In early 1999, the issue of low pay in the textiles and footwear industry is once again on the industrial relations agenda in Portugal, with trade unions claiming that high profits and productivity increases merit higher pay in a sector that makes up over a third of all Portuguese industrial employment.
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In early 1999, the issue of low pay in the textiles and footwear industry is once again on the industrial relations agenda in Portugal, with trade unions claiming that high profits and productivity increases merit higher pay in a sector that makes up over a third of all Portuguese industrial employment.
In early 1999, as each year when formal collective bargaining occurs in the textiles and footwear industries, the trade unions that make up the Federation of Textile, Woollens, Garment, Shoe Manufacturing, and Fur and Leather Workers' Unions (Federação dos Sindicatos dos Trabalhadores Têxteis, Lanifícios, Vestuário, Calçado e Peles de Portugal, FESETE- an affiliate of CGTP), called attention to the fact that collectively agreed pay in the sector is the lowest in Portugal. If these workers receive the pay rates expected to arise from sector-level collective agreements in February 1999, they will still be getting less than the national minimum wage.
Statistics from the Ministry of Labour and Solidarity show that in 1996, average monthly pay in textiles stood at 72,063 PTE in the textiles sector, compared with a national average of 104,951 PTE. Total monthly earnings stood at 81,962 PTE in textiles, compared with a national average of 124,580 PTE. The unions claim that it is unfair that at the same time, the companies concerned enjoy high profits and average annual increases in productivity of around 4%. There is also a great deal of financial support being channelled into the sector under programmes designed to promote industrial development, particularly the PEDIP programme. On top of that, electricity rates for the industry are being reduced by 10%.
The textiles and related sectors account for approximately 35% of all industrial employment in Portugal. While studies have been conducted into diversifying the country's industry, the unions point out that investments in this sector in Portugal continue to increase, including significant foreign investment. Although efforts should be made towards diversification, given the large numbers of workers involved and their low level of skills, combined with poor organisation and lack of training on the part of companies, unions suggest that prudence would be wise. Government institutions, and the Institute for Innovation in Training (Instituto para a Inovação na Formação, INOFOR) in particular, have been working to change the situation by addressing the problem of job skills and training at the level of both the company and the individual worker.
Portugal is responsible for 4.3% of the EU's textile production, with 11.9% of the sector's EU labour force. Spain, using roughly the same proportion of labour (11.3%) provides 7.5% of EU production in this sector (Têxteis, Vestuário e Curtumes, GEPE Working Papers, 1996)
Eurofound recommends citing this publication in the following way.
Eurofound (1999), Focus on low pay in textiles, article.
