Making hand-made shoes for less than the price of machine-made shoes

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Making hand-made shoes for less than the price of machine-made shoes

The realities of running a small shoe business in Bhairab

Introducing Samadul and his business

Samadul is 37 years old and has been running his shoe making business, in Bhairab, for ten years. When he was younger, he was a shagrid (apprentice) in his uncle’s shoe factory, then he worked full-time in a factory and started saving money from his salary before setting up on his own with an initial investment of 7,000 BDT (US $655).

Samadul has a trade licence and a business loan from BRAC bank, a large and very well-established financial institution, but he runs his business informally. Trust determines who he hires and how he selects, and is selected by, dealers and suppliers. He does not have any written contracts, though he does use some financing software to keep track of money owed to the business and the money the business owes others.

The business is focused on making sandals and canvas-style shoes for the domestic market in Bangladesh. The shoes are usually made according to designs provided by clients although sometimes Samadul makes his own shoes and sells them via dealers. The lead up to Eid and other religious festivals are the peak season for the business.

Samadul makes leather sandals rather than leather shoes, as sandals can be made manually, without big machines, and it is not possible to make leather shoes manually. Plus, making shoes is expensive, whereas sandals can be made with a mixture of leather off-cuts and rexine, which is a strong, coated cloth, usually in the form of an imitation leather.

Samadul employs two apprentices and eight skilled workers, three of whom are his younger brothers. The apprentices are child workers aged 12 and 15 years old. Apprentices or ‘shagrids’ do not typically get paid a salary, although in this factory one of them receives BDT 6,200 US $56 per month. Both the child workers work under older relatives.

The average monthly wage for adult workers ranges from BDT 10,211 to 15,372 (US $93-140), according to what each employee produces, and Samadul earns between BDT 10,211 and 30,744 (US $93 and $280) after operating costs, depending on whether it is low season or peak season.

Shoes in production

Work shadowing with Samadul

In November 2022, CLARISSA researchers spent four consecutive days with Samadul, observing the activities and interactions of the business, staff members and clients to understand the realities, practices and pressures of running a small and informal shoe production factory. The researchers knew Samadul well, having interviewed him the year before. They had kept in regular communication since.

The work shadowing took place in low season, as explained by Samadul,

“During the peak seasons like Eid or Puja we have more orders, and we are bound to work more otherwise, we’ll miss the deadline. During those times, we hire more workers. But now it is lean season, now, you can see that only 10 workers are working here”.

Samadul is friendly and welcoming. He has a good relationship with his employees, allowing them the autonomy to choose how and when they work. CLARISSA researchers found him to be a positive example of a leather sector employer in Dhaka. This is compared to other such employers who, our evidence finds, can treat workers with a lot less respect and subject their workers to severe pressure to meet production quotas.

The researchers made in-depth observations of the shoe production process, learning from Samadul and the workers, as well as the apprentice model in operation at the factory. During three intervals in the day, researchers went away to write down their observations, so they were not note-taking while in situ. This meant that the researchers could be present and engaged with the work and the conversations they were having about it.

What happened at the shoe business

Day 1

The workday began at 10am and ended at 3am. On the morning of the first day one of the shagrids (apprentices) went to pick up a breakfast of parathas and dal-Bhaji for the ten workers present. The adults paid for their own food, the shagrid’s (apprentice’s) breakfast was paid for by their employer. At 10:40 am, having eaten, everyone started working on producing canvas shoes for distribution in different districts of Bangladesh until 1.30 when they broke for lunch for an hour.

As well as eating, some of the workers, who had slept at the factory the previous night, went to the washroom. Much later in the day, Samadul came to the factory. He undertook some screen printing to produce stickers for the shoes. He did not talk with his employees much.

At 9pm, four of the workers went home, and the others stayed, including the child apprentices. Around 9:30, Samadul left, and the remaining employees bought food from a local stall for dinner. After dinner some of them took some rest or left the premises for a short while. Around 10:30 pm they started work again and continued until 3:00 a.m. Then they slept at the factory.

Day 2

The routine of starting mid-morning and working until late continued over the subsequent days.

Aman (20 years old) laid out rexine foam and started pasting chemicals onto pieces of cloth. Once that was complete, he drew shapes and cut out upper parts of canvas shoes. Then he stuck them together with glue, before sewing according to the design. Aman did all of this without gloves or other protective equipment. Shafiul (15 years old) helped his adult brother-in-law Rabiul fit the shoes. Miraj and Shain were also engaged in making the upper parts of the shoes and the rest of the workers were doing their regular routine work.

