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Experts Recommend Clear Mechanisms to Regulate the Relationship Between Large Factories and Subcontracting Factories to Ensure Workers’ Rights

2025-Feb-18
Experts Recommend Clear Mechanisms to Regulate the Relationship Between Large Factories and Subcontracting Factories to Ensure Workers’ Rights
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Amman, February 18, 2025 – Experts have emphasized the need for clear mechanisms to regulate the relationship between large factories and subcontracting factories to safeguard the rights of all parties, particularly workers. They also recommended conducting in-depth studies on the advantages and disadvantages of the subcontracting system to develop policies that support the sector’s sustainability. 

These recommendations were made during a discussion session organized by Tamkeen titled: “Challenges Faced by Workers in the Textile and Garment Sector Under Subcontracting Arrangements, as well as Workers in Small and Medium-Sized Sewing Workshops.” Participants also called for awareness campaigns to educate workers on their rights and obligations under labor laws and for financial and technical support to small factories to help improve their working environment and ensure sustainability. 

Statistics presented by Tamkeen during the session indicate that the garment and textile sector is one of the largest economic sectors in Jordan, employing approximately 77,730 workers, 27% of whom are Jordanians, while 73% are migrant workers, mainly from South and East Asia. 

Linda Kalash, Executive Director of *Tamkeen*, highlighted that Jordan’s garment and textile sector is a vital and continuously growing industry, driven by free trade agreements with the United States and the European Union, which provide Jordanian products with duty-free access to global markets. 

However, despite this expansion, Kalash noted that the sector faces significant challenges related to workers’ rights and working conditions, particularly in small and medium-sized factories operating under subcontracting arrangements. These factories rely heavily on large factories for orders, making them vulnerable to market fluctuations and financial and administrative instability. 

Kalash further highlighted the difficult conditions faced by workers in these small factories and workshops, including **low wages, long working hours, and the lack of social protection. Many of these workers are employed on a piece-rate basis without official contracts or social security registration. Additionally, the working environment often lacks occupational safety and health standards,increasing risks for workers. 

To improve working conditions and ensure workers’ rights, Kalash called for strengthening contractual mechanisms between large factories and subcontractors to clearly define rights and responsibilities. She also stressed the need for **effective grievance and complaint mechanisms, increased awareness of workers’ legal rights, and the involvement of international buyers in ensuring that suppliers comply with international labor standards, ultimately fostering a decent and sustainable work environment for all sector workers. 

Insights from International and Local Stakeholders 

Tareq Abu Qaoud, Director of the *Better Work Jordan* project under the International Labour Organization (ILO), noted that Jordan’s textile sector relies heavily on subcontracting, with 17 out of 86 factories operating under subcontracting arrangements.

According to Abu Qaoud, subcontracting offers advantages such as greater production flexibility and cost reduction, enabling companies to handle seasonal orders and increase production without committing to permanent employment. However, he pointed out that workers in these factories often face delays in wage payments due to the late settlement of dues by main suppliers. Additionally, subcontracting factories suffer from insufficient investment in infrastructure and workplace improvements, leading to labor rights violations.

He called for the **involvement of relevant authorities, including the Ministry of Industry and Trade, Customs, and Social Security, to ensure comprehensive legal frameworks addressing these challenges. This includes establishing effective grievance mechanisms for workers and balancing production requirements with labor rights protections.

Ali Omran, Chairman of the *Jordan Garment and Textile Exporters Association (J-Gate), emphasized the importance of categorizing subcontracting factories into two main types:

1. Independent factories and workshops that operate separately from exporting factories and cater to **local and regional markets.

2. Factories linked to exporting companies, which are part of global supply chains and adhere to international labor and environmental compliance standards.

Omran explained that these small factories play a crucial role in executing parts of the production process for larger factories, whether for export or the domestic market. He highlighted the interdependent relationship between major and subcontracting factories, where the former provides financial and logistical support to meet quality standards and delivery deadlines. He reassured that subcontracting only takes place after ensuring compliance with legal and regulatory requirements.

Additionally, Omran noted that the textile sector is affected by political instability and shipping delays, and pointed out that most small and medium-sized garment factories do not belong to J-Gate, except for 17 factories operating under subcontracting arrangements, which receive the necessary support to maintain quality and timely delivery.The Role of Social Security and Workers' Rights

Mohammad Khalili, Director of the Subscribers’ Department at the Social Security Corporation (SSC), stressed the importance of registering workers in social security and ensuring they receive insurance coverage for sickness, disability, retirement, and workplace accidents.

Khalili highlighted that social security goes beyond financial protection for workers—it also promotes professional and social stability, enhancing overall productivity across different sectors. He urged employers to comply with mandatory social security registration for all employees, as this benefits workers, business owners, and the national economy. 

Regarding workplace conditions, Khalili emphasized the need for implementing occupational health and safety standards to create a  safe and sustainable work environment that enhances worker well-being and efficiency. 

He also pointed out challenges in fully enforcing social security laws, citing reports of delayed wage payments and fraudulent salary declarations, which negatively impact workers’ rights and weaken trust among stakeholders. 

The Role of Labor Unions in Supporting Workers 

Fathallah Al-Omrani, President of the General Trade Union of Workers in Textile, Garment, and Clothing Industries, reaffirmed the union’s commitment to supporting workers in the textile and garment sector. 

Al-Omrani stressed that the union actively works to improve wages and working conditions through collective bargaining agreements with factory owners while promoting social dialogue between employers and employees. He emphasized that these agreements help balance the interests of both parties, contributing to sector stability and increased productivity.

In terms of workers’ rights protection, Al-Omrani stated that the union prioritizes addressing worker grievances seriously and professionally to find **fair solutions. The union also collaborates with employers and government agencies to ensure labor rights are upheld and to combat any violations. 

He encouraged workers to engage with the union whenever needed, reaffirming that supporting and advocating for workers is central to the union’s mission.

The Economic Impact of the Textile Sector 

Sanal Kumar, Vice President of J-Gate, highlighted the significant role of the textile sector in employing local workers,noting that 25,000 Jordanians are employed in the industry, including 6,000 in rural areas.

Kumar pointed out that textile factories attract workers from various regions, including rural areas with limited job opportunities,thereby contributing to **reducing unemployment and increasing local workforce participation.

He also emphasized the benefits provided to textile workers under formal contracts, including medical care through on-site factory clinics, transportation allowances, and meal provisions, which help ease workers’ financial burdens and improve overall working conditions. 

Beyond employment, Kumar highlighted the sector’s contribution to Jordan’s national exports and economic growth.The textile industry plays a key role in generating export revenues, strengthening Jordan’s position in the global trade market.