An export processing zone is an industrial zone where special incentives are set up to attract foreign investors and where imported materials undergo some degree of processing before being exported again.
(adapted from Perman, S.,
Behind the Brand Names: Working Conditions and Labour Rights in Export Processing Zones, International Confederation of Free Trade Unions, 2004, visited 2009-06-22)
Nature of Work in EPZs
Many EPZs have evolved from fenced-in spaces, such as ports and warehouses specializing in manufacturing for export, to single-factory or single-industry zones. EPZs have also developed from initial assembly and processing work to a wide range of businesses, including high tech industries, tourist resorts and financial centers. Most activity is still low-tech and low-skill, with production concentrated in textiles, clothing and electronics.
Employment in these zones has leaped from just a few thousand in 1970 to approximately 42 million in 2004. Three-quarters of the EPZ workforce are employed in China, which has some 30 million workers in over 2,000 different zones.
(adapted from Perman, S.,
Behind the Brand Names: Working Conditions and Labour Rights in Export Processing Zones, International Confederation of Free Trade Unions, 2004, visited 2009-22-06)
A Majority of Women
"The importance of women's economic role is not reflected at the level of policy or practice in the zones, and most government agencies, investors, workers' organizations and other concerned groups could be doing more to ensure that the distinct concerns of women are addressed. Women workers' matters deserve more attention not only because the majority of
zone workers are women but because they experience the living and working conditions differently from men."
(International Labour Organization (ILO),
Labour And Social Issues Relating to Export Processing Zones, 1998, visited 2009-06-22)
Low Skill Jobs
"EPZ jobs are low skills assembly line jobs, although a few skilled jobs have been created. This signals a low wage strategy in EPZs that will undermine income growth for
EPZ workers. […] Piece wage rates in EPZs are generally lower than in other sectors and encourage high intensity of work to earn incomes that are equal to or above other sectors.
EPZ workers have lower retirement benefits than other workers. Some EPZ producers in the 1990s have left for lower wage economies while others have imported mainly female labour from low wage economies like Sri Lanka, Bangladesh and Pakistan. This is reportedly due to shortages of labour but is actually due to their captive more exploitable nature."
(International Labour Organization (ILO),
Export Processing Zones (EPZs), visited 2009-06-22)