Around at 12:15 p.m. Samadul got a phone call from one of his raw material suppliers. After finishing the conversation over the phone, Samadul told Aman to go to the raw material supplier’s shop to pay part of what he owed. The researcher accompanied Aman on the 2km round trip to the shop and watched him record the transaction on a mobile accounting app as well as a manual ledger book. On arriving back, the researcher noted how tired Araf (13 years old) was looking.

In the evening Samadul brought a TV to the premises so everyone could watch a World Cup football match. The employees were pleased that Samadul had responded to their request and enjoyed watching the game. As with the previous day, four employees went home at 9.30pm and six remained and worked into the night.

Day 3

On arriving at the factory at 9.20 am nobody was around, and the factory was closed. Ten minutes later one worker went to the washroom to freshen up and others started waking up and rolling up their bedding. One worker turned on a sound box to listen to the recitation from the Holy Quran. Araf brought food and everyone had breakfast together.

Around 11.40 am a dealer came and took away 120 pairs of shoes to sell in the local market. He sells shoes on commission. Samadul paid the dealer BDT. 50 (US $0.47) per pair of shoes that he sells at BDT. 400 (US $3.74). Typically, the dealer sells up to 100 pairs per day. While the deal was taking place, the most senior worker smoked within the factory premises. There were a lot of flammable objects around, including chemicals, but this did not concern anyone.

The adult workers and their child apprentices continued work until 3.30am.

Day 4

At 9.30am the most experienced worker was awake and smoking. He explained that he had lots of work to do. He said that he had worked in the sector for 25 years, since he was 16 years old when his father started teaching him skills. The other workers were still sleeping. After breakfast with the others, he worked on the upper part of shoes.

At 10.20 am the dealer who came the previous day arrived to collect more shoes to sell at the market. He told Samadul to get ready more shoes as soon as possible. Sometimes he helps Samadul get new clients.

At 11.35 am Araf (13 years old) took two dozen shoes to the dealer. At 12.40pm Samadul received a new contract over the phone from a client at Dhaka New Market. The client ordered twenty pairs of leather sandals.

At 1.30 Samadul went home for lunch. Four workers went to a common bathing space to take a shower and at 2pm the workers lunched together. Two workers took a nap, and some spent some time gossiping and using mobile phones. By 3pm everyone was working again until evening snacks. At 9.15 pm three workers went home and the rest continued their work.

The work environment

The factory is situated behind a large shoe manufacturing and wholesale market. The premises comprise a 10 X 3 metres brick structure with a corrugated tin roof and a bamboo celling. There is one room, with three windows and two doors, but the ventilation system is very poor because the small building is directly adjacent to other factories. The premises are in an area comprising many other small business units divided by narrow alleyways. The workers use two common bathrooms comprising six toilets and eight taps that are shared by 550 other small business units.

There is an entresol or mezzanine floor under the celling of the factory room where raw materials and bedding are kept. It is also used for sleeping. Six of the workers slept over night at the factory for the duration of the shadowing activity. They have three prayer carpets for saying prayers.

None of the workers use any occupational safety equipment. They apply glue and other chemicals without wearing gloves. For example, on the second day Aman, the 20-year-old, was observed pasting chemicals on canvas before cutting, gluing and sewing upper parts of the shoe without protection from the adhesives. One employee smoked within the factory premises, despite the presence of many flammable materials.

Samadul is a well-liked business owner because he doesn’t scold his workers and he is relaxed about how and when they work. People begin their careers in his business, and they stay. Arif, who is 26 years old, has worked in the factory for six years, reflecting:

“Our employer is a kind man. He never scolds us for anything or give pressure on us for production.”

When Samadul arrived at the factory late due to other errands the workers continued to work independently in the same way that they work when he is around.

The economics of shoe making in the informal economy

In the winter months when the shadowing took place, shoes are the main product produced by the business. Some dealers come to the factory to inspect the quality and design of the products and to negotiate a price. Other dealers are long term clients and prices and deals are agreed over the phone. The shoes are distributed across Bangladesh, via dealers. Samadul works with eight dealers – five from Bhairab and three from Dhaka, Bogra and Sirajgani. One of the dealers currently owes him BDT 75,000 (US $700) for a previous contract but when Samadul calls him, he always says he will pay tomorrow. Samadul reflects how the sector mainly depends on trust. He doesn’t have any written contracts with dealers. Instead, he reminds dealers when money is needed, “If I call him, the dealer says I’ll pay you tomorrow.”

