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Lighting the Spark
of Factory-based Daycare
in Bangladesh
By Amala Reddy
Every morning and evening, the chaotic and dusty Dhaka cityscape is punctuated by hundreds of brightly dressed women, like an invasion of exotic butterflies. People no longer comment on this tangible evidence of the changing tide in the status of woman; they know it is just 'the garments girls,' scurrying between home and work. They hurry along in groups, with reflex gestures repeatedly adjusting their long dupattas (scarves) to frame their faces and cover their hair modestly.
Children at a Phulki daycare center have a noisy, rhythmic day
They giggle and chat like carefree girls anywhere in the world. However, here and there, the astute eye can catch careworn looks, the anxiety to make that bus, or the nervous rush to return home to hungry husbands and children.
The situation in Bangladeshi urban slums is indeed desperate. Unhygienic and overcrowded, and lacking in basic facilities like water, toilets and electricity, these slums nevertheless continue to absorb the ever-increasing flow of rural migrants. Childcare is a huge problem as older relatives, who traditionally care for the young ones, have been left behind in villages. Women accrue the triple burden of work outside the home, household chores and childcare duties. A natural fallout of this is that their children face the brunt of this neglect and are often left behind unattended, even locked in rooms without food or water.
One committed woman is determined to improve the situation of these mothers and their children – Suraiya Haque, founder of a dynamic civil society organization (CSO) called Phulki. The readymade garments manufacturing industry in Bangladesh has certainly been a tool for empowering poor women by facilitating their access to income, but like elsewhere, the support systems necessary for working mothers are inadequate.
Suraiya Haque with some members of her group
Phulki, 'spark' in Bengali, has stepped into this void and develops and promotes low-cost childcare units within factories.
"From the beginning," Haque recalls, "I did not want Phulki to be a full-service CSO." With this intention, Phulki has accomplished another remarkable feat – creating a sustainable service model by harnessing financial and other resources from garment manufacturers, mothers, garment buyers, donors and government.
Through strategic advocacy and persuasion, reinforced by research to prove economic feasibility, Phulki is demonstrating to all stakeholders that there are many benefits – both economic and social – to factory-based daycare. As a result, stakeholders are beginning to think about childcare a little differently. "This service should not be a viewed as 'just another project," states Haque. "Rather, it needs to be viewed as an integral part of employment. This means that such efforts should be sustainable and involve different stakeholders."
When Laws Fail to Protect
The readymade apparels industry has been booming in Bangladesh since the early 1980s. Quota-free exports, loose regulations, and large credit loans from banks fostered its growth. Increasingly, factories hired large numbers of women and today, out of over 1.5 million workers, 90% are women. A medium to large factory employs anywhere from 500 to 2,000 workers.
Like most industries, garment factories are completely production-oriented. The official shift starts at 8 am, and while the rules stipulate an eight-hour working day and two hours of overtime, women actually work 12 to 14 hours. They work like robots, in a production line of cutting, sewing, pressing, and packing. They churn out finished shirts, jackets, and jeans – adult and child sized – anything the customer wants and the owner can provide. Their hard work contributed a reported U.S.$ 4.2 billion in exports to the Bangladeshi economy in 2000 (76 percent of the total export.) A minimum wage worker in the industry takes home about Taka 950 (U.S.$17.60), while a skilled machine operator may earn Taka 2,000-2,500 (U.S.$37-47), including overtime.
Seeing to many needs: a daycare worker changes a child's clothes at a factory-based center
There is legislation that obliges the government to support a woman's right to work with daycare provisions, the rights of children to mother's milk, and conducive environments for their mental and physical health. The 1965 Factory Act mandates that any factory with more than fifty female workers must provide childcare facilities within the factory. Bangladesh has ratified and officially supported the Convention on the Elimination of All Forms of Discrimination Against Women (1984), and the Convention on the Rights of the Child (1990). However, with few incentives and officials easily bribed, these laws are not stringently enforced.
