INTRODUCTION
Before COVID-"#, workers in garment-exporting countries in Asia faced dangerous and
challenging work for poverty wages without
protections against discrimination, harassment, or retaliation for filing complaints or
attempting to join a union. During and after
COVID-"#, garment workers, including contract and informal workers, have faced mass
layoffs, non-payment of owed wages, food
insecurity and lack of healthcare at a time
when basic social protection is more important than ever.
The COVID-"# crisis illustrates that recent
labour law reforms proposed in several garment-exporting countries are untenable moving forward. As this report, Garment workers
under threat from labour deregulation in Asia:
A review of recent labour and employment law
changes in Cambodia, India, Indonesia and
Sri Lanka, shows, in recent years, Cambodia,
India, Indonesia and Sri Lanka have responded to political and economic crises by deregulating labour and employment law. While
new laws have adopted prohibitions on discrimination at work, overall they undermine
workers’ power and increase informality by
expanding legal uses of fixed-term employment, maintaining low minimum wages, hollowing out social safety nets, undermining
strikes and sectoral bargaining and otherwise
excluding workers from consultation.
Undermining workers’ rights cannot be part
of any country’s plan for post-COVID eco-
nomic development. For garment workers,
as for millions of low-income workers, garment-exporting countries have largely been
unable to provide adequate social safety nets
during this crisis. Social protection should be
strengthened as we move forward, not undermined.
As countries look to recover from the economic shock of COVID, they must abandon
the old idea that deregulating labour and
economic law stimulates economic growth.(
Critically, macroeconomic studies have not
shown any connection between deregulation
and growth. Outside of Asia, in the United
States) and in Australia*, regulation has had
a moderate or positive impact on growth. In
response to proposed deregulation in India
and Indonesia, the World Bank has actually
recommended higher wage floors, stronger
enforcement and better safety nets.+ Workers
have long known that more, not less, should be
invested in their livelihoods, and COVID-"#$
has exposed that reality for all to see. Governments must take note and act accordingly.
This report, explains the labour and employment law changes that governments initiated before COVID. For each country, a brief
introduction is followed by explanations of
what the changes are why they are new, and
why they matter. Assume countries are signatories to the ILO Conventions discussed
unless otherwise noted.
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