Once More into the Sunset? Asian Clothing Firms after the National Minimum Wage

Publisher Website
Google Scholar
Abstract
Intense global competition and the advent of a raft of employment regulations (notably, the national minimum wage, or NMW) have placed the UK garment industry under severe pressure. The prospects for a significant segment of this sector—ethnic-minority-owned businesses—appear to be extremely gloomy, although earlier predictions of its demise proved to be unduly pessimistic. Drawing on case studies of eighteen firms, we present an examination of longitudinal change in the Asian-dominated West Midlands clothing industry. In particular, the aim is to examine the responses of manufacturers to market and regulatory change (in particular, the NMW). The findings clearly illustrate that the sector is in decline, with firms finding it increasingly difficult to cope with cheap imports, labour shortages, and employment regulations. A range of responses was evident and included firms that resorted to operating in ‘grey’ markets; manufacturers that ‘retrenched’ their operations; ‘work intensification’; and businesses that attempted to move ‘up-market’. Finally, potential policy responses are considered. In particular, the case of the Coventry Clothing Centre is examined. The Centre worked with the grain of employment legislation, and appeared to have experienced some success in encouraging local firms to accommodate the NMW and improve working practices.

This publication has 16 references indexed in Scilit: