A Survey Study on the Contributions of Almeda Textile Factory for the Surrounding Community in Ethiopia
Berihu Asgele Siyum1, *, Niguse Tamirat Kindeya2
1Department of Social Science, Adwa College of Teacher Education, Adwa, Ethiopia
2Department of Professional Science, Adwa College of Teacher Education, Adwa, Ethiopia
To cite this article:
Berihu Asgele Siyum, Niguse Tamirat Kindeya. A Survey Study on the Contributions of Almeda Textile Factory for the Surrounding Community in Ethiopia. International Journal of Industrial and Manufacturing Systems Engineering.Vol. 1, No. 2, 2016, pp. 25-33. doi: 10.11648/j.ijimse.20160102.11
Received: August 9, 2016; Accepted: August 18, 2016; Published: September 5, 2016
Abstract: Historically, textile has been one of Ethiopia’s traditional domestic business although it was relied on home grown old age spinning drop wheel. Dire-Dawa Textile Factory is the first modern textile which was established in 1939. The main purpose of this study was to assess the contributions of Almeda textile factory for the surrounding community. Both quantitative and qualitative methods were employed in this study. It was employed questionnaire, interview and document analysis tools to achieve the objectives. Totally, there are 5278 employees in Almeda textile factory. 200 employees have been selected using simple random sampling method for the survey questionnaire. Department heads of the factory and elders of the town residents have been taken purposefully for interview. Moreover, all the necessary documents of the factory are analyzed. Almeda textile factory has positive and negative influence on the surrounding community since its establishment. One of the most prominent contributions of Almeda textile factory is emancipations of women. Currently 67.7% of the employees in the factory are women. Thus, women become source of income for their family. Moreover, Almeda textile factory has contribution to increase income of the government in the form of tax and this income in return comes back to the community as a fund for social infrastructure. The factory has paid a total tax of Birr 53,797,864.61 in the last year. In addition to this, it has supported the surrounding community which has an estimation of Birr 276,080 in kind and Birr 411,734.19 in cash in the last year. Furthermore, it has developed a sense of work independence among the community. However, shortage of supply to the internal market, lack of motivation to the lower employees, environmental pollution, workers unsettlement and lack of producing quality products are among the major problems of the factory. Even though majority of the employees are satisfied by the activities of the factory, there are large numbers of employees who are not satisfied. In general, among the most contributions of Almeda textile factory to the surrounding community are creating job opportunity, supporting by products, encouraging legal associations, source of education to university students, supporting small scale enterprises, supporting to social and political institutions, supporting to targeted groups etc. However, the factory is not brought meaningful change on the surrounding community as it was expected.
Keywords: Almeda Textile Factory, Community, Contribution, Job Opportunity
1.1. Background of the Study
Textile factory has a long history in the world. Even though the modern and advanced textile industries are recently emerged, the traditional way of making clothes were exercised in the ancient states. Textile is a flexible woven material consisting of a network of natural or artificial fibers which are often referred to as thread or yarn . Textile industries have the capacity to employ a large number of labors. Because of this, textile industries are expanding in Africa as a way to involve its idle man power and to give Africa a chance to participate in the global market . Thus, the clothing supply chain continues to influence industrialization throughout the developing economies . Labor is expensive in developed countries while it is cheap in developing countries . As a result, the ease of entry into this field and the abnormally high wages in developed countries has always created favorable conditions for the developing countries to export their textile products . Now a day the replacement of manual labor system to mechanized manufacturing allowed textile to produce cheaper, quicker and in vast quality .
During recent decade more African countries have started to produce textile for export . The textile industry is an important sector in developing countries . Textile industries have a vital role on the economic, social, cultural and political development of countries. Apart from food and shelter, textile (clothing) has been identified as the most important in the hierarchy of man’s need . Textile processing operations are considered an important part of the industrial sector in both developed and developing countries, like Ethiopia .
Historically, the Ethiopian community has a culture of making clothes through spinning and weaving in a traditional way. Even though written records are scarce, it is widely believed that Ethiopians wore clothes woven from cotton fibers centuries ago . Textile has been one of Ethiopia’s traditional domestic business mainly relied on traditional based and home grown old age spinning material up to the modern textile and garment integrated mill was established in 1939 in Dire-Dawa by the name of Dire-Dawa Textile Factory, which marked the beginning of textile industrialization by foreign capital .
