Predatory Purchasing Practices in Global Supply Chains and the Employment Relations Squeeze in the Indian Garment Export Sector
Key Insights for Managers
This study examines the effects of price pressure and shortened lead times imposed on Indian apparel suppliers during 2017-2018. Author Mark Anner finds that these factors led suppliers to reduce costs by increasing hourly production quotas and the use of overtime, reducing wages to levels that prevent workers from meeting their basic needs, relying on shorter work contracts to avoid paying benefits, relying more heavily on female and migrant workers, and increasing their outsourcing to unregistered factories.
Some suppliers also attempt to increase productivity by verbally and even physically abusing their workers. The study is based on survey of 340 apparel export factories, a separate survey of 560 workers, interviews with other stakeholders, and international trade data.