to the level of the ratio in clothing of 1.3 in 1995. The lowest ratio of men’s to women’s wages exists in the footwear industry.

Female employment in textiles

The textile industry has a lower ratio of female to male workers than the clothing and footwear industries, but it has still remained a vital sector for female employment. Women accounted for 35 per cent of total world textile employment in 1980, although this had fallen to 31 per cent by 1995.

At present, the women workers’ share in world textile employment is relatively stable at around 30 per cent.

The quantitative distribution of women textile workers among world regions shows a high concentration in Asian countries, with a share of almost 80 per cent in the total number of reported women employees in 1995. European countries followed with some 12 per cent, the Americas with 6.5 per cent, and Africa with 1.7 per cent.

Among individual countries for which data are available, the principal employers of women in textiles are China, Indonesia, the United States, Japan, Thailand and Italy. In 1995, these six countries employed almost 80 per cent of the reported total number of women working in the textile industries worldwide. Compared with 1985, female employment in these countries increased by almost 40 per cent, mainly due to the rise in China.

Europe – as a region with the second highest percentage of women in textile employment – presents an interesting picture of country variations, according to 1995 figures. Norway employed the highest percentage of women in textiles, with 84 per cent, although this accounted for only a relatively small share of European employment. These figures also showed that European countries with between 60 and 80 per cent of female workers on their staff were all from Central and Eastern Europe, with the exception of Portugal. These percentages, of course, translate into varying figures of women’s employment in the different industries. They included the highest numbers of female employees for Portugal, the Czech Republic, Bulgaria and Croatia. Among the countries with between 40 and 60 per cent of women workers were Italy, the United Kingdom, Spain, Austria and Greece. The countries with the smallest representation of women on their staff were the Netherlands (23 per cent) and Iceland (33 per cent).

In Africa, which had an overall average of 24 per cent female employment in 1995, considerable differences existed between countries due to varying attitudes towards women in the workplace and their participation in industrial activities. For instance, Botswana’s 83 per cent of women’s employment in textiles in 1995 may be contrasted with a mere 8 per cent in Kenya and Zimbabwe. However, the varying size of the industries in those countries means that variations in the numbers of women actually employed were not as dramatic.

Asia is also a region of contrasts, as shown by the fact that India’s comparatively large number of women workers is reflected in only a small percentage share of women workers in the textile sector – 10.7 per cent in 1995. Indeed, the textiles industry is still very much male-dominated. Other parts of the region revealed a significantly higher percentage of women workers, although the actual number of women employed remained lower than in India; examples were Taiwan, China, with 54 per cent of female employment, the Republic of Korea with 51 per cent, and Malaysia with 48 per cent, all in 1995.

In North America, Mexico had the highest share of women in textile employment during the period under consideration, with 60 per cent in 1990 and 77 per cent in 1995. The United States and Canada also had a relatively high percentage of female employment, with 47 per cent and 64 per cent in 1990, respectively. Again, in terms of actual numbers, however, this implied that the United States employed more than ten times as many women as Canada. Many of the other American countries were on a similar level; for example, Costa Rica had 55 per cent female employment in 1995 and Puerto Rico 54 per cent. But while the majority of the countries, for which data were available, had between 30-40 per cent women workers, Argentina’s female employment dropped from 35 per cent in 1985 to 23 per cent in 1995.

Female employment in clothing

The role of women workers has consistently been of more significance in the clothing industry than in textiles or footwear, with women taking up 79 per cent of the jobs in clothing in 1980 at a global level. Although the share had slightly fallen to 74 per cent by 1995, the clothing industry continued to be very much a female-dominated industry. Nevertheless, the textile industry was still more significant in terms of the total number of women employees.

Furthermore, the proportion of female employment was higher in all regions than in textiles. The countries of Oceania, for which data were available, again came top – although their share dropped from 87 per cent in 1980 to 82 per cent in 1995. Asia saw an increase in its female share from 65 per cent in 1980 to some 71 per cent in 1995. Africa saw the lowest female share, although there was an increase in their share from 51 per cent to 64 per cent over the 1980-95 period. There were falls in the female share in all other regions, but even in Europe in 1995, the Americas and Asia all had some 70 per cent female employment in clothing.