Garment manufacturers generally do not follow the law unless they are socially-minded or forced to meet their customer's labor compliance standards. Indeed, young women are preferred as workers because they are considered more amenable than men, and less likely to become political and form unions to demand their rights.
Owners understand that it would be 'good business practice' to provide the legal facilities. 'Labor would stick,' and it is morally right. However, they complain that their markups are low, the cost of production has increased and a new garment business rarely sees profits for years. "When I started," recalls one owner, "I wasn't even paying minimum wage. Once I got a direct order customer, I was able to begin meeting some compliance issues. But first, I had to see that I paid proper wages and overtime, had enough toilets, fire escapes. Childcare comes later."
Bearing the Cost of Childcare
From the beginning, even though she had donor funds, Haque wanted the factory-based crèches to be a joint effort with costs shared between parents and employers. Mothers paid Taka 50 per child monthly to Phulki for the service. "I don't believe in free services," says Haque. "Even the community daycare mothers paid from the beginning. We want them to feel: 'My children are my responsibility and I must take care of them myself.' They have no voice if it's free – the owners would dictate terms. A sense of ownership or partnership would not be there. Now, they can complain about the caretakers!"
Haque's model for sustainability hinges on the factory owners carrying the major financial burden. To make this happen, it is essential that she convinces them of the benefit, thereby creating incentives for them to act. She began with one factory owner – a friend – with whom she knew she shared a common social philosophy. She convinced him to create a crèche in his factory. In 1993, with funds from Radda Barnen (an international foundation) they started the first factory-based daycare in Bangladesh for children from six weeks to three years in age.
Phulki documented each step of this process, while slowly expanding to two to three more factories – reviewing and documenting results along the way. Through this documentation, they were able to arrive at actual figures that showed that the costs of a daycare facility were little, considering the returns of following the dictates of the law and improving relations with workers. Per child, one month of daycare costs a little more than a worker's absence for a day.
Stimulating the minds of children with colorful charts
In a garment factory, a worker's absence means that another non-skilled worker fills in, production goes down, or overtime costs have to be borne. Typically, at medium-sized factories, there is 10 to 15 percent 'worker migration' every month, and eight to nine percent absenteeism daily – compensated for by hiring five to six percent extra daily workers.
A major ace in Phulki's hand is that managers at factories with Phulki daycares generally report less absenteeism or loss of skilled workers due to childcare problems. Primarily, factories benefit from the investment in human relations. Providing a better working environment for women results in less conflict and stable productivity.
In dialogue with factory owners, Haque first uses a combination of plainspeak and persuasion. "I show them how there are economic benefits. Then I say: 'Think of your international reputation.' I tell them: 'you don't want Bangladesh to be known for exploitation." To this end, there is a bit more of a stick to Haque's carrot as her international lobbying efforts are building her a reputation as the woman who is "going abroad to their international clients."
Phulki also proposes a viable financing plan to get the centers started. Owners provide space and the start-up funds for the crèche, in line with Phuli's model. For an initial consultancy fee, Phulki starts and manages the center for one month, including costs. The factory has the option of taking over the daycare completely, or they can cover expenses and pay Phulki an additional fee to manage it.
Starting up a Phulki crèche for 20 children requires:
- Space at the factory premises--16 x 18 ft. (minimum)
- Toilet and bathing facilities
- Floor mat of sponge with a rexene cover
- Shelf
- Meat-safe (screened cabinet)
- Miscellaneous (sheets, pillows, toys, etc.)
- Nomination of a supervisor
- Three Caregivers
Total expenses add up to Taka 15,000
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Monthly Running Expenses for a Factory-Based Phulki Crèche for 20 children, aged 6 weeks to 3 years:
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Item Description
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Cost in Taka
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Space at the factory premises, about 224 sq. ft. x Taka 7 per sq. ft. average
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1,568
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3 Caregivers' salaries @ Taka1,500
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4,500
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Supplies like soap, antiseptic, powder, toys, etc.
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300
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Snacks (biscuits, fruit, etc.)
