Women Working in Global Supply Chains Game 1

Let’s Make a Deal:

Women Working in Global Supply Chains game[1]

Purpose: To engage participants to think critically about the new business/trade model and to present the harsh conditions faced by workers at the bottom of global supply chains.

Objectives:

To sensitize participants to the forces and factors involved in negotiating labour rights, working conditions within international production relationships.

To contextualize impersonal market forces within the human and institutional realm of decision making ability.

To examine the complex supply-chain and networks of factories and contractors in the world production and their impact on workers.

To present the unequal power relationships inherent in the global supply-chain.

Time: 60 to 80 minutes

Resources:

Three group briefing packages (workers/employees, producers/managers, mediators) – (see advanced rules for union representatives and international management) - includes the following; background sheets and negotiation cards

Event Cards

Chart Paper and marker

Bell (to mark the beginning and end of negotiation rounds)

Overhead sheets (see appendices I, II, III)

What is this game? - Notes to the facilitator: This negotiation game simulates an imaginary bargaining session between workers/employees and producers/suppliers at a textile factory in a developing country. Of course, in reality such a bargaining session would never take place, however, through participants role-playing and the introduction of realistic events, it is hoped that all groups will experience the pressures and realities faced at the bottom of the global supply chain of production. Throughout the game, the facilitator should take note of statements and actions of each group to link content material with participants feelings and actions during the debrief.

Part 1 (15 min.) – Preparation:

Introduction

a)The instructor explains that there will be a very important negotiation in the room today between management and workers in a textile factory from a developing country. The negotiation will highlight and address some of the harsh realities and conditions faced by workers and the lack of protection given to labour codes and international standards. As well, the negotation will familiarize the participants to the current constraints of the supply chain market model and the human costs involved.

b)The facilitator will display statistics from Trading Away our RightsPlay Fair at the Olympics to introduce participants to the nature and size of the global supply chains. (Appendices I & II)

c)The facilitator splits the participants into three groups: 1) Workers/Employees (with union representatives), 2) Management/producers 3) Mediators (one per group).

Group size – Workers ½ of participants, Management ½ of participants, Mediators (One per negotiation table).

* Active participation is a key element in this simulation. In order to maximize involvement, the recommended group size is between 6 – 8 players total per game. This will allow facilitators/educators to run 3 – 4 parallel games in a classroom.

Procedure:

The facilitator then explains the procedures of the game and divides the participants into groups. Each group receives a package that includes a group background sheet and a bargaining card along with instructions. (Groups should not open their packages at this point. Only after the game scenario has been read can the groups open their packages.) At this point, in preparation for Event 1, within the workers/employees group a union activist must be identified. (They will be “fired” as a result of Event 1.)

The game is organized into rounds of negotiations. The number of rounds and length of time allocated to each round is variable given the time given for the exercise and number of participants.

The following introductory scenario is read to the groups:

Scenario:“Global Stitch”, a local company located in a developing country is a sub-contractor for a major transnational corporation that produces garments and other apparel for the sports industry. “Global Stitch” has just received a major order to produce sports T-shirts, sweatshirts, and caps to sell as merchandise in North America and Europe. The order is time sensitive with millions of dollars worth of clothing apparel to be produced in a very short period of time.

You are now at the bargaining table where management and workers must agree upon a fair contract to carry out the order and produce in time for delivery. As a supplier in the global garment industry, conditions and terms of the order may suddenly change without prior notice. Your objective is to get the “best” deal possible under the circumstances. Good Luck!

Items for Negotiation: Working Conditions, Pay, Working Hours

(Allow for 10 minutes for each group to review their background information and negotiations card. The facilitator should travel around the room answering questions and clarifying the rules, aims, and procedures of the game.)

Negotiations Begin: The facilitator should then open the first round of negotiations. (It is suggested that the facilitator ring a bell or have some kind of a audio devices to signal the beginning and ending of rounds to facilitate management and timing of the game. The facilitator should introduce the device and explain its significance.) After 5 minutes of initial negotiating, the negotiations are interrupted with event #1.

Round 1

Event 1: “Hardball tactics”

Management: Management fires union organizers (any participant in the workers group that are designated as union organizers must leave the game)

Bargaining Changes: Press for wages at $100 U.S.

Workers: Your confidence is shaken and bargaining power reduced.

Bargaining Changes: Lower your wage limitation to $120 U.S.

*(5 minutes of negotiating)*

Round 2

Event 2: “EPZ and Employment at what costs?”

