AFW living wage-2011 - EU-China.net€¦ · India: Hind Mazdoor Sabha (HMS), New Trade Union Initiative (NTUI), India ... AFW_living wage-2011.ppt Author: Bettina Musiolek Created

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1. Terms

2. Background

3. What is AFW? Who is AFW?

4. How does AFW calculate the AFW?

5. Summary: importance of AFW

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1. Terms

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• National legal minimum wagePolitical demands orresult of political

negotiations:

Right to a living wageacc. to European Social Charta,UN Universal Declaration ofHuman Rights Art 23(3) + Art25(1) 1948: cover basic needsplus desretionary income

ILO conventions 26 (1928!), 99(1951) und 131 (1970)

category of humanrights

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LIVING WAGES

ASIA FLOOR WAGE=minimum living wage

AVERAGE REGIONAL WAGE

AVERAGE GARMENT INDUSTRYWAGE INCL. OVERTIME AND

FRINGE BENEFITS

POVERTY LINE

AVERAGE GARMENT INDUSTRYWAGE INCL OVERTIME

LEGAL MINIMIUM WAGE

AVERAGE GARMENT INDUSTRYWAGE

ABSOLUTE POVERTY LINE

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LIVING WAGES

ASIA FLOOR WAGE=minimum living wage

AVERAGE REGIONAL WAGE

AVERAGE GARMENT INDUSTRYWAGE INCL. OVERTIME AND

FRINGE BENEFITS

POVERTY LINE

AVERAGE GARMENT INDUSTRYWAGE INCL OVERTIME

LEGAL MINIMIUM WAGE

AVERAGE GARMENT INDUSTRYWAGE

ABSOLUTE POVERTY LINE

MSI 1 living wage estimate

MSI 2 living wage estimate

Average wage in region X

Average garment industry wage inregion Y

Average garment industry wage inregion X

TU A starvation line

Government poverty line

Average garment industry wage withovertime in region X

LEGAL MINIMIUM WAGE

Average garment industry wage inregular working time in regiona X

7Methodology:

Wage Ladder

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45%6$/7+)(80.

10Real wages of garment industry workers are

- sometimes below the absolute poverty line of1 USD per day,

- far below a country‘s relative poverty line (60%median income),

- between 50% and 10% of a living wage.

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1. Legal mimimum wages in reality setthe ceiling for garment workers, notthe bottom line.

2. Legal minimum wages have for along time determined sourcingdecisions of buyers.

3. The legal minimum wages fail toprotect workers and theirdependents.

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Labour unrests and wagestruggles 2010/11 in

Bangladesh, Cambodia,Laos, China andMyanmar

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?5%*;$1%#"%!&*@*;(%#"%!&*@

- started in India

- initiated 2005 by Asian labour activists (TUs andNGOs) along with research institutions and globalcampaign organisations like CCC

- turned out that wages is THE cross-cutting andcentral issue

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International Coordinating Office:AnannyaAnannya BhattacharjeeBhattacharjee, Society for , Society for LabourLabour & Development, India & Development, India

Sub-regional coordinating offices

Steering committee:

India: HindHind MazdoorMazdoor SabhaSabha (HMS), (HMS), New Trade Union Initiative (NTUI), IndiaNational Trade Union Congress (INTUC), All India Trade Union CongressAll India Trade Union Congress((AITUC)

Sri Lanka: Dabindu Collective, JSSIndonesia: SPN, GSBI, Trade Union Rights Center (TURC)Globalization Monitor, Hong Kong/ChinaGlobalization Monitor, Hong Kong/ChinaPSWS, MalaysiaCommittee for Asian Women (CAW)

Clean Clothes Campaign (CCC)Action Aid, UKJobs with Justice, USA

Alliance supporters inmost Asian garment production countries

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Regional strategy for collective bargaining

Buyers:

A living wage isa corner stone

of decentworking

conditions.

Governments:

Sustainablegrowth model for

nationaleconomies;

Shaping a socialglobalization

Manufacturers/Suppliers:

Compete ongrounds of quality,sustainability, not

low wages

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„In the global garment industry brands andretailers have profited hugely fromoutsourcing production to low-wagecountries, capitalising on poverty wage andbenefiting from weak enforcement of labourlaw.They are fully responsible that the workerswho make their products are paid a livingwage.“Anannya Bhattacharjee, Asia Floor WageInternational Coordinator

Buyers

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4. How does AFW calculate theAFW?

Retailers/ buyers often arguedthat difficulties in determiningand calculating a living wagemakes it difficult to reach thisnorm.

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wage = food + non-food costs

calculation assumptions:- food: 3000 cals/adult/day- non-food = food- average household size: 2 adults + 2 children- working week of 48 hours- comparability: international currency PPP$

2009/10: 475 PPP$ / month2011/12: 540 PPP$ / month

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19077 SLR16706SRI LANKA

2.132.202 Rupiah1.868.650INDONESIA

12248 Takas10754BANGLADESH

7967 Rupees6968INDIA

1843 RMB1639CHINA

540 PPP$2011/12

475 PPP$2009/10

COUNTRY

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5. Summary: importance of AFW

A. Solid foundation: in depth research into working andliving conditions of garment workers in Asia,predominantly women

B. Regional minimum living wage formula

C. Cross-border approach against relocation threat -challenge: labour solidarity

D. Integrated strategy of organising, worker education,political campaigning and bargaining with a cleargender perspective

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The AFW responds to the challenges for thelabour movement (trade unions and labour-related NGOs) :

- global supply chains,

- prevalance of informal and precarious work and

- the crises of traditional tools of labour conflicts

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Thank you for your attention!