WUNRN
WILPF - Women's International League
for Peace & Freedom
EPZ - EXPORT PROCESSING ZONES
Exported industrialization is very female-intensive. Women make up for the majority of all workers, up to 90% in some zones. Gender-related barriers have been alleged in the operation of some EPZs in form of discrimination in hiring, wages, benefits and career development, as well as relating to a lack of accommodation of women workers needs in relation to issues such as working hours, pregnancy, maternity leave or childcare. Typically, women's wages are 20-50% lower than those of males working in the same zones and promotion prospects are low for women, who are predominantly employed as semi-skilled or unskilled workers.
WILPF
EPZ Database: http://www.wilpfinternational.org/economicjustice/EPZ/countryindexmap.html
Reports
Employment and social policy in respect of EPZs, ILO report
Trading away our rights - Women working in global supply
chains, Oxfam report
What are export processing zones?
There are
many definitions of export processing zones. The International Labor
Organization (ILO) has defined EPZs as "industrial zones with special
incentives set up to attract foreign investors, in which imported materials
undergo some degree of processing before being re-exported".
WEPZA
(World Economic Processing Zones Association) has another definition.
"Toll free zone for export production"
Export
processing zones can be described as delineated industrial estate, which
constitutes a free trade enclave that is exempt from the normal customs and
trade regulations of the country. In this zone, foreign manufacturing firms
that produce mainly for export, benefit from certain tax and financial
incentives. The concept is known by many different names including free trade
zones, special economic zones, bonded warehouses, free ports, zona francas and
Maquiladoras. Their physical form now includes not only enclave-type zones but
also single-industry zones; single-commodity zones and single-factory or
single-company zones.
The
difference in definition matters when we try to count these zones. According to
the definition made by ILO there are 5174 zones in 116 countries. With the
WEPZA-definition there are 1300 zones in 128 countries. For example, WEPZA
doesn't count in the EU since there is no difference in tolls whether you are
inside or outside the zone. Despite the difference there are some visible
trends; the number of economic free zones are increasing rapidly, the number of
workers are also increasing and most of them are women.
Exported
industrialization is very female-intensive. Women make up for the majority of
all workers, up to 90% in some zones. Gender-related barriers have been alleged
in the operation of some EPZs in form of discrimination in hiring, wages,
benefits and career development, as well as relating to a lack of accommodation
of women workers needs in relation to issues such as working hours, pregnancy,
maternity leave or childcare. Typically, women's wages are 20-50% lower than
those of males working in the same zones and promotion prospects are low for
women, who are predominantly employed as semi-skilled or unskilled workers.
Zones are
purpose-built and may offer a modern factory but saftey and health remains a
major concern. There are trade union reports of export garment factories
without needle gards on sewingmachines and workstations without proper seating.
The demands of extremely tight delivery schedules and low prices forces
producers to underpay workers and inflict on them crushingly long working
hours. back to top of page
How does the development and statistics of EPZs look like?
|
Years |
1975 |
1986 |
1997 |
2002 |
2006 |
|
Number
of countries with EPZs |
25 |
47 |
93 |
116 |
130 |
|
Number
of EPZs or similar kind of zones |
79 |
176 |
845 |
3 000 |
3,500 |
|
Employment
(millions) |
n.a. |
n.a. |
22.5 |
43 |
66 |
|
Geographical area |
Employment |
Number of zones |
|
|
55 741147 |
900+ |
|
-
of which |
(40 000 000) |
|
|
Central
America and |
5 252 216 |
155 |
|
|
1 043 597 |
50 |
|
|
643 152 |
65 |
|
Sub-Saharan
|
860 474 |
90+ |
|
|
340 000 |
713 |
|
|
459 825 |
43 |
|
Transition
economies |
1 400 379 |
400 |
|
|
546 513 |
250 |
|
|
182 712 |
1 |
|
|
364 818 |
50 |
|
Pacific |
145 930 |
14 |
|
Total
(estimated) |
66 980 763 |
3 500+ |
Source:
ILO database on export processing zones, 2007
Why are export processing zones promoted and accepted by some countries?