Management: A neighbouring country that is interesting in attracting foreign direct investment, offers to open an Export Processing Zone (EPZ) where you will be able to operate in a “pro-business” environment; code language for no taxes, and no environmental or labour protection laws. As well, the government assures you that no labour disturbances would be tolerated. (Bargaining note: Management may threaten workers that if they don’t meet their demands the plant will be moved immediately to this EPZ)

Workers: Word from outside tells you that management may threaten to move the plant to a neighbouring country. Try to brainstorm reasons why they should keep the plant in the country to save your employment. (Remember although the conditions and pay are deplorable you are the sole income earner for your family and you depend on what meager wages you receive to support them and yourself– remember you can easily be replaced) – (Bargaining note: give in to management demands of short-term contracts and no benefits. Lower your wage limit to 110.)

*(5 minutes of negotiation)*

Final Round(The facilitator/teacher should brief the mediators that they are to attempt to arrive at a final agreement with both sides since this is the last round of negotiations.)

Event 3: and the Supply-Chain Gang

Management: You receive word that international management requires the addition of a logo to both your caps and t-shirts. This production change will require a doubling of worker output with no additional time or budget allowed. Your only option is to institute a policy of overtime. (Bargaining Note: You must get workers to agree to a compulsory overtime policy. You may threaten to demote them to cleaning staff and or fire them if they don’t agree.)

Workers: (Bargaining Note: Accept wages at US $100. Negotiate conditions and hours as best as you can.)

*(5 minutes of negotiation)*

End of Game: At the end of the 3rd Round the facilitator will ring the bell and read the final event.

Final Event - International Solidarity

Local and international labour unions find out about the management intimidation and coercive practices at Global Stitch. They descend on negotiations and begin a vocal demonstration to protest the firing of union representatives and draw attention to poor working conditions and practices existent at the factory. Both local and international media are present.

The game ends after the third and final round of bargaining. Since the aim of the game is more for participants to go through the process of bargaining rather than to achieve a goal of a final agreement, the game ends regardless of group outcomes. In fact, the facilitator/teacher can explore with the class what techniques and strategies worked and what didn’t. (Turn to Debriefing Session notes)

Advanced Modifications:

1)This game should take a full period to play. In order to debrief the game fully, the instructor should take a good portion of the next lesson to debrief the game with participants.

2)After the game has been played once, the game can be tried again with all participants more aware of the issues and parties at stake. Contrast and comparison can be examined between the two games and if the participants actions where influenced by their previous experience and knowledge gained.

Background – Workers/Employees

Background Information: (Use this information to support your arguments and help you to negotiate in character.)

As a group, your ranks are comprised of primarily female workers. In fact, women occupy 60 to 90 percent of jobs in the labour intensive stages of the clothing and fresh-produce global supply chains. At Global Stitch this is also true with a ratio eight women to one man. Many of you have been targets of abuse from the all male staff management with intimidation, verbal and sexual abuse forming a common group of practices to ensure worker compliance.

The wages you earn at Global Stitch are not enough to cover your basic living expenses. The costs of housing, food, electricity, water are just barely met by your salary. Most of you are the only income earner in your family and so any money that might be left over is sent home to support your children and aging parents.

You have no savings since all of your income goes to meet your and your family’s immediate needs.

Your employment is insecure. Many of you are undocumented migrants, young, and vulnerable. Those of you with contracts have only short-term ones with limited access to social protection.

Most of the time you are exhausted through working long hours at high pressure in unhealthy conditions. Global Stitch management often requires you to work 12 hour days with overtime for days in a row. No allowances are given to pregnant women, sick days, or any time off.

Some of you are currently campaigning to organize collectively and demand for your rights to be met. This negotiation is an opportunity for you to have your voices heard.

Supplemental Information:

a)In Chile, 75 per cent of women in the agricultural sector are hired on temporary contracts picking fruit, and put in more than 60 hours a week during the season. But one in three still earns below the minimum wage.

b)In China’s Guangdong province, one of the world’s fastest growing industrial areas, young women face 150 hours of overtime each month in the garment factories – but 60 per cent have no written contract and 90 per cent have no access to social insurance.

Background – Management/Producers

Background Information: (Use this information to support your arguments and help you to negotiate in character.)

 You are managers of Global Stitch Corporation, located in a developing country, you are a sub-contractor to a large transnational garment and clothing firm. Although, you have been given an order to produce for the company and have been a regular of the company for sometime, there is no guarantee that the company will remain loyal to you. Under the new business model should you not be able to provide the best price on time and with the highest quality, the company has informed you that it will find another supplier who can.

Over the years, increasing price competition has led to a situation of falling unit prices along with rising production costs. You must make savings to deliver the order within this more competitive environment.

