Namibia: textile company charged with poor working conditions

PRESS RELEASE
Labour Resource and Research Institute (LaRRI)

The Experiences of Ramatex Workers in Namibia
16 October 2003

The Namibian Government introduced the EPZ Act in 1995. The main of the EPZ policy was to encourage foreign investors to Namibia so that the country’s manufacturing capacity could be boosted. To date, the most spectacular foreign investment since independence is the Ramatex factory. Even before the company began its operations in 2002, it made headlines, as it became the most talked about investment in Namibia. The debate around Ramatex revolved around the massive size of its operations, the establishment of a new industry and the controversies surrounding the company’s environmental impact and working conditions. Due to its massive operations, government expected that this particular investment would help reduce the high unemployment rate in Namibia.

The purpose of LaRRI’ s study was to investigate the working conditions and experiences of Ramatex workers. In-depth interviews with over 30 workers were conducted and the interviews were transcribed, analysed and compiled into a booklet. The main part of this booklet covers the experiences of Ramatex workers. LaRRI wanted to document their views, which are often ignored by policy makers who simply argue that ‘workers should be grateful to have any job at all’.

LaRRI’s booklet presents Ramatex workers’ s stories as they have told them. We hope that this booklet will contribute to the debate about the costs ad benefits of investments like Ramatex in terms of long-term sustainable investment. Some of our main findings are:

· The majority of Ramatex workers indicated that they received training, either at the Windhoek Vocational Training Center or at the Ramatex factory. The training received varied as the workers who were trained at VTC were only trained for a maximum period of 3 months whereas the workers trained at the factory remained in training for a longer time, some up to 6 months and longer.
· Ramatex workers earn very low wages. Workers who have completed training earn N$3-00 per hour, for overtime they earn an extra N$1.50. Trainees receive N$ 1.50 per hour plus 75 cents for overtime. Even when workers work long hours of overtime, they only reach about N$ 700.00 per month.
· Workers indicated how difficult it is for them to make ends meet with their meager income. Most are forced to work overtime to supplement their basic salaries so that they can cover their basic expenses such as rent, water, food and transport. Most workers still have to share their limited income with their extended families and children.
· Most Ramatex workers start work around 7:00 and 7:30 in the morning and knock off at 17:00 in the evening. The majority however indicated that they work at least until 19:30 when the night shift begins.
· Both low salaries and long working hours have a severe impact on workers at Ramatex. Due to low salaries, most workers have to walk long distances to and from work. By the time they reach the factory, they are exhausted. When leaving the factory in the evening most workers still walk back long distances. Since most workers are women they pointed out that they do not feel safe to walk back home.
· Workers also indicated that they are not provided with protective clothing, which they regard as a basic necessity when working at Ramatex. Some workers have developed chest problems whereas others had allergic reactions because of being exposed to the dust from the fabric. This has created another burden for the workers because their expenses now include medical costs.
· Work related accidents seem to be an everyday occurrence. One of the respondents showed us that one of her fingers has been disabled because she got cut by one of the machines at the factory. Another had an injury to her eye caused by a needle. The workers reported that when they get injured and take sick leave, it is regarded as unpaid leave. Because workers are not paid sick leave, they end up working even when they are sick or injured.
· Workers also complained about backaches owing to the uncomfortable wooden benches that they sit on for the whole day when working.
· They further complained about the humiliation they endure when they get searched especially as they enter the factory in the morning, when they leave or when they visit the bathroom. . Women workers were particularly concerned about the body searches and indicated that it was uncomfortable for them, especially when they have their menstrual cycles.
· Workers reported inhumane treatment from their supervisors. The workers feel trapped because they can not take their grievances to their supervisors whom they felt did not have their well-being at heart. Some of the workers who have asked for compassionate leave have been told to go and never come back. Disputes and disciplinary procedures are characterised by endless signing of warning letters without any explanation.
· The lack of proper and fair disputes handling procedures has led to escalating conflict especially between the Asian and the Namibian workers.
· Workers frequently reported that they are verbally abused by their supervisors and often told how ‘lazy and useless’ they are.
· Currently Ramatex employs about 7 500 worker of whom about 6000 are NAFAU members. The main purpose of workers joining NAFAU was for NAFAU to assist workers on matters such as work-related accidents, protection from dismissals and salary increments. So far, the workers feel that NAFAU has not done enough with regard to salary increases, but the union assisted in other areas such as unfair dismissals.

