E nte rprise Surve y in Ga rme nt a nd Ag ro -fo o d pro c e - - PowerPoint PPT Presentation

e nte rprise surve y in ga rme nt a nd ag ro fo o d pro c
SMART_READER_LITE
LIVE PREVIEW

E nte rprise Surve y in Ga rme nt a nd Ag ro -fo o d pro c e - - PowerPoint PPT Presentation

E nte rprise Surve y in Ga rme nt a nd Ag ro -fo o d pro c e ssing Se c to rs in Ya ng o n a nd Mo n Sta te Co nduc te d By Ministry o f L a b o r, E mplo yme nt a nd So c ia l Se c urity(Mo L E S) a nd Mya nma r De ve lo pme nt Re so


slide-1
SLIDE 1

E nte rprise Surve y in Ga rme nt a nd Ag ro -fo o d pro c e ssing Se c to rs in Ya ng o n a nd Mo n Sta te

Co nduc te d By Ministry o f L a b o r, E mplo yme nt a nd So c ia l Se c urity(Mo L E S) a nd Mya nma r De ve lo pme nt Re so urc e Institute -Ce nte r fo r E c o no mic a nd So c ia l De ve lo pme nt(MDRI

  • CE

SD)

slide-2
SLIDE 2

Co nte nt

 Surve y o b je c tive s  Sampling  Surve y time line  Surve y q ue stio nnaire  Pre liminary finding s ( e mplo yme nt and so c ial se c urity

se c tio n)

 Pre liminary po lic y re c o mme ndatio ns  Challe ng e s  F

urthe r analysis

slide-3
SLIDE 3

Obje c tive s

 Ge ne ra l Ob je c tive o f surve y

 T

  • pro duc e o rig ina l re se a rc h da ta a nd a na lysis o n c urre nt

c o nstra ints o f the Mya nma r la b o r ma rke t

 Spe c ific Ob je c tive s

 I

de ntify e mplo ye rs' de ma nd fo r wo rke rs (spe c ific

  • c c upa tio n, q ua lific a tio ns, skills)

 I

de ntify the ma rke t fa ilure s tha t mig ht e xist in c re dit a nd info rma tio n a c c e ss, te c hno lo g ic a l a c q uisitio n a nd the g a p b e twe e n la b o ur ma rke t de ma nd a nd supply

 I

de ntify tra ining a nd skills ne e de d fo r e mplo ye e s

 I

de ntify me a ns o f de ve lo ping the c a pa c ity o f e mplo ye e s to impro ve pro duc tivity

 Unde rsta nd e mplo ye rs a wa re ne ss a nd pe rc e ptio n o f the So c ia l

Se c urity Sc he me

slide-4
SLIDE 4

Sampling

 Sa mpling fra me dra w fro m the lists o f re g iste re d

fo rma l g a rme nt a nd fo o d pro c e ssing industrie s a va ila b le fro m:

 Mya nma r Ga rme nt Asso c ia tio n (MGMA)  Mya nma r F

ishe rie s F e de ra tio n (MF F )

 Industria l Ma na g e me nt Co mmitte e  Ministry o f L

a b o r, E mplo yme nt a nd So c ia l Se c urity

slide-5
SLIDE 5

Sur ve y T ime line

No. Ac tivitie s T ime Pe r iod 1

Surve y me tho d a nd q ue stio nna ire s de ve lo pme nt Ma rc h to Ma y 2015

2

Pre -te sting pe rio d June 2015

3

Ac tua l surve y da ta c o lle c tio n pe rio d July 2015 to Oc to b e r 2015

4

Sa mple size (numb e r o f firms c o nta c te d ) 205

5

Numb e r o f firm fro m Ya ng o n Re g io n 171

6

Numb e r o f firm fro m Mo n Sta te 34

7

Numb e r o f firms re spo nde d 198

8

Numb e r o f firms re fuse d to re spo nd 7

slide-6
SLIDE 6

Sur ve y Que stionnair e s

 Surve y q ue stio nna ire s we re de ve lo pe d b a se d o n sa mple e nte rprise surve ys

fro m o the r c o untrie s, with inputs fro m Mo L E S a nd funding fro m IDRC Ca na da .

