Document(s) 7 of 12

Macroeconomic Reforms

Sri Lanka’s economy remained largely unchanged for three decades after independence was regained in 1948. Deteriorating terms of trade and slow economic growth led to the introduction of import substitution industries, and eventually, by the 1970s, to a controlled economy. In 1977 a radical shift took place in macroeconomic policies to market liberalization and an open economy, concomitantly with the adoption of a ‘stabilization and structural adjustment package’ promoted by the IMF and World Bank.

The main components of the new policies were:

1. liberalization of trade and payments
2. devaluation of the currency
3. decontrol of imports and prices
4. reduction in consumer and producer subsidies
5. reduction in public expenditure and especially curtailing social sector expenditure
6. export promotion with incentives for local and foreign investors, and
7. privatization of public enterprises and reduction in the size of the public sector.

The private sector was to be the ‘engine of growth’ and the state was to confine itself to providing infrastructure, such as the establishment of the Export Development Board and Export Processing Zones (EPZs).

The second phase of structural adjustment programmes introduced in 1989 extended these policies, such as further devaluation of the currency, elimination of consumer and producer subsidies, promotion of private enterprise and privatization of public enterprises and ‘rationalization’ of the public service. The Industrial Promotion Policy and Act of 1989 and 1990 directed the expansion of export-oriented industries to the rural sector outside the EPZs. The Board of Investment was established as a ‘one stop Investment Promotion Centre’ and the whole country was declared an Investment Promotion Zone in 1992. Rural garment factories were established by entrepreneurs and the state organized industrial estates in different parts of the country in the 1990s. These policies are ongoing and public enterprises have been divested and privatized at a more rapid pace in the last decade.

Assessments in international and cross country studies of structural adjustment programmes noted that these programmes have failed to promote sustained development while their social costs have had adverse consequences for the poor. (Harrigan, Mosley and Toye, 1981, UNICEF, 1987). Studies in Sri Lanka have also underscored the failure of the reforms to achieve sustained growth and have pointed to increasing income disparities and the exclusion of the poor from the benefits of economic development. (Lakshman, 1997; Indraratne, 1998).

As women have not been a specific target of macro-economic policies and adequate gender disaggregated data is not available, it is difficult to identify clearly their impact on women. However, international and cross country studies (Commonwealth Secretariat, 1989; Heyzer, 1987; Joekes, 1989; Sparr 1994; Elson, 1998;) and the few Sri Lankan studies available (CENWOR, 1995; Jayaweera, 1998; Ariyabandu et al., 1995), indicate that the quality of employment available to women as a consequence of these macro-economic reforms has deteriorated and that women in low income families have borne a disproportionate share of the burden of ‘adjustment’ to reforms.

Labour force data and studies have indicated that these reforms have had a differential impact on women and men in employment. Female labour force participation rates have increased more rapidly than those of men. Although female unemployment rates have continued to be consistently double those of men, overall unemployment rates have declined. Apart from this, labour force data indicates that there has been a trend towards the casualization of labour, with the percentage of women in regular employment in the formal sector declining from 80 per cent to around 50 per cent in the 1990s. While men have moved to self employment as “own account workers”, the percentage of women unpaid family workers which had declined to 6.5 per cent in 1981, increased to 20 per cent to 25 per cent in the 1980s and to 30 per cent by 1998 (Labour Force Surveys).

These trends are reflected in changes in employment in the different sectors. Examples are the use of women’s unpaid family labour to meet the rise in production costs caused by the removal of producer subsidies, such as fertilizer, in the agricultural sector; the reduction in the public service through ‘golden handshakes’ and the closure or privatization of public enterprises in the 1990s; and the rapid increase in the temporary migration of women in low income families to meet the demand for domestic labour in West, East and South East Asia and Western Europe.

