When we think of the Fashion Clothing Industry in the present tense, we think of the many sweat shops and depraved, underpaid and exploited people from Asia. The very same method of media domination is given to third world countries that are depleted of such basic amenities, as running water? The very thought that other countries are suffering and not highlighted by the powerful press.
It makes one wonder if there is some kind of consumerism happening here. The fact of the matter is that right on our very door steps we have the same suffering happening amongst our neighbours? Maybe not in a politically sense of the word (Not being a part of the member state), but all the same as a humanitarian these people from Eastern Europe are suffering, in many case in silence? This article is not meant to draw upon any political issues; it’s to open up your eyes to a wider world of people, with talent, and living next door to you.
Moldova is one such country that encompasses the workforce needed to fuel companies such as Multitexlondon. Who are providing Fashion clothes throughout Europe? This company has its headquarters in London and as such has its own quality control (QC) company in Moldova which enables them to QC and control every delivery at each stage of production at all times. The London office is manned by highly efficient Russian speaking team ensuring complete communication and control of the factories at all times.
Remembering, this country is deemed as the poorest country in Eastern Europe. So for a company like this to invest in this country, does advocate that there is a raw talent in the Clothing industry. First seeing the potential and establishing a relationship in a regenerating area of the world in need and receptive to change and the advantage of new technologies, we have become a well established manufacturer of garments , on a CMT basis, utilising our own high-tech and highly flexible factories situated in the Republic of Moldova. Moldova is a ex Soviet country situated east of Romania and between Ukraine.
It was traditionally an important sewing centre for the Old Soviet Union and began to suffer enormously from a lack of work and support since its break up. We have been working there over the past four years, and that time I have to invested heavily and succeeded in ironing out the obvious problems associated with Eastern European production, as well as the political and logistical pit falls - which, as I am sure you know, are numerous when sourcing from any off-shore source.
Facts & Figures
Full country name: Republic of Moldova
Area: 33,700 sq km (13,008 sq mi)
Population: 4,460,000
Capital city: Chisinau (pop. over 735,000
People: Moldavian-Romanian 64.5%, Ukrainian 13.8%, Russian 13%, Gagauz 3.5%, Belarusian 3%, Jewish 1.5%, Bulgarian 2% Language: Moldovan (virtually the same as Romanian), Russian, Gagauzi (a Turkish dialect) Religion: Eastern Orthodox 98.5%, Jewish 1.5%
Government: Republic President: Vladimir Voronini
Prime Minister: Vasile Tarlev
GDP: US$10 billion GDP per head: US$2200
Annual growth: -8% Inflation: 18% Major industries: agriculture, viniculture, food processing Major trading partners: Russia, Kazakhstan, Ukraine, Romania, Germany
Member of EU: NO
Country Profile
Sandwiched between Romania and Ukraine, Moldova emerged as an independent republic following the collapse of the USSR in 1991.
The bulk of it, between the rivers Dniester and Prut, is made up of an area formerly known as Bessarabia. This territory was annexed by the USSR in 1940 following the carve-up of Romania in the Ribbentrop-Molotov pact between Hitler's Germany and Stalin's USSR. Two-thirds of Moldovans are of Romanian descent, the languages are virtually identical and the two countries share a common cultural heritage. Moldova's main industries are agriculture and wine production. It has faced severe economic hardship since it became independent. State-run institutions already poorly equipped; by Western standards, face additional problems at a time when the government cannot meet its financial obligations.
The Trade Show 2008 Chisnau
Exhibition Name – Black Sea Latex
http://www.eventseye.com/fairs/trade_fair_event_9597.html
Other future events by Moldexpo
http://www.eventseye.com/fairs-organizers/moldexpo-692-1.html
Moldova – Poverty wages on the door step of Europe
Stefan Cel Mare, formely known as Lenin Boulevard, is in the very centre of Chisinau, the capital of the Republic of Moldova. Between government buildings in the north and hotels at the southern end of the street huddle all the important institutions and agencies as well as the boutiques of well-known brands like Hugo Boss, adidas or Puma.whoever wants to be successful or wants to participate in the meagre fruit of the Moldovan economy has an address here.
Monument of Stephan Cel Mare
Female employees, students, women who moments earlier were crammed together in one of the mini buses bringing them from the districts of Botanica or nearby the city centre, surprise by there elegance. Most popular are jackets made of soft, black leather with a business-like blouse worn with formelly but generously cut trousers.people in Moldova spend an average of 7% of their income on clothes (against 6% in Germany).
With the collapse of the East European COMECON market at the beginning of the transformation period ( 1989 -1991), the sewing machines came to a grinding halt. Times have changed since this bleak period and now pockets of business are appearing all over the place, two blocks from Boulevard Stefan Cel Mare toward the east, there can be heard once more the sounds of the machines from the factories of lonel and Steau Reds, former textile conglomerates which have since been privatised and divided into smaller companies.Today, there are about 50 comapnies in the whole country producing mostly garments and some textiles. They rae Italian, Turkish or German owned and financed.
