Improving security and skills for Indian homeworkers

Several thousand homeworkers in one of India's poorest regions are developing a new sense of identity and security, greater awareness of their rights and improved working conditions thanks to the efforts of a ground-breaking coalition of companies, NGOs and trade unions, supported by ETI.

The fashion industry's invisible workforce

For many retailers, India is the place to find the skills required to produce the exquisite hand-worked, embellished clothing and accessories that fashion-conscious consumers love. Yet although homeworkers are the backbone of this Indian export industry, the complex and informal supply chains that typify the garment industry mean they are often hard to trace.

And because of their informal status in the economy, homeworkers often suffer poorer living and working conditions compared to formal sector workers. Low wages, irregularity of work, lack of social protection, high rates of occupational injury, lack of access to training and information about rights and entitlements, as well as weak bargaining power have been identified as common concerns for homeworkers in India.

The first national multistakeholder body on homeworkers

In July 2006, recognising the the need for collective action to tackle homeworkers' conditions, ETI members together with Indian suppliers finalised draft guidelines on applying the ETI Base Code to homeworkers (the guidelines have since been updated - click here for more information). We helped set up a national multi-stakeholder body in India to begin joint implementation of the guidelines. This was the first time that trade unions, retailers, suppliers and contractors - the people who give work to homeworkers - had cooperated on this issue.

Work initially focused on Bareilly, Uttar Pradesh, one of the poorest regions in India and a major sourcing destination for UK retailers. The Handwork Foundation was created in late 2006, comprising contractors (who give work to homeworkers), two NGOs and a trade union. So far work has focused on training homeworkers about health and safety, quality control and record keeping, linking them to government-subsidised insurance and credit schemes, and building demand for, and lobbying the government to provide, decent quality schooling.

The Handwork Foundation is now expanding its work across a wider range of villages. Activities include helping homeworkers set up a village-level resource centre where they can help link homeworkers to various government schemes.

Progress on raising wages

A key issue for homeworkers is very low wages, with clear evidence that most in India are surviving on less than the minimum wage. As a first and vital step to addressing this issue, retailers participating in NHG have greatly increased visibility and efficiency along their supply chains, and now all know exactly where the handwork on their products is carried out. This is a major step forward as it means there is now a direct line of accountability between retailers and homeworkers.

A common approach to agreeing piece rates has also been developed which is based on a more realistic assessment of the time it takes to work on an item. A system has also been created that informs homeworkers how much they should be paid for a piece and allows them to report when they do not receive this rate.
This, combined with work also being carried out to help homeworkers reduce their costs and keep records of their transactions with contractors, is helping to increase their incomes.

To date, over 40,000 homeworkers have been touched by this work.

Rolling out the self-empowerment model

Thanks to a grant from the UK government, the NHG is now testing the broader replicability of the self-empowerment model created in Bareilly. The area of Sangam Vihar in Delhi has been chosen as its key sourcing location for many retailers, yet notorious for the existence of sweatshops and forced and bonded labour.

After carrying out a major needs assessment of the area, NHG has carried out awareness-raising training with around 40 contractors and 18 factories aimed at developing buy-in for improving homeworkers conditions.

Ultimately we aim to reach a further 4,500 homeworkers in the area through this grant.

Get involved

We urge all retailers, exporters and agents that source from homeworkers in India, and other trade union and not-for profit organisations working with Indian homeworkers, to get involved in this groundbreaking work.

Membership of the NHG provides opportunities to:

• get involved in a new, more sustainable approach to improving homeworkers' conditions
• join the only multi-stakeholder initiative working on these issues
• benefit from over four years of multi-stakeholder work and trust-building among existing members
• have a far greater - and cost-effective - chance of improving conditions than if working ‘alone'
• get involved in the cutting edge of corporate social responsibility
• gain from the productivity improvements that stem from organising homeworkers

Contact the National Homeworker Group on +91 996 845 0952 or alok@nhgindia.org; alok@eti.org.uk