The most visible impact of macroeconomic reforms has been the export orientation in the industry sector. The share of the manufacturing sector in exports increased from 5 per cent in 1979 to 75 per cent in 1995 as export-oriented industries expanded within the three Export Processing Zones established in Katunayake in 1978, in Biyagama in 1985 and in Koggala in 1990, and outside the zones. The lead industry was and is garment manufacture in which 80 per cent of the labour force in the EPZs and 90 per cent in the rural garment factories have been women, chiefly young women between the ages of 18 and 30. The comparative advantage of low cost but literate female labour was used to attract foreign investment, resulting in the incorporation of women in the international division of labour. Subcontracting operations proliferated with the efforts of transnational and local entrepreneurs to reduce production costs and have access to a flexible peripheral labour market outside the ambit of labour legislation (Jayaweera and Sanmugam, 2000).

One of the immediate consequences of market liberalization was the collapse of small local industries which had been protected earlier and could not compete now with cheaper and better quality imports. The worst affected was the handloom industry which had been ‘feminized’ in the 1960s and 1970s and had depended on imported and subsidized imputs. The result was the closure of many centres and the loss of livelihood of around 40,000 women (Atukorale, 1986). Other small industries such as coir, pottery, carpentry and brassware survived because they used local materials. Attempts at reviving small local industries have failed as macro-economic polices have been biased towards largescale export-oriented industries. While self employment was encouraged in the open economy, it was chiefly women and men with family resources and initiative who were able to utilize the incentives offered and become successful entrepreneurs in the domestic and export markets. The majority of women without resources were engaged in often unviable self employment in the informal sector.

While these developments in the employment scene changed the life chances of many women, the social costs of the sharp shift in policies, such as the continuing escalation in the costs of living and consequent decline in real incomes, the change of the food ration into food stamps that were not indexed to costs of living, and the increase in income disparities and poverty in the 1980s created additional burdens for women in low income families whose labour inputs make a crucial contribution to family survival and maintenance. Women workers in factories, overseas domestic service and plantations have helped to sustain the economy but have not received adequate economic and social rewards. Overall, these economic and social trends are the consequences of a process of globalization and one way adjustment in which economically developing countries are compelled to ‘adjust’ to global pressures.

Background of the Study

This study, which is part of a larger South Asian study, is focused on the impact of changes in the garment and textile industries on women’s lives. The garment industry was in the vanguard of the rapid expansion of export-oriented industries. The textile industry, a traditional avocation of women, underwent vicissitudes of fortune during the last two decades.

There were two phases in the study (CENWOR, 2001). Phase 1 examined the employment experiences of women in six groups of women garment and textile workers and a smaller number of men workers (370 women and 75 men) who were affected by changes in macroeconomic policies—

1. Export Processing Zone workers
2. rural garment factory workers
3. home-based garment workers in the informal sector
4. textile factory workers
5. handloom workers, and
6. retrenched textile workers.

The study was confined chiefly to a non affluent socio-economic group but a few entrepreneurs from economically advantaged families were also interviewed from a comparative perspective. Phase 2 explored changes in gender roles and relations in the families of a sub sample of 40 per cent of the households of the women participants in Phase 1 — 140 women, 150 other women and 118 men in their families (408 in all). Numbers of women and men making up purposive samples were interviewed in their houses or lodgings and a few case studies were undertaken. While it is not possible to relate all the experiences of these women directly to changes in macroeconomic policies, the study provided useful insights into the economic and gender specific factors that contributed to continuity or change in the lives of women and their families.

The employment experiences of workers are discussed in the next section of the chapter.

Garment Factory Workers

These factory workers were employed in garment factories in the three Export Processing Zones, two located in the periphery of the metropolitan district, Colombo, and one in the Southern Province not far from the provincial capital, and in three rural garment factories, in the Kalutara district, in the Kurunegala district and in an industrial estate in the Gampaha district.

