Project launched on corporate social responsibility in apparel industry

Early 2004 saw the launch of a project - involving the government, employers and trade unions - aimed at promoting corporate social responsibility (CSR) in the Bulgarian apparel industry. The project, funded by the European Commission, will explore how CSR - and in particular improved employment conditions and industrial relations - can boost the Bulgarian industry's competitiveness on the global market.

A project, funded by the European Commission, aimed at encouraging constructive dialogue between government, industry and the trade unions, leading to increased cooperation in jointly working 'towards the building of the Bulgarian apparel industry as a leader in corporate social responsibility', was launched in early 2004. The partners in the project are: the Bulgarian government (through the Ministry of Labour and Social Policy and the General Labour Inspectorate); the relevant branch federations of the two nationally recognised trade union organisations (BG0307204F) - the Confederation of Independent Trade Unions of Bulgaria (CITUB) and the Confederation of Labour 'Podkrepa'; the owners of the Nike Inc, Adidas-Salomon AG, Levi Strauss & Co and H&M Hennes and Mauritz AB brands; seven suppliers for these brands; 10 Bulgarian factories with approximately 3,000 workers; and the Balkan Institute for Labour and Social Policy- a Bulgarian non-governmental organisation.

This is the first time that a project of this type has been implemented in Bulgaria, and the participants are expected to gain important experience in building the clothing industry’s capacity to deliver on corporate social responsibility (CSR) - and in particular the improvement of employment conditions and industrial relations at the workplace - as a potential source of competitiveness within the global market.

The project will go through four phases:

• 'training the trainers'- 50 representatives of management and 100 representatives of workers at the factories concerned will be trained on how to build capacity in this area;

• 'apply the learning'- the participants in the first phase will apply their knowledge in the practical context of factory operations and share their knowledge with their colleagues;

• 'encouraging shared vision'- the issues arising from the practical application of the scheme will be investigated; and

• 'evaluate our success'- the impact of the project will be assessed.

The wider objective of the project is to enhance the prospects of achieving competitive benefits by implementing measures in restructured business operations which balance increased labour costs and investments in safer and healthier workplaces with real productivity gains. This should increase the potential of the Bulgarian apparel industry to achieve a 'niche' market position that combines closeness to the market with excellence in CSR.

The apparel industry is a key sector in Bulgaria. Since 1992, over USD 1 billion has been invested in the sector. In 2001 Bulgarian clothing exports topped the USD 1 billion mark for the first time, thereby representing 21% of the country's total exports by value (as against 10% in 1995). Official statistics are unreliable, but the apparel industry association estimates that there are between 2,000 and 3,000 enterprises operating in the sector. In March 2002, 148,873 people were employed in the textiles and garment industry, of whom 88% of were women (according to the documentation for the new project).

Bulgaria is scheduled to join the European Union in 2007, while the international Multi-Fibre Agreement is due to expire soon, and textile quotas will thus be abandoned. These changes will potentially have a radical impact on the Bulgarian apparel industry. The new project will seek to to maintain and increase the industry’s competitive advantage and ensure that its future market position cannot be based solely on low labour costs in the evolving global marketplace, or on closeness to the EU market.