The mission of the Mathare Dressmaking and Tailoring Training Centre in Nairobi is to train women and men to use the industrial sewing machines to enable them to get jobs. And, as I reported in June, 124 of the 181 trainees have managed to secure employment with Ruaraka Clothing Industries, a large employer in the area. In most cases the trainees are only able to get the skilled machine operator jobs because of the training centre.
Studying factory jobs
I consider this employment a great success! And so I was interested to read this study that looked at the effect of low-wage manufacturing jobs on workers in Ethiopia. Now, this is in Ethiopia, not Kenya, and I do not know if the workers are taking the same sort of skilled jobs that the Mathare trainees are able to secure.
What did the study find? “It turned out that for most people, working in a factory didn’t significantly improve their income relative to the people in the control group. But getting cash to help start your own business did.”
The researchers, Chris Blattman and Stephan Dercon, summed it up like this:
- Most people who applied for these factory jobs didn’t like them or intend to stay, rather the jobs were low paid and unpleasant and used as a safety net of sorts, while people looked for other entrepreneurial activities or less difficult wage work
- But the health risks of industrial work were high and there’s evidence that serious health problems doubled if you took the factory job
- When you gave them $300 cash [instead of the factory job], they started a small business and earnings went up by a third.
What does this mean for SIA?
I wasn’t sure what this all meant for SIA partners. So I emailed Jeremiah Mzee, who is director of the training centre project. He wrote:
“I completely agree with the writer of this article.
“It is true that when a factory establishes in Kenya, it creates new jobs for both the skilled and unskilled laborers. A majority get low wages and there is nothing they can do. Most of them try to work in these factories for low pay with a hope of getting something better. In Ruaraka these factory jobs are considered to be for women simply because they pay low wages, though to the women they believe these factories provide valuable employment opportunities for them. I AGREE.
“Most people working in these factories get wages enough only to meet basic needs and it is true that entrepreneurial women running small businesses in Ruaraka have better income and financial independency.”
It is always useful to get this kind of feedback. It is the great benefit of our long-term partnership with grassroots leaders who know the reality of the situation on the ground. Luckily, Jeremiah Mzee is one of our newest Small Business Fund coordinators. He is already working with these women to help them become entrepreneurs. Another five business groups received their $150 grants last month. And the Mathare Dressmaking and Tailoring Training Centre will continue to train people to be able to apply for the higher paying jobs at the factories, until they can find something better.