MAS Holdings:

Supporting the advancement offactory-floor associates in Sri Lanka
MAS Holdings (MAS) is a global apparel manufacturing company
headquartered in Sri Lanka.i Established in 1987, it now has 52
manufacturing facilities across 17 countries, with its biggest
markets in the United States, Europe, and Asia. MAS uses
inclusive employment practices to support continued growth andimprovements to productivity, while avoiding labor shortages
common to the industry. This case study focuses on its Sri Lankan
operations, however, most of the policies and initiatives apply
across MAS Holdings.

The Challenge

Benefits for Workers

Approximately 70 percent of workers in the Sri Lankan labor market
are informal, making the garment sector a vital source of formal
employment and training for unskilled workers from poorer, rural
areas.ii The garment sector is especially important for Sri Lankan
women, who hold 78 percent of production-level jobs in the industry.
This contrasts with low levels of participation across the wider
economy of just 32 percent for women percent versus 72 percent formen.iii,iv The company sought to create conditions that would also
attract and retain workers from economically-disadvantaged groups,
including women, and further strengthen company performance.

Some 80 percent of MAS’s Sri Lankan employees work in entry-levelproduction roles on the factory floor. Most of these employees, known
as ‘associates’ come from rural, economically-disadvantaged, and/or
post-conflict areas. Women account for 76 percent of MAS associates
in Sri Lanka, and this includes internal migrants, women widowed bywar, and women who are the head of their household, and often thesole breadwinner.

Benefits for Business

Inclusive Employment Solutions
MAS uses several inclusive employment practices and initiatives,
including some that specifically target women, such as its flagship‘Women Go Beyond’ program, launched in 2003.

Human Capital
Performance

Employee turnover at 30 percent, about
half the industry average. Turnover is evenlower (about 1 percent) for employees using
childcare services.

Participation
Accessto labor

Targeted recruitment with operations in ruraland post-conflict areas. Robust procedures andsupport to combat gender-based violence andharassment within and outside the workplace.
Employee benefits include meals, transportation,and childcare.
Accessto markets

MAS is an employer ofchoice in the region,
enabling it to avoid labor
shortage issues common
to the sector.

Built and expanded relationships withbuyers. Opened up new partnership
opportunities, such as via Gap Inc.’s
PACE program.

Advancement
Training and leadership development program
to help employees progress to more advanced
roles. Life and technical skills training through the
Personal Advancement and Career Enhancement(PACE) program. Entrepreneurship training to help
associates open small businesses to supplement
incomes.
1 MAS Holdings: Supporting the advancement of factory-floor associates in Sri Lanka

Industry: Apparel manufacturing
Founded: 1987
Size: 52 manufacturing facilities across 17 countries,
producing lingerie, sleepwear, loungewear,
sportswear, leisurewear, and athleticwear for
leading global brands such as Nike, Gap, Patagonia,
Ralph Lauren, and Victoria’s Secret.
Base of the Pyramid Workforce: Directly employs
116,029 people, 69% of whom are women. In Sri
Lanka, it operates 33 manufacturing facilities that
employed 90,944 people in 2022.

2 MAS Holdings: Supporting the advancement of factory-floor associates in Sri Lanka

How MAS Puts Inclusive Employment
Solutions into PracticeParticipation: Target recruitment
Providing secure employment opportunities for
economically-disadvantaged communities has always been a priority
for MAS. Founder, Mahesh Amalean, says from the outset, thecompany made a strategic decision to set up factories in rural areas,taking “the work to the workers, instead of the workers to the work”.v
After the end of Sri Lanka’s civil war in 2009, MAS established new
operations in the northern provinces where fighting was mostfierce. The company recognized that there was a scarcity of formal
employment opportunities in these post-conflict areas, and that it
could tap into a significant labor supply, while also benefitting women
widowed by the conflict, who often head their household and are thesole wage earner.

