20:15:30 local time MONGOLIA
* Lookin’ Good: Mongolia’s New Catalysts, Fashionistas Are Donning Entrepreneurship:
With a little help from her friends—that’s 12.0 million sheep, 9.6 million goats, 0.3 million camels, and many, many yaks to you—Mongolia’s annual textile production amounts to some 21,000 tons of wool, 4,500 tons of cashmere, 1,200 tons of camel hair and 300 tons of yak hair. That’s a lot of hair we’re looking at. The hype now is to label a chunk of this 27,000 tons of mammal tuft with a qualified “Tansag Shirhegt” (Luxurious Texture) seal, not for boosting their dead ego, but to righteously capitalize Mongolian fur and cashmere industries.
Their underdeveloped marketing stratagems being wholly untouched for years, Altai Cashmere, Gobi, Goyo and other members of the Mongolian Fur and Cashmere Union are now finally partnering up with the Asian Development Bank to fix this up. Their rude awakening? Fast-moving China, femme fatale of opportunistic marketing, sales distribution, brand labelling and imagery. “Made in China”: what a lovely, familiar ring. read more.
20:15:30 local time CHINA
* Textile Markets Deteriorated, China Weaving Issues Profit Warning:
China Weaving Materials Holdings Limited has issued profit warning this morning following deterioration of market conditions in the textile industry.
“It is expected that the Group may record a substantial decrease in its consolidated net profit for the six months ending 30 June 2012 (the Interim Period) as compared to that for the six months ended 30 June 2011,” the company said in a disclosure to the Stock Exchange of Hong Kong this morning. read more.
* Draft would shield workers:
Wu Ritu, vice-chairman of the Financial and Economic Affairs Committee of the National People’s Congress, said too many employment agencies are outsourcing labor. He also said outsourced employees tend to be overworked and do not enjoy the same wages or social security benefits as regular workers who are doing the same jobs.
“The overuse of labor outsourcing will not only harm workers’ legal rights but also bring harm to regular employment and the labor contract system,” Wu said when explaining the draft to members of the NPC Standing Committee on Tuesday.
* Sports firms bet their shirts on London:
Analysts skeptical that sponsorship will deliver value for investment
Li Ning, nicknamed the “Prince of Gymnastics”, dramatically lit the gigantic cauldron that was the Olympic flame at the opening ceremony of the 2008 Beijing Olympic Games. read more.
* Brand giants deliver world-beating gear:
Only a month to go before the greatest sporting show on earth – the 2012 London Summer Olympics – and many of the world’s top sports equipment suppliers are stepping up their efforts to grasp the unique marketing opportunity for their showcase brands.
The US sporting goods giant Nike has just unveiled the gear to be worn by Chinese athletes in London this summer competing in archery, basketball, beach volleyball, tennis, track and field, weightlifting and wrestling.
“Nike has been bringing innovation to Chinese athletes since 1984. read more.
* New funding channel benefits companies overseas:
THE Chinese State Administration of Foreign Exchange (SAFE) on June 15 announced a new policy to allow onshore entities of Chinese domestic companies to obtain foreign-currency loans within China for lending to their offshore entities.
The new policy, which takes effect on July 1, also relaxes restrictions on individuals who provide guarantees to their offshore investments.(…)
Texhong Textile Group Limited and Winsway Coking Coal Holding Limited, both of which have overseas investments and offshore debt, are among our rated issuers that would benefit from the policy. read more.
* China Hi-Tech Group to invest $6b in Indonesia:
In the implementation, the Chinese company will cooperate with Sukoharjo-based PT Sritex textile company as a main partner in which the former will develop cement factories while the latter will develop a textile factory in the planned industrial zone.
19:15:30 local time VIET NAM
* Japanese garment plant opens:
A 100 per cent Japanese invested garment factory was officially inaugurated in the central province of Thua Thien-Hue yesterday.
The Tokyo Style facility has total investment capital of US$21 million and an operation duration of 50 years.
Located in Phu Bai Industrial Zone, the factory has a production capacity of 500,000 garments a year. For the time being, 95 per cent of its products will serve for exports.