The majority of the workers were young, belonging to the age group 16 to 29 years: 81.6 per cent women and 80.0 per cent men in the EPZ factories and 73.3 per cent women and 60 per cent men in the rural garment factories. Workers in two of the rural garment factories had the same age profile as the workers in the EPZ factories but the factory in the Kurunegala district also employed older women and men. The majority were also single women and men, 83.4 per cent women and 70.0 per cent men in the EPZ factories and 65.6 per cent men and 66.7 per cent women in the rural garment factories. Around 75 per cent of these workers were dropouts from secondary schools and 20 per cent to 25 per cent had had a complete secondary education of 10 to 12 years.

The women were part of the large labour reserve who have been moving in and out, or have been moved out of the factories. A high percentage, 71.4 per cent women and 76.6 per cent men in EPZ factories and 83.3 per cent women and 73.3 per cent men in the rural garment factories had been employed for less than five years in their present workplace. Their motives for seeking employment in these factories were: the need for a job and income and the absence of alternative employment opportunities. The spouses of married workers welcomed the economic participation of women as a contribution to family income. A small number of women workers had been previously employed, mainly in garment factories, while the men had been in a wide range of jobs.

It is evident that the EPZ factories have opened up new employment opportunities for women who were willing to move out of their homes and live in the vicinity of the zones. Subsequently rural garment factories have offered new employment opportunities for women who preferred to work nearer their homes. In the context of the high incidence of unemployment among secondary school leavers and secondary school dropouts, these factory jobs were an alternative to unemployment. The macro-economic reforms have therefore provided access to employment to a large number of women, particularly young women. These workers came chiefly from low income families in which the men were cultivators with unstable incomes, artisan or low skill workers or unemployed, and few women were economically active. The regular income of women factory workers has brought economic stability to these families. The women too have access to an independent cash income.

Among the women factory workers, 96.9 per cent in the EPZ factories and 92.2 per cent in the rural garment factories were machine operators or helpers or were engaged in related tasks and were classified as semi-skilled assembly line workers. Only 2.3 per cent among the EPZ workers and 3.3 per cent among the rural factory workers had reached positions of line leader, supervisor or quality controller. Others were labourers. Among the men, 83.4 per cent in EPZ factories and 53. 3 per cent in rural factories were machine operators, while 16.6 per cent in EPZ factories were line leaders, supervisors, quality controllers and storekeeper, and 40 per cent men in the rural factories were employed as manager, quality controller, supervisor, maintenance worker and mechanic, and one man was a labourer. Over half the workers in the EPZs and a lesser proportion in rural garment factories saw no prospect of promotion even in the distant future. It appears that women were incorporated into a gender-based hierarchy in the workplace. The only manager was a man, and men had access to technical jobs.

Most workers considered themselves to be in the permanent work force — 93.1 per cent women and all the men in EPZ factories and 78.9 per cent women and 86.7 per cent men in the rural factories. However, these women workers and the majority of men workers had not received official contracts, contrary to regulations. With the exception of a few men, all the women and most men believed that they could be dismissed without much formal notice. Some of the case study subjects had been victims of arbitrary dismissal. The casualization of this workforce is reflected in the lack of job security.

Labour legislation provided for a nine hour working day inclusive of a one hour interval but 40.8 per cent of women and 36.7 per cent of men in the EPZs and 34.4 per cent women and 66.7 per cent men worked more than nine hours in compulsory overtime, and around 70 per cent women and 70 per cent to 100 per cent men were employed in night shifts. Only the higher level workers could leave the workplace during the lunch and tea breaks. The majority of workers in the EPZ factories and a smaller proportion in the rural factories claimed exposure to occupational health hazards such as dust pollution, continuously standing for long hours and hand injuries, and many complained of the absence of safeguards and compensation. Workers in the Kurunegala factory had the least complaints. Around 70 per cent of workers in all factories found the work monotonous or tiring, but not more than 30 per cent wished to change their jobs as they had no alternative employment opportunities. Trade unions could not operate in EPZ factories and around half the workers were members of the organizations established by employers. There were trade unions functioning in two of the rural factories and worker unrest has compelled the entrepreneurs to close the factory in the Kalutara district soon after the study, leaving an unemployed labour force in search of employment. Working conditions were not, therefore in consonance with workers’ rights as spelled out in national labour laws or in international instruments such as ILO Conventions and CEDAW.