The Ethiopian government is now investing on textile industries and attracting foreign investors to invest on this sector. Textile factory needs intensive man power in its operation. Ethiopia is the second populous country in Africa next to Nigeria with large number of young people. This creates a favorable condition to expand textile factory in the country. There are many opportunities for Ethiopia becoming a competitive textile industry with necessary actors and production factors that are related to the high labour force of young population and therefore a great opportunity for increased employment in Ethiopia . Currently, Ethiopian textiles and apparel industry encompasses spinning, weaving, finishing of textiles, manufacture of cordage, rope, twine, netting, knitting mills, and manufacturing of wearing apparel .
The Ethiopian government is now giving due emphasis to the textile factory. There are different governmental and private textile factories operating in the country. Almeda textile factory is one of the private limited companies that produce yarns and fabrics and it was established in 1996 five years later after the fall of the Dergue regime.
1.2. Statement of the Problem
The Ethiopian government is planned to reach the middle income countries after a decade. Even though majority of the population and the backbone development of the country are depending on agriculture, the government endeavour is to transform the country from agriculture based economy to industrialization. As a result, the government is expanding mechanized industries including textile industries to reach at its intended goals. Moreover, the government has favourable policy which initiates foreign and domestic investors to invest on this field. Thus, Ethiopian and foreign investors are recently moving aggressively in the direction of higher value addition through investing in the balancing, modernization, establishing and up-gradation of the textile manufacturing industry by acquiring new technologies and knowhow .
Therefore, expanding of textile factories in the country has economic, social and political advantages. An emerging textile industry has the potential to employ many uneducated people, which is essential for Ethiopia . Ethiopia's textiles and clothing industry is undergoing major development, aided by the presence of a cheap, skilled and highly-motivated workforce .
Alemeda textile factory was established to maximize its profit and support the surrounding community in different ways. The surrounding community has large expectation to get economic, social and political benefits from the factory.
However, the factory is still in lose. Moreover, Almeda Textile and Garment has no labour force requirement in its organization, rather recruiting without any human resource planning because of poor expertise in the management of the factory . Therefore, this study will fill this gap and find out the major contribution of the factory to the surrounding community in particular and the country in general.
1.3. Research Questions
The basic research questions of this study are:
• How much the internal customers of Almeda textile factory are satisfied?
• What are the economic changes the factory brought on the community?
• What are the social changes the factory brought on the community?
• What are the main supports of Almeda textile factory to the community?
• What are the negative sides of Almeda textile factory on the community?
1.4. Objectives of the Study
The major objectives of this study are to:
• Examine the internal customers’ satisfaction of Almeda textile factory.
• Assess the contributions of Almeda textile factory on the economic changes of the community
• Assess the contributions of Almeda textile factory on the social changes of the community
• Pin point the main supports of Almeda textile factory to the community
• Identify the negative sides of Almeda textile factory on the community.
2.1. Data Type and Sources
The study employed both qualitative and quantitative data. In this research basically, primary data source was employed to gather first-hand information to achieve the objectives of the research. Secondary source was also considered for gathering certain secondary information in order to consolidate the first-hand information. Data obtained from respondents through questionnaire and interview were the sources of primary data. Moreover, documents of the factory were analysed.
The sources of data for this study are employees and top managers of Almeda textile factory and community representatives of Adwa town.
2.2. Research Strategy and Design
Totally there are 5278employees in Almeda textile factory. The total populations of this study are 5278. Based on that, data have been collected from the staff employees who are not engaged in the operation part. The operators are busy in Almeda textile factory. Therefore, they have not enough time to make interview and fill questionnaire. The list of staff workers is found in the human resource of the factory. Based on that the researchers give the questionnaires to human resource and they distribute to the staff. The study employed both quantitative and qualitative method. In the data collection the study used individual unit. The study employed cross-sectional study.
The main instruments that have been employed in this study to collect data are stated as follow:
The total population of this study is 5278 employees. Thus, the researchers take 200 employees to sample this population. Based on the list of employees from human resources, the questionnaires were distributed systematically to the employees. The study employed structured questionnaire to collect quantitative data from the employees.
