The Covid-19 pandemic has posed unprecedented economic challenges for all industries around the globe with certain sectors becoming increasingly vulnerable. The decline in economic growth has significantly impacted all sectors. In particular, the pandemic has had major impacts on Myanmar’s garment workers. Not only did the pandemic threaten lives, but the sudden reduction in income meant many garment workers were unexpectedly left in a vulnerable position.
Last year Impactt in partnership Primark, international Women’s rights NGO, Women Win and several garment manufacturers in Myanmar, with the support of FCDO responded to the ongoing impact of the pandemic through an innovative application of conditional cash transfers combined with a resilience fund. The objective was to provide immediate cash support to workers and leverage commercial relationships to foster sustainable solutions to workers’ problems, through partnerships between supply chain partners, generating more widespread benefits to workers in the longer-term.
Myanmar’s export garment industry contributes over 30% of export earnings and employs around 400,000 people, 80% of which are female. Many of these women were particularly vulnerable to loss of income. With increased lockdown measures, the risk of gender-based violence became a reality for many, who, without income, faced increased pressure and burdens within the home. A Resilience Fund was to be established as part of the project to address this issue, with a specific focus on gender-based violence in the workplace.
Prioritising immediate financial relief to thousands of workers
In partnership with an international financial services company who provided an e-wallet service, immediate payments were made to over 1,500 factory workers across three factories. 98% of workers reported that this was the first time that they had registered with an e-wallet provider.
Prior to the cash payments, 89% of workers stated that they had less money than previously, and the cost of living had increased since the pandemic. 93% of workers reported they did not have enough money to last the next few months. Building strong relationships with HR management at factories was key to the success of this part of the project. It was essential to speak to 100% of workers pre-transfer to verify their information, confirm the process and share the support line number while factory sharing sessions enabled management to learn from each other and overcome common obstacles such as e-wallet account set up and password reminder. Following the completion of the cash payments, 100% of workers interviewed, reported that they felt considerably less anxious since receiving the payment and 97% stated they felt less concerned with their financial situation during the pandemic.
Easing the financial position for participating factories
Though the lead brand partner, Primark honoured their orders, workers in participating factories still experienced significant reductions in pay and/or uncertainty in future income due to factory closures and reduced orders by other brands. The participating factories benefited in the form of the provision of indirect financial assistance to their workers that they themselves were unable to provide. These payments were over and above the payment of wages. This cash support for their workers incentivised and encouraged factory management to pursue meaningful engagement with their supply chain partners and commit to deliver sustainable improvements to the enabling environment for female workers. All factories reported a significantly increased sense of trust and appreciation of their relationship with Primark. The factories were both willing and able to manage the project, which had been a key concern at the beginning.
‘Getting back into business’ in a way that respects human rights
As part of the project, participating factories were offered technical support to help re-start their businesses in a way that respects human rights and mitigates the risks of worker exploitation in the wake of the pandemic. In close collaboration with the project partners, factory management committed to development programmes aimed at both workers and management to help build skills, develop workplace culture and support management systems, all of which are necessary for generating sustainable improvements in women’s’ experience and prospects at work. Workers were consulted to better understand their workplace needs and priorities. Though workers reported they were happy to raise harassment issues, factories could benefit from enhancing their grievance procedures.
Financing an innovative and cross-sectoral approach to addressing key gender-based issues
During our conversations with workers, 38% revealed they were not sure if sexual harassment is only ever physical while 59% of workers agreed that their workplace had rules regarding harassment. However, 28% of workers combined reported they were not sure, disagreed or strongly disagreed. This was a clear indication of a low level of awareness among workers on acceptable and unacceptable behaviour regarding harassment. Through our engagement with the factories, we learned that many supervisors, HR departments and even workers do not have enough understanding and knowledge about harassment and sexual harassment topics. As part of the original scope of the project, a Resilience Fund was to be established to deliver a pioneering and collaborative way to engage participating factories in addressing more structural and societal issues that restrict gender equality and women’s empowerment. The objective of the Fund was to provide seed grants to support cross-sector initiatives between local women’s rights organisations and factories to help address gender-related issues that have a direct impact on business. Project partners believed that without the core project activity of the cash transfers, engagement with factories would have been made more challenging.
The impact of the coup
The military coup earlier in the year resulted in the suspension of the project, which meant that fewer workers than planned were able to benefit from cash transfers and training could not be completed. However initial results showed that the concept of conditional cash transfers is a useful one which should be further explored in supply chain programmes.
Collaboration and transparency are key for success
The collaboration and transparent nature of the partnership was key to the success of the project. Partnering with well-known brands, rather than taking a top-down approach, levelled the playing field and created a foundation for a trusting and supportive partnership. High level of engagement and willingness to listen and adapt to factory suggestions also played a key role in receiving buy in from factories. Engagement with senior members of Primark’s team also highlighted the strategic importance of the project and partnership. Through the extensive and diverse networks of each of the project partners, there are significant opportunities to share this learning far and wide, making a real and valuable contribution to demonstrating responsible business and building resilient supply chains that benefit all those who work in them.