Wages were low but were in conformity with or above the minimum wages specified for garment workers. Around 90 per cent received Rs 2,500 to Rs 5,000 a month, which is just above the ‘poverty line.’ In the EPZ factories, statutory minimum workers’ benefits such as EPF, ETF, and overtime payments were given, also medical benefits and tea, but only half had meals and rest room facilities and few had transport facilities. Both facilities and amenities were better in rural factories as all received not only EPF, ETF and overtime payments but also medical benefits, tea, meals, incentives and bonuses while one third had access to rest rooms and transport. These facilities were the result of the intervention by the state laying down minimum conditions for entrepreneurs at the inception of the rural garment factories. Clearly a laissez faire stance by the state in promoting private enterprise is not conducive to the interests of workers.

The establishment of factories in zones led to an influx of workers seeking accommodation in the vicinity of the zones. Among the EPZ workers in the sample, 53.3 per cent women and 16.7 per cent men lived in boarding houses. The majority of women complained of overcrowding in houses improvised to accommodate 11 to 100 workers (83.3 per cent) and in rooms shared, with five to ten other workers (74.8 per cent), especially in the Katunayake EPZ. Fees were low as rooms were shared, but poor transport facilities, especially after night shifts, exposed workers to sexual harassment and abuse. Among rural garment workers, 26.7 per cent women and 40 per cent men lived in boarding houses but these were largely rural houses where there was hardly any congestion in houses or rooms. In fact, the rationale for establishing these rural factories was to enable workers to travel to work from their homes as far as possible. Hence they did not spawn agglomerations of boarding houses as happened near the Katunayake and Biyagama EPZs.

The situation of women workers in export-oriented garment factories that surfaced in this study confirms the findings of international and cross country studies such as those by Elson and Pearson, (1981), Heyzer, (1987); Joekes, (1989), and by local studies (Voice of Women, 1983; Goonetilake, 1987; Weerasinghe, 1989; CENWOR, 1994). Employment opportunities for women have increased significantly, but the absence of opportunities for upward mobility has reinforced the gendered hierarchy in the labour market and working conditions have created new forms of gender subordination to largely male employers and managers in a system in which women are seen as low cost and dispensable labour. Men machine operators shared the tribulations of women workers but men had more opportunities for upward mobility and greater access to professional and technical employment in factories. According to their own perceptions, both women and men workers felt that their access to employment had increased women’s self confidence and self esteem as income earners, but the majority did not feel that they had improved their ‘status’ in the community as society tended to look with disfavour on the low status of factory workers in the occupational and social structure.

Home-based garment workers in the informal sector

Home-based production of garments for sale is a popular occupation of women in the informal sector. This study examined developments in a locality where the cut piece sewing industry, a spin off from the garment factory industry, is concentrated. Households in some villages in the suburbs of Colombo have, since the heyday of import substitution industries in the 1970s, purchased unutilized cloth from garment factories and produced women’s and children’s clothes and household linen, particularly for less affluent buyers. With market liberalization, their enterprises have expanded and cloth and ancillary materials are purchased now from factories and from shops. Traders have opened shops, and subcontractors use home-based female labour for production of garments.

The spouses of the women in the study sample were engaged in business or were urban workers. Unlike the factory workers these women belonged to an older age group and 86.7 per cent were between 30 and 59 years, and 83.3 per cent were married or were widows. Several of the men engaged in this occupation (and their overall numbers were small) were young and married. Two thirds of the women and 60 per cent of the men were secondary school dropouts and 33.3 per cent women and 40 per cent men had a complete secondary education. The women had taken to this activity because they wished to increase family income, but they needed also to combine child care and domestic responsibilities with economic activities. Their inevitable option has been the main activity in the locality – the cut piece sewing industry. Around 25 per cent had worked earlier in garment factories or in other self employment ventures. Around 30 per cent had been engaged in this occupation for over 10 years. Most of the men, however, had been involved for less than five years.

