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.