|
ANALYSIS: WTO regime to result in
employment losses in textile sector
BY MONEM FAROOQI
LAHORE: When the experts claim of huge employment losses in
textile sector following conclusion of Multi fiber agreement
in wake of WTO regime from January, policy makers are yet to
focus on the labour implications of problems in post quota
regime, official sources in Ministry of Commerce confirmed
on Monday.
Sources in Textile Wing of Ministry of Commerce told The
Nation that despite the fact the government had spent Rs 4
billion during last years to meet the challenges of WTO
implementation, but unfortunately, the government has yet to
focus labour implications, Pakistan might face after the
post quota regime.
“Multiplicity of taxes and departments and huge industrial
electricity tariffs, which are affecting cost of production,
needs to be brought down to a considerable level. These
kinds of steps would not only block the threat of
unemployment, if any, but would enhance more job openings in
the sector,” experts told The Nation.
Experts said that policymakers, FPCCI and researchers should
have focused the worsening conditions of workers, especially
women, of cotton production sector, “Ignoring them would
ultimately harm the textile industry of Pakistan after WTO
regime”.
Experts say that loss of jobs is a social problem and we
should not see only money and economics because employment
loss is a loss of generation and the quota regimes were not
blessings and disguise for Pakistan rather a punishment, the
experts added.
Dr Karin Astrid Siegmann, researcher of Sustainable
Development Policy Institute (SDPI) while sharing her
research study on “The Agreement on Textiles and Clothing:
Potential effects on gender equality in Pakistan”, told The
Nation that increased competition would not only lead to
deteriorate condition of female workers in the sector but
would also increase the risks regarding their health and
safety after change of the textile quota regime from January
2005. She said post quota regime would increase quality of
the textile products but may negatively affect female
working conditions as 30 per cent female are working in
textile and clothing industry of Pakistan.
She said that in the context of “purdah”, a social seclusion
of women commonly in Pakistan, female labour market
participation would negatively be affected.
Dr Karin was of the views that the full implementation of
the ATC in January 2005 represents a quantum leap in the
liberalisation of global trade in textiles and clothing. She
said the existence of quotas has reduced the supply of these
goods in the restricted markets so far and had raised their
prices.
She estimated that an average European family loses about
Euro 270 a year resulting from the higher costs of textiles
and clothing induced by the quota regime (Oxfam
International, 2004). On the other hand, the current regime
has depressed prices in unrestricted markets as the
existence of quotas has diverted some trade to those markets
(World Bank, 2004). As the current quota markets are the
main global demanders of textiles and clothing, the
abolition of the quota regime will lead to a global decrease
in prices for textiles and clothing, thus boosting global
demand, and intensifying global trade in textiles and
clothing.
Dr Karin recommended more stress and implementation of
labour standards, enhanced training opportunities for female
workers, improved transport to work facilities after post
quota era regime.
She said that female rather than male workers would bear the
consequences of a potential deterioration of working
conditions due to their concentration in units where piece
rates and other types of precarious contracts are common.
Stressing on labour standards she said to protect workers
from harmful consequences of trade intensification was
necessary. This, she said, included the establishment of
effective enforcement mechanisms to ensure compliance with
labour legislation, particularly in ensuring the women
workers’ enrolment to a social security system for health,
maternity, disability, and retirement benefits. Workers’,
especially women workers’, right to organise should be
emphasised. She suggested that positive incentives, such as
tax cuts or subsidies for those companies that protect
workers’ rights were conceivable. “For the industry, it
might have the welcome side effects to help ensure quality,
and to counter expected NTBs related to poor labour
standards” she added.
Displaced women workers have more difficulties in finding
job alternatives than men due to their higher concentration
in few sectors in the labour market in Pakistan. Thus, to
protect women workers from potential long-term job losses,
policy reactions should include enhanced training
opportunities for female workers. Information centers
related to employment opportunities and orders may be
established. Besides, the industry’s quality requirements
that are likely to increase after the quota regime has been
abolished will require better-educated workforce. Human
resources development is therefore advocated by the sectoral
strategy “Textile Vision 2005”, by the World Bank (2004),
and others (e,g. Kazmi, 2002).
It is, however, not reflected in companies’ policies. What
is needed is a special focus on female workers due to their
greater vulnerability on the labour market.
The experts suggested for the improvement of transport to
work, which is necessary to enhance female access to jobs.
Given the expressed interest of managers in the textile and
clothing industry to have greater access to female labour
supply, the industry should take the lead here. This does
not only hold true for employment in the textile and
clothing industry but for all other types of industrial
employment as well.
Vice President of Federation of Pakistan Chamber & Commerce
Industry (FPCCI) while expressing satisfaction that there
would be no job losses in the textile sector but rather more
definite employment opportunities generated after post quota
era. Pakistan textile sector was prepared well to meet the
challenges.
Criticising some government policies the experts said that
lack of coordination, wastage of time, duplication of
efforts and isolated directions by various line government
departments are threat to face challenges after abolition of
textile quotas, needs to be addressed urgently.
Courtesy: The Nation
|
Pakissan.com;
|