“Our purpose as an organization, is to bechangemakers, enabling dreams and enriching the
fabric of life on our planet. Since our industry is labor
intensive, we have a great opportunity to create
positive change in the communities and countries
we operate in. This change must include economic
empowerment and better living standards as well
as social, cultural change and mindset that is more
inclusive and respectful. When this happens, thedreams and aspirations of all our people are enabled,
and this in turn brings out the changemaker in eachof them, so that they can continue to create positive
impact in their communities.”
Dinali Peiris, Human Resources Director

Participation: Address discrimination and harassment
Concerns about sexual harassment and violence inthe workplace can be a significant barrier to women’s participationin the garment sector. To counter this, MAS has robust antiharassment policies and procedures.
These are communicated to all employees in mandatory induction
sessions, and in follow-up training. The company also has multiple
channels for making confidential reports about harassment andviolence, including anonymously. Trained counsellors provide
ongoing support to victims, and MAS offers free legal assistanceto anyone who wishes to make a complaint about gender-based
violence and harassment (GBVH) in the workplace. For GBVH that
occurs outside the workplace, including domestic violence, MAS
supports staff with in-house counselling, referrals to organizations
that help GBVH victims, and access to the legal aid camps andconsultations that MAS runs several times a year.
In collaboration with doctors and other health professionals, MAS
conducts activities related to maternal and reproductive health tosupport the participation of women associates in rural and lowincome-communities, where such discussions are often taboo. In
2021, the company ran 672 awareness-raising sessions, covering
issues such as breast and cervical cancer. In addition, MAS finances
medical check-ups for women at or near its factories.

Participation: Reduce entry barriers
Since its inception, the company has provided one
nutritious meal per shift for all associates, with additional nutrition
for pregnant and lactating women. It also offers free shuttle buses
to and from MAS factories. This transportation is particularly
important for women as many are concerned about the safety ofalternative transport methods.
Recent studies show that “having children below five yearsof age” can prevent the labor force participation of Sri Lankan
women Recognizing this, MAS provides high-quality childcare in
23 locations globally, including 17 in Sri Lanka. In some locations
childcare is provided at free on-site facilities managed by MASor, in locations where that is not feasible, it subsidizes the cost ofchildcare at private facilities within five kilometers of the factory.

It’s not just that it’s a safe environment so I do
not have to worry about my children while I’m atwork … the crèche also fulfils their educational,
psychological and entertainment needs.”
Amalraj, sportswear factory associate

3 MAS Holdings: Supporting the advancement of factory-floor associates in Sri Lanka

Advancement: Upskill
MAS offers extensive training and opportunities
to help its associates develop new skills so they can progress into
technical and leadership roles. Starting with induction training,
MAS encourages associates to imagine a career path within
the company. Human resources staff also encourage eligible
candidates to apply for higher-level positions.
The Team Leader and Group Leader Development Program is a
MAS-wide initiative that equips associates with the technical andleadership competencies they need to progress to more senior,higher-paying roles. Under this program, MAS pays the fees for
associates with only a secondary education to earn a certificate
or diploma at a local vocational or tertiary education facility. In
2021, 814 women and 265 men benefited from MAS’s leadershipdevelopment training opportunities.

Advancement: Build capacity for
self-employment
MAS provides entrepreneurial training so thatassociates can open a small business, either alongside their workat MAS, or after they leave the company. This program includes
training in financial management, business plan development,
marketing with social media, plus practical skills in making crafts
and tailoring that might provide the basis for an enterprise. In
2021, 5,000 employees across the company participated in theentrepreneurial skills program.

Associates who have benefited from
MAS’s training programs

Women associates can also sign up for the Personal Advancement
and Career Enhancement (PACE) program, which MAS provides
in partnership with the global clothing brand, Gap Inc. PACE
provides 65 to 80 hours of life skills and technical skills training
in communication, time management, and decision-making skills,
as well as financial and legal literacy. As many of MAS’s associates
are young, undereducated women, who lack confidence, the PACE
program helps to empower them, both at work and at home. In
2021, 985 MAS associates participated in the PACE program.

Yamuna, who joined MAS as a trainee production associate,

MAS manufacturing divisions also train selected women to work as
mechanics and garment cutters—jobs traditionally held by men—and this training provides a talent pipeline across the company. In
2021, 136 women benefited from MAS’s technical training.

certificate program which developed her skills in English,

had only a secondary-level education, but through theTeam Leader and Group Leader Development Program,she completed a university diploma and was promoted toAssistant Manager, overseeing a team of 450 associates.
Madhusha, who started as a production associate in 2009,
now leads a team of 60, and works directly with customers.
Following her technical training, Madhusha completed MAS’scomputing, basic mathematics, leadership, and soft skills.
Kumari, a single mother, is a machine operator at MAS. Alongwith her technical training, Kumari has taken the company’s
entrepreneurial skills development program, which covers

Advancement: Provide leadership andcareer development
The exceptional contributions of womenassociates—both on the job and in their own communities—arerecognized through the MAS Abhimani Empowered Womanof the Year Awards. Winners of the award are offered several
development opportunities, including mentoring, so that they, inturn, can support other women in the company to become leaders.

financial management, marketing, and business plandevelopment. This program has enabled her to start a
successful business sewing mosquito nets, pillowcases, andcurtains. With the income from her own business, Kumari
has been able to save an entire month’s salary and plans to
use this to expand her business.