With the introduction of JIT (Just-In-Time) inventory delivery, your lead times have shrunk and demands to produce large shipments in a short period of time has increased. You require a “flexible” labour force that can work intensively for extended periods of time.

In order to quell rumours of poor labour practices you have recently produced a labour relations code of conduct that adheres to ILO regulations. However, in reality the demands of the new business model require that its spirit and letter be worked around to produce on time.

You are wary of worker organizations as you depend on uninterrupted production to meet tight deadlines. As well, you must produce at the lowest price possible and so any kind of increase in costs such as wages, benefits, or improved conditions could prove costly for the bottom line.

Supplemental Information:

a)The global market for sportswear generated US $ 58 billion in 2002 yet due to increased competition the average price of a pair of trainers in the USA has fallen from US $ 41 to US $36 since 1997. In order to compete, savings must be found in the supply chain.

GUIDELINES

Mediators

The role of the mediators:

1)As a mediator your primary responsibility is to facilitate bargaining between workers/employees and management/producers. To accomplish this task you are required to do the following:

a)Write down the contract terms round by round on the piece of chart paper provided (or on a table #1)

b)If both sides are at an impasse, you must try to bridge the gap and suggest comprimises whenever possible.

c)If any side becomes overly vocal or abusive you must regain order in the most appropriate manner possible. If this is not possible, you must notify your teacher/facilitator you can help you out.

2)As a representative of the international community you also must fulfil the role of watchdog for labour rights. As such, throughout the game you must document any practices that contravene the above ILO conventions. (Write down any situations where management word goes against any of the conventions from fig. 1.) You will present a brief report to the class at the end of the game in this regard.

Negotiations Grid

PAY
(wages, overtime) / WORKING CONDITIONS
(Collective Bargaining, Contracts, Benefits) / WORKING HOURS
(Regular, Overtime)
Workers/Employees / Round 1:
Round 2:
Round 3: / Round 1:
Round 2:
Round 3 / Round 1:
Round 2:
Round 3
Management/Producers / Round 1:
Round 2:
Round 3 / Round 1:
Round 2:
Round 3 / Round 1:
Round 2:
Round 3
Final Agreement / Round 1:
Round 2:
Round 3 / Round 1:
Round 2:
Round 3 / Round 1:
Round 2:
Round 3

Debriefing Questions:

a)Flip the chart paper over and divide the sheet into a grid diagram of three (workers/employers/mediators) categories. Ask the students to write words/phrases that describe how they felt or what they said while negotiating during the game under the appropriate category. (facilitator can also write on the board what he/she heard during the negotiations)

b)Ask a (volunteer or mediator) from each group to read out the words on the chart paper (facilitator can copy down on the chalkboard as desired.)

c)Read the following quotes:

“We have to do overtime until midnight to earn a decent income. I am afraid of having children because I wouldn’t be able to feed them.”

-Nong, 26, sewing underwear for Victoria’s Secret in Thailand

“We don’t have the right to be sick. One day when I was not well and I took a doctor’s note to my employer, he gave me a written warning.”

-Zakia, 36, sewing garments for Spain’s El Corte Inglés in Morocco

“I would like to demand the improvement of working conditions. However, we do not feel we can demand higher wages, welfare, and legal status.”

-Phan, 22, migrant worker for Puma in Thailand

d)Ask participants whether they can relate these statements more after having participated in the game.

Further Questions:

1)How did you feel trying to negotiate?

2)What were some ideas or thoughts that went through your mind as you were negotiating for the best deal?

3)How did you feel as the events happened? Did your negotiations change as a result of the events?

4)Do you consider the terms that you ended up with as fair?

5)In order for the terms to be fair, what do you think would have to happen to the global supply chain and the new business model?

Concluding Comments:

The events that occurred during the game were based on common practices in the global supply chain to reduce costs and find profits for large transnational corporation. For example:

Event 1: (Management fires union organizers)

Facilitator asks: “What happened in Event #1?”

The freedom to join trade unions is fundamental for workers to improve their own working conditions. Through collective bargaining, lobbying, and individual assistance, unions have played a key role in strengthening worker’s rights worldwide, (ILO conventions 87 & 98). For workers at the bottom of the supply chain, being represented by a union would begin to provide them with some protection against management abuses. It is no wonder then that in the highly competitive global supply chain, management would resist union organizing strongly to limit costs. Managers often rely on an arsenal of mental, physical, and sexual abuse to ensure that workers comply with management demands. Any worker’s who are suspected to organizing workers collectively would be subject to abuse,dismissal, and in some cases even death.

“Here it is forbidden to create a trade union. Anyone in a union gets sacked.”