THE EDITOR, Sir:AS A former expatriate garment factory manager during the 1990s, I wish to comment on an article appearing in your newspaper titled "Local Firms Lose Contracts (Sunday, Sept. 7, 2003).
I know exactly what these garment companies are going through, as our company saw the handwriting on the wall as early as 1998 in Jamaica in terms of how long we would be able to stay on the island and remain competitive in the world market.
The first wave of factory closings occurred in 1996, when a Korean outerwear manufacturer shut down in the Garmex Free Zone, after the BoJ "revalued" the Jamaican dollar, sending shock waves through the industry. The JMA under Sameer Younis approached Omar Davies for a package of economic assistance to keep factories going, and encourage those operating large plants from overseas to remain on the island. One item the JMA wanted was for the workforce to earn production bonus payments tax-free. This was rejected out of hand by the Minister of Finance. These factory closings continued right up until 2000, when East Ocean Textiles finally pulled out.
The issue of the minimum wage is another sore point. Unfortunately, the cost of living on the island is astronomical. Walk into Sovereign Supermarket with US$50, and you walk out with two little black scandal bags that can be balanced on your pinkies. Walk into a Winn-Dixie in Miami with US$50, and you need a shopping cart to carry out the groceries. Increasing the minimum wage only results in putting the population behind the eight ball as bus fares, groceries and all other items experience increased prices as business owners try to catch up with higher payrolls. It amounts to re-arranging deck chairs on the Titanic.
Another problem that receives little attention in Jamaica is the poor work ethic. Although the workers have the skills to do the sewing work, and do it well, they are poorly motivated, have outsized earnings expectations, and are truant far too often, resulting in delayed shipments. On any given Monday in our factory, it was normal to have minimum 15 per cent absenteeism, and sometimes more. Many factory managers instituted a bonus system to encourage workers to report to work on time ("Early morning bonus"), with a special bonus for Monday attendance. The rest of the world doesn't have these costs, because you simply lose your job if you don't show up for work on time. It also encourages the workforce to hold back on productivity until they are bribed with additional emoluments.
The sadness is that unemployment is high in Jamaica, and the population is ideal for labour intensive, low skilled manufacturing. We were quite satisfied with our operation, until massive minimum wage increases, the crime level, and finally the turmoil experienced during the gas riots convinced us that we had to go elsewhere.
To remain competitive in this global economy for the future, you will need to take political steps that are impossible under the current political regime. Every aspect of your labour laws, including the sheer madness of redundancy payments, must be re-examined in an attempt to become more competitive. The institution of a 48-hour work week as in many other undeveloped countries must be given top priority. The only other option for these manufacturers is to follow the rest of us: source your production in Asia before your competition gets there.
For the sake of your entire nation, I wish you luck.
I am, etc.,
GARDIS
USA
Gardis68@netscape.net