Countries
depend on investment, new technology and foreign currency. EPZs are seen as a
way of strengthening export and commerce. They are also seen as a way of
reducing unemployment. In many poor countries, a low paid job may be better
than no job at all. For many countries export through EPZ counts for a larger
part of their export earnings. The poorer a country is, the better terms they
have to offer to the companies. Countries that have a strong economic
development can make higher demands on investors.
The costs
and benefits of EPZs have to be carefully weighed-up. The government spends
large amounts providing the infrastructure and running the zones, and cut taxes
and duties for a period. In return it attracts investors, collects rents,
generates foreign exchange and creates jobs. Investment has been narrowly
concentrated in the electronics and clothing and footwear sectors and the
investors usually locate only simple processing tasks in EPZs, therefore
limiting the technology and skill transfer.
Most of
the jobs are low-wage, low-skilled jobs and very little of the foreign money
generated stays in the country. The foreign investment is not secure and could
leave relatively easily.
What human rights laws can be applied to protect workers in these zones?
There are
no international laws that apply specifically to export processing zones. But
many countries have signed and ratified UN Human Rights Treaties. In these
treaties there are articles that directly relate to workers right and women's
rights.
The
International Covenant on Economic, Social and Cultural Rights
Article 7 of the International Covenant on Economic, Social and Cultural Rights
states "The States Parties to the present Covenant recognize the right
of everyone to the enjoyment of just and favorable conditions of work which
ensure, in particular: (a) [...] (i) Fair wages and equal remuneration
for work of equal value without distinction of any kind, in particular women being
guaranteed conditions of work not inferior to those enjoyed by men, with equal
pay for equal work. [...] (b) Safe and healthy working conditions; (c)
Equal opportunity for everyone to be promoted in his employment to an
appropriate higher level, subject to no considerations other than those of
seniority and competence; (d) Rest, leisure and reasonable limitation of
working hours and periodic holidays with pay, as well as remuneration for
public holidays."
Article 8
states "The States Parties to the present Covenant undertake to ensure:
(a) The right of everyone to form trade union of his choice [...]; (b)
The right of trade unions to establish national federations or confederations
and the right of the latter to form or join international trade-union organizations;
[...]"
Article
10 states "The States Parties to the present Covenant recognize that: [...]
2. Special protection should be accorded to mothers during a reasonable period
before and after childbirth. During such period working mothers should be
accorded paid leave or leave with adequate social security benefits. [...]"
The
International Covenant on Civil and Political Rights
Article 22 in the The International Covenant on Civil and Political Rights
states "1. Everyone shall have the right to freedom of association with
others, including the right to form and join trade unions for the protection of
his interests. 2. No restrictions may be placed on the exercise of this right
other than those which are prescribed by law and which are necessary in a
democratic society in the interests of national security or public safety,
public order, the protection of public health or morals or the protection of
the rights and freedom of others. [...]"
The
convention on the Elimination of all forms of discrimination against women
(CEDAW)
CEDAW states in article 11 that "1. States Parties shall take all
appropriate measures to eliminate discrimination against women in the field of
employment in order to ensure, on a basis of equality of men and women, the
same rights, in particular: [...] (b) the right to the same employment
opportunities, including the application of the same criteria for selection in
matters of employment. [...] (f) The right to protection of health and
to safety in working conditions, including safeguarding of the function of
reproduction. 2. In order to prevent discrimination against women on the
grounds of marriage or maternity and to ensure their effective right to work,
State Parties shall take appropriate measures: (a) To prohibit, subject to the
imposition of sanctions, dismissal on the grounds of pregnancy or of maternity
leave and discrimination in dismissals on the basis of marital status. [...]"
