Issue

Sweat shops in Australia

When you go clothes shopping do you think about who made the clothes? Or, do you think only about the brand name?

Submitted 10/11/2005 By Christina Views 336270 Comments 25 Updated 30/08/2007


Photographer : Enrico Bianda

In Australia, there are 300,000 people making clothes for our major retailers, designers and suppliers of school uniforms, who work for between $2 and $3 an hour. Their basic rights are being violated. They have no or minimal entitlements (holidays, sick leave etc), work in conditions that risk their health and safety, and work long hours—up to 18 hours a day, seven days a week—to meet unrealistic deadlines.

The majority of these exploited employees work in metropolitan NSW and Victoria. They used to work in sweatshops—a factory or shop where workers are poorly paid and work under adverse conditions—but in recent times, with stricter controls on workers’ rights, sweatshops have started closing down. Instead, these employees work from home. They are called ‘outworkers’, also known as ‘homeworkers’.

Who are Australia’s outworkers?

Most outworkers are first generation migrant women who have difficulty speaking English and don’t know about their working rights in Australia. Vietnamese, Chinese, Khmer, Macedonian, Turkish and Arabic women are most likely to be outworkers. Sometimes other family members, such as children, help after school and on weekends so deadlines can be met.

In the past, the manufacturing industry employed a lot of children, usually between 13 and 16 years of age. However, in the 1950s the number of child factory workers fell because the school leaving age rose and parents could afford to keep their children in school longer. State laws today ensure that the health, safety and moral welfare of children at work are protected and that work does not adversely affect their education. However, these laws are difficult to enforce when children work in a home environment.

Number crunch

  • 47% of outworkers work more than 12 hours a day.
  • 73% of outworkers have one or more chronic injuries.
  • 75% of clothing companies have most of their clothes made by outworkers.

Why don’t laws prevent worker exploitation?

There are laws in Australia to prevent worker exploitation, such as minimum wage laws which set legal minimums for money paid to an employee per hour. The problem is enforcing these laws. Outworkers are often isolated and are not usually registered. They also often have a poor command of English, don’t know their rights or whom to contact, and are afraid to take action that may result in them losing their job.

What are people doing to stop sweatshop labour?

Changes to the outworker industry are coming about slowly, as public pressure increases. In 2002, the Retailers Ethical Clothing Code of Practice was introduced, making retailers, as well as manufacturers, responsible for the fair treatment of outworkers (accredited manufacturers display the ‘No SweatShop’ label). However, this code is voluntary, so although a number of Australian companies have signed part one of the code (agreeing to show their records), very few have signed part two (agreeing to pay minimum wages and provide safe work conditions etc). A more promising law to improve outworker conditions is the mandatory code for retailers, which began in NSW on 1 July 2005. This code will also be introduced into Victoria.

The Homeworkers Code of Practice:this code keeps an eye on those who employ outworkers to make sure their working rights are being met. It provides accreditation for retailers and suppliers who meet certain criteria under the code, such as:
  • outworkers are paid the correct award wage for each garment sewn
  • outworkers are covered by workers compensation
  • superannuation contributions are being paid.

With continued public pressure it seems likely that the exploitation of outworkers in Australia can be stopped. At the same time however, there is a need to help stop sweatshops and outworker exploitation overseas. The Australian manufacturing industry is declining in size. This is largely a result of cheaper labour being sourced from overseas, in countries that lack legislation/enforcement to protect workers. Australian companies import this produce and own sweatshops abroad. So, although the exploitation might not be occurring in Australia, we still support it elsewhere.

How do I know this?

Australian Bureau of Statistics 2001, ‘Labour special article—a century of change in the Australian labour market’, Year Book Australia 2002, http://www.abs.gov.au/ausstats/abs@.nsf/90a12181d8...

Australian Competition and Consumer Commission, http://www.accc.gov.au

Fairwear Australia http://www.fairwear.org.au

Industrial Relations (Ethical Clothing Trades) Bill 2001(NSW), http://www.parliament.nsw.gov.au/prod/parlment/nsw...

No Sweat Shop 2005, About the Homeworkers Code of Practice, http://www.nosweatshoplabel.com/code.htm#1

NSW Office of Industrial Relations, Behind the label, www.industrialrelations.nsw.gov.au/behindthelabel

Textile Clothing and Footwear Union, http://www.tcfua.org.au/Index.htm.

Workers Online 2002, ‘Councils armed to drown sweatshops’, Workers Online, 31 May, http://workers.labor.net.au/138/news2_councils.html.

Workplace Relations Amendment (Improved Protection for Victorian Workers) Act 2003 (VIC), http://www.workplace.gov.au/workplace/Category/Leg...

Discuss Now

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xcozmox 11-May-2006

It is absolutely disgusting that we, Australian's seem to have no trouble what so ever accusing other countries of human right violations when they are going on here in our very own country.



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Grant's Profile 04-May-2006

What a great post! Thanks for providing such a good overview of the issue in Australia. When I first found out about the work of Fairwear, I too was amazed that these kind of practices existed in Australia.

To Amy: As I understand it, the reason these sweatshops exist is because the operators deliberately work outside of existing labour laws, which means the problem is unlikely to get worse for those already trapped with the change in IR legislation.

The real danger posed by IR laws is for existing workers who are protected under previous governments will lose such protection under the new rules.

Operators that are breaking the law are able to do so largely because of the complexity of the supply chains in the industry. This complexity, where the primary manufacturer is a number of layers removed from the actual workers, obsfucates the conditions of work, making it harder to track what's really going on. The Homeworkers Code of Practice aims to lift the curtain on these practices by making supply chains more transparent.

The No Sweatshop campaigns works at two levels to increase transparency - with retailers to encourage the standards to be upheld and create demand, and with manufacturers, to allow auditing of the supply chain to uncover who is actually doing the work.

Having attended a No Sweatshop workshop I was quite amazed at the lengths suppliers go to in order to hide who actually does the work for them - requiring private investigator style tactics to uncover the truth.

From what I have read and heard, if the industry was to seriously work to restructure the currently very inefficient structure, they would be able to keep close to current supply prices while paying the actual producers a fair wage. But as is often the case, vested interests are reluctant to change practices, preferring a business as usual approach, effectively sweeping the problem under the rug.

Another aim of the unions involved in the campaign is to raise awareness of worker rights - by meeting with workers and producing materials in multiple languages. They also have an anonymous reporting mechanism so that workers that are working under the No Sweatshop program can raise the alarm if conditions aren't being met.

Unfortunately the market isn't all that big for garments produced in Australia, let alone No Sweatshop garments, as costs are much higher than those imported from China. I am aware of at least one No Sweatshop accredited t-shirt and commercial garment manufacturer that has apparently gone out of business due to competitive pressure.

This really is an issue that requires consumer action alongside the work of organisations such as Fairwear and the TCFUA.

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Lauren 05-Mar-2006

thanks for this info - I have just read this morning some media info on this in the papers and this info has helped alot.... unbelievable that this happens in the world let alone Australia too.....



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Thea 28-Feb-2006

Unbelieveable! That something like this can happen anywhere let alone in Australia is disgraceful. I think as consumers we can try to help by being more informed about how our clothes were made before we buy them. So that means checking the labels but also asking the people who work in the stores. The websites listed here are great places to find out which brands we should be supporting and which ones we should avoid.

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Amy 11-Nov-2005

If there are people in Australia working in these conditions under the current Industrial Relations laws imagine how worse off they will be under the new changes. This is another reason why we have to stand up not only for our rights at work but the rights of people such as the women and children outworkers.

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