 Surve y Que stio nna ire divide d into (Pa rt I a nd Pa rt II

)

 Pa r

t I  Ge ne r

a l F ir m’s Infor ma tion

 Sa le a nd E

xpo rt (3 ye a rs)

 Pro d uc tio n a nd Inputs  E

mployme nt a nd Huma n Re sour c e s

 F

a ir T r e a tme nt for Wor ke r s

 T

e c hnolog y a nd Innova tion

 ASE

AN E c o no mic Co mmunity (AE C)

 Utiliza tio n o f F

re e T ra d e Ag re e me nt

 Ba r

r ie r s a nd Cha lle ng e s

 Gove r

nme nt Suppor ts

 Risk a nd Pre fe re nc e

Par t II

F ixe d Asse ts Pro duc tio n Co st da ta

slide-7
SLIDE 7

Our sa mple firms: F

  • o d & a ppa re l

pro duc e rs

F IRM SIZE INDUST RY (ISIC CODE ) Sma ll

(1-300)

Me diu m

(301- 600)

L a rg e

(600+)

T

  • ta l

Sha re in tota l No. No. No. No.

  • 10. MANUF

ACT URE OF F OOD PRODUCT S

81 5 3 89

45%

  • 14. MANUF

ACT URE OF WE ARING APPARE L

32 23 47 102

52%

  • 16. MANUF

ACT URE OF WOOD AND WOOD PRODUCT S

1 1 2

1%

  • 17. MANUF

ACT URE OF PAPE R AND PAPE R PRODUCT S

1 1

1%

  • 32. OT

HE R MANUF ACT URING

3 3

2% T OT AL NUMBE R 118 29 50 197 SHARE IN T OT AL 60% 14% 26% 100%

slide-8
SLIDE 8

Appa re l firms a nd fo o d pro duc e rs diffe r in te rms o f e xpo rts, fo re ig n o wne rship, size , a g e

INDUST RY ME MBE R OF BUSINE SS ASSOCIAT ION F IRMS WIT H F ORE IGN OWNE RSHIP AVE RAGE

  • NO. OF

WORKE RS PE R F IRM F IRMS T HAT E XPORT

  • 10. MANUF

ACT URE OF F OOD PRODUCT S

70% 3% 105 27%

  • 14. MANUF

ACT URE OF WE ARING APPARE L

97% 59% 657 84%

T OT AL (INCL . PAPE R, WOOD AND OT HE R)

84% 32% 391 61%

INDUST RY <=5 ye ar s 5<age <20 ys. > 20 ye ar s Ave r age age (in ye ar s)

  • 10. MANUF

ACT URE OF F OOD PRODUCT S

15 58 16 15.2

  • 14. MANUF

ACT URE OF WE ARING APPARE L

57 42 3 7.4

AL L SURVE Y F IRMS

75 101 21 11.1

8

slide-9
SLIDE 9

Some pr e liminar y findings

slide-10
SLIDE 10
  • 1. L

abor r ights and labor r e lations

slide-11
SLIDE 11

43% 57%

F irm with la b o r a sso c ia tio n F irm witho ut la b o r a sso c ia tio n

L

  • w la b o r re pre se nta tio n: L

e ss tha n ha lf

  • f surve y firms ha ve a la b o r a sso c ia tio n
slide-12
SLIDE 12

Share of firms signing e mployme nt c ontrac ts with the ir e mploye e s

74% 26%

F irm use e mplo yme nt c o ntra c t F irmd o n't use e mplo yme nt c o ntra c t

Share of firms using a pay slip syste m

76% 24%

F irm use pa y slip syste m F irm d o n't use pa y slip syste m

L a c k o f tra nspa re nc y: Usa g e o f e mplo yme nt c o ntra c ts a nd pa y slip syste m no t ye t unive rsa l

slide-13
SLIDE 13
  • 2. E

mployme nt dynamic s and labor tur nove r

slide-14
SLIDE 14

E xtre me ly hig h la b o r turno ve r ra te s, re fle c ting wo rke rs’ disc o nte nt

Shar e of fir ms (in % ) that…

Saw at le ast one e mploye e r e sign in 2014

90.5

L abor tur nove r r ate

Ave r age shar e in fir m’s total wor kfor c e of wor ke r s who le ft the fir m in 2014

49%

Ave r age shar e of r e signe d wor ke r s in fir m’s total wor kfor c e

43%

slide-15
SLIDE 15

Only a fifth o f surve y firms c re a te d ne w jo b s in 2014

21% 42% 37%

Shar e of fir ms that...