4 MAS Holdings: Supporting the advancement of factory-floor associates in Sri Lanka

The Benefits for Business:
MAS Holding’s Experience
MAS’s efforts to provide career and personal development
opportunities for economically-marginalized groups, and especiallywomen, have enabled the company to recruit and retain staff at rates
well above the industry average. It has also been able to achieve its
ambitious growth and productivity targets, and nurture collaborative,
long-term relationships with international customers.

Human capital performance
MAS has a achieved a high level of employee
retention. In 2021, the turnover rate for factory floor associates
was 29.5 percent compared to the garment industry average of 60
percent.vii This results in significant cost savings. Staff turnover canbe costly for companies across all skill levels, but costs associatedwith recruiting and training new associates are even higher if
staff have developed specialized skills, expertise, and institutional
knowledge.viii
MAS Training and Development Manager, Manik Welikala, believes
that the company’s success in retaining staff is tied to its investments
in training, skills development, and associates’ well-being. Researchsupports this, as a 2019 study on the Sri Lankan garment sector
found that the working environment, work-life stress, and personal
growth and career development opportunities are all importantfactors in whether an employee decides to stay or leave a company.ix
By encouraging associates to envisage a career beyond the factory
floor and providing them with training and opportunities, associates
increased their engagement with their jobs. Training programs also
increase productivity by improving individual performance andensuring that MAS can meet its needs for technical and managerial
skills. In addition, the company’s emphasis on supporting associates
to rise to leadership roles benefits team performance andproductivity, compared to recruiting staff from outside the company
who may have no factory floor experience.
Even when associates develop technical and managerial skills thatare in high demand with other employers, many continue working at
MAS because they like the working conditions. For example, many of
those who develop a side business following their entrepreneurshiptraining stay on at MAS for the stable income, training opportunities,
and the large base of potential customers who work for MAS.
MAS’s childcare offering also increased employee retention rates
and productivity. The annual turnover rate of the parents who
enroll their children in the kindergarten at the MAS Kreeda plantin Vaanavil is 1.3 percent, compared to the plant’s overall turnoverrate of 49 percent. Supervisors also note significant productivity
and performance gains. For example, one supervisor said thatsince several of her team members placed their children in thecompany’s childcare facility, she has seen noticeable increases in theirproductivity, and decreases in their absenteeism and lateness. MAS
plans to institute a more robust data collection process so that it canquantify the impact of childcare and other employee benefits.

“Companies often underestimate the knowledge
and value factory floor workers hold, but making
the effort to understand and encourage the dreams
and ambitions of these workers and providing themwith a career path helps the business too … in termsof retention and productivity, for example.”
Suren Fernando, CEO, MAS Holdings

Access to laborMAS has managed to avoid the labor shortages
experienced by other garment manufacturers in recent years
by establishing itself as an ‘employer of choice’ in Sri Lanka. Chief
Executive Officer, Suren Fernando, attributes this success to thecompany’s career development and training opportunities, as wellas its robust policies and safeguards that create a safe working
environment and help to overcome the safety concerns that prevent
some women from entering the garment sector.
In focus group discussions, associates said opportunities for
professional and personal development distinguish MAS from othercompanies, giving them a strong reason to join and stay with thecompany. Four women associates reported that they applied for a job
at MAS after hearing positive reports from friends and family about
the company’s safe working environment, and its extensive training
programs. MAS’s childcare investments also support recruitment.
Nilmini, a team leader and mother of five, moved to MAS fromanother company to benefit from the company’s childcare center.
During a focus group, she said, “I was thinking about my children’s
education and thought this would be very useful.”
Establishing operations in rural and post-conflict areas, with highrates of unemployment and limited access to basic services, hasalso helped MAS to recruit labor from a previously untapped poolof talent.

