BANGALORE: After pounding China and South-East Asian markets like Indonesia in the global media over sweatshops, influential global NGOs and trade unions are now attacking India’s apparel export industry.
Though exporters claim that the international campaign is only a backlash to jobs being shipped out of Europe, it has clearly put brands on the defensive. Global biggies like Tommy Hilfiger, Levi’s, Ann Taylor and Mexx have snapped sourcing ties with Bangalore-based Fibres & Fabrics International (FFI) after international watchdog Clean Clothes Campaign (CCC) accused the company of labour rights violations in recent months. Others like Esprit, meanwhile, have put their Indian vendors such as Shahi and Orient Craft on alert.
Clearly, the stakes are getting higher for India’s Rs 35,000-crore garment export business, as CCC’s is not a one-off campaign. In recent weeks, Brussels-based International Textiles, Garments and Leather Workers’ Federation (ITGLWF) and International Trade Union Confederation (ITUC) have moved International Labour Organization (ILO) and World Trade Organization (WTO) pointing out specific instances of labour abuse in Gokaldas Exports and Texport Overseas.
Gokaldas is the largest domestic garment exporter employing over 40,000 people in Bangalore, the booming garment export business’ nerve centre after quotas were dismantled. It is estimated that the city alone accounts for over 5 lakh garment workers, besting the 4 lakh-odd more celebrated IT/ITeS employees.
But Indian firms are beginning to hit back at activists legally. The Rs 400-crore FFI has begun criminal and civil proceedings against the Netherlands-based CCC and its affiliate Cividep. FFI owns five factories employing 6,000, including an R&D unit in Italy.
The company won a reprieve when the Additional City Civil Judge, Bangalore, passed an injunction restraining Cividep from carrying on any campaign. “The case clearly shows the mala fide intention of those who are giving false information to some organisation in Netherlands who are publishing it without cross-checking or verifying the truth for reasons best known to them,” the court observed. Incidentally, the premise for dragging Gokaldas and Texport are isolated instances of death or suicide involving women workers. Earlier this year, a woman worker at Triangle Apparels, a Gokaldas offshoot, committed suicide in the factory. ITGLWF’s information sourced from local affiliates alleged that “the tired woman worker hanged herself after being abused and shouted at”. In Texport’s case, workers unions allege that an expecting woman employee lost her newborn after not being offered help on time. Sources at Gokaldas Exports and Texport Overseas say they did their best to resolve these issues. While in Gokaldas’ case, it was a domestic issue leading to suicide in the factory premises, it was the employee’s lack of shop-floor relations that fomented trouble at Texport Overseas, they said. Both Gokaldas and Texport declined comment, saying investigations are still pending.
Incidentally, recently-registered local workers unions, linked to global NGOs, have become active in the factory premises of well-known names like Leela Scottish Lace and Texport. Earlier this year, sources said Texport had moved court for injunction against Garment and Textile Workers’ Union (GATWU) but succumbed to pressure from global brands like Gap to withdraw legal action in favour of a negotiated settlement.
Other leading industry names too have come under attack from international organisations, but have decided to remain silent, given the business fallout. The global brands are hyper-sensitive to human rights concerns ever since the south-east Asian sweatshop issue exploded in the global media in the late 90s.
Following the court injunction in the FFI case, the international campaign has strengthened against European apparel brand G-Star, which decided to continue sourcing from the Bangalore company after being satisfied with surprise factory audits.
An industry observer said the working conditions in Indian factories—far more automated and most of which are SA8000-certified. under social compliance norms—are far better than those in Indonesia, Vietnam or China. “These states have actually clamped down on operations of several international watchdogs.”
Another industry insider told ET: “There is a need for industry agencies like the AEPC (Apparel Export Promotion Council) and the Union commerce ministry to address these concerns. We are being targeted.” These developments come at a time when exports have been hit hard by the appreciating rupee and other low-cost producers like Bangladesh are snapping at India’s heels.
Though exporters claim that the international campaign is only a backlash to jobs being shipped out of Europe, it has clearly put brands on the defensive. Global biggies like Tommy Hilfiger, Levi’s, Ann Taylor and Mexx have snapped sourcing ties with Bangalore-based Fibres & Fabrics International (FFI) after international watchdog Clean Clothes Campaign (CCC) accused the company of labour rights violations in recent months. Others like Esprit, meanwhile, have put their Indian vendors such as Shahi and Orient Craft on alert.
Clearly, the stakes are getting higher for India’s Rs 35,000-crore garment export business, as CCC’s is not a one-off campaign. In recent weeks, Brussels-based International Textiles, Garments and Leather Workers’ Federation (ITGLWF) and International Trade Union Confederation (ITUC) have moved International Labour Organization (ILO) and World Trade Organization (WTO) pointing out specific instances of labour abuse in Gokaldas Exports and Texport Overseas.
Gokaldas is the largest domestic garment exporter employing over 40,000 people in Bangalore, the booming garment export business’ nerve centre after quotas were dismantled. It is estimated that the city alone accounts for over 5 lakh garment workers, besting the 4 lakh-odd more celebrated IT/ITeS employees.
But Indian firms are beginning to hit back at activists legally. The Rs 400-crore FFI has begun criminal and civil proceedings against the Netherlands-based CCC and its affiliate Cividep. FFI owns five factories employing 6,000, including an R&D unit in Italy.
The company won a reprieve when the Additional City Civil Judge, Bangalore, passed an injunction restraining Cividep from carrying on any campaign. “The case clearly shows the mala fide intention of those who are giving false information to some organisation in Netherlands who are publishing it without cross-checking or verifying the truth for reasons best known to them,” the court observed. Incidentally, the premise for dragging Gokaldas and Texport are isolated instances of death or suicide involving women workers. Earlier this year, a woman worker at Triangle Apparels, a Gokaldas offshoot, committed suicide in the factory. ITGLWF’s information sourced from local affiliates alleged that “the tired woman worker hanged herself after being abused and shouted at”. In Texport’s case, workers unions allege that an expecting woman employee lost her newborn after not being offered help on time. Sources at Gokaldas Exports and Texport Overseas say they did their best to resolve these issues. While in Gokaldas’ case, it was a domestic issue leading to suicide in the factory premises, it was the employee’s lack of shop-floor relations that fomented trouble at Texport Overseas, they said. Both Gokaldas and Texport declined comment, saying investigations are still pending.
Incidentally, recently-registered local workers unions, linked to global NGOs, have become active in the factory premises of well-known names like Leela Scottish Lace and Texport. Earlier this year, sources said Texport had moved court for injunction against Garment and Textile Workers’ Union (GATWU) but succumbed to pressure from global brands like Gap to withdraw legal action in favour of a negotiated settlement.
Other leading industry names too have come under attack from international organisations, but have decided to remain silent, given the business fallout. The global brands are hyper-sensitive to human rights concerns ever since the south-east Asian sweatshop issue exploded in the global media in the late 90s.
Following the court injunction in the FFI case, the international campaign has strengthened against European apparel brand G-Star, which decided to continue sourcing from the Bangalore company after being satisfied with surprise factory audits.
An industry observer said the working conditions in Indian factories—far more automated and most of which are SA8000-certified. under social compliance norms—are far better than those in Indonesia, Vietnam or China. “These states have actually clamped down on operations of several international watchdogs.”
Another industry insider told ET: “There is a need for industry agencies like the AEPC (Apparel Export Promotion Council) and the Union commerce ministry to address these concerns. We are being targeted.” These developments come at a time when exports have been hit hard by the appreciating rupee and other low-cost producers like Bangladesh are snapping at India’s heels.
