TCFUA Proposal for a new Textile, Clothing and Footwear Industry Plan

Encourage and develop an innovative, smart, ethical, clean and green industry

Evidence suggests that Australia can develop, sustain and grow a TCF industry which relies on this country’s strength as smart, ethical, clean and green. This industry would retain and attract workers and would provide the foundations for Australia’s world famous designers.

The TCFUA argues for incentives to get companies to invest in skills and formal training along with formal recognition processes that will capitalise on the existing skills of their workforces. An adaptable and sophisticated skills base can only be built through a tripartite arrangement, which sees the employers and the union developing and implementing training, and governments supporting it through appropriate programs.  Real commitment from government and industry is needed to recognise and develop skills in the industry through a TCF industry wide training audit, tax incentives to companies to invest in training and expanded fully funded training programs.

Government must enact national legislation and parallel State legislation that regulates the giving out of work to outworkers, modelled on best practice State legislation, which does not reduce existing entitlements and protections in the current legislation.

As climate change and issues of environmental sustainability begin to take a more central position in the public consciousness, the Australian TCF industry needs to assess what role it can play in reducing our nation’s environmental footprint. If high ethical and environmental standards were realised, the Australian industry would be well placed to capitalise on the growing 'fair trade', 'organic', 'ethical', and 'eco' market trends on the global stage.

Australian-made TCF industry should commit to generating a justified reputation of being one that has a highly skilled workforce, high labour standards, adheres to stringent environmental standards, and produces quality products.

Guarantee entitlements and provide effective assistance for retrenched workers.

The union believes that a reconfigured TCF Structural Adjustment Package and worker assistance must benefit workers affected by restructuring and their families alone.  A new SAP should provide relevant and well resourced training, provide support for informed decision making, at least two years access to training, and provide non-means-tested income support for the period of training. SAP must be delinked from the Job Network and the criteria for assistance must be the worker’s Award coverage not the company’s SIP eligibility.

It is the TCFUA’s strong view that any government employee entitlements scheme to have real accepted industry credibility must be underpinned by statute, be open and transparent, be subject to formal processes of review and fully cover 100% of employee entitlements lost through corporate insolvency.

Freeze tariffs and expand industry assistance to support and create quality skilled jobs

The union calls on the TCF review to recommend to the Federal Government that existing tariffs should be frozen and the scheduled drop in tariffs in 2010 and 2015 should be deferred. There should be no further tariff reduction until such time as it can be proven to be in the interests of Australian workers, their families, regional Australia and the broader community, to reduce them further.

Government assistance to industry is crucial in maintaining and developing the current industry. The continued contraction of the industry as a result of lowering tariffs has serious consequences not only for workers, but for their communities and for society as a whole. Regional areas are hardest hit by factory closures and the effects on these areas can be devastating.
Government assistance is not only necessary it is also an investment in Australia’s future and economy and the continuing capacity for this country to produce its own goods. A strong and viable manufacturing base is needed in order for Australia’s TCF Industry to excel in its design capability and reputation. A new industry plan must be backed up by significant government involvement and investment to create new quality local jobs.

A realignment of Government procurement policies to support and develop the local industry could also have a major positive impact. Changes need to be made however to the package of Government assistance and Government policy in the TCF sector for this potential to be realised.

Establish a TCF Innovation Council to support and implement the new plan

Together with the new TCF Industry Plan, an effective and properly resourced TCF Innovation Council should be established to support and guide the sector in this new restructuring phase, to grow and revitalise the industry’s substantial base and support and develop new and emerging parts of the industry.

A TCF Innovation Council would, through collaboration and social partnership, provide a vision for the future of the industry, which encourages smart design linked to a solid manufacturing base underscored by high ethical employment and environmental standards. It would also enable the continued growth of small and medium sized companies, ensuring capabilities for linkages and innovation continue to be enhanced and developed in niche markets.

TCFUA Recommendations

An Innovative, smart, ethical, clean and green industry

Australia’s global TCF brand

Recognition and development of skills

Outworkers

• deem all outworkers to be employees in Federal legislation, and where not currently in effect, in relevant States and Territories
• provide statutory rights of recovery for unpaid wages and entitlements
• enact a national mandatory Retailer Code of Practice for the industry
• require the registration of all TCF factories with the relevant government authority.

Job and industry growth

Jobs and tariffs

SIP and direct government assistance

• specify positive ongoing local manufacturing employment impact
• make transparent supply chain and monitoring of ethical labour standards which the TCFUA should be able to audit
• demonstrate ethical behaviour in relation to meeting ethical labour and environmental standards throughout the contracting chain
• show proven and on going capacity to meet workers entitlements in full
• include the capacity to withdraw/require repayment of funding where these conditions are not met.

• the creation of quality, well-paid jobs
• greater Australian value add and industry linkages through sourcing of materials and vertical processing
• training and skill development of shop floor workers
• both product and organisational innovation
• research design and development of new products and markets.

Government procurement policies

• preference local suppliers
• require transparent supply chain and monitoring which the TCFUA should be able to audit
• requires ethical behaviour regarding labour and environment standards
• require all clothing companies to be accredited to the Australian Homeworkers Code of Practice (HWCP)
• ensure access for small – medium size companies to the tendering process
• develop preferred or approved supplier system which are assessed by a tripartite industry body as ethical
• require Australian Made quotes for tenders.

Retrenched workers – assistance and entitlements

TCF-SAP and workers assistance

• delink training and job search assistance and limit the role of the Job Networks to job search/placement
• provide training via TAFE with one-on-one identification of training needs and RPL and RCC
• provide union/community based advocates to assist workers to navigate the system and provide early intervention when redundancies are announced
• ensure criteria for assistance is the worker’s Award coverage not the company’s SIP eligibility.

Retrenched worker entitlements

• that in relation to the protection of entitlements the Federal Government must immediately enact a scheme which requires employers to ensure that 100% of all employee entitlements are secured and protected
• that the Federal Government should immediately amend the Corporations Act 2001 to vary the order of priority of payment to creditors in the case of insolvency to place employees before secured creditors. Such priority to employees would apply to 100% of all employee entitlements owed, including superannuation.

A TCF innovation council