These home-based workers were either self employed — 75 per cent women and 60 per cent men — or were subcontracted workers — 16.7 per cent women and 40 per cent men. The majority (70 per cent) were engaged in cut piece sewing and the rest in conventional sewing or in both. Most of them, over 90 per cent women and around 80 per cent men had acquired their own sewing machines and block machines. They rarely worked more than eight hours, but worked into the night when there were deadlines to meet. The self employed sold their products to shops, local traders or itinerent traders, and subcontracted workers executed the orders channelled to them by middlemen or subcontractors.

They were spared the hardships of factory routine and excessive labour control, but the subcontracted workers were at the mercy of the intermediaries who garnered an inequitable share of the profits, and the self employed had to compete in the open market and to contend with the malpractices of traders. Consequently their incomes were not substantial, with 36.7 per cent of the women earning less than Rs 2,000 (below the poverty line) 33.3 per cent between Rs 2,500 and Rs 3,500 and 30 per cent between Rs 4,000 and Rs 6,000. The men earned between Rs 2,500 and Rs 3,500. With few exceptions they were not more prosperous than factory workers but over 75 per cent enjoyed their work. Over 80 per cent wished to continue these activities. Nearly all the women and men had increased self confidence and self esteem, and most women felt that they had enhanced their status in the community as income earners and not ‘housewives.’

These women workers have responded to new employment opportunities that have opened up in the market economy, without detriment to their child care responsibilities. Their profits have not been large but they are not as economically depressed as many other low income women in the informal sector. The case study of the home-based garment workers showed how a widow started this sewing enterprise after her husband’s death and developed it with confidence and skill into a family enterprise with her daughters. Overall, their relative autonomy as self employed women competing in the market has enhanced their self respect and they contribute significantly to family survival and upward mobility.

Textile factory workers

The power loom textile industry was set up before the macro-economic reforms introduced in 1977. With the reforms the state established a few large power loom textile factories in 1979-80 which, however, were subsequently privatized in the 1980s. This study examined the situation of women and men textile workers in a large factory which had been a small private enterprise in the 1970s and had been acquired and expanded by the state as a large textile mill. Losses incurred by the state led to its privatization. The ownership of the factory changed hands twice in the 1980s and, after some vicissitudes, has settled down to stability under the present ownership.

The factory was located in the North Western Province and the workers were drawn, as in the case of garment factory workers, from the families of small farmers and industry workers. Age wise, 63.3 per cent of the women workers were between 20 and 29 years and 53.3 per cent of the men belonged to an older age group; 40 to 54 years; 56.7 per cent women and 41.7 per cent men were married. Their educational levels were higher than those of garment factory workers as 76.7 per cent of the women and 73.7 per cent of the men had a complete secondary education and only 20 per cent of women and men were secondary school dropouts. One woman and one man had a university degree. A few of the women and half the men had been employed previously, chiefly in garment and other factories. While 63.3 per cent of the women and 46.7 per cent of the men had been less than five years in their current employment, 20 per cent of the women and 53.3 per cent of the men had been employed in the same establishment for over 10 years, a few since the inception of the factory. The profile of these workers was therefore slightly different from that of garment workers. Two thirds of the women and half the men had sought employment because they were in need of a job and income. The rest had failed to find alternative employment.

While the majority of the women workers (80 per cent) and men workers (73.3 per cent) were machine operators, one fifth of the women workers had jobs such as lecturer, trainer, laboratory assistant and supervisor and there was a male executive and men in positions of trainer, electrician and clerk. The establishment had therefore offered women space to access at least middle level employment, although the only highly paid executive was a man. However 60 per cent of the women and 33.3 per cent of the men did not anticipate promotion. Monthly wages were higher than in garment factories, perhaps as a consequence of long service, ranging from Rs 3,500 to Rs 7,000, middle level employees received between Rs 8,000 and Rs 10,000 and the male executive enjoyed a salary of Rs 25,000. Workers were provided with all benefits, those prescribed by labour legislation as well as tea, meals, uniforms, medical facilities, restrooms, incentives and bonuses. Some had transport facilities and even accommodation.

