Global Monopsony, Contracting Practices and Labour Outcomes: A Study of Garment GVCs in India

This is a study of the contracting practices of lead firms, who are buyers of garments, in the global market. Based on a survey of garment manufacturers in three clusters in India it reveals the trend to falling margins, reduced lead times, etc. for these contracted suppliers. These contracting practices are shown to connect, often directly, with labour outcomes, such as low wages, high workloads and forced overtime, in supplier factories. Within a joint but differentiated responsibility between lead firms and garment manufacturers, it argues for the prime responsibility of lead firms to provide for adequate wages and reduce the pressure for forced overtime in supplier factories.