As in textiles, Asian countries also employed the larges share of women workers in clothing. Their share in the total number of women employees was nearly 55 per cent in 1995, followed by the Americas with 24 per cent, European countries with 18 per cent and African countries with 3 per cent.

Regarding individual countries, for which data were available, China was the principal employer of women in the clothing industry (including female employment in footwear) – with a share of 20 per cent in the reported world total for clothing in 1995. The United States, Japan, Mexico, Indonesia, Thailand and Italy followed. The principal six countries employed 56 per cent of the reported total number of women working in the clothing industry worldwide. Female employment increased most considerably in Thailand, Bangladesh and the other Asian countries during the 1985-95 period, while it decreased in the United States and Japan.

The clothing industry in Europe has traditionally been dominated by women and this remains very much the case. Between 1985 and 1995 the share of female employment dropped nevertheless from 81 per cent to 76 per cent. Although all countries witnessed a reduction in female employment, this decline was more visible in Western Europe than in Central and Eastern Europe. Ireland experienced one of the largest reductions; its percentage of women workers dropped from 94 per cent in 1985 to 70 per cent in 1995. Other countries experienced less dramatic drops in percentages, but far more significant losses of actual employment; in Austria, for example, where the percentage of women workers only feel from 83 per cent in 1985 to 78 per cent in1995, this was translated by a drop from 48,000 to 10,000 women employees. Italy saw a similar reduction in terms of percentage, which included actual employment losses of some 80,000 female employees. Central and Eastern Europe even experienced some slight increases in the share of female employment – 87 to 88 per cent between 19990 and 1995, although the number of women employees dropped. Despite these reductions in female employment, all European countries had more than 70 per cent female employment in 1995, with the exception of Albania (34 per cent).

In both Canada and the United States, the very high percentage of some 80 per cent women workers in 1980 dropped during the period in question; in Canada it declined to 65 per cent in 1990 and in the United States to 75 per cent in 1995. This was reflected cuts of altogether 320,000 women’s jobs in both countries. This fall of female employment, in terms of percentage and actual number, was mirrored – albeit less dramatically – throughout the region. In Puerto Rico the 89 per cent in 1990 fell to 86 per cent in 1995, and in Argentina the 74 per cent in 1985 fell to 66 per cent in 1995, representing an overall loss of 15,000 women’s jobs. On the contrary, Colombia experienced a fall in the percentage of women workers – from 83 to 81 per cent between 1985 and 1995 – but its female workforce in this sector increased by 16,000 employees. Chile was the exception where both the overall employment levels and female percentages rose.

In Africa the differences in female employment in clothing between countries were similar to those in textiles, although less marked. The low shares of female employment – below 31 per cent in 1995, in Ghana, Zimbabwe and Kenya – compared with 81 per cent in Morocco and 75 per cent in Mauritius.

The clothing sector in Asia, India and Bangladesh saw a rise both in total employment and in female employment. From 1980 to 1995, the share of female employment rose from 23 per cent to 49 per cent in India and from 17 per cent to 69 per cent in Bangladesh. Such increases in the share of women in total clothing employment were not reflected in other countries of the region. In 1985 the Republic of Korea had a share of 76 per cent women in clothing employment, which fell to 70 per cent in 1995. This reflected a drop of more than 50,000 female workers in real terms. Other countries experienced different developments. For example, while the female employment percentages in Sri Lanka fell from 89 per cent in 1985 to 87.5 per cent in1995, the number of female employees increased, as overall employment levels rose, by more than 50,000. A similar trend was visible in Malaysia where the percentages dropped from 89 per cent in 1985 to 82 per cent in 1995, with rising female employment in the sector. Even countries with low shares of female employment such as Nepal saw a significant rise in the number of women active in the industry, although the women’s share fell from 22 per cent to 17 per cent between 1985 and 1995.

Female employment in footwear

In 1985, women’s share of total world employment in footwear amounted to 43 per cent; in contrast to the movement in textiles and clothing – this had risen to 46 per cent by 1995.

