Showing posts with label Garment factories closing. Show all posts
Showing posts with label Garment factories closing. Show all posts

Monday, October 19, 2009

Work on global climate change crucial

Mon, 2009-10-19
By Quintus Perera
Asian Tribune

"In South East Asia in the first nine months of 2009, unemployment increased by roughly 10 per cent and labour productivity decreased by 2.5 per cent, a remarkable drop in such a short period of time. In Cambodia alone, a quarter of the garment sector factories have closed."
Colombo, 19 October, (Asiantribune.com): To coincide the meeting in Bangkok on Climate Change, Sachiko Yamamoto, Regional Director, ILO Regional Office for Asia and the Pacific indicated that progress towards a global climate deal is crucial for its development and its stability and indicated that Asia and the Pacific are very much exposed to the impact of climate change.

He indicated that such a global journey to a low carbon and climate resilient future will necessarily involve the world of work and those who will actually do the job.

Giving an example Mr Yamamoto indicated that Meena Thakur is aged around 36. She lives with her husband and three children in a farmers’ community in Jabalpur, Madhya Pradesh, India.

During the dry season she lives mainly by preparing cakes of cow dung and selling them as fuel to a nearby brick kiln. Managing and disposing of the dung produced by cows from the local dairy sector is a major issue for the surrounding communities as the dung is dumped widely and contaminates the local river. In addition it gives off methane gas.

It may seem obvious that climate change-related programmes and financial support - facilitating access to renewable energy and a wider range of ways of earning a living - would be welcomed by the farming community in Jabalpur.

But it may come as bad news to Meena and her friends in the dung cake business, cutting off their supply of dung. She and her family exist on about US$60 per month, and any change that threatens even a cent of that income threatens her. She does not view the issues of climate change in the same way as they do. Yet without her support and that of others like her, if the climate change challenge is not converted into opportunities for better livelihoods and jobs, they will not be able to turn negotiated agreements into concrete change.

He indicated that it is understandable that questions are being asked about whether mitigating climate change is feasible, whether, in current circumstances, they should not be committing resources to supporting livelihoods and the bottom line?

Although the financial crisis may be easing there is no doubt that the related social crisis continues for many of the most vulnerable countries in Asia and the Pacific, and beyond. In a region where one billion people are classified as working poor (living on less than US$2 per day), 100 million people were for the first time recorded as being without a job in 2009. In South East Asia in the first nine months of 2009, unemployment increased by roughly 10 per cent and labour productivity decreased by 2.5 per cent, a remarkable drop in such a short period of time. In Cambodia alone, a quarter of the garment sector factories have closed.

He indicated that this does not make an easy atmosphere for negotiations on reducing emissions, including those at the United Nations headquarters in Bangkok.

These concerns should be aired. But at the same time some myths need to be dispelled.

Mr Sumitomo indicated that the first myth is that action on the environment is bad news for jobs. Rather, past experience demonstrates that well-designed, environment-related investments are beneficial for employment overall, although there are shifts in the labour market structure. The so-called green sectors of the economy can be expected to create more jobs, directly and indirectly, than will be lost in other sectors. A recent HSBC survey found that, worldwide, businesses selling low carbon goods and services now generate more revenue than the aerospace and defence industries combined, making this sector one of the new linchpins of the global economy.

A second myth is that environmental measures only bring financial costs. Win-win options clearly exist. Examples include the introduction of energy efficient appliances and equipment, the sustainable management of resources such as water, and improvements in housekeeping practices. The widespread introduction of such measures could greatly reduce carbon emissions in developing countries and would bring ancillary benefits such as short return-on-investment periods, net productivity gains, better working conditions and little or no harm to employment.

To these two myths he indicated that he would add a third - which is that environmental issues such as climate change are the concern of specialists and can be solved by environmentalists and negotiators alone.

Whether they like it or not, climate change will revolutionize the way they produce, consume and earn a living. This historical transformation will affect all sectors of the economy, in all countries, and consequently all peoples.

Any commitment by governments will require support from all layers of society; young and old, male and female, poor and rich, urban and rural, workers and employers. When deals made in high level conference rooms do not have the grassroots support of people like Meena, they are hard to deliver on. Delivering on reduction targets starts with engaging those on the ground whose jobs and livelihoods will be the first to be affected. We need to anticipate and smooth the inevitable changes and manage a ‘just transition’ towards a sustainable, low-carbon path.