The business has credit arrangements with suppliers. Samadul buys raw materials on credit and when he receives money for the products he sells, he clears what he owes with the supplier. Samadul sent one worker, Aman, to deliver payment to a supplier who phoned up to request it. Aman pays BDT 15,400 (US $140) of the BDT 46,200 (US $420) that Samudul owes from a purchase of raw materials he made the week before.

Workers are paid according to what they produce, with varying amounts of freedom about when they work and how long for. Freedom is contingent on how much a worker needs to earn and whether there is work pressure. As Samadul explains:

“Most of the workers work on production basis. If they produce more, they will earn more. The workers are free here. I just remind them of the deadlines. If any worker wants to, he can stay here at night and continue working until 3:00 a.m. Or he can go home. There are no fixed times. It depends on work pressure.”

Payment by production means everyone gets paid differently depending on the specific task they are doing and the rate at which they can work. For example, Mainul, who has five years of experience receives BDT 350 (US $3.27) for making the upper parts for 12 pairs of shoes. He can make 12-18 pairs per day, earning between BDT 4,290 and 6,490 (US $39 and $59) a day. Rubayat, who has 13 years of experience, is paid between BDT170-450 (US $1.59-4.21) for fitting all the different parts of the shoe together for a dozen pairs of shoes depending on the design and materials of each shoe. With the assistance of his apprentice, Rubayat can fit seven or eight dozen pairs of shoes per day, earning between BDT 1,399 (US $12.72) and BDT 3,705 (US $33.68) a day, before costs to feed his apprentice. As a recent shagrid (apprentice), Aman receives a monthly salary from the owner (his brother) of BDT 6,000 (US $56), which means he only earns a couple of dollars a day.

Samadul maintains a manual ledger book and a mobile app to document salaries and maintain accounts. This includes the BDT 110 – 220 (US $1-2) loans the business makes to workers every day so they can buy food and the advance payments people request, which are both reduced from their monthly wages.

As the owner, Samadul can earn BDT 20,000-30,000 (US $186-280) per month during the peak seasons (Eid, Puja) and BDT 10,000-15,000 (US $93-140) per month during the low season, after running costs. His earnings depend on the type and quantity of orders. He has some fixed costs including two salaries of BDT 11,000 (US $100) per month, the payment on production to other staff, and fixed operational costs, including BT 5,280 (US $48) a month for the factory rent and an average of BDT 3,300 (US $30) a month for electricity.

During the COVID-19 lockdown, Samadul had to close his factory for one month and he faced a huge loss. So, he borrowed BDT 500,000 (US $4,673) from BRAC Bank’s SME (Small and Medium Enterprise) section and re-opened with six workers. Paying back the loan increases his monthly operational costs.

Every part of the sandal and shoe is made by hand

The shoes in Samadul’s factory are handmade. Increasingly, Samadul feels the competition from 10-15 big factory owners in Bhairab, who have financial capital and good technology. Comparatively, small factory owners like Samadul have very little access to capital. Their processes are labour-intensive and as such their production costs are high. And the quality of produce is low compared to that of the bigger factories, making it difficult to get clients and a good price. Samadul explains:

“For each pair of shoes, we get BDT 100-150 ($ 0.93-1.4) less than the price of machine-made shoes”.

Machines would enable different types of shoes to be made but the machines are expensive – and would cost in the range of BDT 500,000-1,000,000 (US $4,000- $9,000). Samadul aspires to one day install digital Chinese machines:

“When the price of those machines will decrease, I’ll buy them. The machine-made shoes can be sold at good price… we traditional shoemakers are facing huge competition [from the factories that can use machine]”.

But, for the moment, he cannot afford them.

A child cutting leather

Everyone who works here is young

The eldest employee is 48 years old. But all the other workers are teenagers or in their early twenties

The youngest worker, Araf, is a brother of the business owner. At 13 years of age Araf runs errands, buys food and delivers money to pay other business owners as well as carrying, pasting, cutting thread and providing general help to the older employees. He receives BDT 6,000 (US $56) a month. Araf was bullied at school and had already dropped out when Samadul encouraged him to start working for him. It was felt that him being employed as a shagrid (apprentice) was preferable to him being idle. He has been at the factory for a year.

Shafiul is 15 years old and has worked at the factory for three years. He is the youngest of his siblings and his parents do not work. His brother-in-law works at the factory. Shafiul has been a shagrid (apprentice) at the factory for three years, since he left school at 12 years old because his parents could not afford his education costs. Shafiul is an apprentice for his brother-in-law Rubayat, who has 13 years of experience in the leather sector, four of which have been with Samadul’s business.

