Innovative Hr Practices to Improve Socio-Economic Conditions of Women Workers in Garment Industry - An Empirical Study

Abstract

The ready made garment industry plays a pivotal role in our economy ,since it accounts for 16% of the foreign exchange earnings of the country. More than 85% of the employees in this sector are women. The need to upgrade skills through appropriate HRD interventions in this sector is of paramount importance in order to improve the socio-economic conditions of the women employees vis-a'-vis productivity. The pilot study indicates clearly that the companies adopting HR practices have shown positive results in terms of increase in productivity , better social status of employees and reduction in problems pertaining to IR issues. I. Background: The global textile and garment sector has been in a state of flux since 1 st January 2005, when almost four decades of restrictions on trade formally came to an end with the demise of the Multi-Fibre Agreement (MFA) quota system. Many developing countries now face increasing competition and downward pressure on prices as the global garment industry consolidates around a relatively small number of winners. Developing countries produce half the world"s textile exports and nearly three-quarters of the world"s clothing exports 1 . For textiles, the European Union (EU) is the biggest exporter (including intra-EU trade), followed by China. However, India, Turkey, Pakistan, Indonesia, Thailand & Mexico all rank among the top 15 textile exporters, according to WTO trade statistics. Overall, Asia accounted for 45% of world textiles exports in 2004. The EU and the US are the biggest importers of textiles, followed by China, which needs fabric for its large garments industry. The textile industry is one of India"s oldest industries; India ranks first in cotton-cultivated area and third in production among all cotton producing countries in the world. Next to China and USA, it is the second largest producer of silk in the world, seventh largest producer of wool in the world. With this resource base, textiles form a major contributor to income, exports, employment & foreign exchange earnings. During the year 2008-09, the sector accounted for 18% industrial production, 5% to the GDP, 19% to the country"s export earnings and provided direct employment to more than 40 million people, the biggest employer after agriculture. The Ready made Garment Industry is vital to the economy of the country. The industry contributes 6% to the GDP of the country and earns 16% of the foreign exchange earnings of the country. It consumes almost 40% of the fabrics produced in the organized and decentralized sectors combined of the textile industry and employs around 40 lakh persons thus ensuring sustenance to 40 lakh families. The garment industry is labour-oriented, unlike other industries in the Textile Sector e.g., spinning, weaving or wet processing where number of activities are automated. The Indian Garment industry work-force predominantly comprises of first generation women workers. After 2005, big garment units are growing fast. The workers employed in the garment industry usually comprise of unskilled or semi-skilled workers. A point that is of interest and needs specific mention is the fact that the majority of workers in the garment factories, especially in Bangalore, comprise of women. These women usually hail from the rural areas around Bangalore and in most cases are not conversant with their role and responsibilities since quite a number of them are illiterates or under-educated. The need to upgrade skills through HRD intervention in this sector is of paramount importance, in order to improve their socio-economic conditions vis-a-vis productivity. If appropriate support mechanisms are provided, a large part of the growing labour force can be absorbed. Thus, promotion of productive and remunerative employment is a key strategy to overcome women"s poverty and also to enable the garment companies to achieve their goals. Human Resource Development (HRD) which was earlier called as Training prepares an individual to acquire more knowledge to produce better quality and number of goods in a stipulated period and about the behaviour. Some of the organizations believe in training as a vital tool for individual and organizational development. It boosts the morale of the employees and creates a sense of belongingness which ultimately increases their interest and commitment to the organization. The concept of HRD is of comparatively recent origin. HRD is a process which consists of a series of activities