The factory plans to double its annual production capacity to one million items by 2015 and increase its domestic market share to 30 per cent in the next couple of years, fetching a production value of $8 million a year. to read.
19:15:30 local time THAILAND
* Gov’t to help Thai exporters cope with Europe’s debt crisis:
Deputy Prime Minister/Finance Minister Kittirat Na-Ranong will hold talks tomorrow with Thailand’s commercial attachés worldwide to find measures and strategies to help Thai exporters cope with the eurozone debt crisis.
According to Finance Permanent-Secretary Areepong Pucha-um, an economic ministers’ meeting today focused on Thailand’s export situation which could affect employment, particularly in the electronics and textile sectors. There are about 2,100 companies for the two sectors, which are to be closely monitored, he said.
* New national campaign:
Yesterday the families of the Lese Majeste prisoners and INGOs based in Thailand agreed a joint campaign for political prisoners. For the first time there is a joint human rights platform focussing on the unconditional release of all political prisoners and amendment of Article 112.
The campaign will seek the support of foreign governments through their embassies and the Thai Rule of Law Commission responsible for promoting legal reform.
This new network will be launched on the 7th July by the families of the Lese Majeste prisoners. to read.
* Pushing ahead for bail:
Following the release of 13 political activists on bail, Somyot will submit his tenth application for bail this week. To support him in this process we ask you to submit your protest letter via Labourstart today here.
19:15:30 local time CAMBODIA
* 6,000 workers from Taiwan companies block National Road N…:
Six thousand striking workers from Taiwan-owned Tai Yang Enterprises Co Ltd and Camwell MFG Co Ltd blocked National Road No 4 for 20 minutes Wednesday, a union group said.
The Cambodian Alliance of Trade Unions (CATU) said the workers had five demands including $15 for transport and rent, $15 in bonuses and $15 for milk.
Tai Yang has more than 3,500 workers making jeans, pants and shorts while Camwell has about 2,400 workers making the same items. Both are located in Ang Snoul in Kandal province. to read.
* ILO, unions talk contracts:
The use of fixed-duration contracts (FDCs), particularly in the garment industry, is a major concern of the almost 100 unions that met in Phnom Penh yesterday to launch a national discussion on top labour priorities.
The theme of the two-day conference at the InterContinental Hotel was “The Current Employment Contract Practices and the Need for Its Changes.”
The International Labour Organization and the Trade Union National Conference oversaw the seminar, attended by union representatives from the garment industry, agriculture, tourism and transportation sectors, among others.
Employers use FDCs to hire new workers for up to two years, with an option for renewals. read more.
* To read in the printed edition of the Phnom Penh Post:
Cambodia ILO, unions talk contracts. read more.
20:15:30 local time SINGAPORE
* Clariant launches fluorine-free water repellent technology:
Clariant opens up a new level of performance to the outdoor gear and equipment markets with the launch of fluorine-free water repellent Arkophob FFR. The new agent is an exclusive proposition for retailers and brands, bringing together two previously unattainable benefits – fluorine-free chemistry and long-lasting, high water repellence performance. read more.
20:15:30 local time INDONESIA
* Indonesia explores new markets for Balinese handicrafts:
18:15:30 local time BANGLA DESH
* Aminul’s killers yet to be brought to book:
Although nearly four months to the assassination of labour leader Aminul Islam have already passed, the law enforcers are yet to bring book the killers for punishment.
Meanwhile, trade, investment and rights organisations at home and abroad have expressed concern over the labourrights violation in the country. Rafiqul Islam, younger brother of deceased Aminul, has alleged that the law enforcing agencies have tortured him to death and dumped the body.
“We found several injurymarks from his waist to foot. His toes and his ankles were smashed,”Rafiqul told The New Nation yesterday.
He alleged that police had picked up his brother three days before the BNP’s grand rally on March 12 in Dhaka and later released him on a bond that he wouldn’t join the rally. But he was disappeared on April 4. Earlier several intelligence agencies also tortured Aminul on a number of occasions from 2006 to 2012 forworking for garments workers, he added. read more.
