Improving Working Conditions for the Textile and Garment Industry

It is a well-known fact that many textile products and our ready-to-wear clothes are manufactured in countries with poor working conditions. In most manufacturing countries, such as China, Bangladesh, India, and Indonesia, labor rights and regulations are limited or non-existent. As Environmental, Social, and Governance (ESG) factors gain importance across industries, consumers are increasingly concerned not only about the sustainability of the materials used in products but also about the welfare of the workforce.   

The European Parliament used the term “slave labor” to describe the current working conditions of textile and garment workers in Asia. With over 70% of EU textile and clothing imports coming from Asia, it is no secret that the textile industry in these countries grapples with issues of low wages and income inequality. According to The Clean Clothes Campaign, workers in Asia may receive the minimum wage as per their country’s regulations, but this does not equate to a living wage. A living wage ensures that workers can cover basic needs such as food, housing, education, and healthcare while also providing opportunities for savings and discretionary spending. Establishing a living wage will not only improve workers’ living standards but also contribute to social and economic stability.

To establish a living wage for workers, textile and garment manufacturers can optimize their production processes, such as incorporating automation and real-time decision-making through technologies like machine learning and AI for quality inspection. Companies can also invest in research and development to create innovative, value-added products that command higher prices in the market. This approach can help differentiate their products from competitors, enabling them to charge a premium that can be used to support higher wages. This strategy typically leads to fewer mass-produced products and more customized, personalized offerings in the future. 

Companies can also explore and diversify their markets by tapping into the current trend of ethical consumption. As ethical consumption becomes increasingly popular, many consumers actively seek products that align with their values, such as those produced in environmentally friendly and socially responsible ways. By targeting socially conscious customers who are willing to pay more for ethically-produced goods, this strategy can help generate additional revenue to support higher wages for workers.

In addition to living wage issues, garment workers often have little to no protection under labor rights in their respective countries. The lack of regulation frequently results in 14-16 hour workdays, seven days a week, with workers sometimes working until two or three in the morning to meet brand deadlines. To improve this situation, governments should enforce stringent labor laws and ensure that textile companies comply with proper working regulations, including International Labor Organization (ILO) conventions and local labor laws.

Governments can also mandate the use of formal employment contracts by garment and textile companies. Providing workers with formal, written employment contracts helps ensure they understand their working hours, overtime, and other labor conditions. This promotes transparency and sets clear expectations, rights, and responsibilities for both companies and textile workers. In return, governments can also provide financial incentives, such as tax breaks or subsidies, to textile companies that commit to improving working conditions for their workers.