Interviews were made with department heads of Almeda textile factory, human resource of the factory and known elders of Adwa town because they have more information on the contribution of Almeda textile factory and other related issues. Totally, 5 department heads from Almeda textile factory and 7 known elders from Adwa town have been interviewed. Unstructured interview was employed to get the detail information. Thus, the purpose of the interview was to collect more supplementary data by providing them the opportunity to their opinion, feeling freely, and allow the researchers to use the idea that contrast with the questionnaires or to triangulate the questionnaire response.
2.3.3. Document Analysis
Relevant documents were collected from different departments in the factory. Especially, documents have been collected from marketing department, finance department and human resource. Based on that the total taxes paid by the factory in this year, supports made by the factory in this year in different form to different institutions and number of employees have been identified through this way.
Furthermore, to articulate the problems as well as building logical frame works, journals-articles and related researches with the study were again analyzed.
2.4. Data Collection
Information regarding all contributions of Almeda textile factory to the community was mainly gathered from the interview, questionnaire and document analysis with different subjects. Background information for discussions on conceptual issues, conditions of textile factories was gathered from secondary sources in order to consolidate the first hand information.
To collect data through questionnaire, the researchers distributed the questionnaire themselves through the human resource workers of the factory to the respondents. Since the respondents are manageable and found in a one working place, the researchers did not hire enumerators at all. Data was collected on the month of May in the study area. The researchers had arranged time schedule for interview and conducted it side by side with questionnaire.
2.5. Data Processing and Analysis
The information collected from data sources was organized and statistical computations were made to explore the inherent relationships among the different variables. The qualitative data obtained through interview and open-ended questions from the questionnaire is described qualitatively in sentence form. Responses from the employees are fed into a computer and analyzed using SPSS version 20.0 software. Simple quantitative analysis techniques such as percentage and frequency distributions are employed. Moreover, graphs and means are also included in the analysis part. Finally, the results are summarized into tables so that the analysis and meaningful interpretation of results are made to draw conclusions and implications.
3. Result and Discussion
This chapter analyses and discusses the major findings of the research based on the survey collected in the study area. Totally 200 questionnaires were distributed to the Almeda textile factory employees. Finally, 190 questionnaires are returned. The results and conclusions are drawn based on the data obtain from these employees, document analysis and data gained from department heads through interview. This discussion presents the result using tables, charts and percentages to show the contribution of Almeda textile factory for the surrounding community.
3.1. Impact of Almeda Textile Factory on the Society
Almeda textile factory has made different contributions since its establishment in the surrounding society. It has undeniably contributed to the economic development of the country in general and the surrounding community in particular but it has also brought about important social, economic and technological changes.
3.1.1. Social Change
i. Emancipation of Women
Almeda textile factory has employed and is still employing a majority of women. Textile factories create job particularly strong for women in poor countries, who previously had no income opportunities . As shown in Figure 1 below, currently female workers represent about 67.7% of the employees in the factory. Women who were traditionally seen as housewives and who did not even get access to formal education, represented an important pool of labour for Almeda textile factory. In the history of Almeda textile factory, men were no more the sole breadwinners. Women also were and still are bringing income to their families. This has obviously brought a change in the role of woman: from a docile housewife to an independent income earner. Thus, Almeda has change the attitude of surrounding community as women can do and can be source of income for their family.
ii. Other Social Supports
Before the installation of this factory the surrounding community was migrated to different area of the country or other neighbouring countries to find jobs. However, the migration of the community is now stopped. Therefore, Almeda textile factory avoids the long way journey of surrounding community to find job in distant areas.
Beyond the stated social supports to the surrounding community the following supports are also contributed by Almeda textile factory.
• Creating job opportunity to the community
• Supporting by products to the community
• Encouraging the legal associations of the town
• Serve as an real object of teaching aid for university students during field works
• Supporting cars or buses to the security and woreda administration for other social activities
• Supporting small and medium scale enterprises
• Supporting to targeted groups like HIV victims, children of martyrs
3.1.2. Economic Change
|No. of family under you||154||1||12||4.06||2.104|
The above table shows the amount of salary and families depend on the employees. As it has been indicated in the table the mean salary of one employee in Almeda textile factory is Birr 3361.21. The salary of top managers is not calculated in this study because top managers are not selected to fill the questionnaire rather interview was conducted with them. The standard deviation 1910.792 indicates that the individual salary is far from the mean. If the salary of top managers were included, the standard deviation would increase. This indicates that there are large numbers of employees who are less paid in the factory. Therefore, most of the employees are not satisfied with the current salary they get monthly. Even though there are highly paid employees who are at the top management level, majority of the lower level workers have low salary. Furthermore, there is a big salary gap between the top managers and lower level workers.