The Republic of Moldova is the poorest country in Europe. The average income is €300 per year. Survival on such a low income is impossible even in the Republic of Moldova. In 1999 already, the cost of a basket of basic commodities, was three times higher than the average income. Many Moldovans only manage to survive because they have relatives in the countryside who help them out with food grown on their own small farms. Furthermore, 800,000 people left Moldova in the past 10 years to go to the West and contribute remittences which are a vital for the famillies they have left behind at home.
Like all other states of the former Soviet Union, Moldova has experienced a dramatic economic declie.1993 and 1994 were marked as being the “black years” as in any other former socialist country; in 1993 alone, the GDP declined by more than 30%. Production broke down and inflation soared – to 116% in 1994. Most of the former state companies had to close. This was only the beginning, another crisis came in 1998 when the Russian market collapsed – the only market of importance that remained for Moldovans products after the break down of the COMEDON. The countries GDP declined even further and Moldova was on the edge of bankruptcy.
The country was bailed out by the usual International creditors. This enatiled a high level of dependance on, the likes of the International Monetary Fund (IMF), which imposed sanctions such as “an unprecedented fiscal adjustment and tight monetary policy” to contain the external market shock effect. This meant a severe cutback in social spending in order to reduce inefficieny in the social sectors. Fifty hospitals were closed, education and health next to be imposed of cuts by a third and school fees were brought back.ten percent of public employees were dismissed. Although there has been a slight recovery in the economy since 2000, the Moldovan economy has still not reached its 1990 level.
Annexe
Comecon - Economic organization from 1949 to 1991, linking the USSR with Bulgaria, Czechoslovakia, Hungary, Poland, Romania, East Germany (1950–90), Mongolia (from 1962), Cuba (from 1972), and Vietnam (from 1978), with Yugoslavia as an associated member. Albania also belonged between 1949 and 1961. Its establishment was prompted by the Marshall plan. Comecon was formally disbanded in June 1991. It was agreed in 1987 that official relations should be established with the European comunitty, and a free-market approach to trading was adopted in 1990. In January 1991 it was agreed that Comecon should be effectively disbanded.
Moldova’s Garment Industry
Moldova’s garment industry is the countries second most important industry after wine. Its main customer is Italy, which buys 32% of Moldova’s exports, followed by Germany with 32% and the USA with 16%.compared to neighbouring Romania, Moldova has a small but increasing share of the European Union’s market in garments. Until recently, the advice to source from Moldova as a tip given only to adventurous entrepreneurs. Close to the Black sea, the country was, historically speaking, a kind of plaything between East & West – at least until it became part of the Soviet Union.
When the socialist system collapsed, Moldova again oscillated back and forth between Europe and the old Soviet structures. The fact that one of the borders remains unrecognised by its neighbours and that teh country has been let since 2001 by Vladmir Voronin, a communist president, at least in theory, this of course is perceived to be as an instability. In foreign policy terms, this makes Moldova an almost no-go area for foreign direct investment. But foreign direct investment is not needed for production under the OPT system. Though Moldova is still seen as a difficult country, buyers are increasingly sourcing from there. Of course cheap labour costs pay there part, according to the IMF, labour costs in Moldova are lower than in China.
Exploiting Poverty
Contrary to other country studies, there has been no systematic research carried out. If you were to ask garment workers in Moldova about their woking conditions, they spontaneously decry the very low wages:the legal minimum wage in Moldova in Feb 2004 was €26 a month. This figure has not changed although it’s 2008.
For Vsevolod Barbaneagra, vice – president of the Trade Union Confederatia Sindicatelor din Republika Moldava (CSRM) affiliated to the ICFTU, the wage situation has been dramatic since 1997:”we need living wages! At the moment wages are 60% below the subsistence level in Moldova”.
In the countryside, sewing in a factory is a kind if seasonal work which women do in the Winter. Women work on the farm in the summer and in the winter apply for work in a factory, either in the rural areas or in one of the urban centres. Those who are employed all year round are in any case forced to compliment their meagure wage through some form of subsistence farming. My cousin ( Antonina S) is based in a Moldovan sewing factory, and the testament of the working conditions is so bad, that when i asked her about raising these issues with the appropiate group authority, a union such as Solidaritate, she just laughed at me and indicated that speaking out is not a wise thing to do.
So not only is she working in very poor conditions, on top of that she has no representation to look out for herself and her co-workers, whom are all on poor wages and long hours. She is working for a local sewing factory, owners being Georgeta Mir and her father Ieahia Mir. They own a new, industrial-size enterprise called Actual Confectii, which employs 40 people and has the capacity to expand. They have recently won a contract with a Milan based fashion giant Max Mara to produce clothing line for 3,000 pieces in three styles. My cousin said that they had to work extremely hard for that order on the miserly amount of money they were paying.
"Not only that the underhand cheek of what they did with the excess garment remnant was to feed their own Boutiques by utilising the cut-off material and getting us to make new clothes lines from all the patterns that were given to them by Max Mara, they then sell these clothing garments, labelled up as Max Mara items and keep the proceeds, at the same time they pay us next to nothing for this extra work, knowing that the psychology of it is, if you don’t do it, there is always someone to take your place".