Conclusion

Ramatex represents a typical example of a global production chain in the area of globalisation. The experiences in Namibia are in line with international trends of Transnational Corporations (TNCs) spreading their operations globally in search for increased profits. The fact that Ramatex managed to play out three Southern African countries against each other shows how TNCs utilise their bargaining position to gain increasing concessions from host countries, which are desperate to attract investors. Ramatex’ s employment practices are in line with other global textile companies who prefer young women workers who are seen to be ‘docile’ with ‘nimble fingers’ and less likely to join trade unions or resist company management.

The first two years of Ramatex operation in Namibia have been characterised by many controversies. Many of the conflict and tensions have remained unsolved, as they seem to be dealt with at the ‘political level’ instead of addressing the root causes of the problems. Unless the problems experienced by Ramatex workers are addressed, Ramatex will be contributing to the establishment of a large number of ‘working poor’ in full-time employment, unable to meet even their basic needs. This is in sharp contradiction of the Namibian government’s stated objective of promoting decent work in line with ILO standards.

The Ramatex investment did not come to Namibia free of charge. Based on the assumption that Ramatex and its subsidiaries will employ about 7 000 Namibian workers at the end of 2003 with an average wage of N$ 500 per month, and given the expenses of about N$ 120 million in public funds to set up infrastructure for the company, the following calculation can be made: The financial support that Ramatex received from the Namibian government is equivalent to the salaries of all workers for 34 months – almost 3 years! A huge investment by any standard which can only be justified if Ramatex' operations in Namibia will lead to long-term sustainable jobs of decent quality. Otherwise one may well argue that the huge public investments could have been spent more efficiently on other programmes aimed at job creation.

Recommendations

Ø There is a need for the government to review its current EPZ policy to ensure that the policy results in investments that will promote socio-economic development in Namibia instead of draining national resources.
Ø The environmental Impact Assessment study on Ramatex urgently needs to be made public, so that all relevant stakeholders are aware of possible threats and are able to devise strategies how to deal with them. If such a study has not been executed, then it is imperative for a new study to be conducted as a matter of urgency. Such a study should at least cover the following: health and safety issues at Ramatex, the impact of Ramatex’ s usage of water on Windhoek residents, as well as the impact of possible pollution on residents living in the vicinity of the company.
Ø Trade unions must negotiate better salaries and working conditions through collective bargaining.
Ø The recognised union, NAFAU, should employ more organisers to be able to effectively organise the Ramatex workers. Preference should be given to women organisers because of the high number of women employed by Ramatex.
Ø The company has to review its contracts and bring them in line with Namibian laws and practices. Ramatex also has an obligation to ensure that workers understand their contracts, and possibly even translate them into a language best understood by the workers. The company must also ensure that workers are compensated for injuries at work.
Ø Like all companies with 50 or more employees in Namibia, Ramatex should comply with the Affirmative action legislation
Ø Ramatex should be enlightened by the Namibian government and trade unions in no uncertain terms that to comply with all Namibian laws and regulations. This includes the Namibian Constitution, the Labour Act, the Social Security Act, the Affirmative Action (Employment) Act, collective bargaining agreements, health and safety regulations etc.

The experiences with Ramatex to date point to the urgent need to ensure compliance by foreign investors with Namibian laws, regulations, workers rights as well as environmental, health and safety standards. Experiences elsewhere have shown that compromises on social, environmental and labour standards in the name of international competitiveness have led to a ‘race to the bottom’. The Namibian government as well as trade unions have to demonstrate that they are serious in defending these rights that were only won through long and bitter struggles. It is of critical importance to demonstrate to Ramatex that Namibian laws, regulations and rights are not negotiable. Otherwise, Ramatex might set an example that others will follow, resulting in the loss of some achievements made by Namibia since independence.