* Garment factory official killed in Gazipur road crash:
A garment factory official was killed in a road accident on Kaliakoir-Nabinagar road at Chandra in Kaliakoir upazila on Wednesday.
The victim was identified as Md Shahin, 32, an assistant production manager of Mahmud Jeans Ltd of the area.
Police said Shahin was seriously injured as he was hit by a bus while chatting with another man alongside the road in the morning. He later died on the way to hospital.
Traffic on the road was disrupted for half an hour following the accident. to read.
* Apparel makers seek exemption from BB’s new loan rules:
Garment makers yesterday demanded to exclude the apparel sector from the central bank’s new rules for loan classification, rescheduling and provisioning, as the country’s highest foreign currency earning sector is passing through a critical time.
Bangladesh Bank issued two circulars on the rules of loan classification, rescheduling and provisioning on June 14, saying that an ongoing loan operation will be classified for non-repayment of any instalment within three months, instead of the six-month duration now in effect.
Term loans of five years have also been brought under the new regulation.
Leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) spoke at a joint press briefing at the BGMEA office in the capital. read more.
* Revised instruction on loan classification upsets RMG exporters:
Apparel and textile exporters on Wednesday said the implementation of revised instruction on loan classification and provisioning issued by the Bangladesh Bank on June 14 will create an unbearable pressure on the RMG sector.
Pointing out the factors that the RMG manufacturers and exporters have already sustained various problems due to global ‘recession’ and increase in power cost, they cautioned that the implementation of the provisions can also lead to irregularities in the payment of wages.
Addressing a press conference jointly organised by Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Manufacturers Associatoin (BTMA) at BGMEA, they urged the finance ministry and the central bank to review the decision.
BGMEA president Shafiul Islam Mohiuddin said, “According to the revised instruction, a continuous loan will be classified for non-repayment within three months, but it takes at least four months’ time for the return after the loan is taken due to the complex import-export process.” read more.
* Apparel assocs oppose BB’s new instructions on loan rescheduling:
Business leaders from apparel and textile sectors on Wednesday demanded suspension of the new rules of the Bangladesh Bank on loan classification, rescheduling and provisioning, saying the new provisions of the rules might create instability in the sectors.
The payment of the workers’ salary and festival allowance might be at risk if the new rules are implemented at a time when the garments and textile sectors are passing through difficulty due to some external and internal factors, the leaders of the garment manufacturing and textile industry said at a joint press briefing.
read more. & read more.
* Pay hike for garment workers governmental matter- BGMEA:
Entrepreneurs in the garment and textile sector on Wednesday said that the decision to hike the wages of garment factory workers was a governmental matter and they would discuss the issue when the government considers it necessary.
‘If the government feels that the workers’ demand for pay hike is logical, then discussions between the government and owners will be arranged in due time,’ Bangladesh Garment Manufacturers and Exporters Association’s president, Shafiul Islam Mohiuddin, told reporters in reply to a question on pay hike at a press briefing.
Pay hike was not in the list of garment workers’ demands even a few days earlier, but it came up after union leaders raised the demand while labour unrest was going on in Ashulia and Savar, he claimed. read more.
* RMG owners ready to discuss wages if government proposes:
RMG owners on Wednesday said they will think about increasing the wages of workers if the demands are raised in a proper platform through the government. They also said the wage issue cannot be settled before Eid-ul-Azha as the process involves detailed discussions in a proper platform to evaluate the impacts of the wage hike on other sectors.
Talking to reporters after a press conference at BGMEA Bhaban, AKM Selim Osman , president of the Bangladesh Knitwear Manufacturers and
Exporters Associatoin (BKMEA), said, “I won’t say that the demand of the workers are illogical, or that it’s impossible for us to meet the demands, but we’ll take time for discussion.” read more.
17:45:30 local time INDIA
* Knitwear Club takes up problems with CM:
Daunted by problems like workforce shortage and increasing prices of raw material, the Knitwear Club has written to the chief minister, apprising him of the problems being faced by them. The club is one of the biggest organizations of hosiery industrialists in the city.
