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Once More into the Sunset? Asian Clothing Firms after the National Minimum Wage

Author

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  • Monder Ram

    (Department of Strategy and Management, Faculty of Business and Law, De Montfort University, The Gateway, Leicester LE1 9BH, England)

  • Mark Gilman

    (Canterbury Business School, The University, Canterbury, Kent CT2 7PE, England)

  • James Arrowsmith
  • Paul Edwards

Abstract

Intense global competition and the advent of a raft of employment regulations (notably, the national minimum wage, or NMW) have placed the UK garment industry under severe pressure. The prospects for a significant segment of this sector—ethnic-minority-owned businesses—appear to be extremely gloomy, although earlier predictions of its demise proved to be unduly pessimistic. Drawing on case studies of eighteen firms, we present an examination of longitudinal change in the Asian-dominated West Midlands clothing industry. In particular, the aim is to examine the responses of manufacturers to market and regulatory change (in particular, the NMW). The findings clearly illustrate that the sector is in decline, with firms finding it increasingly difficult to cope with cheap imports, labour shortages, and employment regulations. A range of responses was evident and included firms that resorted to operating in ‘grey’ markets; manufacturers that ‘retrenched’ their operations; ‘work intensification’; and businesses that attempted to move ‘up-market’. Finally, potential policy responses are considered. In particular, the case of the Coventry Clothing Centre is examined. The Centre worked with the grain of employment legislation, and appeared to have experienced some success in encouraging local firms to accommodate the NMW and improve working practices.

Suggested Citation

  • Monder Ram & Mark Gilman & James Arrowsmith & Paul Edwards, 2003. "Once More into the Sunset? Asian Clothing Firms after the National Minimum Wage," Environment and Planning C, , vol. 21(1), pages 71-88, February.
    • Handle: RePEc:sae:envirc:v:21:y:2003:i:1:p:71-88
    DOI: 10.1068/c0136
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    References listed on IDEAS

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    1. Prais,S. J., 1995. "Productivity, Education and Training," Cambridge Books, Cambridge University Press, number 9780521556675, November.
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