Cost cutting in the footwear industry: from automation to Africa
As described above, many of the brands on our table are designed to funnel wealth up and away, with directors getting excessive compensation, shareholders getting their cut, and precious little being paid back in worker wages, or in taxes to fund social systems we all depend on.
Companies like these tend to ruthlessly keep labour costs down, in order to make more profit. Automation is not in itself the biggest threat to workers in shoe supply chains, but while we’re in such an exploitative and unequal system, the use of robots could end up making things even worse.
The International Labour Organisation (ILO) has been advising southeast Asian nations to diversify away from their dependence on garment and footwear manufacturing, because of the threat of robots that could do the work faster.
Replacement of people by machines is likely to accelerate with shoes before clothes, as the materials are more sturdy and robots can handle them more easily. Clothing production, which if you’ve ever used a sewing machine you’ll know fabric can scrunch up and get out of control, is harder to automate. Although footwear workers are heavily exploited, being made redundant by robots could mean losing what autonomy these jobs gave them, and the majority who are women could find themselves even more disempowered.
Another threat from the hunt to reduce costs, is the transfer of jobs to new countries, where workers have to start from scratch to organise for better conditions with new employers.
Ethiopia, for example, already has a large leather industry, and its government has decided to make footwear an industrial priority and offer tax breaks to foreign investors. However, it does not have a consistent minimum wage.
What’s more, the ILO has also warned that temperature increases due to climate change are going to result in lost working hours and, although Ethiopia should be cooler than other parts of Africa due to its higher altitude, it will still be affected. Rather than spreading the problems of the footwear industry further, especially at a time of increasing vulnerability, perhaps countries could be less exposed to global supply chains, and more organised around domestic requirements and regional trade.
According to the authors of Fashioning the Future, only “a free and fair system that allows the Global South to properly use its own labour, land, people and resources for the common good, rather than multinational profit-generation will end the artificial scarcity of jobs and income that keeps so many people poor and dispossessed.”