Although the majority liked their work and 83.3 per cent women and 86.7 per cent men had job satisfaction, there were nuances of job insecurity. All the men and 90 per cent of the women were permanent employees, but 26.7 per cent of the women and 33.3 per cent of the men did not have contracts, and half the workers believed that they could be summarily dismissed. None of the workers reported excessive working hours but 83.3 per cent and 73.3 per cent men were allotted night shifts. Most of them — 90 per cent women and 80 per cent men — complained of occupational health hazards such as dust, chemicals, noise, machines and standing long hours, and absence of safeguards.

While 43.3 per cent of the women and 26.7 per cent of the men travelled to work from their homes, only 20 per cent of the women and 26.7 per cent of the men were in boarding houses as the rest had found accommodation with families. Boarding houses were not overcrowded and workers had no transport problems but some of the women were fearful of sexual harassment. Married workers did not find it easy to combine their jobs and childcare responsibilities. The spouses, however, welcomed their economic activities as inputs to family incomes. Both women and men workers had positive perceptions regarding the impact of their employment. They were confident and assured because they were recognized as income earners and, unlike the garment workers, they felt that their status in the community had improved.

It is apparent that textile factories are perceived as distinct entities from garment factories. Workers’ unrest has been prevalent in large textile factories but the management of this particular factory has provided amenities that have contributed to job satisfaction among employees. At least some women have had access to non-manual employment. But as in all factory establishments, workers appear to be vulnerable to job insecurity in an ethos dominated by the demand by employers for deregulation of labour.

Handloom workers

As discussed earlier, one of the negative consequences of the macro-economic reforms was the collapse of local industries and their continuing underdevelopment at the village level. In the 1960s and 1970s the protected and subsidized handloom industry had thrived in villages providing income earning opportunities for women. After their debacle in 1978-80, many centres all over the country were closed and these displaced women sought other means of livelihood, often with little success. The industry survived, however, in some villages as a consequence of state efforts to establish Janasalu centres to revive the industry.

The women handloom workers in villages in the Kurunegala district in the study had taken to this occupation as a survival strategy because of a lack of access to better employment opportunities. No men were employed in this industry. These women belonged to agricultural families and their spouses were farmers or labourers. The majority (60 per cent) were over 40 years of age and 66.7 per cent were married. Their educational levels were not low, as 36.7 per cent had a complete secondary education and 50 per cent were secondary school drop-outs. The case study of the handloom workers found that the women workers had sought state and other avenues of employment on the strength of their secondary school certificate qualifications but after repeated failures had fallen back on the handloom industry in the village.

Half these women workers were attached to the State Janasalu Centre. The Department of Textiles purchases yarn, dyes it, distributes it to the centres, and workers are paid for their products on a piece rate basis. These products are sold by the Department at shops, fairs and exhibitions. The other half were members of the Textile Co-operative Societies which are co-operative societies of former weavers. These Societies followed the same procedure as the Department in distributing materials and making piece rate payments for the products. Both the Department and the Societies found it difficult to sell the products turned out by these women in the face of competition in the market. Consequently the incomes of the women were low, between Rs 1,500 and Rs 2,500.

These women had no problems in their working environment such as those faced by factory workers. They had no marketing problems like the home-based garment workers, as their products were purchased by the Department or Societies. Their problem was their low economic rewards as their income was necessary for family survival. They were dissatisfied with their occupation but had no alternative avenues of employment. A malaise caused by many years of frustration seemed to overpower them. As ‘residual workers’ in an industry that had an uncertain future, few had self confidence (43.3 per cent), self esteem (10 per cent) or recognition as producers (9.3 per cent), while no one felt that their economic activities improved their status in the community.