“The hosiery industry in Ludhiana, despite being over 100 years old and enjoying the reverence and status of mother industry in Punjab, is surrounded by many problems that have been constantly neglected by the government,” said Vinod Thapar, chairman of the club.
He added, “The club represents more than 12,000 small and medium knitwear and textile units. Despite that, it has to face problems including, shortage of labour, rise in prices of the raw materials and electricity.” read more.
* Spinning mills looking for further relaxation of ECB facility norms:
Heavily debt-ridden spinning mills in the district are looking forward to Reserve Bank of India for further easing of end-use norms it announced two days back for External Commercial Borrowings (ECB) in the case of manufacturing sector to repay the existing rupee liabilities.
“It is indeed nice that following a representation from the spinning unit owners in the region a few weeks back, the Reserve Bank of India relaxed restrictions on ECB for manufacturing sector to facilitate repayment of outstanding rupee loans towards capital expenditure. read more.
* Textile units await debt recast plan implementation:
The Union Government’s approval of a debt restructuring package for the textile sector last month brought hopes of revival to the ailing units across the textile value chain.
However, one month since then, many textile mills, garment and processing units fear that their bank loans could turn into non-performing assets (NPA) as the package is yet to be implemented.
According to a study conducted by BOB Capital Markets, the total outstanding debt of the sector is estimated at Rs.1.56 lakh-crore and loans worth Rs.35,000 crore need restructuring (which includes both term loans and working capital loans). The debt restructuring package is to be considered by banks on a case-by-case basis.
* THE AHMEDABAD TEXTILE MILLS STRIKES:
* Gujarat govt steps in to resolve textile mill workers’ strike:
More than three weeks after hundreds of workers of textile mills in Gujarat resorted to strike demanding hike in wages, the Gujarat government today stepped in to look into their demands.
The workers took to the street on June 4 demanding a 40 per cent hike in their wages. The mills impacted so far due to the agitation are Arvind Ltd, Ankur, a division of Arvind, Ashima and Asarwa Mills. “Leaders of Textile Labour Association (TLA) were authorised to hold dialogue with Ahmedabad Textile Mills Association (ATMA), but unless they get the representative board’s approval they won’t be able to do so,” Deputy Labour Commissioner M B Jadeja said, adding out of eight textile mills in Ahmedabad, workers from at least four mills are on strike.
“After having got the approval of executive committee, we are in the process of seeking approval of representative board to negotiate on behalf of workers with ATMA,” TLA General Secretary Amar Barot said. “Once the board authorises us then we shall be in a position to initiate dialogue with the association,” he said. A few months back, TLA which is a representative union of textile workers, had filed a case in the industrial court against ATMA, which represents several textile mills including Arvind, demanding higher wages. read more. & read more.
* Striking textile workers up the ante, issue ultimatum to TLA:
The ongoing strike in the textile industry in Ahmedabad is set to get murkier. Even as the Textile Labour Association (TLA) re-initiated negotiations with Ahmedabad Textile Mills Association (ATMA), the striking workers of four textile mills have threatened to involve workers from other mills if their demands for interim relief of Rs 1,600 per month are not met by Wednesday.
Earlier, pacifying the striking workers for their flat 40 per cent wage hike, TLA had assured an interim relief of Rs 1,600 per month till a decision was taken in the industrial court which is hearing TLA’s case against ATMA. Further, the labourers’ association had also sought the striking worker’s support for re-initiating negotiations with ATMA, which represents several textile mills in the city. read more.
* Sans leaders, striking mill workers rudderless:
In the long history of the textile industry in Ahmedabad, mill workers have always had the leadership of eminent people who have not only commanded their respect, but that of the mill-owners as well. The likes of Mahatma Gandhi, Anusuya Sarabhai, Indulal Yagnik, Gulzarilal Nanda and Ela Bhatt among others have represented the labourers at different moments in history.
