E nte rprise Surve y in Ga rme nt a nd Ag ro -fo o d pro c e - PowerPoint PPT Presentation

E nte rprise Surve y in Ga rme nt a nd Ag ro -fo o d pro c e ssing Se c to rs in Ya ng o n a nd Mo n Sta te Co nduc te d By Ministry o f L a b o r, E mplo yme nt a nd So c ia l Se c urity(Mo L E S) a nd Mya nma r De ve lo pme nt Re so urc e Institute -Ce nte r fo r E c o no mic a nd So c ia l De ve lo pme nt(MDRI -CE SD)

Co nte nt  Surve y o b je c tive s  Sampling  Surve y time line  Surve y q ue stio nnaire  Pre liminary finding s ( e mplo yme nt and so c ial se c urity se c tio n)  Pre liminary po lic y re c o mme ndatio ns  Challe ng e s  F urthe r analysis

Obje c tive s  Ge ne ra l Ob je c tive o f surve y  T o pro duc e o rig ina l re se a rc h da ta a nd a na lysis o n c urre nt c o nstra ints o f the Mya nma r la b o r ma rke t  Spe c ific Ob je c tive s  I de ntify e mplo ye rs' de ma nd fo r wo rke rs (spe c ific o c c upa tio n, q ua lific a tio ns, skills)  I de ntify the ma rke t fa ilure s tha t mig ht e xist in c re dit a nd info rma tio n a c c e ss, te c hno lo g ic a l a c q uisitio n a nd the g a p b e twe e n la b o ur ma rke t de ma nd a nd supply  I de ntify tra ining a nd skills ne e de d fo r e mplo ye e s  I de ntify me a ns o f de ve lo ping the c a pa c ity o f e mplo ye e s to impro ve pro duc tivity  Unde rsta nd e mplo ye rs a wa re ne ss a nd pe rc e ptio n o f the So c ia l Se c urity Sc he me

Sampling  Sa mpling fra me dra w fro m the lists o f re g iste re d fo rma l g a rme nt a nd fo o d pro c e ssing industrie s a va ila b le fro m:  Mya nma r Ga rme nt Asso c ia tio n (MGMA)  Mya nma r F ishe rie s F e de ra tio n (MF F )  Industria l Ma na g e me nt Co mmitte e  Ministry o f L a b o r, E mplo yme nt a nd So c ia l Se c urity

Sur ve y T ime line No. Ac tivitie s T ime Pe r iod Surve y me tho d a nd q ue stio nna ire s Ma rc h to Ma y 2015 1 de ve lo pme nt Pre -te sting pe rio d June 2015 2 Ac tua l surve y da ta c o lle c tio n pe rio d July 2015 to Oc to b e r 3 2015 Sa mple size (numb e r o f firms c o nta c te d ) 205 4 Numb e r o f firm fro m Ya ng o n Re g io n 171 5 Numb e r o f firm fro m Mo n Sta te 34 6 Numb e r o f firms re spo nde d 198 7 Numb e r o f firms re fuse d to re spo nd 7 8

Sur ve y Que stionnair e s  Surve y q ue stio nna ire s we re de ve lo pe d b a se d o n sa mple e nte rprise surve ys fro m o the r c o untrie s, with inputs fro m Mo L E S a nd funding fro m IDRC Ca na da .  Surve y Que stio nna ire divide d into (Pa rt I a nd Pa rt II )  Pa r t I  Ge ne r a l F ir m’s Infor ma tion  Sa le a nd E xpo rt (3 ye a rs)  Pro d uc tio n a nd Inputs  E mployme nt a nd Huma n Re sour c e s Par t II  F a ir T r e a tme nt for Wor ke r s F ixe d Asse ts  T e c hnolog y a nd Innova tion Pro duc tio n Co st da ta  ASE AN E c o no mic Co mmunity (AE C)  Utiliza tio n o f F re e T ra d e Ag re e me nt  Ba r r ie r s a nd Cha lle ng e s  Gove r nme nt Suppor ts  Risk a nd Pre fe re nc e