He indicated that the good news is that the world of work is ready to be part of the solution.

In June this year governments, employers’ and workers’ organizations from the ILO’s 183 member States adopted a Global Jobs Pact that supports a shift to a low-carbon, environmentally-friendly economy as a way to accelerate a jobs recovery. Green jobs (decent, environmentally-sound jobs that fuel the growing green economy), are important agents of change and as such can play a constructive role in the debate and ultimate agreement.

For Meena and her colleagues this means concrete, timely, technical and financial help to explore alternatives, giving her in the option of more value-added tasks like dairy processing.

Progress towards a low carbon future will necessarily involve the world of work, and convincing those who actually do the job. A win-win deal that supports economic recovery and emission reduction is ambitious, but possible. Employment and green jobs in particular, are part of the solution.

Monday, March 16, 2009

Garment orders plunge 40 percent

Employees leave a garment factory in Phnom Penh on Thursday. (Photo by: AFP)

Monday, 16 March 2009

Written by Chun Sophal
The Phnom Penh Post

PRODUCTION DECLINE
  • 40pc decline in garment production orders for the first two months of 2009
  • Drop by more than two thirds in January exports, from $250m to $70m, said Commerce Minister Cham Prasidh
  • More than 50,000 laid off since the downturn began last year
  • About 70 factories closed since crisis began
Industry says that falling overseas orders could lead to more factory closures and layoffs, but hope remains for second-quarter recovery.

GARMENT orders were down 40 percent in the first two months of 2009 compared to the same period last year, Van Sou Ieng said Sunday after re-election as president of the Garment Manufacturers Association of Cambodia.

The latest figures suggest more layoffs and factory closures could be on the way for the already battered sector even if they paint a more positive figure than government data. Last week Minister of Commerce Cham Prasidh said exports had declined from US$250 million in January 2007 to just $70 million in the same period in 2008.

About 70 factories have shut their doors since the economic crisis started to hit Cambodia last August, and more than 51,000 workers have lost their jobs or seen their contracts suspended, say industry officials.

"We have received only 60 percent as many orders as last year, and that figure may continue to decrease without urgent measures," said Van Sou Ieng.

"I will encourage buyers to increase orders of textiles from Cambodia because they have already recognised the reputation of our country for respecting labour standards," he added.

He said local factories were improving their quality standards and were capable of competing with producers in Bangladesh and Vietnam.

GMAC, which represents the majority of the country's factories, said it plans to meet with buyers from Hong Kong on March 26 to press for orders.

"We must help garment factories to increase quality so that they are able to compete with other countries. That means improving transportation and reducing bureaucracy," he said.

The GMAC president said he hopes the industry will recover this year.

"I think in the second quarter we will be able to maintain orders at the current level if we make factories more competitive," he said.

The sector has been hit hard by the global economic slowdown and is heavily dependent on the crisis-hit American and European markets.

Garment makers have had limited success diversifying into the Middle East, Japan and Eastern Europe. The Commerce Ministry said export sales were down $60 million in February compared with last year, with $337 million in sales in 2009.

The monthly payroll for January and February was down $1.1 million from last year.
"In the second quarter, we will ... maintain orders at the current level."
Commerce Minister Cham Prasidh said he is optimistic that tourism and agriculture will stay strong, but added construction investment had fallen 40 percent.

From 2004 to 2008, total investment was $1.96 billion, with $1.17 billion in foreign investment and $7.880 million in local investment.

Mean Sophea, director of the Trade Preferences System Department of the Ministry of Commerce, said Sunday that the government has been encouraging more investment in the garment sector.

Union strikes

But a Commerce Ministry spokesman said worker unions and GMAC could help stimulate the sector.

"I think that GMAC can help make buyers feel confident in buying garments from Cambodia," Mean Sophea said.

Van Sou Ieng called Sunday for the country's 1,000 unions to limit their activities while the sector faces problems.

"Some union activities are leading to fewer orders and are leading to thousands of job losses, so [unions] must be careful with their actions," said Vann Sou Ieng. "I would like to publicly announce to the world that no matter what obstacles we face, Cambodia will not die. I will try to look for new markets and new buyers."

Chea Mony, president of the Free Trade Union of Cambodia, rejected the GMAC accusation, saying that many of the factories closing down were simply avoiding taxes.

"This is just GMAC's accusation," he said. "GMAC cannot blame strikes - there have been no strikes in the first two months of 2009, but 70 factories closed."