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Labour standards

Sub-Saharan African countries have been able to attract a huge investment in garment industry by offering a variety of incentives. But what have been the consequences of attracting what is known to be an unstable, footloose industry, on their economies and workers?
 
Based on a detailed analysis of the garment industry in Southern Africa, particularly in Lesotho and Swaziland, this report says the garment sector has not contributed significantly to the overall industrial growth in these countries. The companies, mostly from Asia, have invested very little in the local economies.

Meanwhile, the governments spends a great deal of money to attract garment industries. Although there is a frustration with the returns on investment, the countries are keen on keeping the industry. This makes the governments vulnerable to pressure from buyers and manufacturers who lobby for better deals.
The report says that the governments have been turning a blind eye to the workers problems in garment industry.These problems include:

• there are no safety nets to assist workers if their factories close down or if they are dismissed
• companies do not inform the government or the workers when they plan to leave the country
• there are mechanisms in place that could stop companies from leaving a country
• workers of closed companies face misery as they go without their terminal benefits, sometimes even without their wages for the last months

The report recommends that:

• governments should avoid situations in which foreign investors take advantage of the trade and investment regulations and incentives, without having a positive effect on the economy and social conditions
• a level playing field should be created at the international level to avoid a race to the bottom where companies move from one country to another where labour costs lower and labour laws are flexible
• there should be extra-territorial application of core labour standards and fundamental human and environmental rights
• multinational companies should be legally bound to respect and comply with basic internationally-agreed standards and principles
• donor aid given to attract investment needs to have guarantees for the rights of workers

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