Our sa mple firms: F o o d & a ppa re l pro duc e rs F IRM SIZE Sma ll Me diu L a rg e T ota l Sha re in (1-300) (600+) m tota l (301- 600) INDUST RY (ISIC CODE ) No. No. No. No. 10. MANUF ACT URE OF F OOD PRODUCT S 45% 81 5 3 89 14. MANUF ACT URE OF WE ARING 52% 32 23 47 102 APPARE L 16. MANUF ACT URE OF WOOD AND 1% 1 1 0 2 WOOD PRODUCT S 17. MANUF ACT URE OF PAPE R AND 1 0 0 1 1% PAPE R PRODUCT S 32. OT HE R MANUF ACT URING 2% 3 0 0 3 T OT AL NUMBE R 118 29 50 197 SHARE IN T OT AL 60% 14% 26% 100%

Appa re l firms a nd fo o d pro duc e rs diffe r in 8 te rms o f e xpo rts, fo re ig n o wne rship, size , a g e INDUST RY ME MBE R OF F IRMS WIT H AVE RAGE F IRMS T HAT BUSINE SS F ORE IGN NO. OF E XPORT ASSOCIAT ION OWNE RSHIP WORKE RS PE R F IRM 10. MANUF ACT URE OF F OOD 70% 3% 105 27% PRODUCT S 14. MANUF ACT URE OF WE ARING 97% 59% 657 84% APPARE L T OT AL (INCL . PAPE R, WOOD AND 84% 32% 391 61% OT HE R) INDUST RY <=5 ye ar s 5<age <20 ys. > 20 ye ar s Ave r age age (in ye ar s) 10. MANUF ACT URE OF 15 58 16 15.2 F OOD PRODUCT S 14. MANUF ACT URE OF 57 42 3 7.4 WE ARING APPARE L 75 101 21 11.1 AL L SURVE Y F IRMS

Some pr e liminar y findings

1. L abor r ights and labor r e lations

L o w la b o r re pre se nta tio n: L e ss tha n ha lf o f surve y firms ha ve a la b o r a sso c ia tio n F irm with la b o r 43% a sso c ia tio n F irm witho ut la b o r 57% a sso c ia tio n

L a c k o f tra nspa re nc y: Usa g e o f e mplo yme nt c o ntra c ts a nd pa y slip syste m no t ye t unive rsa l Share of firms signing e mployme nt c ontrac ts with the ir e mploye e s Share of firms using a pay slip syste m F irm use F irm use e mplo yme 24% 26% pa y slip nt c o ntra c t syste m F irmd o n't F irm d o n't use use pa y slip 74% 76% e mplo yme syste m nt c o ntra c t

2. E mployme nt dynamic s and labor tur nove r

E xtre me ly hig h la b o r turno ve r ra te s, re fle c ting wo rke rs’ disc o nte nt Shar e of fir ms (in % ) that… 90.5 Saw at le ast one e mploye e r e sign in 2014 L abor tur nove r r ate Ave r age shar e in fir m’s total wor kfor c e of 49% wor ke r s who le ft the fir m in 2014 Ave r age shar e of r e signe d wor ke r s in fir m’s total 43% wor kfor c e

Only a fifth o f surve y firms c re a te d ne w jo b s in 2014 Shar e of fir ms that... 21% I nc re a se d the ir wo rkfo rc e in 2014 37% Ha d a sta b le wo rkfo rc e in 2014 Re duc e d the ir wo rkfo rc e in 2014 42%

3. Wage s and wor king c onditions

Ave ra g e ac tual wa g e s pa id in ma ny firms fe ll sho rt o f ne w minimum wa g e ra te Ave rage monthly wage s paid in individual fac torie s (in Kyat) 250,000 200,000 42% be low 2% be low 34% be low MW r a te MW r a te MW r a te 150,000 100,000 Monthly min. wa g e (~83,160 Kya t) 50,000 - Pla nt o pe ra to rs Se rvic e wo rke rs Ma na g e rs