Countries in Oceania had the highest share of female employment in the 1980-90 period, but by 1995 Europe was at the top of the list accounting for 55 per cent of female employment in footwear. This was ahead of Asia’s 47 per cent and of the Americas’ 39 per cent and far ahead of Africa’s 13 per cent.

In footwear production, the concentration of numbers of women employees in Asian countries is not so high as in textiles and clothing. Their share was 45 per cent in 1995, with European countries amounting to 35 per cent and the Americas to 19 per cent.

Among those countries for which data were available for the period under review, the principal employer countries of women in the footwear industry were Indonesia, Mexico, Italy, Portugal, the United States and the Republic of Korea. Again, China was probably the biggest employer, but here were no separate data for female employment in footwear. While Indonesia had a one-third share of world employment of women in the footwear industry in 1995, the other five had a combined share of nearly 30 per cent.

In Europe there was a slight overall increase in the percentage of female employment as part of total employment – from 54.5 to 55.1 per cent during the 1985-95 period. In most European countries women had a share of at least 50 per cent in total footwear employment in 1995. The exception were Ireland (31 per cent), the Netherlands (33 per cent), Albania (45 per cent) and the United Kingdom (46 per cent).

The share of women’s footwear employment in the Americas increased from 37 per cent in 1985 to 39 per cent in 1995, albeit with a decrease in 1990. Countries with a share above this average in 1995 were the United States with 61.5 per cent and Costa Rica with 45 per cent. Although, the United States figures only registered a slight decrease in its percentage of female workers, they did not reflect the loss of female employment in the footwear sector, which fell by 50 per cent. Between 1990 and 1995, some countries in the Americas registered increases in their female employment rates. Examples included Panama, from 22 to 36 per cent; Mexico, from 25 to 35 per cent; and Colombia, from 36 to 39 per cent, mostly linked with increases in the actual employment of women.

Asia’s female employment rates increased overall during the 1985-95 period, but closer inspection reveals differing trends. Several countries witnessed decreases in the percentage of female employees, among them Bangladesh, Hong Kong (China), Jordan, Malaysia and the Philippines. While in the Philippines, the decrease in the female share was accompanied by an increase in women’s employment in real terms, this was not the case in Hong Kong, China. However, there were significant increases in female employment levels in other countries – for example in India – which saw the most significant percentage increase from 4 per cent in 1985 to 28 per cent in 1995. Sri Lanka experienced a similar increase in its share of female employment rates; they rose from 27 per cent in 1985 to 63 per cent in 1995. While the rise in employment rates in the Republic of Korea was reflected in an increase in real employment, the same did not hold true for Taiwan, China.

In Africa female employment in the footwear sector was very low during the period under review, although the share increased in some countries. In Mauritius it rose from 34 per cent in 1985 to 45 per cent in 1995 and in Zimbabwe from 1.7 per cent to 3.5 per cent. On the other hand, however, Kenya saw its already low level of female employment in footwear decrease from 5 per cent to 0.8 per cent during the 1985-95 period.

1.2.3. Globalization and stability of employment

Net job creation and geographical instability

While it is difficult to quantify the impact of globalization in the TCF industries on net job creation, since there is no scenario to which it could be compared, one can say that relocations of labour-intensive activities to lower-wage countries have had the effect of increasing, or at least of stabilizing, net job creation at the global level.

Without relocation strategies, enterprises in the developed producer countries would have tended increasingly to replace their costly workforces with machinery. That is indeed what has happened in the production segments which have been retained in these countries. In order to improve productivity and reduce the total wage bill, major investments have been made and the total number of jobs has been reduced purely as a result of technological advances. In the developing countries, on the other hand, where labour costs were lower to begin with, it has not been necessary to introduce extensive technological innovations to reduce the workforce. Enterprises have remained competitive thanks to low wages and the use of tried and tested production machinery and methods.

