EXECUTIVE SUMMARY
During the past five years, governments in
Cambodia, India, Indonesia and Sri Lanka
have deregulated labour and employment law
by replacing all or most of the existing laws.
There is no evidence that labour and employment deregulation boosts worker productivity or economic growth. Yet governments,
backed by industry, are initiating sweeping
changes that reduce worker power at every
opportunity. COVID-"# has exposed the full
extent of impacts that deregulating labour
protections has on workers’ livelihoods. It is
vital that any future legislative changes promote worker power and rights at work, not
undermine them.
This report, Garment workers under threat
from labour deregulation in Asia, explains the
legislative changes to labour law in Asia, and
how they will likely impact garment workers. Garment-exporting countries in Asia do
not have effective systems for guaranteeing
decent work in garment factories. Employers
pay garment workers poverty wages for difficult and challenging work. Garment factories
commonly discriminate against and harass
workers, and often fire workers in retaliation
for filing complaints or attempting to join a
union. Labour and employment laws that
protect workers against employers are rarely
enforced in order to protect domestic industrial interests.
The following changes in Asia are under way:
In India, a %'"# Code on Wages sets wages by
region and skill level, permits low minimum
wages and reduces protections against wage
theft. The Industrial Relations Code attacks
worker power in several ways: formalising
fixed-term employment, making termination
of permanent employees easier, imposing barriers to striking and restricting union leadership. The Occupational Safety, Health and
Working Conditions Code and the Code on
Social Security do not ensure workers’ safety
or security.
In Sri Lanka, the draft labour and employment law eliminates tripartite wage setting. As
in India, it attacks workers’ freedom of association and the right to organise, and offers
limited health and safety and social security
protections.
In Indonesia, several provisions of existing
labour and employment laws were deregulated
by introducing an Omnibus Law on Job Creation. The Law exempts certain sectors from
minimum wages, increases overtime, reduces
availability of paid leave and eliminates limitations on fixed-term and on subcontracting.
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