Lesotho’s Apparel Industry: What is the Role for Better Work?

1. Lesotho’s Apparel Industry: What is the Role for Better Work? Kelly Pike, Cornell University kip3@cornell.edu Shane Godfrey, University of Cape Town shane.godfrey@uct.ac.za Prepared for the Better Work Conference, Washington DC, International Finance Corporation, October 26-28, 2011

2. Geographical Context

3. Lesotho’s Apparel Industry Multi Fiber Arrangement (1974-2004) -Quotas on Exports Duty Credit Certificate Scheme (1993-2007) -Rebate on import duties based on export African Growth and Opportunities Act (2000-2015) -Duty Free Exports to US AGOA Rules of Origin Dispensation (2000-2012) -Can source fabric from anywhere Impact on Employment: 1999: 10,000 2004: 53,000 2009: 38,000

4. Three Categories of Firms • Implications for sustainability: • There is a need to lobby for long-term trade policy which would stabilize Lesotho’s ability to grow in the export market • There is a simultaneous need to develop a regional strategy, given the current climate of uncertainty

5. Stakeholders • Workers • Interviews with Fawu, Lecawu, Unite, Nutex, Lentsoe la Sechaba • Focus group discussions with 10 groups of 6-10 workers • 110-item questionnaire with 60 workers • Businesses • Lesotho Textile Exporters Association (LTEA) • Interviews with HR and factory management at 10 firms • Government • Lesotho National Development Corporation • Ministry of Labour and Employment/ Trade and Development • Other • Skills Development and Training Center • Labour Court and Directorate for Dispute Prevention and Resolution • Apparel Lesotho Alliance to Fight Aids (ALAFA)

6. Labour Standards and Compliance • High compliance with international core labour standards as well as national and industry-level standards. Why and how? • We argue that the standards are fairly easy to meet. The minimum wage is relatively low, other standards moderate. • Buyer codes of conduct often defer to national and local law. For those that go beyond, the difficulties of monitoring and enforcement are well-documented in the CSR literature • Better Work takes a more comprehensive approach with their assessment tool but the same issues remain unless there is significant worker involvement in this process

8. Focus Group Discussions: Summary • Key issues emerging from focus group discussions • Occupational safety and health • Supervisor-worker relations • HR management issues • Training

9. Compliance vs. Conditions • “We have a code of conduct that we follow” • “The painting section is closed when buyers come” • “Hazardous chemicals in the washing area are always hidden when buyers come” • “The aprons we have are made of plastic, but I work with glue and fire!” • “Our workers are entitled to two days leave per month and three months maternity leave” • “We can not take our two days when we want” • “They won’t give a job to a woman who is pregnant” • “Pregnant women are made to stand all day, not offered a seat or lighter duties, right up until their leave”

10. 1. Occupational Safety and Health • “The gas mask filters are changed only after 1 month but you can see the chemicals immediately. I feel like I have the flu.” • “Once a man drank the chemicals thinking it was water. It totally burnt his insides. He just stayed the whole night and then left in the morning when there was transport” • “Transportation only drops us off at bus stops, we have to walk in our villages when it’s dark and unsafe” • “On payday we should leave at 12pm but are forced to stay until 5pm. It’s unsafe to go to bank at night. Basotho HR use these stories to brag to Chinese managers that they’re making us work hard”

11. Common Managerial Hierarchy

12. 2. HR Management Issues • “She is a Masotho and she does not talk nicely with the workers. She was a sewing operator but is now doing personnel because of her unclean language” • “These unqualified personnel shouldn’t accept when workers rights are trampled on, but they succumb to the whims of employers… They contribute to oppression by Chinese” • “The HR manager hand picks shop stewards and these are the ones who are called whenever an employee does something wrong – not the shop stewards who are properly elected”

13. 3. Supervisor-Worker Relations • “The Chinese don’t know how to consult with employees. We should be involved in decisions. They simply tell workers ‘go there’. If no, go home. It’s the attitude” • “Workers randomly get selected to be supervisors and become a problem because they don’t know how to relate to the workers” • “Basotho supervisors can make a worker look bad if they don’t like her, by making someone else’s mistakes look like it was her fault” • “They (Basotho) treat us like lunatics when we talk to them.” • “Basotho should be assistants to white supervisors, not supervisors themselves. They should not be in a position of power”

14. 4. Training • “I want to attend workshops, to learn about laws, human rights, how to deal with conflicts” • “People don’t understand what amount of money for wages is normal. They are told by their boss that if they don’t have a job and stay at home, they won’t earn anything. The workers feel it is better to be paid that much than to stay at home” • Personnel and managers should be given workshops on good communication skills • Training will be helpful because we can unite as people and have knowledge and be educated

15. Key Findings 1. High compliance with low standards. 2. Lack of skills transfer and upward mobility for Basotho, in particular at the supervisor level. Lack of commitment to, and coordination of, training. 3. The regional story is gaining increasing importance for the sustainability of Lesotho’s apparel industry What is the Role for Better Work Lesotho? Kelly Pike (kip3@cornell.edu) Shane Godfrey (shane.godfrey@uct.ac.za)

16. Recommendations • Better Work: Develop strategies for ongoing worker involvement, for sustainable training programs, and for building union capacity. Consider if BW should be thinking regionally. • Unions: Work with BW to develop strategies for regaining strength through capacity development and ensuring workers needs are met. • Employers: Draw on feedback from BW assessments. Work with BW and unions to develop appropriate training programs. • Buyers: Promote growth by maintaining relationships with supplier factories. Lobby for stability in trade policy. • US Government: Stabilize trade for promotion of industry growth What is the Role for Better Work Lesotho? Kelly Pike (kip3@cornell.edu) Shane Godfrey (shane.godfrey@uct.ac.za)

17. THE END THANK YOU FOR LISTENING