Legislation passed last week in federal parliament touted as providing national protections for outworkers and sweatshop workers in the textile, clothing and footwear industry threatens to destroy what’s left of the local clothing manufacturing industry.
Although noble in cause, the Fair Work Amendment (Textile, Clothing and Footwear Industry) Bill 2011 passed last week by the Labor government with the help of the Greens and independents means that any person now working from home cannot act as an independent contractor. They must be treated (at the very least) as a permanent, part-time employee with a minimum of 20 hours per week of guaranteed work.
The Textile Clothing and Footwear Union of Australia pushed for this, saying that in the past sham contractor agreements meant that instead of the Awards rate (which independent contractors had to convert their invoices into to show that they were applying the award), outworkers were often getting paid as little as $3-4 an hour.
To back this assertion, the TCFUA (as well as dozens of human rights organisations, church groups and labour academics) used out-of-date research papers to back this $3-4 an hour claim in submissions to the Senate review of the legislation. However the union, which takes dozens of companies to court each year for award breeches, did not produce one example of a case where they had successfully proved anything like this is occurring.
To give you an idea of the absurdity of the claims, China is now claiming an hourly minimum wage in clothing manufacturing of around $2 an hour. If outworker labour is available in Australia for $3-4 an hour, why is around 95% of clothing manufacturing done offshore? This question was never raised at the Senate review — mainly because the only industry organisation (the Council of Textile Clothing and Footwear Industries of Australia) to challenge the assertion was drowned out in the Senate review process and shut out of public hearings.
Why did the union push so hard for this? TCFUA president Michelle O’Neil told me last year she wants local manufacturers to use machinists in factories (of which there are very few left) rather than homes. Her reasoning is that it is easier to monitor that the award and conditions are being met in the circumstance. She forgets to point out it also makes it easier to unionise the workforce (only 6000 of the estimated 40,000 workers in the sector are union members — and membership has dropped by almost 50% over the past few years.
There are two ironies in their pursuit of the end of exploitation in the industry. Firstly, that this legislation will take work away from the outworkers they are trying to protect (due to the cyclical nature of the industry makers can’t guarantee 20 hours minimum ongoing). These are mainly women (most often Vietnamese) who can’t or don’t want to work in a factory situation. They have families and outwork gives them the flexibility of working from home.
And secondly, the argument that this legislation will stop sweatshop labour is true in Australia, but it will also send the work overseas. It will go to Fiji, China, Bangladesh, etc. I bet the factory workers (and outworkers) in these countries would give their left arm for the working conditions of even the so-called “exploited” workers in the Australian industry.
Everything I have written here is supported by industry testimonials from the corporations at the top, to the actual outworkers themselves.
There is an added kicker to this disastrous legislation: the laws apply to anyone who conducts their business from home and as such catches dressmakers, alterations services, fashion graduates, patternmakers, freelance textile designers, even home ironing services. All of these people have had their business model shut overnight. Most of them don’t realise it yet. Some are now desperately trying to fight back.
So what? People can just get clothing made overseas, life will go on. But aside from the 40,000 jobs at risk and the $6 billion industry adds to the economy, the local fashion sector is at threat as young emerging designers rely on local production to get their start. Whether it is sampling, patternmaking or short runs (China doesn’t want to know you unless you have three zeros after your order size), no emerging designer can afford to guarantee 20 hours of ongoing work to one outworker, let alone the several they require to create a range.
Big name companies and designers such as Country Road, Billabong, Carla Zampatti, Sass and Bide, Dion Lee, Alannah Hill and Lisa Ho started as home businesses. This new legislation all but ensures that such success stories are never to be repeated.
I recall the reality of outworkers conditions of the 1980’s. From what I heard during another submission to the Senate re Howard’s WorstChoices, the lot of these workers hadn’t changed much. I suggest that there hasn’t been any REAL change in their conditions.
I also notice that you haven’t included any information about their rights as workers, and the workplace safety regulations that are in place. I’d suggest that the fact that you haven’t mentioned this important aspect, that you either don’t consider it important, or you have a vested interest in ignoring it. I don’t know how long you’ve been involved in covering this industry, but obviously not for long. It’s a reality that this industry has a poor record for workers’ rights and protections. Perhaps this isn’t the best Legislation to cover their interests, but again, you haven’t canvassed any alternatives.
The fact that countries overseas pay their workers a pittance is often raised by journalists etc. Funny how they only ever canvas this for OTHERS, but perish the thought that they(you) be paid along the same lines. Politicians are a great example of this. Ask Sophie if she’d like to be paid the same as the average income of workers in Indonesia or China, or god forbid, an outworker in Australia. Their main concern is usually only applied to the poor employers/owners/retailers etc. Her attitude doesn’t surprise me at all!
