Social Compact in partnership with Bridgepoint conducted a workshop with MSMEs that operate within a Tiruppur’s highly competitive textile / garment production ecosystem that serves both export markets and are also beginning to enjoy more domestic demand. One of India’s leading export hubs already, Tiruppur stands to further benefit from the FTA between India and EU. The workshop anchored itself in the business opportunities SMEs wish to leverage over the next decade, and whether their workforce model and practices are capable of helping them achieve the same. 

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MSMEs expressed optimism that the Tiruppur textile / garment cluster could grow significantly over the next 10 years, driven by expanding export opportunities and increasing domestic demand. However, such growth will require a substantial increase in the workforce and stronger systems to attract, retain, grow and support workers so they can continue here for the long run. In this regard, a primary challenge  MSMEs acknowledged was the mindset. Sustaining business growth will increasingly depend on viewing workers not merely as a cost of production, but as a critical asset for industry’s long-term competitiveness and resilience. SMEs also acknowledged that wages are the heart of the matter. To build Tiruppur textile / garment sector for the long run, we will need to not just ensure minimum wages, but reflect on how wages can ensure dignified living and address workers’ aspirations in the long run. 

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Composition: A key structural feature of the workforce across these MSMEs is the high reliance on migrant labour, with nearly 80% of the workforce consisting of migrants and the remaining 20% being local workers. Additionally, the workforce is predominantly female, with women constituting roughly 60% of workers. Thus when thinking of workforce as an asset, the sector needs to account for the unique needs of migrants and women workers.  such as worker mobility, living conditions, access to services, language barriers, documentation, and the need for gender-responsive infrastructure to support women in work across life stages. Many of these challenges need a collaborative or cluster-level response. 

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During the engagement, MSMEs reflected on both the business risks and workforce-related challenges that could affect the sustainability of the sector. These include pressures on pricing due to global competition, rising compliance expectations from international buyers, workforce availability, and the need to ensure stable and productive working conditions.

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Looking ahead, MSMEs articulated a vision for 2035 where the Tiruppur textile / garment is a thriving sector for business and workers alike, faced with great opportunity and the need for a much larger workforce to leverage the same, still comprising predominantly migrants and women, as is current practice.

 

To realise this vision, the following were key areas identified by MSMEs, both for individual and cluster level intervention:

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Shared Worker Support Systems

A cluster-level mechanism could support worker registration, access to social security schemes, worker helplines, and grievance redressal systems. Such support systems would be particularly valuable for migrant workers who often require assistance navigating documentation, registration processes, and services available both in the destination state and their source states. Additional services such as language assistance, hospital registrations, and documentation support could significantly ease migrants’ integration into the local ecosystem.

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Representation to govt. for climate-resilient and family-friendly Worker Housing

MSMEs emphasized the need for coordinated representation to government bodies to develop affordable, safe, and climate-resilient housing solutions suitable for workers and their families. This can address a major challenge that prevents migrants and female workers from continuing in the cluster consistently. 

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Public–Private Partnerships for migrant children’s education in source languages

Given the presence of migrant families, MSMEs identified the need for accessible schooling systems that accommodate multiple languages, allowing children of migrant workers to continue education without disruption. Partnerships between government and industry could help create inclusive schooling infrastructure that supports linguistic diversity and ensures continuity of education.

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Infrastructure Supporting Women Across Life Stages

With women forming the majority of the workforce, MSMEs highlighted the importance of workplace and community infrastructure that enables women to continue working across different life stages. This includes maternity support systems, accessible childcare and daycare facilities, and safe commuting or living arrangements, enabling women workers to remain economically active while managing family responsibilities. At presence, only local women of child bearing years are found in the workforce. Migrant women are either pre- or post this life stage.

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Govt to order creation of medical camps & services for migrants

Medical services and health camps are currently restricted to local areas of residence and do not cover migrant settlements. The government needs to order full coverage and NGOs will be happy to support the outreach if needed.

 

Source government helpdesk in destination

Source government leverage is needed to mobilise destination governments to honor portable benefits such as rations for instance. The helpdesk is also critical in case workers have grievances or need legal or other support in case of exploitative work practices.

 

Filter recruitment agencies

Collect cross- company insight on recruitment agencies notorious for exploitative practices and those above board. This database needs to be regularly updated for cluster to leverage only reliable recruitment agencies

 

Migrant integration in community

Challenging stereotypes and pop culture on migrants. Proactive interventions to improve their integration in the community, as long standing stakeholders for Tiruppur’s growth over the next decade and beyond.

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Overall, the engagement suggests that strengthening workforce systems is closely tied to business sustainability. A collaborative, cluster-level approach involving MSMEs, government, and ecosystem partners can help build practical solutions that support both business growth and worker well-being, enabling the sector to move towards its vision for 2035.

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At the same time, MSMEs acknowledged that while cluster-level systems are essential for addressing structural challenges, several workforce practices can also evolve at the enterprise level. Reflecting on their own experiences of managing large and diverse workforces, MSMEs shared perspectives on what practices in the sector need to start, stop, and continue in order to strengthen worker well-being, improve retention, and ensure long-term business sustainability:

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Start Doing

• More multi-skilled workers and planned growth trajectories to diversify growth of workers and business 

• Move towards aspirational outcomes such as living wages needs to be supported by buyers through trust-based, two-way dialogues

• Programs for youth to be trained in cultural sensitivity & build tolerance. Mentoring champions for youth to communicate challenges, feelings, confusions and build resilience community, females, inclusiveness & challenges

• Improve documentation and proof of employment

• Increase awareness and appreciation among workers for safety nets such as PF and ESI

• Automated fire fighting infrastructure to tide over challenge of optimal training in a high churn population 

• Provide better grievance channels for migrant workers

 

Continue Doing

• Prevent risk of bondage at the very start by taking declaration from workers/family that no commission has been paid to recruiter against which the worker will be held ransom

• Proactive POSH training especially to identify and manage verbal and more ongoing forms of abuse 

• Regular checks of fire prevention equipment

• Improve utilisation of ESIC services among workers

• Providing livelihood opportunities for migrant workers

• Supporting women’s participation in the workforce

• Maintaining cluster-level collaboration between units       

 

Stop Doing

• Dismal living conditions for migrant workers

• False promises made by recruiters, through boycotting blacklisted recruiting agencies​

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Overall, the engagement suggests that strengthening workforce systems is closely tied to business sustainability. A collaborative, cluster-level approach involving MSMEs, government, and other ecosystem partners can help build practical solutions that support both business growth and worker well-being, enabling the sector to realize its vision for 2035.

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Write to us at support@socialcompact.co to collaborate in strengthening MSMEs in Tiruppur or to know more about this engagement.