Of the workers who are teenagers or in their early twenties, they were all shagrids (apprentices) when they began working, and started working because their fathers became ill from working in the leather sector and their families therefore faced a financial crisis (see a profile of the four workers who have laboured since childhood below).

Aman (20 years old)

Aman is the younger brother of Samadul. He has been working in the factory as a shagrid (apprentice) for two years. His father used to work in a shoe factory in Dhaka, but he became ill and had to stop working. Meanwhile the family had to arrange a marriage for his sister and his brothers got married and began living separately. As a consequence, the family experienced a financial crisis.

Mainul (21 years old)

Mainul has worked for five years at the factory since he was 16 years old, when his father became ill. He was a shagrid (apprentice) for the first 10 months and received no pay – only some food and new clothes for Eid. His family are neighbours of Samadul. Mainul’s brother also worked at the factory but is now abroad. Mainul is paying back the instalments of the loan taken by the family to pay for him to go overseas.

Abdur (18 years old)

Abdur is also a younger brother of Samadul. He makes the upper part of the shoes. He left school at a young age because his family could not bear the cost of his education. He began work as a shagrid (apprentice) four years ago when he was 14 years of age. Now he has become a karigar (skilled worker).

Arif Hossain (26 years old)

Arif has been working in the factory for six years since his father became sick and unable to work. His family started suffering financially so Arif left his studies. Arif started working in this sector because no prior experience was needed and there are lots of these types of jobs in this locality.

The employees say the leather sector is a young sector because older workers cannot work in the way required. They do not have the eyesight needed for cutting the patterns to size and shape. Older workers do not have the stamina for the long hours. The youngest child worker explains,

“After working for a while, they become exhausted. They start suffering from waist pain. When older people start feeling these signs, they start to train their sons and when the sons become independent the older workers retire’.

Despite this awareness, there is no evidence that work practices have changed to limit how physically depleted workers become. For example, the hours are long, and the child workers are exposed to adhesives and various chemicals through their work.

Outside the factory

The days are long for the children

The child workers accompany their mentors until 3am in the morning. The children get very tired.

On the second day of work shadowing, the 13-year-old worker, Araf, was looking exhausted. The researcher began a conversation with Araf:

Researcher: You are looking tired.

Araf: We worked until 3:00 a.m. I could not sleep at night well; now I am feeling tired.

Researcher: Yes, I have observed that here it is a common practice to work over the night. Why do people not work in the day and sleep at night?

Araf: I don’t know why people do that. But I think it is better to work in the day and sleep at night. If we could start early in the morning, we could finish our work and return home by 6:00 p.m. or 8:00 p.m. and could get some rest. That would be better for our health. I do not like to work at night.

Researcher: If you do not like to work at night, then why you are doing this?

Araf: Because it is a common practice. Everyone starts working at around 10:00 or 11:00 a.m. and continues working over the night. It is difficult for me to make a change by myself.

In this short exchange Araf shows how aware he is of the health impacts of late-night working. He also sees the problem as cultural, which is difficult for any one individual to change.

Conclusion

Despite being a professionally run operation, the profit margins for this shoe making business are slim, with shoes being sold for less than BDT 110 (US $1) a pair. If the children working at the business were replaced by paid adults, the business would be close to operating at a loss many months of the year.

Despite its ten years of operation, the business has not significantly alleviated the financial difficulties in the owner’s own family. Samadul only earns a maximum of BDT 30,800 (US $280) a month (after costs) in peak season and a maximum of BDT 15,400 (US $140) a month in lean seasons. In some months he can earn less than BDT 11,000 (US $100). Over the past decade, business pressure has only increased as larger factories have opened to make shoes with machines. The loan Samadul took out to survive the COVID-19 pandemic lockdowns has also increased monthly running costs. Rather than elevate the family out of financial difficulties, the business has drawn the younger brothers of Samadul into work.

While the business does not have written contracts with employees, buyers or suppliers, Samadul finds it more efficient to run the business on trust. He treats his staff well and has good employee retention rates. Many of the work practices are problematic. The workers work until the early hours of the morning and some also sleep at the factory. The child workers must work the same long hours as their mentors. As the workers and mentors are paid on a production basis, they are reluctant to work shorter hours. The mention of wage advances to buy food each day suggest the workers themselves are only just managing financially.

The profiles of the children, teenagers and young men working to support siblings and parents reveal an intergenerational cycle of adult sickness, financial difficulty and child work, linked in the workers minds to the way work in the leather sector depletes bodies and erodes health.

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