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2,000
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Utilities (electricity, water, etc.)
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200
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Total Expenses:
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8,568
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Cost for owner for one child per month
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428
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One child per day
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14
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Fee for Phulki management services:
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2,000
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Total cost for owner with Phulki service fee:
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10,568
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Cost for owner for one child per month
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528
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One child per day
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18
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Fees paid to Phulki by mothers @ Taka 50 per child x 20 children
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1,000
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Total Fees earned by Phulki per month from crèche
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3,000
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The Cost of a Worker's Absence for One Day:
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Type of Loss
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Rationale
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Cost in Taka
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I. Direct Loss:
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Profit loss from reduced production
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Skilled employees produce 8 pieces per day
Substitute workers produce 4 pieces per day only
Production is reduced by 4 pieces per day @ Taka 175 per piece = Taka 700
Therefore, loss is Taka 700 x 25% normal profit
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175
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Wages for a substitute worker
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Basic salary @ Taka37 plus overtime @ Taka 28 for 3 hours
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65
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II. Indirect Loss:
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Overhead expenses due to slow production (electricity, guard, peon, etc.)
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120
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Total
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360
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Sharing the Burden of Care
The Phulki model does not simply necessitate cost-sharing. Haque is well aware that responsibility-sharing is as important a component of sustainability as financing, and is careful to create a sense of responsibility among the various actors by making sure that their needs are all met.
For example, for the mothers, it is critical that the crèche remains open as late as the factory – often until 10 p.m., including overtime. The management has concerns about their liability regarding children's health and care. To this end, one of the main services Phulki provides is trained caregivers for each crèche. Three caregivers look after the children according to an established routine. They seem to get through the never-ending rounds of feeding, washing, and cleaning that this group entails in a loving and patient manner.
Bright colors, apples and trees: a crèche with a sparkling ambiance
Caregivers are recruited locally, and earn a monthly salary of Taka 1,500. Phulki screens each one and prefers to employ mature women, with the stipulation that one caregiver must be literate. They are given a five-day basic training course on childcare, personal hygiene, nutrition, and early child development. They attend a one-day refresher course twice a year, besides being supervised regularly.
Everyone plays a role in food provision. In the morning, mothers can bring children the same packed lunch of rice and lentils that they themselves eat, or the factory provides meals. The factory is responsible for providing dry snacks like biscuits, puffed rice and fruit each week.
The management and mothers agree on timings for breastfeeding, visiting children, and monthly meetings. A factory line supervisor is nominated to monitor the crèche a few times a day. Phulki has prepared a reporting format to make this easy. This reassures the management that mothers are not neglecting their work.
The mothers agree unanimously that the main advantage of factory-based daycare is peace of mind from knowing their children are well cared for and close by. One mother recalls how her first two children were raised in the village. "Now with this child, I can really see her growing. She seems more mine."
Making Daycare Global
In 1994-1995, Haque seized the opportunity to turn Phulki's project into a larger, more sustainable program through government contracts. She accepted a consultancy from DANIDA to start a daycare at the Women's Affairs Directorate under the Ministry of Women and Children's Affairs. Subsequently, the Accountant General's Office has started a day care facility, and the government has opened another seven centers in Dhaka and five at sub-divisional headquarters, all funded directly through the government's development budget.
Haque was also active in spreading daycare to the Secretariat, the Government's administrative headquarters. She did a needs-assessment survey among the mainly middle-class office workers, including fathers, and found that they were willing to pay as much as 20 to 30 percent of their salaries for daycare. She convinced the skeptical Secretary that this indicated their pressing need, and the daycare was established in 1999.
With the new world trade environment and businesses moving toward social auditing and responsible labor practices, Haque saw a fresh opportunity to advance factory-based daycare on a wider scale. She started a letter campaign targeted directly at international garment companies like Nike, urging them to ensure that goods bought from Bangladeshi manufacturers were compliant with the labor law requiring childcare. "Some replied. Some didn't. But I kept at it," she recalls.
