Apparel Online was surprised to see a report ‘Unfree and Unfair’ recently, wherein the India Committee of the Netherlands (ICN), an independent NGO has made some serious allegations against India’s top exporters in Bangalore that run hostel facilities for their workers. On the base of desk research and interviews with 110 migrant workers from rural Karnataka and other states like Uttar Pradesh, Jharkhand, Maharashtra and Madhya Pradesh, employed at four garment factories – Shahi Exports, Texport Industries, Arvind Ltd., and K Mohan in Bangalore, the ICN claims that garment workers still face serious issues like poor living conditions and has restricted freedom of movement despite stated commitments on the part of big brands to address these problems. Ironically, the very lopsided report with no discussion or clarification from the company owners in a positive feedback, admits that the wages at all the four factories are slightly above the minimum wage rate fixed by the State Government.
The interviews of the migrant workers and members of the Garment Labour Union (GLU) in Bangalore were conducted in two phases, in October 2013 and again in December 2014, and discussions with workers from other factories took place in August and September 2015. The findings of the report were shared with top buyers, like C&A, H&M, Inditex, PVH and Gap who have responded extensively to the findings and pledged to improve the living conditions of garment workers at their suppliers’ factories.
Though the findings of the report is damaging to the reputation of the companies…, why no one thought it necessary to ask the companies for answers, is a mystery also; surprising is the fact that such damaging reports are brought out time and again despite both the suppliers and buyers strongly negating the findings. Earlier also the report on Sumangli practice in South India had been refuted with strong evidence by the industry, and in particular those named in the report.
Major Findings of the report…
Facilities
It is claimed that none of the hostels provide any kind of recreational facility or cultural and educational programmes; in fact some of the women workers at Shahi Exports expressed their desire for a television. All the hostels lack basic amenities such as proper furniture, cupboards for storage, beds and mattresses. K Mohan provides a straw mattress, rug and pillows. At Arvind, the workers do not have any facilities other than bunk beds without mattresses. Except for a cooking gas connection, no other facilities are provided at Shahi Exports and workers have to buy their own bed and mattresses. Texport however provides the workers with a bed and a cooking gas connection.
At Arvind, about 70 workers stay on each floor. The accommodation provided is in a large hall, which is divided into compartment rooms with three-tier bunk beds. The toilet and bathroom is shared by 12 to 14 workers. The workers have to cook their own food next to the bunk beds, since there is no kitchen facility in the hostel. The factory has appointed maintenance staff, but workers complained that it is not always clean. Irregular water supply is another issue pointed out by them, which affects their ability to cook food.
The report claims that in 2013, K Mohan had separate hostels for migrant workers from North India, who had to pay Rs. 2,000 for food and accommodation. On the other hand, the local workers paid only Rs. 1,300 to Rs. 1,400 per month in their own hostels. The workers also stated that the food served was mostly rice and sambhar, which is uncommon to their food habits, as they are used to eating North Indian dishes like chapattis, dal and rice.
Workers’ freedom
Workers’ freedom of movement is considerably restricted. Women workers are only allowed to leave the hostel once a week, which is usually for two hours on Sundays. They can only leave the hostel after registering with the security guard. The workers usually go out together and use this time to buy groceries and personal items. Returning late invites rebuke and sometimes punishment in the form of being made to wait outside the gate for hours till the warden allows them in. Women workers are instructed to go to their hostels immediately after work and are not allowed to go anywhere else. Their movement is severely restricted and they are herded to the factory and back to the hostel as a daily routine.
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The report underlines that migrant women are often housed in hostels run by their companies and guarded by male security personnel at night. The young women have been made to believe that these hostels, posing restrictions on their freedom of movement and the presence of male security guards at night, is for their own security only in an alien city where they are isolated from the local people. Yet, one worker said that the guards are appointed “…to ensure that we do not leave for our villages after taking our salary.” At Shahi Exports, women workers were under the impression that they were coming to Bangalore for a six months’ training with a stipend, but realized after getting there that it was a permanent factory work.
The migrant workers cannot communicate properly (due to language barrier) with the security guards, managers or co-workers at their factory. This makes them more vulnerable to exploitation. A male worker at Arvind states, “Nothing is good. But we are staying here because we have to live and there is no other way.” They also prefer to stay at the hostel as they are unfamiliar with the place and culture. One worker said, “I am from a different place and I speak a different language. I don’t know about the situation here. So I took the company hostel.” A group of workers from other factories said that they are scolded regularly by their supervisors. Young workers hint at abuse but refuse to speak directly about it for fear of repercussion.
Some other allegations
Few points in the report are generic and not specific to the above factories. It is claimed that “A worker from an unknown factory, whom the researchers met by chance, said that she was 17 years old. Some of the workers look like they could be 16 years old”. With the industry well attuned to issues of child labour, it is hard to believe that any factory will employ migratory women workers under 18. A group of migrant workers from other factories reportedly told the researchers that the factory management had said that they were not entitled to a Provident Fund because they were from North India.
