The Emperor has no clothes: Asian garment sector during corona times (AFWA)

The coronavirus pandemic has triggered an unprecedented socioeconomic crisis - where there is a crisis of both demand and supply which can trigger a downward spiral, in which workers in global supply chains are the some of the worst affected. There is no clear consensus as to when there will be a revival of growth, which puts the working poor in a state of utmost uncertainty. This report tried to look at the major ways in which this has played out at the local level in four major textile and apparel production countries in Asia. Special emphasis was laid on the impact of the pandemic and institutional responses in four dimensions, viz. wage disbursal, social security, migration and healthcare. In a system that puts profits over people, wages are the first to be cut, and social security for the working poor decimated. Public healthcare is grossly underfunded and inadequate. Migrant workers suffer among the most vulnerable, underpaid and excluded sections of the workforce. In this scenario it is important to raise two points.

Firstly, the government that is expected to step in during such a time does not do so due to its commitment to fiscal fundamentalism that has restricted its spending capacity even under normal times, let alone in the midst of such a crisis. An abandonment of neoliberal economics by adopting progressive taxation policies, wealth redistribution, massive stimulus packages aimed at safeguarding livelihoods as well as employment opportunities, extensively revamping the public healthcare system and protecting the freedom to associate is the way forward for government action. 

Secondly, it is imperative to note that inter-brand competition in the fast fashion industry has pushed down wages with little to no protection for the working class in developing countries. The race to produce more has been a race to the bottom for the working poor, with local suppliers increasingly relying on contractual workers who live and work in increasingly precarious conditions. It is an ethical as well as economic responsibility of the brands to step in and devise mechanisms to safeguard those who produce their profits from such unforeseen vulnerabilities. A major step forward in this direction would be to encourage collective bargaining through unionisation as well as strengthen the solidarity within the labour movement.

Read the full Asia Floor Wage Alliance report: "The Emperor has no clothes" here.