What is true at global level does not apply to employment trends in individual countries. If the developing countries have generally experienced rising levels of employment in the TCF industries over the last 30 years while employment fell in the industrialized countries, the basic trend in employment within individual countries is characterized by extreme instability. In the clothing and footwear sectors, and to a lesser extent in the textiles sector, employment has fluctuated widely over the years in response to the changing comparative advantages of different countries and their relative international competitiveness. Investment, trade and, consequently, employment have moved in successive waves in response to relative changes in wages and other production costs. A country that was attractive to foreign investors and contractors in the clothing sector during the 1970s or 1980s is not necessarily attractive now. And even if it is still attractive in terms of production costs, it may have lost its advantage if it is unable to satisfy new requirements of quality and rapid response to changing market conditions. This constant challenge to international competitiveness, which is a permanent feature of the TCF sector, means that jobs created in any one country cannot be regarded as a long-term gain. All the developing countries, and in particular those that are heavily dependent on international trade in TCF products, are facing fierce competition in which each producer country endeavours to attract investors by proclaiming its comparative advantages and enhancing them, where necessary, through tax incentives. Competition is particularly intense in the labour-intensive activities where relative wage levels continue to play a significant role in determining relocation policies. As the previous statistical analysis showed, centres of development, production and trade are constantly shifting and taking jobs with them. The countries that suffer most as a result of this instability are those with limited development alternatives in the event of loss of competitiveness. They are generally the least developed countries which have made the TCF industries their preferred means of promoting industrialization. These countries have become particularly vulnerable as a result of the more stringent quality criteria that now apply in the trade of TCF products and they have often lost market shares and therefore jobs, because of their inability to adapt.

There are currently a number of countries in which employment appears to be stabilized or growing. This is the case with China, some of the Central and Eastern European Countries (CEEC), Tunisia and Morocco. Even among these countries, however, the apparent stability of the employment created by the TCF industries is partly the result of economic conditions that could change in the coming years. Mexico has benefited from the North American Free Trade Agreement (NAFTA), while Tunisia and Morocco benefit from trade agreements and their location which give them privileged access to European markets. Certain Central and Eastern European countries have also taken advantage of the transformation of their economies, their proximity to Western European and some of the new “rapid response” requirements, to take over the positions vacated by certain Asian producers that are too remote to supply the European market. However, there is nothing to say that ten years from now, other criteria of competitiveness will not replace the current ones and make other countries more “attractive”. Only China appears to escape this seemingly inevitable instability, if only because of the extraordinary potential of its home market which protects it from upheavals elsewhere.

Flexibility and contracts of employment

International competitiveness is contingent on a number of different factors whose relative importance depends on the type of production and the particular options chosen by enterprises for certain product ranges. In the case of more standardized products whose manufacture requires a large workforce, wage costs become crucial in determining competitiveness. But at any level in the production process, TCF enterprises must be sufficiently flexible to respond to a constantly changing market. This need for flexibility is invariable throughout both the textiles and the footwear sectors. Fashion changes rapidly and affects the entire production process. To respond to that need for flexibility, enterprises adapt their production methods and their systems of organizing work and managing stock. There is also a tendency among them to require labour flexibility by applying various strategies compatible with legislation.

The first strategy used by most enterprises in the industrialized countries and by a growing number of larger enterprises in developing countries lies in withdrawing from those activities that require the most flexibility and handing them over to subcontractors. Subcontracting may be national or international, direct or indirect in the form of a “pyramid” (in which one subcontractor entrusts all or part of an order to one or more subcontractors), but in all these cases the prime contractor (be it a TCF enterprise or a distribution chain) transfers the onus of ensuring flexibility to the subcontractors. Given the importance of international subcontracting, particularly in the clothing and footwear sectors, it is reasonable to conclude that over the last 20 or 30 years there has been a general redistribution of TCF activities which has put greater pressure on developing and transition countries to improve flexibility. It is in these countries that enterprises are under greatest pressure to adapt themselves and their labour practices to market requirements.