When Apparel Online contacted the companies for their reactions, all of them were extremely ‘unhappy’ with the damaging report brought out by ICN and at the same time were delighted that we have taken up the responsibility to put the allegations to rest. All four companies have already written to their buyers clearing the matter, and buyers too have shown faith in the companies. Reproduced are the clarifications from each…; it is time that the industry strongly condemns such reports.
Points made by Shahi Exports in its clarification…
The report is indeed unfair to us and totally biased, based on a selective interview of 11 workers whose background is not known to us. The motivation is to create sensation in the industry with the help of some local unions who are keen on disturbing balance and industrial peace. Nonetheless, we would like to clarify on the issues raised in the report.
- The same report on “migrant workers’ hostels” in Bangalore by ICM/SOMO was sent to us by Gap in November 2015. We were advised that all brands like PVH, H&M, Walmart, C&A, M&S, Columbia, Primark, Inditex and a few others wanted to meet us on hostel issues in Bangalore. Accordingly, all these brands including Li & Fung met our team on 22nd December 2015. All points were clarified during the meeting and apparently all the brands were satisfied with the clarifications given by Shahi and its future approach of engaging an independent NGO to take care of hostel facilities and concerns, if any.
- Shahi is the largest employer in garment industry, employing almost 100,000 workers. Shahi is following all the local labour laws and fully compliant in all respects. Buyers have no concern with Shahi as far as factory compliance is concerned. Almost 70% workers are female workers and some of them migrate from rural and tribal areas of different states for employment.
- Knowing fully-well that the migrant workers will face difficulties in getting suitable accommodation and other facilities, Shahi facilitated in this respect in arranging accommodation so that the migrant workers feel safe and comfortable while working in Shahi. However, Shahi does not own any hostels as made out in the report.
- Shahi also does not restrict movement of the workers in any way. However, since they are the employees of Shahi, reasonable care is taken for their safety and security. This, in any way cannot be construed as unnecessary restriction on their movement. They are free to move. But they are expected to take some precautions. This is nothing beyond a parental care which any employer has to take for their workers when they are especially migrant and do not have any local contacts. They are free to move on Sundays during the day time. In case they have to be away beyond 7:00 PM, they have to inform warden of their respective hostel. Even their parents are worried about their safety when they are alone in unknown city. Some guidance is necessary and it is in the interest of their safety.
The brands have personally visited the hostels and are satisfied with the living conditions. Using words like “modern day slavery” is just to sensationalize the issue without any base.
- It is to be noticed that no untoward incident has happened as far as their safety and security is concerned. It is equally untrue that they are allowed to leave hostels for two hours a week and punishment is given if they are late. Such statements in ICN report are totally unfounded.
- Gap had taken initiative to represent all the brands who met our team on 23rd Dec. 2015. They have appreciated our initiative of engaging NGO and we are working on the same. We have had deliberations with the NGO and soon we will be coming to conclusion.
Arvind Ltd. has put forward the following arguments…
Arvind is committed to be compliant and remain employer of choice. Also to provide safe and hygienic work atmosphere to the workforce as they are most important asset. We are currently engaged in multi-stakeholder discussions with the sustainability teams of different brands we work with and are further willing to implement any suggestion, which makes the life of our people staying in these places much more comfortable.
1. Accommodations are an arrangement for the migrant labour from within and outside state coming to work with us in factories situated in proximity. However, Arvind directly does not run these facilities but in no way absolves itself from the responsibility of providing good living conditions at these facilities for the people staying here. Arvind provides the basic infrastructure of cots, mattress, bedsheets and utensils for cooking food.
2. The arrangement facilitates stay for the initial period, and it has been noted that many workers also move out of this transit place and settle in other localities based on their needs/requirements due to affiliation, marriage, etc. There is no compulsion from Arvind’s side for workers to use these facilities and it purely is on need basis. Arvind garment business directly employs close to about 12,000 associates for its various garment activities and only about 900 are housed in these facilities.
3. The accommodations are owned and managed by owners and they are assured for a consistent payment by the Arvind Limited throughout, regardless of the number of people staying in these places.
4. Regular meetings are held with people staying in these accommodations by respective factory representatives and minutes are recorded. The accommodations are accessible to Brands/Buyer’s and any other authorised person/agency in this regard. We have had affirmative reports of compliance and no major lapses are reported so far.
5. The freedom of movement of inmates of these accommodations is ensured and at the same time in event of any medical help, emergency speedy help is provided round the clock. They are also enjoying leaves whenever they need it. We do provide a hostel warden and security at these places at our cost.
The regular meetings are held with people staying in these accommodations by respective factory representative and minutes are recorded. We have had affirmative reports of compliance and no major lapses are reported so far.
Response from Texport Industries…
Texport employs 12,000 people out of which we have only 80 migrant workers which is only 0.66% of our total strength. This can be audited by any third party. We have hired these 80 -odd workers as a part of CSR to give back to the society. We train them free of cost and then pay for their house and provide basic facilities, also free of cost. This is helping us train and employ people who are otherwise unemployed. In this process, we pay them higher salaries from locals and provide various ‘free’ facilities as mentioned in the ICN report. Under any circumstance we have no intention of exploiting people especially when we have nothing to gain looking at the strength. As for the concerns specific to Texport mentioned in the ICN report…, point by point reply is as under:
No Reponse to researchers & denying access – Texport has never been contacted for any information or access from any researcher. After this report we have again informed to all our customers that we are open to share all information and visits.