Moreover, in average one employee has more than four families who are administered under him/her. Therefore, the direct beneficiaries of Almeda textile factory are not only the direct employees of the factory but also the families who are living by the income of the employees. Thus, four times the total employees of the factory are direct beneficiaries of Almeda textile factory.
i. Total Taxes Paid by Almeda Textile Factory
Almeda textile factory is paying different taxes based on the tax proclamation of Ethiopia like other factories. Therefore, it has a great contribution for the economic development of the country.
|Tax and Salary||Paid Birr in Million|
|Income Tax of Employee||16,193,819.55|
The contribution of the factory is not only delimitated within the society it is also contributing to the government through providing legal taxes. As it is stated in the above table, the factory paid different kind of taxes every year. Therefore, the government has gained large amount of income from Almeda textile factory. This amount of money is come back to the benefit of the society through social infrastructures.
ii. Support of Almeda Textile Factory for the Community
Almeda has provided different supports to the surrounding community in kind and in cash. Based on the document analysis the factory has donated the following materials to different institutions.
|Supported material||Supported institution||Amount||Price||Amount in Birr|
|Machine cleaner||Adwa Electric Power||200 KG||7.80||1560.00|
|T-shirt||Federal Police Station||500||34||17,000.00|
|Machine cleaner||Adwa Hospital||1000KG||7.80||7800.00|
|Sheet||Adwa Woreda Kebele Alula||300||190||57,000.00|
|Sheet||Suhul Hospital (Shire)||300||190||57,000.00 *|
|Sheet||Berhe G/hin Health Station||100||190||19,000.00|
|Birr||Woreda Adwa Administration||10,000.00||10,000.00|
*VAT has been paid by the supported institution
Table 3 shows support made by Almeda textile factory to different institutions in the surrounding towns and the country at the whole. The factory supports the institutions in kind and in cash form. Therefore, Almeda has supported different institutions in this year in kind which have an estimation of Birr 276,080 and Birr 411,734.19 in cash. However, these amounts of support have brought insignificant change on the community. Almeda is a big factory and it has a long age but the supports which are made on the community are not satisfactory. At its establishment the community had a big expectation from the factory. Nevertheless, the expectation of the community is not realized. Therefore, the factory is not brought meaningful change yet on the surrounding community as a factory because there are no social institutions or infrastructures that are known by the name of the factory.
iii. Employment Rate of Almeda Textile Factory
Almeda has employed large number of workers citizens and non-citizens of Ethiopia. The employment rate of the factory since its installation is increasing from time to time as it has been shown in the below figure.
Figure2 show the evolution of the labour force in Almeda textile factory since2005. There has been a constant increase in the labour force from 2006 to 2008, although there is decrease in the labour force from 2005 to 2006. The labour force of Almeda textile factory was increase by 1.7 percent from 2006 to 2007 and it has increased by 5.1 percent from 2007 to 2008. This indicates the labour force of the factory is increasing from time to time. When the labour force is increasing it increases also the job opportunity.
To operate new technologies and to get technical support, Almeda textile factory has employed foreigners. This indicates that the factory is not only creating job opportunity for the citizens but also it creates for foreigners.
iv. Sales of Almeda Textile Factory
Figure 3 shows that the total sales of Almeda textile in the last four years. The total sales of 2015/16 are not included because it is not finished. The total sales of Almeda textile factory in the past four years are increasing in every year. The total sales of the factory in 2012/13 were increased by 54.8 percent, in 2013/14 by 3.01 percent and in 2014/15 by 39.2 percent.
Based on the data gained from the interview the factory is still in loss. However, the total sales are increasing from time to time. This is a good hope to the factory in order to come to profit by the next few years. Moreover, the increment of the sale is helpful to motivate workers in particular and the factory in general to become competitive and get away from loss.