I nc re a se d the ir wo rkfo rc e in 2014 Ha d a sta b le wo rkfo rc e in 2014 Re duc e d the ir wo rkfo rc e in 2014

slide-16
SLIDE 16
  • 3. Wage s and wor

king c onditions

slide-17
SLIDE 17

Ave ra g e ac tual wa g e s pa id in ma ny firms fe ll sho rt o f ne w minimum wa g e ra te

  • 50,000

100,000 150,000 200,000 250,000 Pla nt o pe ra to rs Se rvic e wo rke rs Ma na g e rs

Ave rage monthly wage s paid in individual fac torie s (in Kyat)

Monthly min. wa g e (~83,160 Kya t) 34% be low MW r a te 42% be low MW r a te 2% be low MW r a te

slide-18
SLIDE 18

Ave ra g e basic wa g e s fo r c e rta in jo b s in

CMP firms we re fa r b e lo w ne w

minimum wa g e ra te

  • 50,000

100,000 150,000 200,000

Basic monthly wage s paid in individual fac tor ie s (in Kyat)

Monthly min. wa g e (~83,160 Kya t)

slide-19
SLIDE 19

Co mpo sitio n o f wa g e s: Ba sic wa g e ra te a c c o unts fo r o nly a b o ut ha lf o f a n a ve ra g e wo rke r’ s wa g e

Ave r age shar e (in % ) in total labor c osts of…

Ba sic wa g e 51.8 Ove r time

15.4

Atte nda nc e

9.8

Pr

  • duc tion bonus

8.1

Skill bonus

5.1

Se r vic e bonus / se nior ity

4.8

Housing a nd tr a nspor ta tion a llowa nc e

1.4

L unc h a llowa nc e

0.8

Othe r

2.9

T OT AL

100.0

Sha re of firms whe re the following ite ms a re on the pa y slip… Ba sic wa g e

100%

Ove rtime

93%

Atte nda nc e

92%

Se rvic e bonus / se niority

62%

Produc tion bonus

59%

Skill bonus

66%

Housing a nd tra nsporta tion a llowa nc e

57%

L unc h a llowa nc e

39%

Othe r

7%

slide-20
SLIDE 20

L

  • ng wo rking ho urs a re ve ry c o mmo n

Ave r age wor king days pe r we e k

5.9

Ave r age wor king hour s pe r we e k

46.1

Ave r age ove r time pe r we e k (in hour s)

10.4

Ave r age br e ak time pe r day (in minute s)

53.2

Ave r age numbe r

  • f days off pe r

we e k

1.0

slide-21
SLIDE 21
  • 4. Skills and human

c apital de ve lopme nt

slide-22
SLIDE 22

Ma nufa c ture of food produc ts Ma nufa c ture of we a ring a ppa re l No forma l e duc a tion

3% 2%

Prima ry e duc a tion

9% 0%

Voc a tiona l/ diploma

0% 2%

Se c onda ry

29% 18%

Unive rsity

59% 78%

Education level of founders/owners of family-run businesses

Ge ne ra lly hig h e duc a tio na l a tta inme nts o f fo unde rs/ o wne rs o f fa mily-run b usine sse s

slide-23
SLIDE 23

30% 13% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large Enterprises SMEs Total

Percentage o

  • f firms r

repo porting ng e expe pend nditur ures on traini ning ng for w r workers

Training provided to workers No training provided to workers

23

L ittle inve stme nt in huma n c a pita l de ve lo pme nt

slide-24
SLIDE 24

Mo de ra te inno va tio n

  • utc o me s…b ut, a g a in, mo re fro m SME

s (a nd mo re a mo ng fo o d pro duc e rs)

NO YE S SMAL L

63% 37%

ME DIUM

61% 39%

L ARGE

78% 22%

T OT AL

69% 31%

INT RODUCE D A NE W PRODUCT INT RODUCE D A NE W SE RVICE No Ye s No Ye s

  • 10. MANUF

ACT URE OF F OOD PRODUCT S

62% 38% 67% 33%

  • 14. MANUF

ACT URE OF WE ARING APPARE L

87% 13% 90% 10%

OVE RAL L(AL LINDUST RIE S)

75% 25% 78% 22%

Intr

  • duc tion of ne w pr
  • duc t and/ or

se r vic e dur ing 2012- 2014

24

slide-25
SLIDE 25

I mpo rting skills thro ug h e mplo yme nt o f fo re ig n huma n re so urc e s

NUMBE R OF F ORE IGN E MPL OYE E S 1 2 3 4 5 to 10 11 a nd a bove None MANAGE RS AND PROF E SSIONAL S

10.6% 6.1% 2.0% 1.0% 3.5% 1.0% 75.8%

E NGINE E RS AND T E CHNICIANS

7.1% 3.5% 1.5% 2.0% 6.5% 2.5% 76.8%

SUPE RVISORY AND CL E RICAL

2.0% 0.0% 0.0% 0.0% 1.0% 1.5% 95.5%

PL ANT AND MACHINE OPE RAT ORS AND ASSE MBL E RS

0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 99.5%

Shar e of fir ms e mploying for e ign staff in diffe r e nt oc c upations

25

slide-26
SLIDE 26
  • 5. Soc ial se c ur

ity syste m

slide-27
SLIDE 27

Alre a dy wide c o ve ra g e o f SBB, b ut c o ntrib utio ns o fte n vie we d a s b urde n a nd q ua lity/ ra ng e o f se rvic e s c o nside re d sub o ptima l

