Who foots the bill?

Homebased workers in the leather footwear industry campaign for their rights.

Homebased workers in many countries are working on the production of leather footwear. They experience poor working conditions as companies look for ever-lower product prices. Workers talk about pains in their hands and backs from stitching heavy materials, working long hours, having no contract or access to social security.

A homebased worker in Bulgaria is paid on a piece rate for each pair of shoes that she completes. For a pair of shoes which retails at 100 Euros, she is usually paid half a Euro. More complicated models can mean her hourly rate drops. Homebased workers say that, in order to make a living, a family of four needs 200 Euros (or 400 pairs of shoes) per month and they would need to work for 66 hours per week to achieve this.

Homebased workers talk about the negative impact on their health of using toxic glues or stitching leather with thread of the same colour, which can damage their eyesight. Laura from Chile reported that “the glue was so strong it made my head ache… when it fell onto leather, it stripped it”. When there are urgent deadlines workers will often work non-stop for days to meet them.

Working conditions are closely linked to decisions made further up supply chains that are becoming increasingly globalised and complex. Companies are engaged in a ‘race to the bottom’ to reduce costs, putting pressure on suppliers to provide goods at ever lower prices. Company purchasing practices, such as changing order specifications or quantities at the last minute, also have a negative impact on labour conditions. Suppliers often find that the only remaining cost that can be squeezed is labour.

Because homebased workers have limited bargaining power, companies often view engaging them as a way of cutting costs. Homebased workers are only paid when there is work to be done and are not usually paid for work that is not deemed to be high enough quality. They pay their own overhead costs – heating, lighting and often equipment; they rarely receive any social security benefits such as sick pay, maternity leave or pensions. In Portugal, homebased workers have described how they reach retirement age and find that they have no way of providing for themselves.

During a mapping project carried out between 2000 and 2006, Homeworkers Worldwide identified homebased workers in countries across the world working on the production of leather shoes. The most common part of shoe manufacturing given out to homebased workers is the stitching of the top part of the shoe, the ‘uppers’. Sometimes they also stitch uppers to soles, or add decorations. The amount of work depends on the style of shoe: a moccasin-style will tend to mean more work for homebased workers.

It can be difficult for homebased workers to negotiate for better conditions. They are generally afraid of losing their incomes and may be unable to find alternative work due to family or other commitments. They are often isolated, may not be registered and are usually dependent on one supplier because limited access to transport means they are unable to ‘shop around’ for the best rates of pay.

The complexity of supply chains also affects homebased workers’ bargaining power. Work is generally given to workers by a local intermediary, who negotiates the rates of pay, quality and amount of work to be done. The intermediary is in contact with a supplier, to whom he delivers the work. This supplier may be part of a longer chain, involving a number of subsidiaries or subcontractors involved in the different aspects of shoe production, from design to manufacture and packaging. Homebased workers are often aware only of the part of the chain that immediately affects them, and will only know what company they are producing for if there are clues such as labels on the shoes. They are given no information about retail prices.

Homebased workers report degrading and exploitative treatment from intermediaries. Rozalina from Bulgaria said "One of the problems for homebased workers, and a constant humiliation, is that nowhere are they mentioned by their name. The subcontractors know them only by a number. Homebased workers are the most invisible". In Portugal, homebased workers felt under constant pressure to accept work; Maria said “we can’t refuse a box, he doesn’t like that. It’s better to accept everything he brings because otherwise he might give the work to someone else… He often brings extra work for the weekend… Sometimes it makes us want to cry: you have to sew shoes, iron, wash, make the meals. There comes a point when we can’t take any more…”.

This is a common picture throughout the world wherever the production of leather footwear is found. Homebased workers in these chains are demanding the right to be treated as other workers, with full employment and social security rights. In many countries they have started organising to press for change. Through setting up their own democratic, independent organisations they have a collective voice and can fight for their demands. Given the challenges they face in their work and organising, it has been important for them to build alliances with NGOs such as HomeWorkers Worldwide, trade unions and consumer campaigning organisations like the Clean Clothes Campaign and Labour Behind the Label.

Homebased workers in these supply chains are demanding their rights under the ILO convention on home work. Their key demands are:

• Regular work and a living wage;
• Recognition for homebased workers as workers and for their rights;
• Recognition of their right to organise and of their organisation;
• Basic social protection, particularly for health, maternity and old age;
• For rights for all kinds of informal workers, particularly homebased workers, in global production chains.

Can you support our campaign? For further information or to receive an action pack, contact Homeworkers Worldwide http://www.homeworkersww.org.uk/, 0113 217 4037.

Ruth Bergan