It is clear that the village based handloom industry has yet to recover from its collapse two decades earlier or to develop new directions. Handloom workers in the rural environment have remained in the industry because they have no alternative employment opportunities. Their survival is an outcome of the subsidies that are still offered by the state in spite of losses, as a legacy of the past.

Retrenched textile workers

The accelerated pace of privatization and reduction in the size of the public sector in the 1990s affected both men and women employees in the services sector and in state economic enterprises. Among the establishments closed down or sold to the private sector were the smaller power loom textile centres distributed throughout the island. This study examined the consequences of this facet of the macro-economic reforms for workers in textile centres in one district in the North Central Province and two districts in the Southern Province.

These workers had been retrenched between 1991 and 1995.

Two thirds of the women and 40 per cent of the men had been employed in centres that had closed down and one-third of the women and 60 per cent of the men in centres that had been privatized. At the time of retrenchment, 15 per cent of the women and 13.3 per cent of the men were between 28 and 35 years of age, 80 per cent of the women and 86.7 per cent of the men between 35 and 49 years, and 3.3 per cent of the women were between 50 and 54 years. The majority therefore had many more years of service ahead and were in their economically productive years. All the men had been married, 12 per cent of the women were single, 83.3 per cent married and 3.3 per cent were widows. They were secondary school products as 45 per cent of the women and 40 per cent of the men had had a complete secondary education, and 51.7 per cent of the women and 60 per cent of the men were secondary school dropouts. One woman was a university graduate.

The majority of the women (90 per cent) had been machine operators, 5 per cent had been Assistant Supervisors, Supervisors or Instructors and the woman university graduate had been an Assistant Manager. Among the men, 40 per cent had been machine operators, 26.7 per cent welders, fitters and cleaners, and 33.8 per cent labourers. The majority had been employed for many years — 20 per cent of the women and 13.5 per cent of the men for 20 to 27 years, 73.3 per cent of the women and 60 per cent of the men for 10 to 20 years, and 6.7 per cent of the women and 26.7 per cent of the men for less than 10 years. The majority (75 per cent women and 66.7 per cent men) had had salaries between Rs 2,500 and Rs 4,000, and 22 per cent women and 26.7 men had earned less than Rs 2,500.

The majority of the workers, 60 per cent women and 66.7 per cent men had been caught unawares by the measures taken to retrench them. They were given a compensation package, ranging from Rs 2,000 to Rs 70,000, — 66.7 per cent women and 53.3 per cent men receiving between Rs 18,000 and Rs 38,000 — although 6.7 per cent of the women and 26.7 per cent of the men claimed that they had still to receive this package. They also received their consolidated pensions and continue to receive their monthly pension.

Their experiences after retrenchment illustrate the plight of relatively low income workers displaced suddenly from jobs which they had been engaged in for several years, in a country with a high incidence of unemployment and escalating costs of living since the macro-economic reforms. Their compensation package and consolidated pensions had been used to settle loans and for house construction and repairs, the education of children, illnesses and other family expenses. Only three of the women had invested some of the money in opening a boutique/small shop, purchasing a sewing machine and assisting in the spouse’s business.

Two thirds of the men and 21.3 per cent of the women had sought other avenues of employment; 10 per cent of the women and 13.3 per cent of the men had found jobs in other textile factories which had been closed down soon after, displacing them again. At the time of the study, 8.5 per cent of the women were self employed in sewing, weaving door mats and petty trade and earning between Rs 600 and Rs 2,500 a month; 3.3 per cent were cultivating their own land and earning around Rs 1,000 and one woman was a daily paid casual labourer (1.6 per cent). Among the men 53.3 per cent were employed as security officers, labourers and in self employment and cultivation, earning between Rs 500 and Rs 4,000. Nearly all had no income from other sources such as land, and most of them could not depend on assistance from the extended family.