However, the need for greater flexibility is also felt in the industrialized countries and has an impact on practices relating to contracts of employment. In Europe, for example, the problem is well illustrated by information provided by the Textile Federation of Belgium (FEBELTEX). In its reply to the questionnaire sent by the ILO in preparation for this Meeting, FEBELTEX notes that, although full-time contracts of employment continue to be the rule in the textile industry, there has recently been a growing trend towards more part-time work. The Federation also notes that certain textiles enterprises resort to using temporary workers to cope with increased demand. A recent survey by the association representing temporary employment agencies in Belgium estimated that 1.6 per cent of manual workers and 1.24 per cent of white-collar workers in the textile sector were temporary, whereas previous studies had found that only service enterprises employed temporary workers. With regard to seasonal work in Belgium, there are no specific statistics on this, except for the short-time working rate, which is an indicator of seasonal or temporary unemployment in the textiles sector. That figure, which has always been higher during the third quarter of the year as a result of seasonal fluctuations in demand for textile products, was 14.9 per cent in 1995 and 8.3 per cent in 1997. Belgium is not the only example of this trend in the European Union. Trade union sources in the United Kingdom report that increasing use is being made of part-time workers, fixed-term contracts and temporary work arrangements. It is now a widespread practice for TCF enterprises to apply to agencies supplying temporary workers. In many enterprises, conditions of employment for temporary workers are inferior to those that apply to permanent workers. This recently prompted the United Kingdom Government to draw up new legislation in this area which, once adopted, should improve the legal status of these “agency workers”. In France, trade unions have complained of the growing tendency to impose part-time arrangements on workers in the TCF sectors, which increase their job insecurity, and have denounced contractual arrangements which emphasize labour flexibility.

In other industrialized countries, such as the United States, the proportion of permanent workers within the TCF industries is declining steadily, while temporary, part-time or fixed-term contracts of employment are becoming more widespread. This reflects a general trend throughout the economy, but is particularly marked in the TCF industries. Only Japan, where the law allows only contracts of unlimited duration (or, in the case of an employee’s first job, renewable one-year contracts) appears to buck this trend towards more flexible contracts of employment in the TCF industries.

In the Central and Eastern European Countries, the process of transition to a market economy has often taken place without any adequate social safety nets, and contracts of employment tend to be more precarious than elsewhere in Europe. In Bulgaria, for example, one trade union source has said that temporary contracts of employment are the rule within the TCF industries and that workers agree to such contracts for fear of losing their jobs. In Hungary, fixed-term contracts, which are permitted by law, are widespread in the TCF industries, despite trade union opposition. In Slovakia, the trade unions have indicated that the TCF enterprises, especially foreign enterprises, prefer contracts of limited duration which do not have to be renewed if the economic climate is not favourable or if workers fail to meet productivity targets. In Romania, the break-up of the major enterprises in the TCF sectors has led to the fragmentation of those sectors into small private enterprises employing fewer workers under precarious contracts of employment. In all these countries, the weakness of the trade unions and the near absence of any bodies representing the employers makes social dialogue difficult, and this allows individual enterprises to adopt whatever flexible labour practices meet their requirements, subject only to the provisions of law.

In the developing countries, temporary employment contracts are the rule. Even employment contracts of unlimited duration do not offer the same security as in the industrialized countries, since the procedures in force for terminating employment are generally more flexible.

In Africa, there are great differences between individual countries. In some countries that are little involved in the world trade in TCF products, such as Côte d’Ivoire or Senegal, the textiles and clothing industry employs many day labourers who are paid piece rates and have no job security. At the other extreme, in Mauritius, which has a tight labour market, any employee who has worked for the same employer for at least one year is regarded as a permanent worker and enjoys all the associated entitlements. The only exception concerns immigrant workers, who are employed increasingly often by the TCF industries in the absence of local workers. Immigrant workers generally have a renewable two-year work permit.

In the developing countries of the Americas, the situation depends largely on a country’s level of economic and social development. In the larger and more developed countries, such as Argentina, the TCF industries generally employ workers under employment contracts without limit of time. The most recent figures available show that the majority of contracts (78.6 per cent) in these industries are without limit of time, a minority (3 per cent) of workers are temporary, while fixed-term contracts represent 17.9 per cent of the total. Nevertheless, the trend is towards increased use of fixed-term contracts. At the other extreme are the smaller and less developed countries which are most dependent on the TCF industries and where employment is much more precarious.