3.1.3. Technological Change
Data collected from the managers indicated that Almeda textile factory has employed latest technology in its production process. Moreover, it has modern and advanced machineries imported from developed countries. Currently, Almeda textile factory has bought 8 modern spinning machines a worthy of Birr 51 million for its expansion. As a result, it has been serving as a centre of sharing experience and field area for the local universities. Many universities send their students especially engineering students in to the factory for practical field work or attachment. Moreover, different governmental and non-governmental organizations visit it for different experience.
Furthermore, it has developed a good moral on the community as Ethiopians can do everything by themselves. Moreover, it changes the perception of experts who have come from abroad on the capacity of Ethiopia. However, as it has contributed to bring social, economic and technological changes, it has also polluted the environment. It is obvious that the textile industry emits a wide variety of pollutants from all stages in the processing of fibers and fabrics . There is a bad chemical smell in the compound and outside the compound which disturbs the employees and the surrounding village community. Thus, it has diverse negative effect on the health of workers and the nearby rural residents.
3.2. Employees Situation
|Are you satisfied by the activities of your organization?||57.7||42.3|
|Does your organization motivate you to work effectively||43.6||56.4|
|Do you have a plan to leave Almeda textile factory||54.0||46.0|
|Does your organization pay when you work in time of holiday||96.3||3.7|
|Rate of satisfaction||6.5||61.1||22.2||10.2|
|Type of motivation||20.7||22.0||3.7||18.3||35.4|
Table 4 shows that majority of employees are satisfied with the overall activities of Almeda textile factory. Many scholars revealed that factories cannot be successful without satisfied workers. However, employees are happy with this factory’s overall activities. So, this initiates workers to show their endeavour and honesty in their work place. However, there are around 42.3 percent who are not satisfied by the overall activities of the factory. This is a big numbers which indicates that still there are large amount of employees who are not satisfied with the overall activities of the factory. This dissatisfaction is emanated from low motivation of the factory on its employees. As it is indicated in the above table the satisfaction of workers by the activities of the factory is rated at the medium level.
However, majority of the employees are not motivated by the factory. Of course, there are different motivations in the factory but this is not working at all employees. The motivation is more concerned on the top management staff. Large number of workers in the factory is at the bottom level. However, majority of the factory’s employees who are at the bottom level are not beneficiaries of the motivation. Partial treatment or motivation of workers in the same factory disappoints the segregated group. As a result, the factory cannot be effective and productive. Without employee’s involvement and loyalty the company will fail to compete with optimum effectiveness . The factory paid over time to its employees when they work in time of holiday. Even though workers are engaged in to their daily activity of the factory in time of holiday, they are not reluctant because of the payment.
The data gained from the interview indicates that the factory has made special motivation to all employees in this year. The factory paid one month salary to all the workers as a bonus. This motivation is a good beginning and should have sustainability in order to have effective and industrious workers. However, employees have expected beyond that especially to be paid additional bonuses in time of holidays.
Furthermore, majority of the employees (54 percent) want to leave their job in the factory. In Almeda employee turnover is one of the most serious issues, yet every year it loses a minimum of 6% of existing talented resources . As the reason stated by the employees they do not want to have stagnant life with in one factory rather they want to see other alternative jobs. Mo reover, the main reason that was stated by the employees islife change or to see another challenge.
|Almeda has a big role on creating job opportunity||2.1||3.7||7.9||29.1||57.1||4.35|
|I address my economic problems||3.2||7.4||4.2||53.2||32.1||4.04|
|Demand of your production||4.7||10.5||42.1||27.4||15.3||3.38|
1=Strongly disagree, 2= Disagree, 3=Uncertain, 4= Agree, 5= Strongly Agree
VL=Very Low, L=Low, M=Medium, H=High, VH=Very High
Table 5 shows us perception of employees on the contribution of Almeda on job opportunity and addressing personal economic problems. It is calculated and determined based on the mean result of each question. The mean is calculated based on 5 likert scale. Therefore, the mean score less than three represents "Disagree" while a mean score above three is considered as "Agree". The mean score equal to three indicates "neither disagree nor agree" in this study.
Therefore, Almeda textile factory has a great role on creating job opportunity with the mean score of (4.35). Moreover, it addresses the economic problems of the employees in the factory with the mean score of (4.04). As it has been indicated in the above table the demand of Almeda textile factory products are ranged from medium to high.