These women and men were strongly affected by their retrenchment. Nearly all said that their pensions and current incomes were inadequate to meet the high costs of living and 46.7 per cent among both women and men were in debt. Their quality of life had deteriorated. With the exception of around 20 per cent of the women who felt they had more time now for childcare, the majority of women and all the men had been emotionally upset when they were retrenched and faced an uncertain future. They were anxious regarding their inability to meet expenses and to give their children a good education, and 70 per cent of the women and 86.7 per cent of the men had been mentally depressed by their loss of status as income earners. They were uncertain regarding their future prospects. A few had plans and some men hoped to be self employed. These women did not belong to the age group in demand as factory labour. In their circumstances and in the macro-economic context they faced unemployment, unviable self employment or domestic service overseas.

Entrepreneurs

The three women and two men entrepreneurs who related their life histories all belonged to middle class families with economic resources. The women were married to men in the public service or in business, and two of the women were themselves professionals. One man had been a public servant and the other was born into a thriving family business. They all had family support and connections that enabled them to visit enterprises abroad. Four had commenced their activities on a small scale during the 1970s but their enterprises had expanded and flourished with the incentives offered by the new policies for private enterprise in the 1980s and 1990s.

The entrepreneurs were themselves creative and had the initiative to meet market or upmarket needs. They also had the stamina and resources to cope with inconsistencies in state policy especially with respect to handlooms, and the absence of adequate infrastructure. These successful handlooom and garment exporters and batik artists lived in a different world from the village based handloom workers and the home based garment workers. They were themselves employers of factory workers. These different experiences mirror the increasing income disparities in the 1980s and 1990s.

Employment, underemployment and unemployment

The employment experiences of these different groups of women illustrate the impact of three strands of policies stemming from the macro-economic reforms and structural adjustment programmes introduced over two decades ago. The export orientation of the economy has been seen to create new employment opportunities especially in garment factories in Export Processing Zones, and in rural garment factories, particularly for young women. To many of these women in low income families without regular incomes, their jobs brought some temporary economic stability to their families and were for them an alternative to unemployment or to elementary economic activities in the informal sector. The large privatized textile mills were another avenue of opportunity. The home-based cut piece sewing industry was a spin-off of the garment industry in the informal sector as distinct from outsourcing through direct subcontracting by firms which is the subject of another CENWOR study (2000). Women (and men) utilized this space to create enterprises that facilitated the generation of income to meet the needs of low income families.

The second policy was the withdrawal of producer subsidies to small local industries and the decontrol of prices that led to the collapse of these industries in a competitive market, as in the case of the feminized handloom industry that had depended heavily on subsidized imported inputs. The village-based handloom industry continues to be depressed in the context of unsupportive macro-economic policies. The handloom weavers in this study are the underemployed survivors who subsist on state support sans opportunities for economic advancement.

The third policy of privatization of public enterprises and reduction in the size of the public sector resulted in the closure of textile centres which provided employment opportunities for low income families for many years. Many of these retrenched workers had many more years ahead in employment. Their sudden displacement in a context of high incidence of unemployment relegated them to unemployment or to self employment, to a decline in economic resources and to deterioration in their quality of life.

The experiences recounted by entrepreneurs from middle class families underscore the futility of the farcical concept of a ‘level playing field’ in economically developing countries, and its implications for widening income disparities and perpetuating poverty.

The women who gained access to new employment opportunities in factories have been incorporated into the global market. As documented in international and local studies, these women too have been vulnerable to forms of labour control that include ‘deregulation’ in terms of employment, excessive working hours and workload, exposure to occupational health hazards, and absence of job security and opportunities for upward mobility. They have moved into productive employment that reinforces gender inequality and new forms of gender subordination. The more ‘autonomous’ home-based workers have inadequate resources to contend with market forces and with exploitative or intermediaries in order to enhance their prospects.

CONTINUES...

Document(s) 7 of 12