In this phase, the group refines its MoU with MAYA ORGANIC to include the specifics of collective investment, assets, and claims. In this phase, members learn all aspects of business related to investment. This includes sustained capital development, costing of products, materials, and overheads prior to investing, and calculating likely returns. Groups learn to analyse income and expenditure statements for profits or losses, and to conduct internal audits of their books. Though these tasks have been introduced in earlier phases, in this phase the workers learn more complex aspects of managing a business.
In the investment phase, groups develop plans to enrol new members and to expand the collective. Senior collective members facilitate absorbing newly-enrolled workers smoothly into the collectives and help them form a group identity. Once they understand the skill sets of their new co-workers, collectives encourage new members to take on functional roles.
Collectives are encouraged to deal with conflicts in a democratic, objective manner. Senior members take responsibility for teaching new people to address conflicts as collective issues, rather than as individual grievances. Most importantly, senior members understand that systems and guidelines are useful for preventing and resolving conflicts.
Readiness to Run Own Company Phase
The final phase is characterised by readiness for physical independence from MO. In this phase, the collective leaves MO's premises and sets up its own, independent unit. By this time, the collectives will have considered the possibility of sharing premises with another collective to cut costs, will have accessed loans, and will have made significant investments and savings into their units.
3.12 Institutional Phases in Garment Sector
Enrolment/Initiation Phase
Members initially enrol as trainees-cum-workers in MO’s collective enterprises by filling out a membership form. At this phase, they begin to learn about MO’s systems and rules, begin training in basic technical skills, and get involved in simple production. Crucial in this phase is establishing a work culture where members take responsibility for their attendance, punctuality and reliability. They begin taking on functional group responsibilities. As a first step toward taking ownership of the collective, members commit to financial investment in the group enterprise. They begin to take on responsibility for production, and may even execute simple production orders, though members predominantly continue to work as (and perceive themselves as) piece-rate job workers. At this stage, MO remains entirely responsible for quality, as well as planning and executing orders. By the end of this phase, members have a better understanding of how to function as a group, and see the advantage of working together under one roof. Trust levels have increased, and the workers perceive themselves as individuals within a group.
