The President of Istanbul Textile and Apparels Exporters’ Association (IHKIB); Hikmet Tanrıverdi said that raising minimum wage to 1.300 TL as the government planned and loading of the cost of this to the manufacturer, ready wear sector would have serious problems and the manufacture could slide to the nearby countries.
About 75% of Turkish ready wear and garment industry export are carried out by the members of Istanbul Textile and Apparels Exporters’ Association (IHKIB). According to the data of IHKIB; in the ready wear and garment industry sector which is the second biggest exporter of Turkey, in the period of January- October period, 14. 2 billion dollars of export was made to 205 countries from Turkey. Sectoral export went down 10.6% compared to the same period of 2014.
'Serious Problems Happen’
Total export of Turkey within the same period went down to 119.6 billion dollars with 8.6% of decrease. Total export share of ready wear and garment industry is at 12% level. Among the biggest market places, there are Germany, England and Spain. Tanrıverdi who answered the questions of Reuters said ‘’Raising of the minimum wage to 1.300 TL and as a result of the remaining of this to the industrialist, ready wear and textile sector have serious problems. Yet, we are in a period which we are slogging on at the competition and world market is getting narrowed’’. AKP (Justice and Development Party) which gained the right of coming to power alone again with 49.4% of votes in the general elections, promised to raise the minimum wage to 1, 300 TL which is 1, 000 TL right now.
'2015 wasn’t brilliant '
The government authorities explained to fulfill this promise. Tanrıverdi who emphasized that political uncertainties and attacks happened inside affected the investments of the companies and with the effect of dollar- euro parity, 2015 didn’t go well, said the following things on the problems affected the sector: ‘’Ready wear and garment industry sector’s export were affected negatively from the decrease at dollar- Euro parity and the instability resulted from the ongoing political problems’’.
'450 Liras Load ‘
‘’On the other hand, as well as the problems at Russia economy and the problems at EU economy affected export performance negatively, the developments happened at Chinese economy affected the stability of world economy negatively as well. With the new government, we are thinking that Turkey will have the growing trend with some decisions to be taken and the structural reforms to be made in 2016. We are thinking that sector will grow in a way to meet the deficit and even grow bigger’’ said Tanrıverdi and maintained his words as follows:
"If the raise in the minimum wage is made on the industry, I believe this will take us more back and many of our firms will escape abroad. We are predicted that many firms will start manufacture in nearby countries by closing their business places here’’. Tanrıverdi recorded that Romania, Bulgaria, Slovakia, Moldavia and Egypt were the countries that manufacture could slide.
Tanrıverdi who stated that increase in the minimum wage would bring about 450 liras load for the employers , said ‘’If you consider this will spread to the white- collars, this variation gets bigger. Many of the firms cannot load this. Yet there is the load of seniority indemnity, with such an increase, it will increase 30%. I think it will be more correct to increase the money that the worker takes with the regulations made by the government like income tax and Social Security Institution help’’. Tanrıverdi who stated that 1 million employees in total were working at ready wear and textile sector, said that not only the ones who took minimum wage but also all of them would be affected from this and ‘’If this is loaded on the industry, illegality increases’’ said he.
'Grows at least 10% in 2016 '
Tanrıverdi said ‘’We are hopeful of 2016, the uncertainty and terror incidents happened in 2015 unfortunately created obstacle for us. But I believe the next year of Turkey which counter terrorism ends and focuses on completely economy will be better’’. Tanrıverdi who stated that the export of the sector would get narrowed 10% this year, estimated that export would grow 10% or more next year.
By stating that the expectation of recovery affected positively the expectations on 2016, ‘’But I am thinking that the internal stability will have very serious effects’’ said Tanrıverdi. Tanrıverdi who said that the rate is at the normal level for export also added ‘’From now on, gaining value of TL affects us negatively, because the rate playing in the countries that we compete became similar. Other countries provided that advantage as well. If Republic of Turkey Central Bank doesn’t intervene in and any intervention is carried out at economy management, exchange rate will find its own way according to the international developments’’.