Children at rest and play at a center
At what she considers the transition point, in January 2000, Haque was awarded the Ashoka Fellowship. The Fellowship gave her the backing for international expansion. In July 2000, she traveled to the U.S. to meet with over fifteen different organizations, including several well-known clothing manufacturers such as Reebok, Gap, Sears, and Wal-Mart. As a direct result of these meetings, Suraiya was invited to speak to Reebok's senior executives and Wal-Mart agreed to include the provision of childcare as one of their compliance standards for their overseas manufacturers. In November, she was invited by Businesses for Social Responsibility to attend their Annual General Meeting in New York as a resource person.
Locally, Haque has continuously lobbied the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to make owners aware and legally childcare compliant. She feels that ultimately, "childcare needs to be the responsibility of the industry and government, and buyers must take corporate and social responsibility."
How Phulki's Sustainability Strategies are Keeping the Spark Alight
Phulki's intense and multi-pronged advocacy for women and children's rights to childcare has lead to an increased demand for its marketable social services. Since it began, Phulki has opened 20 factory-based centers that provide daycare to 40 garment factories. Phulki charges factories a consultancy fee and provides caregiver training.
Haque is actively working toward making Phulki financially sustainable. Currently, owners and mothers are meeting about 75 percent of the cost incurred for management of factory-based daycares. Phulki is also beginning to earn revenue from its consulting service. It also runs other projects associated with the community daycares.
Haque hopes to attain financial independence for Phulki in the next 10 years. As she expands to more
factories, the income Phulki earns in fees will finance the crèche activities, as well as subsidize the costs of other programs – like training centers.
Haque attributes her success to her tenacious nature and being 100 percent committed. She grew up in an affluent family on a tea estate in "British Raj" style. She had an arranged marriage at a young age. Her husband and family disapproved of her desire to continue studying. She was told that "wives need manners and etiquette, not school certificates." However, after eight years and two children, without family support, but with tremendous determination, she finished high school and completed a degree in psychology.
Haque inspires people who work with her to have a similar commitment. She insists on a sustainable, high qualitative standard for Phulki services and staff. There is an emphasis on in-house training for her 80 employees. They are encouraged to maintain weekly reading records and discuss work-related issues. Workshops are held two to three times per year for staff to analyze plans and determine new directions.
Haque has steered Phulki to concentrate on childcare services and she feels Phulki's sustainability achievements are linked to this decision not to expand to other social services.
The Moral Burden of Consumption
Phulki is now poised to expand its model for child care in the workplace to a sustainable program instituted through the support and pressure of various agencies like BGMEA, apparel buyers, donors, and the government. Many factory-based daycares have been implemented successfully with the financial participation and support of garment owners and mothers, and Phulki's services are in high demand.
Ultimately, the sustainability of Phulki's activities in the sphere of factory-based daycare is dependent on the business acumen of Bangladeshi garment manufacturers and their motivation to provide decent working conditions of women and ensure children's rights. Increasingly, pressure from international buyers and the free trade market will force them to comply with the law. Then, Phulki can step in with a service that is convenient and inexpensive.
For now, many garment manufacturers resent what they perceive as an unfair standard being levied by western consumers. They argue that to meet the demand for cheap retail garments in the West, the only way to produce them is by mistreating labor in developing countries. They say that if Bangladeshi manufacturers do not, there are others who will take the contract. Unspoken is the amount of profit they deem fair at the worker's expense.
Haque counters this with an innovative solution. She suggests garment companies introduce a clothes-tag saying a small fraction of the cost will be funneled directly to welfare projects for workers in manufacturing countries. Haque is 100 percent confident that everyone will pay one cent, even in Bangladesh.
Her eyes twinkle. "People will be proud to buy. If they are clever with marketing, they can sell more jeans!"
Needs:
More publicity about the benefits of workplace daycare, especially information made available to consumers. Haque would like to see more consumer pressure on vendors, and advocacy for businesses to accept it as part of corporate social responsibility. Phulki would welcome assistance for institutional and staff development.
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