ABSTRACT

The participation of the state in global production networks generate a positive impact on industries. The footwear industry is undergoing rapid growth and created millions of jobs in developing countries especially for women, therefore called labor-intensive industries. Economic developments trigger economic upgrading that is not always followed by social upgrading. Economic upgrading and social upgrading (twin upgrading) are at once experienced by the footwear industry in Indonesia. Global production networks research has recently focused on workers, social upgrading and economic upgrading. However, the research does not specifically clarify the mechanism behind global production networks growth and economic implications on working conditions and social welfare of workers. One of the decent work indicators is fair treatment, this article makes an analysis of fair treatment in employment and global production networks in the Indonesian footwear industry. The fair treatment indicators used in this article are occupational segregation by sex and female share of employment in managerial and administrative occupations. Both indicators are used to measure the equality of opportunity in employment. This article aims to clarify the consequences that workers face in global production networks and focus on the relationship between twin upgrading and the challenge of achieving decent work. In addition, this article also explores the implications of decent work as a result of the emergence of global production networks in the footwear industry of Indonesia.