About 75% of Turkish ready wear and garment industry export are carried out by the members of Istanbul Textile and Apparels Exporters’ Association (IHKIB). According to the data of IHKIB; in the ready wear and garment industry sector which is the second biggest exporter of Turkey, in the period of January- October period, 14. 2 billion dollars of export was made to 205 countries from Turkey. Sectoral export went down 10.6% compared to the same period of 2014.
'Serious Problems Happen’
Total export of Turkey within the same period went down to 119.6 billion dollars with 8.6% of decrease. Total export share of ready wear and garment industry is at 12% level. Among the biggest market places, there are Germany, England and Spain. Tanrıverdi who answered the questions of Reuters said ‘’Raising of the minimum wage to 1.300 TL and as a result of the remaining of this to the industrialist, ready wear and textile sector have serious problems. Yet, we are in a period which we are slogging on at the competition and world market is getting narrowed’’. AKP (Justice and Development Party) which gained the right of coming to power alone again with 49.4% of votes in the general elections, promised to raise the minimum wage to 1, 300 TL which is 1, 000 TL right now.
'2015 wasn’t brilliant '
The government authorities explained to fulfill this promise. Tanrıverdi who emphasized that political uncertainties and attacks happened inside affected the investments of the companies and with the effect of dollar- euro parity, 2015 didn’t go well, said the following things on the problems affected the sector: ‘’Ready wear and garment industry sector’s export were affected negatively from the decrease at dollar- Euro parity and the instability resulted from the ongoing political problems’’.
'450 Liras Load ‘
‘’On the other hand, as well as the problems at Russia economy and the problems at EU economy affected export performance negatively, the developments happened at Chinese economy affected the stability of world economy negatively as well. With the new government, we are thinking that Turkey will have the growing trend with some decisions to be taken and the structural reforms to be made in 2016. We are thinking that sector will grow in a way to meet the deficit and even grow bigger’’ said Tanrıverdi and maintained his words as follows:
"If the raise in the minimum wage is made on the industry, I believe this will take us more back and many of our firms will escape abroad. We are predicted that many firms will start manufacture in nearby countries by closing their business places here’’. Tanrıverdi recorded that Romania, Bulgaria, Slovakia, Moldavia and Egypt were the countries that manufacture could slide.
Tanrıverdi who stated that increase in the minimum wage would bring about 450 liras load for the employers , said ‘’If you consider this will spread to the white- collars, this variation gets bigger. Many of the firms cannot load this. Yet there is the load of seniority indemnity, with such an increase, it will increase 30%. I think it will be more correct to increase the money that the worker takes with the regulations made by the government like income tax and Social Security Institution help’’. Tanrıverdi who stated that 1 million employees in total were working at ready wear and textile sector, said that not only the ones who took minimum wage but also all of them would be affected from this and ‘’If this is loaded on the industry, illegality increases’’ said he.
'Grows at least 10% in 2016 '
Tanrıverdi said ‘’We are hopeful of 2016, the uncertainty and terror incidents happened in 2015 unfortunately created obstacle for us. But I believe the next year of Turkey which counter terrorism ends and focuses on completely economy will be better’’. Tanrıverdi who stated that the export of the sector would get narrowed 10% this year, estimated that export would grow 10% or more next year.
By stating that the expectation of recovery affected positively the expectations on 2016, ‘’But I am thinking that the internal stability will have very serious effects’’ said Tanrıverdi. Tanrıverdi who said that the rate is at the normal level for export also added ‘’From now on, gaining value of TL affects us negatively, because the rate playing in the countries that we compete became similar. Other countries provided that advantage as well. If Republic of Turkey Central Bank doesn’t intervene in and any intervention is carried out at economy management, exchange rate will find its own way according to the international developments’’.
