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“The Low Price” of the textile discounter KiK – consequences for labour conditions in textile factories in Bangladesh: Difference between revisions
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“The Low Price” of the textile discounter KiK – consequences for labour conditions in textile factories in Bangladesh (view source)
Revision as of 17:02, 28 February 2011
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In chapter 2 I have already mentioned the “Agreement on Textiles and Clothing” (ATC) of the World Trade Organisation that phased out in 2005. After this phase-out a hard competition between Bangladesh and the former restricted countries like China and India began with the consequence for Bangladesh – which is very depending on export of clothing – that price reductions started which were to be paid by the garment workers in the end. “The poor countries, competing to retain their clothing industry, try to offer the lowest wages.”<ref name="A" /> | In chapter 2 I have already mentioned the “Agreement on Textiles and Clothing” (ATC) of the World Trade Organisation that phased out in 2005. After this phase-out a hard competition between Bangladesh and the former restricted countries like China and India began with the consequence for Bangladesh – which is very depending on export of clothing – that price reductions started which were to be paid by the garment workers in the end. “The poor countries, competing to retain their clothing industry, try to offer the lowest wages.”<ref name="A" /> | ||
Figure 1 is adapted from the brochure of the “Clean Clothes Campaign”. It is necessary now to give a short presentation of the “Clean Clothes Campaign” because it offers important information in its brochure that is used as one of the key literature in this case study. The key aim of the “Clean Clothes Campaign” is to improve the working conditions in the global garment industry, especially in less developed countries. This campaign is widely supported by many NGOs and labour unions.<ref>Profile of Clean Clothes Campaign: http://www.saubere-kleidung.de/ccc-60_wir/ccc-60_wir-ueberblick.html (View: 28.2.2011).</ref> The figure shows of which price components a T-shirt price is made up. “Wages only account for 0.5-1 percent of the ultimate selling price of the product”.<ref name="A" /> The large portion of the price is gained outside Bangladesh in Western industrial nations like Germany. Only the factory and wage costs remain in the Bangladeshi economy. A huge amount of the later price is spend for marketing activities and the rest, about 50 percent is used to cover costs of the retailer and to gain some profit.<ref name="A" /> <br><br><br> | Figure 1 is adapted from the brochure of the “Clean Clothes Campaign”. It is necessary now to give a short presentation of the “Clean Clothes Campaign” because it offers important information in its brochure that is used as one of the key literature in this case study. The key aim of the “Clean Clothes Campaign” is to improve the working conditions in the global garment industry, especially in less developed countries. This campaign is widely supported by many NGOs and labour unions.<ref>Profile of Clean Clothes Campaign: http://www.saubere-kleidung.de/ccc-60_wir/ccc-60_wir-ueberblick.html (View: 28.2.2011).</ref> The figure shows of which price components a T-shirt price is made up. “Wages only account for 0.5-1 percent of the ultimate selling price of the product”.<ref name="A" /> The large portion of the price is gained outside Bangladesh in Western industrial nations like Germany. Only the factory and wage costs remain in the Bangladeshi economy. A huge amount of the later price is spend for marketing activities and the rest, about 50 percent is used to cover costs of the retailer and to gain some profit.<ref name="A" /> <br> | ||
[[File:T-shirt price components.jpg]] | |||
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==== References<br> ==== | ==== References<br> ==== | ||
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===== c) Limitations of the resource ===== | ===== c) Limitations of the resource ===== | ||
The study for the campaign was published in 2008 and is therefore 2 years old. But I think that this doesn't matter much, because the other articles I read support my opinion that unfortunately nothing has really changed since 2008.<br> | The study for the campaign was published in 2008 and is therefore 2 years old. But I think that this doesn't matter much, because the other articles I read support my opinion that unfortunately nothing has really changed since 2008.<br> | ||