Pacific Brands blinded by backlash

The Homeworkers Code of Practice campaigner Tommy Clarke offers his thoughts on the #3 moment of 2009.

The Australian textile, clothing and footwear (TCF) industry saw a number of doors close during 2009. The hope for many of us now is that 2010 will see others opening.

When Pacific Brands announced that many of its iconic Australian labels such as Bonds, perceived by the public to be the last bastion of large-scale Australian clothing manufacturing, were to be moved off-shore, the industry and the public reeled. The sense of betrayal was palpable on talk-back radio, in letters pages, in tea rooms and online through blogs and social networking sites.

While some lamented the end of an era, others showed their surprise at how long it had stayed on-shore. Either way, most within the industry were left asking ‘what now?’

Despite an industry frequently eyeing the cheap labour markets of Asia, and successive governments unwilling to match rhetoric about support for local manufacturing with adequately funded programs, the consensus seems to be that the broad direction set by the Federal Government’s strategy for the TCF industry is sound and that the creation of the TCF Innovation Council will hopefully provide the guidance to shape a more dynamic incarnation of the local industry.

We may find that in the vacuum left behind by the series of large factory closures, smaller and local labels will become increasingly prominent as consumers look for more personalised garments with a local connection and an ethical or innovative distinction.

Regardless of the specific details of what our industry’s future could be, the bottom line is that the days of trying to compete with the likes of China, when it comes to cheap mass produced garments, are over. A race to the bottom is a race that cannot be won. The sooner we accept this and move to capture suitable niches in the global market, the better.

The Australian TCF industry is well placed to build a profile both locally and internationally as a provider of not only quality, but also sustainable and ethical, products. However, hollow marketing efforts alone aren’t good enough, as such claims must have integrity and consumer trust.

The good news is that the model to ensure ethical manufacturing already exists and has the support of government, unions, peak industry groups and individual businesses.

The Homeworkers Code of Practice (HWCP) committee and its No Sweat Shop label, which is to be relaunched in 2010 as Ethical Clothing Australia, is a joint industry-union organisation aimed at assisting TCF businesses to ensure that the workers manufacturing their Australian-made products are receiving at least the legal minimum pay rates, conditions and entitlements.

It does this through an accreditation and labelling system that provides consumers and buyers with a way to identify and support ethical Australian-made TCF products.

Recent research conducted by the Mobium Group found the Australian consumer market for more sustainable – including ethically sourced – products and services reached $19 billion in 2009, and the market is expected to reach $27 billion by 2011. Trends in the UK, Europe and the US would suggest that the TCF sector stands to capture a healthy slice of this market.

Many TCF businesses seemingly continue to struggle to meet their obligations under Australian labour laws and the industrial awards system. Businesses may find some aspects of the award confusing, but it is important to recognise why these laws are required and how they distinguish our industry. Compliance with Australian laws and standards can be a selling point.

Australian-made TCF products should be renowned for high ethical standards as well as quality. This is achievable and there is a market for them. Let’s hope that 2010 is the year our industry works together with a common goal of creating an ethical Australian TCF industry that stands tall on the world stage.