Deterioration of all Working Condition in Clothing Company
Textiles and clothing was found to be one of the branches of manufacturing hardest hit by the crisis. Production is strongly connected with inter-national markets. The effects of the crisis in this sector have been mainly negative with regard to employment, wages and all other working conditions. Typical in this respect is the company 'Robsov Ltd'. A medium-sized private company.
7.3.1 Strong decline in output
Production is mainly for export. The company works with materials sup-plied by foreign clients and depends on commissions from abroad. For this reason, the effects of the world crisis on the firm's output showed up earlier than in the country as a whole. During the recession the firm lost a significant part of its foreign markets and output contracted by around 60 per cent. In addition, the company faced problems with financing because credit conditions in Bulgaria deteriorated. This situation negatively affected working conditions in the firm.
7.3.2 Strong negative effect on employment and wages
The total number of employees in 2008 was 135 workers. Most were on permanent contracts (BO per cent) and the rest on temporary contracts.
New workers are engaged on temporary contracts with a duration of six months. All work full-time. In relation to educational status, most workers have completed secondary and elementary education. The company experienced shortages of qualified staff both before and during the recession. The negative impact of the recession on employment has been proportionate to the fall in output. Prom the beginning of 2009, employment started to decline, falling as low as 75 workers in the most difficult period. Over a period of a few months the number of employees decreased by over 44 per cent. Most of those dismissed were low-skilled workers. Wars decreased for all categories of workers. In comparison to the pre-recession period, the average wage in the firm declined by 44.4 percent (from 450 BNG in 2008 to 2E0019 in 20091. In this period, the starting wage in the company also declined due to pan-time work (from 240 to 150 BNG). Changes appeared in the wage structure. All additional payments. such as bonuses. Were also cut.
Deterioration of other working condition
To save the remaining put of the workforce the company used flexible working lime and unpaid leave. In the period January June 2009. all workers shifted to short-time working (four hours a day) and recived wage compensation. The management also encouraged low-skilled workers to take unpaid leave, up to a maximum of 45 days. According to the management, all these measures could not prevent employment and wage reductions. Although the problem of low qualifications persists, the management did not make any attempt to solve it. Spending on training and recruitment was cut. Health and safety provisions were at the required minimum because the available resources had been reduced
Concluding remarks
The case study show that firms hardest bit by the crisis have generally allowed working conditions to deteriorate. Workers in this clothing company suffered from multiple negative effects due to the crisis. There were no wade-off effects between working conditions. The absence of social dialogue impeded any possible negotiated trade-offs. All working conditions deteriorated to different extents and this brought with it greater inequality.
CONCLUSIONS
The research presented here illustrates a number of key issues in Bulgaria's experience of the crisis and its impact on labour market inequalities. A substantial decline in total output worsened working conditions. The unequal distribution of negative production effects by sector and enterprise caused the emergence of inequality in employment, unemployment, wages and other working conditions. The other source of inequality in the labour market has been the restrictive budgetary policy. Imposing restrictions on public expenditure (including public sector wages) has multiple effects on the augmentation of inequality in employment, unemployment and wages. With limited resources, the firms were forced to reduce employment or cut wages, generally both. The deterioration in labour market conditions concerns all key indicators. Employees in manufacturing and construction faced the highest risk of job losses during the recession. The restrictive government policy
Questions:
analysis the working condition of the company?
give three suggestion how the company can improve it's situation?
From India, Pune
Textiles and clothing was found to be one of the branches of manufacturing hardest hit by the crisis. Production is strongly connected with inter-national markets. The effects of the crisis in this sector have been mainly negative with regard to employment, wages and all other working conditions. Typical in this respect is the company 'Robsov Ltd'. A medium-sized private company.
7.3.1 Strong decline in output
Production is mainly for export. The company works with materials sup-plied by foreign clients and depends on commissions from abroad. For this reason, the effects of the world crisis on the firm's output showed up earlier than in the country as a whole. During the recession the firm lost a significant part of its foreign markets and output contracted by around 60 per cent. In addition, the company faced problems with financing because credit conditions in Bulgaria deteriorated. This situation negatively affected working conditions in the firm.
7.3.2 Strong negative effect on employment and wages
The total number of employees in 2008 was 135 workers. Most were on permanent contracts (BO per cent) and the rest on temporary contracts.
New workers are engaged on temporary contracts with a duration of six months. All work full-time. In relation to educational status, most workers have completed secondary and elementary education. The company experienced shortages of qualified staff both before and during the recession. The negative impact of the recession on employment has been proportionate to the fall in output. Prom the beginning of 2009, employment started to decline, falling as low as 75 workers in the most difficult period. Over a period of a few months the number of employees decreased by over 44 per cent. Most of those dismissed were low-skilled workers. Wars decreased for all categories of workers. In comparison to the pre-recession period, the average wage in the firm declined by 44.4 percent (from 450 BNG in 2008 to 2E0019 in 20091. In this period, the starting wage in the company also declined due to pan-time work (from 240 to 150 BNG). Changes appeared in the wage structure. All additional payments. such as bonuses. Were also cut.
Deterioration of other working condition
To save the remaining put of the workforce the company used flexible working lime and unpaid leave. In the period January June 2009. all workers shifted to short-time working (four hours a day) and recived wage compensation. The management also encouraged low-skilled workers to take unpaid leave, up to a maximum of 45 days. According to the management, all these measures could not prevent employment and wage reductions. Although the problem of low qualifications persists, the management did not make any attempt to solve it. Spending on training and recruitment was cut. Health and safety provisions were at the required minimum because the available resources had been reduced
Concluding remarks
The case study show that firms hardest bit by the crisis have generally allowed working conditions to deteriorate. Workers in this clothing company suffered from multiple negative effects due to the crisis. There were no wade-off effects between working conditions. The absence of social dialogue impeded any possible negotiated trade-offs. All working conditions deteriorated to different extents and this brought with it greater inequality.
CONCLUSIONS
The research presented here illustrates a number of key issues in Bulgaria's experience of the crisis and its impact on labour market inequalities. A substantial decline in total output worsened working conditions. The unequal distribution of negative production effects by sector and enterprise caused the emergence of inequality in employment, unemployment, wages and other working conditions. The other source of inequality in the labour market has been the restrictive budgetary policy. Imposing restrictions on public expenditure (including public sector wages) has multiple effects on the augmentation of inequality in employment, unemployment and wages. With limited resources, the firms were forced to reduce employment or cut wages, generally both. The deterioration in labour market conditions concerns all key indicators. Employees in manufacturing and construction faced the highest risk of job losses during the recession. The restrictive government policy
Questions:
analysis the working condition of the company?
give three suggestion how the company can improve it's situation?
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Case Study on Promotion.pdf
Case study.doc