Outworkers had to supply their own sewing machines – flat bed and overlocker. These machines are several thousand each to buy. The whole structure changed from one worker assembling a whole garment to piecemeal work. For instance, one worker might just be inserting sleeves, or doing buttonholes or collars etc. This involved repetitive movements which led to RSI (Repetitive Strain Injuries). These include medical conditions such as tenosynovitis, carpel tunnel syndrome, epicondolitis, shoulder and neck injuries, which if severe enough are non reversible. I met many women with this condition as I was suffering from it myself(not as an outworker though) and still suffer awful and disabling pain every day.
The pay rates were appalling. One woman, who was the first outworker in NSW to take her employer/s to Court for compensation, worked for three different well known retail outlets. She used to make Jeans, that at the time involved many pieces – vertical ‘stripes’ in each leg. When she became very quick at sewing these she could do three a day. She was paid just under $6 per pair. On a trip to Sydney she saw said Jeans that she’d sewn retail for almost $200 per pair. She was outraged, and so was I! She subsequently won her Court case, even though she faced 3 Barristers from the Opposition. She was a very brave woman, and the whole process finally caused her to suffer from depression and PTSD.
Most of the well known clothing chains have their garments made predominantly in China. Some in Vietnam, Indonesia or occasionally India or Bangladesh. It’s only the more expensive clothes from the more up market retailers that are made in this country. I rarely see them. Even a very expensive outlet have their clothes made overseas. In fact, I’m surprised that there are many outworkers left in Australia! I’d like to know where they are and who they work for! More importantly, I’d like to know how much they earn per garment, and what % of the retail price that is! I believe that’s a more accurate way of knowing whether their earnings are even remotely fair! You’ve failed to put this forward.
As I’ve already asserted; if a garment takes 4 hours to make, and you’re only paid $5 per hour to assemble it, and it retails at $150 even, how is that just? I’d also like to know whether outworkers assemble an item from beginning to end, or if piece work is still the method?
Finally, I’m not surprised that most of the information against the Legislation comes from owners or owner/machinists etc. I’d like to know how many $$$’s the Vietnamese woman has to outlay to start with; how many garments she sews per week; how much per garment she receives; does this income cover her electricity for instance, and how long does it take for her/him to cover the cost of the machines purchased – and any other requisites vital to the finished product! I frequently had to threaten bosses with action due to their refusal to give an application for compensation form to their employee, and/or to post workers’ rights in a public place that can be viewed by all workers.
I’d like to think that conditions have changed, but I’d be pleasantly surprised if that is the case.
Vietnamese female outworkers are not going to testify to an enquiry, being as wary of government as any other escapees from a totalitarian system, but that doesn’t mean they aren’t being exploited. I have seen it myself.
(Note: my family is Anglo/Vietnamese, and I speak Vietnamese.)
Does the Author deny that people are being exploited within the australian industry right now?
The arguement here appears to be that the industry is rotten, everyone knows it’s rotten, it’s been this way for years BUT try to make it better and it will die.
Don’t worry, you’ll still be able to find people to exploit in their homes, only now it will be illegal.
Agree with Mattsui. Article seems to suggest that Australian workers have to put up with exploitation because ..well…um….THEY JUST DO, OK!?!?!
Business exists to support society, not the other way around. If the likes of Bilabong, Sass & Bide, et al can’t pay a fair and legal wage to their workers, they don’t deserve to be in business. Well done to the TCFUA for trying to protect workers from cowboys. Hopefully other unions will follow their example against sham contracting and mass casualisation of the workforce. Maybe even the government might possibly find the gumption to do something about it!
The facts are no Australian workers are not expolited. The facts are
these workers are actually small business owners who negoiate the
price they will complete an entire job for. The jobs are not costed on
hourly rates, but on delivery of goods. The $5 hour amount that is
being misquoted is completely made up. The better you are the more
you can ask for as in any business. The fact is this legislation stops
people from working for themselves, which has always been their
choice. Last I checked we lived in country where if you had a skill you could sell it, start your own business. Its called freedom. The fact is that is that makers like plumbers, electrictians, trainers and cleaners personal coaches are all contractors. Their “expensive
tools of trade are no different to a plumbers tools. The unions, have passed this
legislation in their ignorance, and prejudice. Will the unions single them
out next? The Australian rag trade doesn’t operate like a Chinese
sweatshop. It operates like any capitalist free industry that allows people to grown their own
business, provide local jobs for a local industry as well as allow up and coming
designers a foothold in the australian market.