Shar e of fir ms r e giste r e d to the Soc ial Se c ur ity Boar d (SBB) 96.7% Ave r age shar e of wor ke r s who have soc ial se c ur ity c ar d

78.2%

Ave r age c ontr ibution to SBB in Kyat*

18,329,159

Shar e of fir ms indic ating that SSB c ontr ibutions ar e a bur de n for the m

42.3%

Shar e of fir ms indic ating that SSB pr

  • vide s full se r

vic e to the ir e mploye e s

50.9%

Shar e of fir ms indic ating that SSB se r vic e s have impr

  • ve d

73.1%

Shar e of fir ms indic ating that an Une mployme nt Be ne fit Sc he me would be use ful

71.0%

slide-28
SLIDE 28

Challe nge s for busine ss

  • pe r

ations

slide-29
SLIDE 29

Ac c e ss to skille d la b o r is to p

  • b sta c le to firms'
  • pe ra tio ns, fo llo we d b y a c c e ss to

e le c tric ity

29

0.5 1 1.5 2 2.5 3 E xpo rt/ Impo rt L ic e nsing Ma rke t Ac c e ss Busine ss L ic e nsing a nd pe rmits Custo ms a nd tra de re g ula tio ns Pra c tic e s o f c o mpe titio n in info rma l se c to r Ac c e ss to te c hno lo g y Ac c e ss to fina nc e T a x Administra tio n T a x ra te s L a b o ur re g ula tio ns Ac c e ss to te le c o mmunic a tio n Co rruptio n Ac c e ss to la nd T ra nspo rt Po litic a l Insta b ility Ac c e ss to e le c tric ity Ina de q ua te ly e duc a te d wo rkfo rc e

Ma jo r o b sta c le s to firms' o pe ra tio ns (Ave rag e sc o re , with:1=no o b stac le - 5=ve ry se ve re o b stac le )

slide-30
SLIDE 30

E me r ging polic y c onc lusions

slide-31
SLIDE 31

Challe nge s and L imitation of Sur ve y

Dur ing Sur ve y Pr

  • c e ss

We a k c o o pe ra tio n fro m fa c to ry o wne rs/ ma ng e rs a nd re pre se nta tive s

L

  • w re spo nse ra te fo r the c o st d a ta a nd d a ta a re no t c o rre c t

Due to lac k of tr ust

L imitations 

Ca n o nly a nswe r fro m firm le ve l pe rspe c tive (impo rta nc e o f la b o r fo rc e surve y!)

Ca n’ t g ive the po lic y so lutio ns o n la b o r ma rke t issue s b e yo nd find ing s fro m surve y fig ure s

Diffic ult to c a lc ula te firm pro d uc tivity b e c a use o f inc o mple te a nd unre lia b le d a ta

F ur the r analysis 

L a b o r’ s pe rspe c tive (la b o r fo rc e surve y!): d e te rmina nts o f pro d uc tivity, e a rning s, e tc .

Re turn mig ra tio n in ind ustria l zo ne s: c a se stud y; fe a sib ility to sc a le up? Cha nne l fo r skill tra nsfe r?

Mig ra tio n to / fro m Mo n Sta te : c a use s & c o nse q ue nc e s, pull & push fa c to rs

F ir ms Contac te d for Gar me nt Se c tor F ir ms Contac te d for F

  • od

Pr

  • c e ssing Se c tor

F ir ms Contac te d for Othe r Se c tor s T

  • tal

F ir ms

Pa rt I Re spo nse Pa rt II Re spo nse T

  • ta l

F irms Pa rt I Re spo nse Pa rt II Re spo nse T

  • ta l

F irms Pa rt I Re spo nse Pa rt II Re spo nse

120

102

32

93 90

73

6 6

4

slide-32
SLIDE 32

Bro a d a re a s fo r po ssib le po lic y a c tio n (1)

1. Re duc e labor tur nove r r ate s  Pro mo te / e nfo rc e usa g e o f e mplo yme nt c o ntra c ts  E nc o ura g e / suppo rt e sta b lishme nt o f g rie va nc e syste ms within firms, a nd impro ve me nts in wo rking c o nditio ns & wo rking ho urs 2. Suppor t human c apital de ve lopme nt  F