Texport Running Hostel – Texport does not run any hostel and has only facilitated the 80 workers to stay at a housing run by a Government-recognized NGO called “Janodaya”. They run various women hostels across Bangalore. Credential of Janodaya can be verified through their website (www.janodaya.org). We only refer workers to Janodaya and it is up to them whether they want to provide them accommodation in their housing. The residential facilities occupied by these workers are individual apartments situated in a community dwelling having other families staying in this complex. These other families are in no way connected with Texport or our locals in the area who could be working in other factories.
Living Conditions – The ICN report clearly mentions that in case of Texport, living condition are better with 5 to 6 workers sharing a kitchen, room and a toilet. The report also mentions that Texport provides cooking gas and bed and does not charge anything for the same. As a part of CSR activities we have also provided them with free cooking utensils and other furniture so that they can cook food as per their liking. They are also expected to clean their own house.
Freedom of Movement – Since these so-called hostels are not run by Texport we have no control over them. The worker has voluntarily chosen to stay in Janodaya housing and vice-versa. However, after the report we have conducted our own audit and below are the findings:
- Though the community complex where the workers are residing are safe, however a security guard is posted during the night. During the day, all workers are at the factory and in case any worker from the facility has not reported, the HR team visits their residence to know the reason of absence from duty and help them for any assistance. Example: Medical care for sickness etc.
- Posting of Male Guards at Night – The Govt. regulations do not allow a lady to be deputed as guard between 7 pm and 6 am as employment of ladies between this period comes with a lot of conditions related to their safety; thus only few industries employ them at night such as IT, ITES and BPO industries. Thus employment of a male guard is an inescapable eventuality. Male guards are deployed for the safety of inmates at night and not to curb their freedom of movement which is very essential.
- Workers are free to move in and out of the hostel, subject to applicable rules and regulation of Janodaya related to hostel management which are mainly meant for orderly operation of the hostel and safety of workers as they are from an outside place. Workers have absolute freedom of association and we have not come across any single instance indicating otherwise. Also during the day, if a worker has to move out of the factory due to any pressing reason during working hours, s(he) can do so by informing the immediate boss of the reasons to this effect.
All the inmates of the Janodaya facility have to register with Janodaya and their personal file is maintained giving all the details related to the inmate. A Janodaya female consular is in charge of each facility and in case of any emergency 24 x 7 helpline by Janodaya is available displayed at the facility.
A detailed review of the ICN report published would show that we are doing much more than our peers and also the local law requirements. However at the same time we are also open to any suggestions which can help us to make a difference.
Work together with relevant local stakeholders. Brands should develop standards for hostels that apply to all suppliers in India. Brands and retailers need to implement a process of human rights’ due diligence in their supply chain
Actions committed by buyers after ICN shared the draft report with them
C&A’s actions on the ground are two-fold; they have taken individual efforts to further investigate conditions at Shahi Exports (one of the garment factories mentioned in the report and a long-term supplier for C&A), and they work together with Inditex and H&M towards a coordinated and collaborative approach. With this collaborative approach they want to ensure freedom of association, liaising with local trade unions GLU (Garment Labour Union) and GATWU (Garment and Textile Workers Union), and to empower migrant workers with training and a grievance handling system, with support of a social entrepreneurial initiative Gram Tarang.
C&A also said, “It’s important to emphasize that, Shahi Exports Unit 14 and Unit 19 had disclosed 4 hostels. During the current visit, we came across that there were 2 additional hostels not previously disclosed. That fact indicates that different conditions could be found in those undisclosed hostels and further investigations have already started in this regard.”
H&M decided to apply multi-stakeholder developed dormitory guidelines for all hostels in the H&M supply chain and reinforce the guidance for migrant workers is followed at the hostels and in accordance with applicable existing laws. It will review curfew regulations at hostels provided to workers in H&M supply chain, and evaluate freedom of movement vs. safety. It will also assess whether hostels in H&M supply chain are in need of above law improvement to ensure an acceptable living standard. It will develop third party system for grievance handling from workers accommodated in hostels with local NGO and ensure the NGO gets access to hostel and interact with workers living in the hostels.
Inditex will conduct a baseline assessment through a NGO, to get better understanding of the status of migrant workers (along with the conditions of accommodation facilities wherever provided) at the premises of all the suppliers and factories. Initially this assessment will be done for the suppliers and factories based in south of India and then it will be expanded to rest of the supply chain in India. It will implement a project (on the outcome of this assessment) targeting the provision of better hostel facilities, putting in place a grievance handling mechanism and training and counselling sessions for migrant workers and sensitizing management and staff on taking care of the needs of migrant workers.
PVH: “We also recognize this as a complex issue, as the personal safety, fair treatment and freedom of movement of the workers are all of paramount importance. We have asked all the named suppliers to review, consider and report back to us on their individual circumstances. We are also developing guidelines that are intended to address the issues raised, and would require the vendors to comply and ask them to certify to their compliance.”