ILO
Conventions
Most states are also members of ILO, and are required to follow the conventions
adopted there. A number of conventions can be applied to export processing
zones and their regulation. Convention C87, part 1, article 2 states that "Workers
and employers, without distinctions whatsoever, shall have the right to
establish and, subject only to the rules of the organization concerned, to join
organizations of their own choosing without previous authorization."
Article 3 states "1. Workers' and employers' organizations shall have
the right to draw up their constitutions and rules, to elect their
representatives in full freedom, to organize their administration and
activities and to formulate their programs. 2. The public authorities shall
refrain from any interference which would restrict this right or impede the
lawful exercise thereof."
Article 4
states that "Workers' and employers' organizations shall not be liable
to be dissolved or suspended by administrative authority" In Part 2,
article 11 the convention makes clear that "Each Member of the
International Labour Organization for which this Convention is in force
undertakes to take all necessary and appropriate measures to ensure that
workers and employers may exercise freely the right to organize"
Convention
C183 deals with non-discrimination of women in article 8 "1. It shall
be unlawful for an employer to terminate the employment of a woman during her
pregnancy or absence on leave referred to in Articles 4 or 5 or during a period
following her return to work to be prescribed by national laws or regulations,
except on grounds unrelated to the pregnancy or birth of the child and its
consequences or nursing. The burden of proving that the reasons for dismissal
are unrelated to pregnancy or childbirth and its consequences or nursing shall
rest on the employer. 2. A woman is guaranteed the right to return to the same
position or an equivalent position paid at the same rate at the end of her
maternity leave."
The zones
can be owned by private companies or by the government itself. The companies
that operate in the zones are almost always privately owned. A lot of them are
foreign owned but most of them are supplier to the global companies.
Sometimes
there is a specific authority that controls and regulates these zones. These
authorities are official organs of governments, and are set up to promote,
attract and facilitate investment in the zones. Bangladesh Export Processing
Zone Authority , Export Processing Zone Authority
There are
laws in almost every country that regulates these zones and look after the
workers rights, but the problem is that the government doesn't make sure that
the laws are followed. In some zones trade unions are totally forbidden.. The
zones are not often inspected by the government. To enter a zone without
permissions is illegal. back to top of page
Links
ILO
pages about Export Processing Zones
The Maquila Solidarity
Network (MSN)
La Red de Solidaridad de la Maquila
(RSM)
International Labor Rights
Forum
Business & Human Rights Resource Centre
Basic facts
What are export processing zones?
How does the development and statistics of EPZs look like?
Why are export processing zones promoted and accepted by
some countries?
What human rights laws can be applied to protect workers in
these zones?
Who regulates these zones?
Discrimination against workers in
Export Processing Zones
Discrimination
and violence against workers in the Cavite Export Processing Zone in the
In early September, 2006, the Philippine Workers' Assistance Centre (WAC)
urgently requested support for workers in the Chong Won Fashion Inc., one of
many garment factories in the Cavite Export Processing Zone, south of the
Filipina capital of
WILPF
WILPF's EPZ project and the EPZ data base
Export
Processing Zones are increasingly used as a governmental strategy to promote
exports. In order to attract transnational corporations to invest and establish
factories in their countries, governments underbid one another when it comes to
labor rights and environmental legislation- the least rights and protections
win. In many cases the lack of inspections and monitoring prevent the full
implementation of existing regulations on basic labor rights. Human rights abuses
are frequent. Many of the workers in EPZs are women, who are considered
flexible labor that can be paid lower wages then men. Women in EPZs suffer from
additional forms of discrimination including sexual harassment, fewer
opportunities for career development and no maternal protections (including
layoffs as a result of pregnancy).
WILPF
keeps an online database where you can find basic information about export
processing zones in different countries. You can also find information about
number of employees, percentage of female workers, the predominant countries
that invest, the main markets and operating companies. The database is an
ongoing project- regularly updated and expanded. Please contact us at
inforequest(at)wilpf.ch if you have additional information that could be added
to the database. Enter the database here