Abstract:
PURPOSE
The textile industry of Pakistan is one of the biggest industries in the world and has the
longest creation chain with inborn potential for esteem expansion at each stage. Pakistan is
among top 10 textile exporters of the world, many of well-known international retailers
outsource textiles goods from Pakistan. Social compliance issues is one of the important areas
of most of the international retailers to ensure the quality of the product they outsource. A
code of conduct is a voluntary policy tool, which includes environmental and social standards
for especially manufacturing industries practicing global supply chain operations. These codes
of conduct includes ethical working conditions, labor rights, and health and safety.
METHADOLOGY AND DESIGN
This research investigates the impact of issues regarding the hiring procedures of contract
based workers and their maintenance of workers contract in the factories. Hiring workers
through third party / labor agencies do not received equal benefits and compensation
because they are not registered as formal employees of the factory and management do not
identify them as their workers and avoid to maintain their work records. A total of 90 ,
Secondary and unpublished Social Compliance onsite Audit reports of export oriented Textile
factory of Pakistan having contractual labor will be analyzed. This research is based on
quantitative data from a sizeable population. To test the hypothesis we used Z-TEST and
REGRESSION techniques.
FINDINGS
The research hypothesis suggests that through third party hiring of workers that is
contractual workers will lead to no adequate hiring procedures of workers available, lack of
clear or composed employment contract issues, absence of paid leave and weak after weak
rest days , lack of payment of other non-wage benefits. Although contractual workers
generally suffers substandard conditions to their specifically utilized partners, specifically
v
bring down wages and poorer access to social security benefits (Man-Kwan Chan, WIEGO,
2013). As far as social and ethical compliance is concerned it difficult for international buyers
to be sure that the good or services they purchase or procure were not produce in sweatshop conditions in the factory.
