Hidden Cost of Fashion

(1995) TCFUA: Report on the National Outwork Information Campaign

The bulk of clothes currently made in Australia are being made in private homes. It is estimated that home-based workers in the clothing industry outnumber factory-based workers by about 14 to 1. The union now estimates that there are around 300,000 outworkers in Australia.

We estimate the number of workers in each state to be as follows:

Victoria 144,000; NSW 120,000; Queensland 25,000; South Australia 25,000 and Western Australia 15,000. Total: 329,000 outworkers. [page 5]

As well as the human cost of low wages and poor conditions, outwork constitutes unfair competition against employers who abide by the terms and conditions of awards. Many clothing industry employers say that this is a bigger threat to them than cheap imports. [page 6]

The campaign focussed on 10 language communities: Arabic, Chinese (Cantonese and Mandarin), Filipino, Khmer, Korean, Laotian, Portugese, Spanish, Turkish and Vietnamese. [page 8]

Many outworkers who phoned in expressed fear and confusion regarding their work situation. Frequently raised issues included: fear of intimidation or revenge from employers, or loss of job and income if they ask for better conditions, confusion about the difference between being an employee or a self-employed contractor (many outworkers incorrectly assume that registering a business name gives them the status of a self-employed contractor) and a lack of awareness about their rights in relation to social security and taxation (many stated that their employers make them continue to receive social security payments in order to remain employed). [page 13]

Dominance Of the retail sector allows major retailers to dictate pricing policy for the manufacture of garments. By asserting control over the market, major retailers are effectively being supplied with local products - bearing the 'Made in Australia' tag - for wages as low as those in China, Indonesia or Vietnam. [page 13]

The price paid for garments has little relation to the skill and experience required to make it, or the quality of the end result. The retailers dictate the price they are willing to pay per unit. The warehouse then allocates the work to the lowest bidder, distributing it through a network of contractors. [page 15].

The benefits (for companies) of keeping production in Australia are many. Quality control, stock levels and seasonal changes can be better monitored with local production; and lead times are shorter. [page 17]

One disturbing fact about outwork in Australia is the incidence of children working long hours alongside their parents. The use of child labour in outwork appears to be directly related to the high pressure of tight deadlines and low prices imposed by contractors. Many families have no choice but to involve their children in the production process to get the work done. [page 20]