The result of interview from the elders on the demand of Almeda textile factory products strengthened the above finding. As it has been stated by the elders the products have high demand by the local community. However, all the needed products of Almeda textile factory are not distributed appropriately in the surrounding community. Most of the quality products are exporting to foreign countries. Of course, it has a great contribution to bring foreign currency when it has got demand in the international market but there is no enough access to get all the products in the internal market.
The interview result from managers shows that all products of Almeda textile factory are distributing through Guna trading plc in the local market. However, the supply of Almeda textile factory products in the local market is still in scarcity.
Almeda textile factory has made social, economic and technological contributions since its establishment in the surrounding society. Among the most contributions Almeda emancipates women from household activities because women were seen as housewives and unable to work in factories. However, currently among the total employees of Almeda textile factory 67.7 percent are women. As a result, the negative attitude of the community towards women is decreasing and they are now the source of income to the family.
Among the most contributions of Almeda textile factory to the surrounding community are creating job opportunity, supporting by products, encouraging legal associations, source of education to university students, supporting small scale enterprises, supporting to social and political institutions, supporting to targeted groups etc. For instance, the factory has supported materials in 2014/15 like machine cleaner, t-shirt, bed sheets etc to different governmental and non governmental institutions in kind which have a worthy of Birr 276,080.00 and in cash Birr 411,734.19. However, the factory is not brought meaningful change yet on the surrounding community as a factory because there are no social institutions or infrastructures that are known by the name of the factory. Therefore, the factory is not supporting to the community as its expectation.
The mean salary of one employee in Almeda textile factory is Birr 3361.21. With this amount of mean salary in average there are four families living with this income. There are large numbers of employees who are less paid in the factory. Therefore, most of the employees are not satisfied with the current salary they get monthly. Further, there is a big salary gap between the top managers and lower level workers.
The factory is contributing to the government through providing legal taxes. The factory paid different kind of taxes every year. Totally, the factory has paid around 53.8 million Birr to the government and more than 96.5 million Birr as a salary to the employees in the last year (2014/15). Therefore, the government has gained large amount of income from Almeda textile factory. This amount of money is come back to the benefit of the society through social infrastructures and other developmental projects.
Almeda textile factory has also contribution on purchasing of inputs for its production from the surrounding community like carton, cotton, strand and garter are purchased from the local infant industries. Therefore, it is creating job opportunity for small scale enterprises and increasing the demand of their product. Thus, Almeda textile factory is a big hope to other infant industries that produce input for it. Moreover, the factory creates a big market for the cotton producers of farmers.
Furthermore, the products of the factory are good alternatives to the community because it enables to buy textile products with low cost without travelling long journey. As a result, it saves the foreign currency which the country expends on textile products. Moreover, the products of Almeda textile factory have high demand by the local community. However, the products of Almeda textile factory are not distributed as expected to fill the high demand of the local community because most of the quality products are exporting to foreign countries. The quality problem of the products is a burning issue. Less quality of products is the main challenge of the factory which makes it less competent in the international market. Moreover, Almeda textile factory is not active on promoting its product to the community through mass Medias.
Even though the factory is in loss, its total sales are increasing every year since 2011. Almeda textile factory has employed latest technology in its production process. Moreover, it has modern and advanced machineries imported from developed countries. Currently, Almeda textile factory has bought 8 modern spinning machines a worthy of Birr 51 million for its expansion. As a result, it has been serving as a centre of sharing experience and field area for the local universities. However, as it has contributed to bring social, economic and technological changes, it has also polluted the environment. There is a bad chemical smell in the compound and outside the compound which disturbs the employees and the surrounding village community. Thus, it has diverse negative effect on the health of workers and the nearby rural residents.
Even though majority of the employees are satisfied by the overall activities of the factory, there are around 42.3 percent who are not satisfied by the overall activities of the factory. This is a big numbers which indicates that still there are large amount of employees who are not satisfied with the overall activities of the factory. This dissatisfaction is emanated from low motivation of the factory on its employees. Majority of the employees are not motivated by the factory. Most of the time motivation in the factory is concerned on the top managers. Of course, the factory has paid one month salary to all the workers as a bonus in this year but the employees need more than this motivation.