What We Do / Campaigns
SUBCONTRACTING IN THE FOOTWEAR INDUSTRY
A COMPLEX CHAIN FROM PRODUCER TO RETAILER
Homeworkers are working in poor conditions producing goods with a high retail value. The complexity of the chains can make it difficult for them to claim their rights as they often do not know who holds the decision-making power.
Women homebased workers play a key role in global supply chains. Most shoe retailers now outsource manufacturing to smaller companies, who in turn may give out work to workshops and homeworkers. This supply chain often stretches across several countries. As retailers look for ever lower product costs and quicker response times, pressure is passed down the chain, meaning lower wages and more insecurity for workers.
Can you work it out? Try reading through the following text – who would you talk to if you were a homeworker trying to improve your working conditions? Who would be your key allies?
‘AB’ PLC is a major British retailer of clothing and shoes. In 2007 AB has more than 500 stores in the UK, Europe, North America & the Middle East as well as catalogue and internet shopping. AB creates the shoe design and sends it to a second company ‘CD’ via an intermediary in Italian city Z. The intermediary delivers the work back to AB PLC and is paid on a percentage basis; AB PLC visits CD only twice a year to negotiate prices, sizes & quantities. CD is an Italian subcontractor - a small artisan firm, with 8 employees, in town Y. 90% of CD’s production is for AB PLC and the firm is responsible for all elements of production and provision of raw materials.
CD matches up the model and design. When designs and quantities are agreed, specialized equipment is ordered from a specialist equipment firm. CD buys raw materials and accessories: leather from a local wholesaler who deals with an Italian tannery; glues, thread, buckles etc. are bought locally; soles are bought from a second specialist firm. The leather cutting is subcontracted to self-employed leather cutters who work for various firms. When the cut uppers (the top part of the shoe) come in, the shaving off of excess leather and marking is done inside CD’s firm. The hemming, stitching of uppers and making decorations is put out to 11 homeworkers, some registered, some unregistered. Fitting uppers to plastic forms is put out to two local artisans. Joining the uppers to the soles is done in CD, where the plastic forms are removed and labels for AB inserted. Finishing, dyeing, polishing, labelling and packing done in CD, boxes are bought from a third specialist firm and shipping by a fourth Italian firm.
Feeling confused? Download a diagram of this subcontracting chain to get a clearer picture:
Subcontracting in the Italian footwear industry
This is a diagram of the subcontracting chain involved in the production of shoes in Italy for one UK company.
62.9 KB PDF document