5 MAS Holdings: Supporting the advancement of factory-floor associates in Sri Lanka

Access to markets
MAS Holdings CEO, Suren Fernando, says customers
want to know that products are made responsibly. With consumers’
growing concern about garment sector working conditions,international brands also value MAS’s responsible business practices.
Over time, this has helped to cement and expand relationships
with buyers, as well as open up new opportunities for business andpartnerships, such as that with Gap Inc.’s PACE program.

“MAS has very strong brand recognition in Sri
Lanka. People know about our success stories – ofworkers who have joined at the shop floor level andprogressed. That’s why we’ve been able to continue
to attract labor”.
Suren Fernando, CEO, MAS Holdings

6 MAS Holdings: Supporting the advancement of factory-floor associates in Sri Lanka

Endnotes & Sources
In addition to company interviews and data provided in 2022, this study used the sources
listed below.
In 2014, IFC provided MAS with a loan of $28 million for capacity expansions, implementationof sustainability projects and product development. IFC made an additional loan of $30 million
to finance the working capital requirements and capital expenditures of the company’s
operations in Sri Lanka.
iWorld Bank. 2021. “Sri Lanka Poverty Assessment: Accelerating Economic Transformation.”
World Bank Open Knowledge Repository. Washington, DC: World Bank. https://openknowledge.
worldbank.org/bitstream/handle/10986/36455/Sri-Lanka-Poverty-AssessmentAccelerating-Economic-Transformation-Synthesis-Report.pdf?sequence=1&isAllowed=yii

DCS (Department of Census and Statistics). 2021b. “Annual Survey of Industries 2019.” August2021. Department of Census and Statistics of Sri Lanka. Battaramulla: Department of Census
and Statistics. Ministry of Economic Policies and Plan Implementation. http://www.statistics.
gov.lk/Industry/StaticalInformation/AnnualSurveys/2019
iii

ILO (International Labour Organization). 2016. Factors Affecting Women’s Labour Force
Participation in Sri Lanka. ILO. Colombo: ILO Country Office for Sri Lanka and the Maldives.
https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-colombo/
documents/publication/wcms_551675.pdf
iv

v
IFC (International Finance Corporation). 2007. “Case Study: MAS Holdings. An Excerpt
from Market Movers: Lessons from a Frontier of Innovation.” Washington, DC: IFC. https://www.ifc.org/wps/wcm/connect/dc4a3e5e-1fb2-4b98-b833-000b1ddd9296/MarketMovers_
CS_MAS.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-dc4a3e5e-1fb2-4b98-b833000b1ddd9296-jkD10vu

ILO (International Labour Organization). 2016. Factors Affecting Women’s Labour Force
Participation in Sri Lanka. ILO. Colombo: ILO Country Office for Sri Lanka and the Maldives.
https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-colombo/
documents/publication/wcms_551675.pdf

vi

Rajapakse, W. 2018. “An Analysis of Major Factors Affecting Labor Turnover in the Apparel
Industry in Sri Lanka: Policy Alternations for Solving the Problem.” International Journal of
Academic Research in Economics and Management Sciences. Vol. 7, Issue 3. September
29,
2018.
https://hrmars.com/papers_submitted/4542/An_Analysis_of_Major_Factors_
Affecting_Labor_Turnover_in_the_Apparel_Industry_in_Sri_Lanka_Policy_Alternations_
for_Solving_the_Problem.pdf

vii

IFC (International Finance Corporation). Making Progress: Sri Lankan Businesses Advance
Gender Equality at the Workplace. Washington, DC: IFC: https://documents1.worldbank.org/
curated/en/674661594620429201/pdf/Making-Progress-Sri-Lankan-Businesses-AdvanceGender-Equality-at-the-Workspace-A-Sheworks-Sri-Lanka-Private-Sector-Partnership.pdf

viii

Fernando, A.G.N.K. 2019. “Factors Impacting on Employee Turnover with Special Reference
to the Apparel Industry in Sri Lanka.” International Journal of Research and Innovation in
Social Science. Vol. 3, Issue 9, September 2019. https://www.rsisinternational.org/journals/
ijriss/Digital-Library/volume-3-issue-9/184-187.pdf
ix

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7 MAS Holdings: Supporting the advancement of factory-floor associates in Sri Lanka