Future is bright'

Published : Oct 08, 2010 00:00 IST

Interview with Arumugam Sakthivel, president of the Tirupur Exporters' Association.

ARUMUGAM SAKTHIVEL, the founder president of the Tirupur Exporters' Association, was re-elected president for a three-year term on August 9. He is also the president of the Federation of Indian Export Organisations (FIEO), New Delhi. In this interview with Frontline, he presented the knitwear industry's views on various issues. Excerpts:

On high incidence of suicide:

These suicides have nothing to do with the garment industry. These pertain to businessmen and traders in the small-scale sector who may have raised some loan to start their units and then found that their venture is not viable. Garment workers do not take such loans. I am 100 per cent sure about this.

On compliance with laws and social standards certifications:

The knitwear industry has seen growth only from 1985 onwards. We started our exports with Rs.15 crore then. Now, in 2009-10, it has reached Rs.11,500 crore. But during the last two-three years, there has been a little slackness owing to the recession in developed economies. However, I see a bright future for Tirupur. With more people in the world preferring to wear T-shirts, I find an increased demand for knitwear.

Once the quota system ended, buyers looked for big units, big facilities and also complete-compliance-certified factories. Under the quota system, we had small factories and the buyer had to go to as many as 20 exporters. In the situation prevailing now, corporate social responsibility (CSR) is built-in.

Exporters are also aware of compliance requirements and of CSR. All factories have good toilet facilities and a good working atmosphere. The workplace is kept neat and clean. We also have the system of bringing workers to factories and dropping them back.

Compared with the situation 10-15 years ago, now our factories have undergone a sea change. This is because we have found that unless we change, buyers will not come to us. The realisation that we have to fulfil our responsibilities has resulted in our voluntarily effecting the necessary changes in the factories, besides meeting the compliance requirements.

On housing for workers:

We do not get qualified people for managing the office or for merchandising mainly because of the housing problem. Under the scheme of Central Assistance to States for Developing Export Infrastructure and other Allied Activities, we have built hostels at two places one for 1,000 workers and another for 750 workers. We have earmarked a site for a women workers' hostel inside the Netaji Apparel Park complex. This is only a beginning.

The government should also look at introducing a housing scheme for workers. We have already made a request to the Chief Minister in this regard. They can also build tenements. But the problem in Tirupur is that of being able to find land. The factory managements face a problem in constructing houses for workers. Once we allot the house, it will become difficult for the management to vacate workers in the event of their shifting to another factory.

Wages:

As there is shortage of labour, if a management pays less workers will not stay with the factory. Wages are fixed on the basis of the accord reached with the trade unions for a period of four years. Sometimes we pay higher wages than the agreed rates. This has been the practice in Tirupur for the past 15 years.

As far as maintaining labour standards, you can see boards announcing what the managements offer workers. If people are paid less and the best facilities are not provided, workers have the choice of shifting to another factory. Reports about non-payment of dues to workers for overtime work are false.

With regard to reports that workers are leaving Tirupur, I can only say that this kind of rotation is always there. The Mahatma Gandhi National Rural Employment Guarantee Scheme has also disturbed the labour force to some extent. In addition to this, some of the government programmes such as 1 kg rice for Re.1, free colour television sets and free electricity have made people leave.

On the Sumangali Scheme:

It is true that a few spinning mills are run by exporters. But none of them has introduced a Sumangali Scheme. No spinning mill runs with 100 per cent capacity these days because of labour shortage. The Sumangali Scheme is no longer attractive. Now people want higher wages and they like to take up jobs other than work in a spinning mill. In fact, people are ready to work in garment factories. We don't have a Sumangali Scheme in our factories. We provide regular wages.

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