  • r skills upg ra ding , to e nha nc e pro duc tivity & inno va tive ne ss

 Pub lic e duc a tio n syste m; suppo rt fo r priva te se c to r initia tive s (e .g .

te c hnic a l a nd vo c a tio na l tra ining c e nte rs, e .g . in industria l zo ne s) 3. Soc ial dialogue , industr ial r e lations, c olle c tive bar gaining

 Stre ng the n la b o r re pre se nta tio n (le g a l, e duc a tio na l,…)  Suppo rt e sta b lishme nt o f dia lo g ue me c ha nisms

32

slide-33
SLIDE 33

Bro a d a re a s fo r po ssib le po lic y a c tio n (2)

4. Minimum wage c omplianc e  E nfo rc e me nt: sc a le up inspe c tio ns to e nsure c o mplia nc e b ut a lso to le ve l the pla ying fie ld  Suppo rt firms to mitig a te impa c t: re duc e o ve rtime pa yme nt ra te (? ), he lp firms re duc e o the r la b o r c o sts (e .g . tra nspo rta tio n, e tc .) a s we ll a s no n-la b o r c o sts (e .g . utilitie s, la nd le a se , e tc .) 5. Br anding of “Made in Myanmar ” pro duc ts a s the fruits o f de c e nt wo rk, with Mo L E S a t the fo re fro nt b ut in c o o pe ra tio n with b usine ss se c to r a nd po ssib ly a lso Mo C, a s c o mplia nc e with la b o r sta nda rds is impo rta nt in We ste rn ma rke ts 6. Pr

  • mote r

e tur n migr ation of (se mi- )skille d Myanmar labor wor king abr

  • ad

33

slide-34
SLIDE 34

Bro a d a re a s fo r po ssib le po lic y a c tio n (3)

7. Imple me ntation of soc ial se c ur ity sc he me  Pro mo te unive rsa l imple me nta tio n (fo r le ve l pla ying fie ld)  I mpro ve o ffe ring s o f he a lth se rvic e s  I nc re a se purc ha sing po we r o f wa g e s b y re duc ing wo rke rs’ o ut-o f- po c ke t he a lth e xpe nditure s 8. E nc our age r e gistr ation and for malization of fir ms  I nc re a se c o ve ra g e o f la b o r la ws  Re duc e c o mpe titio n disto rtio ns a nd inc re a se ta x re ve nue s  …re q uire s c ro ss-ministry c o lla b o ra tio n

34

slide-35
SLIDE 35

Appe ndix

slide-36
SLIDE 36

F irm’ s Ge ne ra l I nfo rma tio n

Sha re o f firm b y o wne rship type

71% 22% 6% 0% 0% 1%

Sole proprietor Parntership Private Limited Public Limited Cooperative Other

F irms with b usine ss re g istra tio n

86% 8% 6%

Firm have Business Registration Firmm have Business Registration No Response

slide-37
SLIDE 37

Ve ry lo w usa g e o f I CT , e spe c ia lly a mo ng SME s …so still a lo t o f ro o m fo r I CT upta ke

E MAIL USE WE BSIT E ONL INE PURCHASE S ONL INE SAL E S ONL INE MARKE T ING ONL INE PAYME NT ICT USE

  • OT

HE R SMAL L

24% 8% 2% 4% 2% 2% 4%

ME DIUM

78% 20% 2% 4% 2% 6% 10%

L ARGE

95% 30% 2% 2% 1% 5% 2%

ICT USE SCORE SMAL L ME DIUM L ARGE

DOME ST IC F 0RE IGN- INVE ST E D F OOD PRODUCE RS

APPARE L PRODUCE RS T OT AL

73% 20% 0% 37% 2% 49% 6% 24%

1

18% 55% 69% 41% 73% 27% 72% 52%

2

4% 16% 27% 15% 24% 16% 20% 18%

3

0% 6% 1% 3% 0% 4% 0% 2%

4

2% 2% 1% 2% 2% 1% 2% 2%

5

0% 2% 1% 2% 0% 2% 0% 1%

6

2% 0% 0% 1% 0% 1% 0% 1%

37

slide-38
SLIDE 38

Ve ry little inno va tio n a nd te c hno lo g y e ffo rts during 2012- 2014…b ut mo re a mo ng SME s

0% 5% 10% 15% 20% 25% 30% 35% I n-ho use R&D Outso urc e d R&D Ac q uisitio n o f ma c hine ry/ e q uipme nt Ac q uisitio n o f e xte rna l kno wle dg e

F irms re porting e xpe nditure s on…

All firms SME s L a rg e E nte rprise s

38