But perhaps for the first time, the workers are experiencing a vacuum of leadership and it is being reflected in the ongoing strike at the mills. Many believe that the current unrest is second longest only to the strike in 1923 when 40,000 workers had abstained from work to demand a 20 per cent hike in salary. Then, former prime minister Gulzarilal Nanda had represented the Ahmedabad Textile Labour Association (TLA) and resolved the issue within days. He had acted as the bridge between the workers and the mill managements. read more.
* Workers unhappy with TLA, mull new team for talks:
With Textile Labour Association (TLA) and Ahmedabad Textile Mills Association (ATMA) yet to reach at a consensus, striking textile workers at various mills have threatened to boycott the latter’s representatives.
“The representatives of TLA appointed by us have failed to arrive at a consensus with ATMA in negotiating for our wage hike. The industrial court’s decision was also deferred. We are therefore mulling about boycotting them and appoint fresh representatives,” said Yashpal Jaiswal, striking worker’s union leader at Arvind Ltd.’s Naroda plant. read more.
17:15:30 local time PAKISTAN
* PTA with Indonesia to benefit Pakistan textiles:
* Emerging Asian countries hold apparel sourcing key:
Emerging Asian countries hold the key to the future of the global apparel sourcing industry, according to a new research report from just-style.
Bangladesh, Vietnam, Cambodia and Pakistan will retain the focus of the industry thanks to their low labour costs and fast response times to pressurised buyers, says the report, ‘Apparel Sourcing in Asia – forecasts to 2016.’
These countries will also hold off the challenge from emerging competitor nations in Latin America as we progress further into 2012, but the most interesting new region for the apparel sourcing industry outside China is likely to be Turkey.
These changes come as doubts grow over the future of China as a viable competitor to low-income country clothing exporters, with the Chinese government renewing its efforts to shift its country’s workforce from low-margin industries like clothing towards jobs involving improved skill levels and higher technology.
This, the report suggests, is likely to impact China’s position as the clear global leader in apparel sourcing, a status which will probably also be weakened by rising labour costs and exchange rate appreciation.
Indeed, China’s clothing prices could rise 20% faster than its regional competitors over the next five years, thus losing market share to low-income countries, particularly in apparel segments such as low-value basics.
Shift in spending power
Meanwhile, while most of the global trade in clothing will remain fixed on EU countries, the US and Japan over the next five years, this situation is slowly shifting – because these nations only account for about 10% of the global population and are seeing their spending power growing at a much slower rate than developing markets.
Instead, the fastest future growth in retail clothing will come from China, Eastern Europe, Russia, India, Turkey and Brazil, the report argues.
Other factors influencing the global apparel sourcing industry include inventory pressures brought about by continued volatility in consumer confidence and spending power.
This makes it difficult for retail buyers to predict demand even on a monthly basis, leading to squeezed inventories and reduced orders to compensate for the continued uncertainty.
In this scenario, the report says, agility and responsiveness are becoming the key to success in the apparel market, as well as the most important differentiating factors for apparel buyers.
The report also identifies the recent dramatic growth in the global paraxylene (PX) and polyester market, fuelled by recent highs in cotton prices – although these have since receded.This demand has benefited Asian countries with a strong synthetic fibre industry, and prices and margins have remained strong, even as cotton prices have fallen, but growth will slow as cotton supply recovers during 2012.
Finally, the report suggests that local retailers and domestic buyers in Asian markets will continue to play an important role in the apparel sourcing industry, particularly those in China and India – and that importance is likely to grow as the rapidly expanding middle classes exert a growing influence.
There is still room for growth in the Chinese market despite the relatively high expenditure on clothing, the report finds, but the market is “gradually reaching saturation” – meaning that neighbouring Asian markets could become more dynamic catalysts for growth in future years.
read more.& for more information abou the report, here.
(editor’s note: The mentioning of this report is not intended to be as an advertising! The price for the report is € 773.50. And a question is to what extent is seen how this industry based on exploitation and very poor payment for work. And work that is done often under great pressure and in poor conditions. Is this report for people who are out to make much profit at the expense of people by means of exploitation and humiliation? I do not know, I can not afford such a report . Anyway, now you know that there is a report. Just a matter of style. )