With only US$26 per month, Ethiopia has become the country with the lowest income for garment factory workers in the world! A just-released report claims that garment factory workers in Ethiopia earn less than half the $95 earned by low-income workers in Bangladesh.
The Ethiopian government’s goals have been criticized as “unrealistic”
A report titled “Made in Ethiopia: Challenges Facing the New Frontier of the Apparel Industry” was conducted by New York University Stern Business and Released by the Center for Human Rights. The researchers conducted the survey in the important Hawassa campus in the south of the country’s capital, which has about 25,000 workers.
The report pointed out that in order to seek the status of the leading manufacturing center on the African continent, the Ethiopian government has thrown out a large amount of labor willingness to foreign investors. Suppliers from countries such as China, India and Sri Lanka have opened factories in their main parks, but their labor wages are less than half of the well-known low wages in Bangladesh, which cannot guarantee the basic living needs of workers.
Currently, the income of Ethiopian garment factory workers has become the lowest in the world, with a monthly income of only 26 US dollars, about 180 yuan, and their wages are less than half of the 95 US dollars of low-income workers in Bangladesh. . Most of these workers work for world-renowned clothing brands such as Guess, H&M and Calvin Klein.
Employees are becoming dissatisfied with pay and working conditions, and more and more are protesting by stopping work or quitting their jobs.
The report shows that these factories replace all workers on average every 12 months. Most of the workers are young women and receive less training. The garment factories operate inefficiently. The Ethiopian government hopes that the country’s clothing exports will increase from the current US$145 million to US$30 billion per year.
“The Ethiopian government, global brands, and foreign manufacturers all want to promote the creation of a ‘Made in Ethiopia’ brand, but they fail to realize that the basic salary is too little for workers,” the report stated. Ethiopia does not have a minimum wage standard for the private sector.
In addition to the unsustainability of low wages, the country’s garment manufacturing industry also faces challenges caused by its almost reliance on imported raw materials. Based on the above situation, the report believes that the government’s above-mentioned goals have been criticized as “unrealistic”. The fact is that low wages and lack of training have led to low production efficiency, accompanied by regular strikes and high turnover rates.
It is understood that Ethiopia, with a population of 105 million, is the second most populous country in Africa. In Kenya, the most populous country in Africa, reports show that garment factory workers can earn US$207 per month, while Chinese garment factory workers can earn US$326 per month.
Bangladesh garment workers strike to demand higher wages
Ethiopia ranks last in terms of income of global garment factory workers , then, what is the situation of Bangladesh, which is slightly better as the world’s second largest clothing exporter?
On January 9, industrial workers went on strike again in Bangladesh, seeking to increase the minimum wage. One worker died during the protest and dozens of others, including police officers, were injured, according to police and union sources.
In September last year, Bangladesh stated that it would raise the minimum monthly salary of garment workers to 8,000 taka, approximately US$95, in 2019. However, this move dissatisfied the industry and industrial workers hoped that The minimum monthly salary will be raised to 16,000 taka, approximately US$191.
Currently, there are about 4 million garment workers in Bangladesh. Although the new minimum wage standard has been raised by 51% from the previous level, it is still difficult to reach the country’s minimum wage standard. The population’s annual income is $1,750. In sharp contrast, the exports of the garment industry account for more than 80% of Bangladesh’s total exports. WTO data shows that in 2016, Bangladesh’s clothing exports accounted for 6.3% of the global market.
In addition to fast fashion brands, European and American retail giants Walmart, Macy’s, JCPenney, Sears Group, Italian Benetton, Spanish Mango, British/Irish Primark, and Dutch C&A , Carrefour of France, etc. all regard Bangladesh as an important supply chain market. Li & Fung Co., Ltd., the world’s largest supply chain service provider, also uses Bangladesh and Vietnam as procurement bases. Almost all of its procurement business in Bangladesh is ready-made garments.
Many low-cost purchasing countries have experienced rising labor costs
Bangladesh Workers’ anger is justified, considering that many minimum wage workers in Asia successfully secured higher base wages last year.
In order to gain the support of garment worker voters in the 2019 general election, Cambodian Prime Minister Hun Sen announced last year that the minimum wage for shoe and garment factory workers would be increased from 153 USD/month increased to 165 USD/month, plus Hun Sen requested additional increase�The minimum wage is set at US$170/month in 2019, with a salary increase of 11%.
Also last year, Myanmar’s National Minimum Wage Committee agreed to increase workers’ daily wages from the current 3,600 kyats ($2.66) to 4,800 kyats ($3.55). The increase was 33%. This is based on an 8-hour working day and a 6-day work week. The minimum wage earned by garment workers in Myanmar is US$85 per month.
Although this increase seems large, it is lower than the 55% increase demanded by workers and unions. Workers and unions are demanding an increase to 5,600 kyats ($4.14 per day, $99 per month).
In other low-cost purchasing countries, such as Mauritius, Mexico and Cambodia, wages are also rising, and corresponding labor costs are also rising. Thailand is also considering raising the minimum wage by 3% in 2018, and the corresponding labor costs will gradually rise.
A survey collected data on monthly salary levels in garment factories in 14 countries:
The ranking from high to low is: Turkey, China, Thailand, Indonesia, Malaysia, South Africa, Kenya, Cambodia, Vietnam, Lesotho, Laos, Bangladesh, Myanmar, and Ethiopia.
It can be seen that although the wages of workers in many Asian and African countries are still far behind those of Chinese workers, the current upward trend continues. The population of these emerging markets How long will the dividend last? </p