Workers quit their jobs in protest
Employers in Moldova and Romania often complain about workers changing jobs too often. The reason for this is simple:the only way workers have to register their protest against bad working conditions is to leave their job, which dosen’t exactly give them much power. Many workers see their job in the garment industry only as a temporary solution before looking for another, better occupation. Many dream of a well paid work in Western Europe, maybe in Italy or Germany.
Trade Unions in Moldova
Trade unions in Moldova are divided into two confederations: CSRM and Solidaritate. CSRM – presence mostly in heavy industrial factories.
Solidaritate – Principally of the garment industry. In Moldova, one cannot really say that trade union’s effectively represent garment worker’s interests. The weak link being that most of the delegates that make up the union are from the company, and can be seen to be the advocates of the Companies long term interest, than of the workers.
Conclusion and prospects for the future!
Although labour legislation in Moldova is in keeping with ILO standards, it is basically not enforced. Many workers do not know their rights and are not used to demanding them. A major reason lies in the limited access of trade unions to the garment industry also the lack of a properly developed independant women’s movement. There are some women’s groups, but only one is dealing with conditions in the garment industry. The difficulty is that civil society in Moldova is only just emerging from an age when displays of resistence and activism were prohibited. The culture within which a dynamic civil society is able to develop, is still in the process of taking shape and is further hampered by the lack of financial support for the work on labour issues. The are funded projects by USAID to help women gain Technical and personal help with guaranteed jobs, but as with everything to do with information, it's know by very few people. This opportunity should be made public to everyone and not the select few. If success and improvement in the economy is to be uplifted, by this aid then it's a responsibility by All whether government, ofiicials or those in higer echelon of Business should make mae sure the People are informed to get the opportunity to improve not just themselves but the Moldovan economy.
Moldova Information
Tour of Moldova
Left Behind in Moldova
USAID Newsletter Perspectives September 2007
The USAID newsletter ( click on the above link to view) refers to the funding and support that the USAID conducted in 2007, helping women in Moldova to gaining personal and Technical training as well as guaranteed employment as an alternative to going abroad.
Recent Events
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Delegation of the Moldovan Ministry of Health visits Lithuania
Under the Moldova Governance Threshold Program, a delegation from the Moldovan Ministry of Health visited Lithuania for a study tour on health care reform from November 10 – 15.
The Moldova delegation, including the Vice Minister of Health and four chairpersons of the Ministry working groups on reform, held meetings with the Lithuanian Ministry of Health and various health care organizations. Discussions focused on health care guidelines and protocols, licensing of medical professionals, accreditation for health care providers, quality assurance, and public procurement procedures.
“We saw first-hand how the systems we want to implement in Moldova work in practice. Learning from our colleagues, who have gone through similar reforms, will add value to our planning and implementation processes,” stated Mircea Buga, Vice Minister of Health. Lithuania, a country of similar size and population of Moldova, recently implemented health care reforms similar to those planned in Moldova. The visit laid the foundation for a long-term partnership between the Lithuanian and Moldovan health care authorities with representatives of the Lithuanian Ministry of Health and the State Patient Fund expressing readiness to sign a formal agreement of collaboration between the Moldovan Ministry of Health and their organizations.
Moldovan Fashion Maven Takes on Milan
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Georgeta at work
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Chisinau - September 28, 2007. Georgeta Ieahia grew up wanting to be a clothing designer. At just age 17, she already had found her first client. Encouraged by her early success, she left her native Moldova to attend the London College of Fashion. Returning home, she opened a small tailor shop, Georgeta Design, employing seven people and producing clothing for scores of local residents. By most standards, she was successful. But Georgeta dreamed of accomplishing more – she wanted to grow her business.
The first step was to showcase her clothing line to a broader, international audience. Under a USAID project to improve the export competitiveness of the Moldovan apparel industry, Georgeta was able to develop her first professional marketing materials. Georgeta took her new materials and collection to the Ready to Show Exhibition in Milan – one of the largest international clothing exhibitions.
In Milan, Georgeta established several contacts with foreign buyers, giving her the opportunity to expand her business outside of Moldova. Though Georgeta has always been a talented designer, she lacked the production skills to adequately meet foreign buyers’ needs. With USAID assistance, an international expert provided Georgeta with supply chain technical assistance enabling her to improve production flow and take on new business.
Thanks to Georgeta’s talent for design, the connections she made in Milan, and USAID assistance, Georgeta’s business is thriving. She still owns the tailor shop, but she has built a new, industrial-size enterprise called Actual Confectii, which employs 40 people and has the capacity to expand.
She recently completed an order of 3,000 pieces in three styles for fashion giant Max Mara. “The experience of working with Max Mara, in combination with the advanced production organization assistance provided by USAID, will pave the way to making my dream of becoming a full package designer come true.” says Georgeta. She is currently busy creating a new collection for the next trade show.
“USAID’s help in efficient workflow organization allowed us to fill our first significant order.” Georgeta Ieahia, Moldovan designer and entrepreneur.
