World leaders gathered at the 71st UN General Assembly in New York recently to review the first year’s progress in implementing the sustainable development goals. Described as nothing less than a ‘universal push to transform the world’, the goals are the world’s plan to eradicate poverty and save the planet by 2030. As policymakers seek the smartest ways to progress, one strategy is clear to all. Almost every country on earth, especially the poorest, has a desperate need for more jobs. The World Bank 2013 World Development Report on Jobs estimates that over the next 15 years, an additional 600 million new jobs will be needed to absorb burgeoning working-age population, mainly in Asia and Sub-Saharan Africa. These are the jobs that transform lives because they offer an escape from poverty and fuel economic growth, and jobs that promote respect for the fundamental freedoms that underpin the development of inclusive societies. These also ensure freedom from slavery, from child labour and discrimination and freedom to form organisations such as trade unions that advance and protect the rights of the poor. Most urgent are jobs for those who do not have access to work, including the youth, women and migrants. So where are we going to find them?One answer is the global garment industry. It provides formal employment to tens of millions of workers in less developed and emerging economies. For instance, in Bangladesh, garment and textile accounts for 91 percent of export earnings. A global garment industry that uniformly offered decent jobs could lift millions of people out of poverty and help create sustainable development. But is this possible in a world where our craving for cheap clothing and fast fashion can create enormous downward pressure on working conditions? Yes it is, according to new research out recently, which strongly challenges any view that there is a trade-off between treating workers well and a profitable garment industry. A five-year independent study commissioned by Better Work—a joint programme of the International Labour Organisation and the International Finance Corporation—shows that a smart mix of business incentives, training, monitoring of working conditions and engagement by all actors in the global supply chains can significantly improve working conditions. And the good news is that it does not come at the expense of businesses’ bottom line. On the contrary, researchers conclude that improving working conditions can actually contribute to increased profitability and productivity. For example, the study shows that in Vietnam, the garment factories where workers report better working conditions are more productive and more profitable. For instance, workers with better working conditions reached daily production targets nearly 40 minutes faster than workers in factories with worse conditions. In an industry characterised by intense price competition, evidence that improving working conditions is not a cost but a critical component of business success is ground breaking. Significantly, women are often the major drivers and beneficiaries of this success. For example, investing in training for female supervisors was shown to improve working conditions and increase factory productivity by up to 22 percent, in large part by reducing tensions and improving workplace communication. Researchers also credit Better Work for significantly closing the gender pay gap in garment factories that it has advised in Haiti, Nicaragua and Vietnam. This is all highly relevant in the global garment industry where more than three quarters of the total workforce are female. Research also points to the impacts of good working conditions on workers’ families and communities. As take-home pay rises and working hours fall, workers’ children have significant better health and their access to education also rises.Globalisation is here to stay. The key question as the world faces up to the responsibilities of implementing the 2030 agenda is how to ensure global trade delivers on the promise of inclusive growth and shared prosperity. These results point to the importance of improving job quality and tackling inequality as a key to economic growth that is more just and inclusive. Where does this path lead us next?Fundamentally, this is a question of governance. We all want improvements in working conditions on the factory floor, but experience shows this must be supported by good law that is effectively implemented, with the strong participation of employers’ and workers’ organisations. This demands more political will and greater resources so that national institutions can play effective roles.The UN guiding principles on business and human rights also recognise the key role of the private sector. Industry leaders play a critical role in improving working conditions and this is part of the Better Work story. The research also shows that the demand for short delivery deadlines and last minute changes to production schedules can negatively impact working hours, safety and health. This calls for innovation to ensure that the practical realities of providing decent work on the factory floor are integrated into the management of sourcing practices. Creating jobs and improving working conditions in the global garment industry is everyone’s business. We must build collaboration and accountability between public, private and civil institutions to make it a reality. Deborah Greenfield is deputy director-general for policy at ILO, and Mary Porter Peschka is director of advisory solutions at IFC, a member of the World Bank Group.