Ave ra g e basic wa g e s fo r c e rta in jo b s in CMP firms we re fa r b e lo w ne w minimum wa g e ra te Basic monthly wage s paid in individual fac tor ie s (in Kyat) 200,000 Monthly min. wa g e (~83,160 Kya t) 150,000 100,000 50,000 -

Co mpo sitio n o f wa g e s: Ba sic wa g e ra te a c c o unts fo r o nly a b o ut ha lf o f a n a ve ra g e wo rke r’ s wa g e Sha re of firms whe re the following Ave r age shar e (in % ) in total labor ite ms a re on the pa y slip… c osts of… 100% Ba sic wa g e Ba sic wa g e 51.8 93% 15.4 Ove rtime Ove r time 9.8 Atte nda nc e 92% Atte nda nc e 8.1 Pr oduc tion bonus 62% Se rvic e bonus / se niority 5.1 Skill bonus 59% Produc tion bonus 4.8 Se r vic e bonus / se nior ity 66% Skill bonus Housing a nd tr a nspor ta tion Housing a nd tra nsporta tion 1.4 a llowa nc e 57% a llowa nc e 0.8 L unc h a llowa nc e 39% L unc h a llowa nc e 2.9 Othe r 7% Othe r 100.0 T OT AL

L o ng wo rking ho urs a re ve ry c o mmo n Ave r age wor king days pe r we e k 5.9 Ave r age wor king hour s pe r we e k 46.1 Ave r age ove r time pe r we e k (in hour s) 10.4 Ave r age br e ak time pe r day (in minute s) 53.2 Ave r age numbe r of days off pe r we e k 1.0

4. Skills and human c apital de ve lopme nt

Ge ne ra lly hig h e duc a tio na l a tta inme nts o f fo unde rs/ o wne rs o f fa mily-run b usine sse s Education level of founders/owners of family-run businesses Ma nufa c ture of food produc ts Ma nufa c ture of we a ring a ppa re l 3% 2% No forma l e duc a tion 9% 0% Prima ry e duc a tion 0% 2% Voc a tiona l/ diploma 29% 18% Se c onda ry 59% 78% Unive rsity

L ittle inve stme nt in huma n c a pita l 23 de ve lo pme nt Percentage o of firms r repo porting ng e expe pend nditur ures on traini ning ng for w r workers 100% 90% 80% 70% 60% 50% 40% 30% 20% 30% 10% 15% 13% 0% Large Enterprises SMEs Total Training provided to workers No training provided to workers

Mo de ra te inno va tio n o utc o me s…b ut, a g a in, mo re fro m SME s 24 (a nd mo re a mo ng fo o d pro duc e rs) Intr oduc tion of ne w pr oduc t and/ or se r vic e dur ing 2012- 2014 NO YE S 63% 37% SMAL L 61% 39% ME DIUM 78% 22% L ARGE 69% 31% T OT AL INT RODUCE D INT RODUCE D A NE W A NE W PRODUCT SE RVICE No Ye s No Ye s 10. MANUF ACT URE OF F OOD 62% 38% 67% 33% PRODUCT S 14. MANUF ACT URE OF WE ARING 87% 13% 90% 10% APPARE L 75% 25% 78% 22% OVE RAL L(AL LINDUST RIE S)

I mpo rting skills thro ug h 25 e mplo yme nt o f fo re ig n huma n re so urc e s Shar e of fir ms e mploying for e ign staff in diffe r e nt oc c upations NUMBE R OF F ORE IGN E MPL OYE E S 11 a nd 1 2 3 4 5 to 10 None a bove MANAGE RS AND 10.6% 6.1% 2.0% 1.0% 3.5% 1.0% 75.8% PROF E SSIONAL S E NGINE E RS AND 7.1% 3.5% 1.5% 2.0% 6.5% 2.5% 76.8% T E CHNICIANS SUPE RVISORY AND 2.0% 0.0% 0.0% 0.0% 1.0% 1.5% 95.5% CL E RICAL PL ANT AND MACHINE 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 99.5% OPE RAT ORS AND ASSE MBL E RS