In Honduras, for example, where many women are employed in export-oriented clothing enterprises (maquilas), the Minister of Labour and Social Security reports that, according to a survey on this category of workers, 44 per cent of women questioned said that they had not signed a contract of employment and had been hired on the basis of a verbal agreement with their employer. This is not an isolated incidence of such verbal agreement. Similar situations are found in export enterprises in El Salvador, Guatemala and other countries in Central America. Attempts by workers to organize in order to obtain greater job security sometimes meet with an extreme response. In early 1999, for example, there was a dispute between the largest American shirt manufacturer and the Union of Needle Trades, Industrial and Textile Employers (UNITE). The union accused the company of closing the only enterprise in Guatemala – out of 200 clothing export enterprises in the country – in which workers had established a union to improve their terms and conditions of employment. That example became well known, since there had been media coverage of the dispute commensurate with the size and importance of the union and the employer concerned. In many other enterprises, contracts of employment remain insecure because of the absence of any organized trade union representation and because of the threats to jobs which can be relocated to another country at a moment’s notice. There is, especially in the clothing sector, a fairly close correlation between the instability of employment resulting from the tendency of companies to relocate, and the growing insecurity of contracts of employment.

In the developing countries of Asia, growing disparities can be observed between the provisions of labour legislation – which is, more often than not, extremely detailed and provides good protection for workers – and actual labour practice. The smaller the enterprise, the greater those disparities tend to be. In the larger TCF enterprises, which are directly involved in the international market and deal directly with foreign buyers, contracts of employment in general conform to national laws. Here as elsewhere, there is a growing trend towards fixed-term contracts and part-time work, particularly for women workers. In Sri Lanka, large and medium-sized TCF enterprises generally offer employment contracts without limit of time. In China, workers hired by TCF enterprises are generally required to complete a probationary period. Once that probationary period has elapsed, employees whose performance is satisfactory are given a fixed-term contract (often for a period of two years, which can be extended). Similar practices are found in many Asian countries, which are among the principal TCF producers. Small enterprises and those in the informal sector do not offer anything like the same security to their employees. In those enterprises, temporary workers, seasonal workers or day labourers paid piece-rates constitute the bulk of the labour force. In the absence of any effective monitoring by labour inspectors, national legislation concerning employment contracts is often disregarded and the situation of workers is often highly insecure. Since the viability of these enterprises itself is precarious, workers often accept their situation in the absence of any alternative. Attempts by the trade unions and public authorities to take action come up against market forces which keep smaller TCF enterprises in a state of dependence on bigger contractors, which are concerned to obtain the products they need when they need them at the lowest possible price.

Homework: Maximum flexibility, minimum protection

For many enterprises in the clothing sector and, to a lesser extent, in the crafts textile and footwear sectors, the most effective means of ensuring optimal flexibility in their activities is to subcontract all or part of their production to homeworkers. Since there is a demand for this type of employment in many countries, particularly by women who have no other employment opportunities or who, for family reasons, prefer to work at home, this form of subcontracting has grown in importance over the last two decades.

This definition excludes workers who do not have a subordinae relationship with an employer and who establish a direct relationship with the consumer of the end-product. The concepts of dependence on an employer, absence of control on the part of the worker over the manner of production (he or she simply follows instructions) and of wage remuneration are defining differences between homeworkers and self-employed workers, who also often use their homes as a workplace but work autonomously.

The term “home work” in the TCF industries covers a range of employment relationships and conditions o

Contents

Introduction

1.1.1. Production trends^[2]

The changing world distribution of employment

Long-term employment trends by country
(losers and gainers)

1.2.2. Women workers in TCF industries

General observations

Female employment in textiles

Female employment in clothing

Female employment in footwear

1.2.3. Globalization and stability of employment

Net job creation and geographical instability

Flexibility and contracts of employment

Homework: Maximum flexibility, minimum protection

Contents

Introduction

1.1.1. Production trends[2]

The changing world distribution of employment

Long-term employment trends by country (losers and gainers)

1.2.2. Women workers in TCF industries

General observations

Female employment in textiles

Female employment in clothing

Female employment in footwear

1.2.3. Globalization and stability of employment

Net job creation and geographical instability

Flexibility and contracts of employment

Homework: Maximum flexibility, minimum protection

1.1.1. Production trends^[2]

Long-term employment trends by country
(losers and gainers)