Low pay for a stitch in overtime

Sales of sportswear surge sharply in Olympic years

Sales of sportswear surge sharply in Olympic years. But for many of those who make the clothes, the reality is far from the Olympian ideal of preserving human dignity. Luke Holland reports

This weekend the eyes of the world are on Athens, where the planet’s finest athletes will push themselves to their limits in the hope of achieving Olympic glory. But as the Games get underway, thousands of workers in developing countries are also facing an almost impossible struggle, as they toil over the products that will enrich the sport industry’s money men.

In any Olympic year there is a massive surge in sales of sportswear. Companies such as Nike and Puma have invested billions in marketing and sponsorship to make sure they get their cut of the Olympic pie.

Meanwhile, in countries such as Indonesia, China and Bangladesh, labourers, most of them female, are being forced to work ever-faster for ever-longer hours in order to keep the wheels of the industry turning. And it is not just the major sportswear firms, but the Olympic authorities, that are failing to protect them.

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An extensive study carried out by Oxfam, Global Unions and the Clean
Clothes Campaign reveals that basic rights are routinely violated as workers
are intimidated and harassed into accepting deplorable conditions. In some factories staff are forced to work up to 45 hours of unpaid overtime a
week in order to meet impossible production targets.

"We have to do overtime every day, starting from 5.30 p.m.," explained Phan, a 22-year-old woman who sews garments for Puma at a factory in Thailand. "We work until 2 a.m. or 3 a.m. in the peak season. We always have to work a double shift. Although we are very exhausted, we have no choice. We cannot refuse overtime work because our standard wages
are so low. Sometimes we want to rest, but our employer forces us to work."

Her experience is mirrored by that of thousands of workers across the developing world. The themes of forced overtime, low wages, denial of the right to organise, health and safety problems and verbal and physical harassment arise again and again.

At the heart of the problem lies an international business model that works well for big companies, but exacts a high price on the impoverished people at the bottom of the ladder. The aggressive buying practices employed by major sportswear firms mean that factory owners must meet tight deadlines with scarcely any lead time, or risk losing their contracts.

Inevitably, it is the staff of these factories who bear the brunt of this pressure. Aside from the breakdown of family life, such conditions also take their toll on the individual worker's health. "Exhaustion is the main thing after
overtime hours," says Ita, who makes products for Umbro in Indonesia. "Many women tend to miscarry pregnancies because of the continuous work that is caused by overtimework following immediately after the daily shift."

Female workers are generally preferred as employees because they will accept lower wages and are less likely to get involved in union activities. But the combination of patriarchal societies and the demands of foreign capitalism makes for an unforgiving working environment. The culture of bullying created by this model also fosters sexual harassment: "Pretty girls in the factory are always harassed," reports another Indonesian
worker. "They [men] come on to the girls, call them into their offices, whisper into their ears, touch them at the waist, arms, neck, buttocks and breasts, bribe the girl swith money and threats of losing their jobs."

In the past, some companies have argued that they cannot be expected to
take responsibility for conditions in foreign factories that they neither own nor operate. But human rights campaigners believe the sportswear industry is the only body that can effect desperately needed changes. Because manufacturing is now spread over dozens of developing countries, many of which offer little or no legal protection to workers, it falls to the industry
to ensure profits are not built on the suffering of those least able to protect themselves.

Esther De Haan of the Fair Olympics Campaign says some of the biggest names in the business, most notably Nike, Adidas and Puma, have taken steps towards cleaning up their acts. Several companies have made amendments to their codes of conduct, resulting in improved health and safety conditions in many factories.

But the crucial issues of forced overtime, poverty wages and harassment may be solved only when contracts are contingent on the fair treatment of workers. The big companies, says De Haan, must employ their own inspectors to make sure employees are treated respectfully and given the right to organise. The overwhelming pressure put on the factories must also be relaxed, she says, and they must be given assurances that their
contracts are secure. "If a factory manager says: 'We cannot comply [with social standards] because your order arrived yesterday to deliver this morning', we have to review our internal processes," conceded an executive
at Adidas.

Given the highly competitive nature of the sportswear market, such changes will almost certainly require an industry-wide approach. Most of the factories serve two ormore companies, so there is little point in one big firm taking a stand while others continue to ignore the problem.

While the changes sought still seem a long way off, there have been some "positive noises" from the major firms. In the past few days, Fila and Lotto, which had previously refused to meet representatives of the Fair Olympics campaign, have said they will hold talks once the Games are over.

The International Olympic Committee (IOC) has shown no such flexibility, however. After attending a preliminary meeting with campaigners in May, it cancelled a second meeting and just this week refused to accept a petition signed by more than 500,000 people. The IOC says it works with the World Federation of the Sporting Goods Industry to ensure ethical standards, but it has “no direct involvement” in negotiating contracts.

The Clean Clothes Campaign, a nongovernmental organisation, believes the
IOC is in a unique position to bring the sportswear industry together. By requiring licensees and sponsors to meet certain ethical standards, it argues, the IOC could provoke wide-reaching changes in the industry. The Clean Clothes Campaign also points out that many of the clothes bearing the Olympic symbol have been made in the same factories it is trying to improve.

The Athens Games aren't the only reason the issue of exploitation in the
sportswear industry is so timely. As the market enjoys what will probably be its most profitable year for quite some time, the International Monetary
Fund and the World Bank are encouraging increased "labour market flexibility", which in turn erodes workers' rights. And the problem is forecast to worsen dramatically when the Multi- Fibre Agreement expires at the end of this year. This 1974 accord was designed to protect the US and European textile industries from cheap imports.

One of its implications was that companies were forced to source their products from many places, but once the agreement runs out they will be free to buy as much as they want from any country – and most of them are expected to head for China. Market analysts predict that in Indonesia and Bangladesh alone around one million jobs will disappear, with devastating
ramifications for local communities. It is against this backdrop that the IOC
is, according to union activists, ignoring a unique chance to stand up for some of the world's most beleaguered people. "The goal of Olympism," declares the Olympic charter, "is to place everywhere sport at the service of the harmonious development of man, with a view to encouraging the establishment of a peaceful society concerned with the preservation of
human dignity."

But for the men and women sweating over their sewing machines in Cambodia, Bangladesh and many other nations, there is a stark contrast between thesenoble words and daily reality.