A study of 1,000 clothing factories found that a number of fashion houses ‘engaged in unfair practices’, including H&M, Lidl and GAP.
Major international fashion brands, including Zara, H&M and GAP, are exploiting Bangladeshi garment workers, with some of them engaging in practices, according to a study published Wednesday. vi is unfair and pays suppliers below cost of production.
Research surveying 1,000 factories in Bangladesh producing apparel for global brands and retailers during the COVID pandemic shows that many factories are paying the same price despite the global pandemic and costs increase.
More than half of clothing factories have experienced at least one of the following: order cancellation, payment refusal, price reduction or late payment, according to statistics. published research by the University of Aberdeen and the advocacy group Transform Trade.
Such unfair trading practices have impacted the hiring practices of suppliers, leading to worker displacement, job loss and reduced wages, the study found.
Of the 1,138 brands/retailers included in the study, 37% reported unfair behavior, including Inditex by Zara, H&M, Lidl, GAP, New Yorker, Primark, Next and others is different.
The study also found that 1 in 5 factories have struggled to pay the legal minimum wage since they reopened following the lockdown in March and April 2020.
The fashion industry needs to change.
Learn the findings from a survey of 1000 factories in Bangladesh conducted by Transform Trade and the University of Aberdeen: https://t.co/yEcfhJr6LP pic.twitter.com/fsUR4nNdCG
– Transaction conversion (@transformtrade_) January 10, 2023
It also found that some companies asked for discounts on clothing ordered before the pandemic began in March 2020, while others refused to offer discounts, despite rising costs. high and inflation was rampant.
The report includes responses from several companies.
Inditex said it has “guaranteed payment for all orders placed and in production, and worked with financial institutions to facilitate the provision of loans to developers.” offered on favorable terms”.
German supermarket chain Lidl said it took “the allegations” seriously, adding that it was “responsible for workers in Bangladesh and other countries where our suppliers produce takes it very seriously and is committed to ensuring that core social standards are followed throughout the supply chain.”
Primark said that, due to the pandemic, it made “the extremely difficult decision in March 2020 to cancel all orders that have not yet been delivered”.
The study recommends the creation of a fashion watchdog that helps curb unfair practices by ensuring that “buyers/retailers cannot place disproportionate and inappropriate risks on retailers.” their supply and that retailers and brands adhere to fair trade standards.”
In August, Bangladesh’s garment industry faced double from slowing global demand and a domestic energy crisis that threatens to hamper the nation’s post-pandemic recovery.
In the same month, major global retailers agreed to a two-year agreement with garment workers and factory owners in Bangladesh, extending a pre-existing agreement that made retailers liable. liability if their factories fail to meet safety standards, including by retail giants H&M, Inditex, Fast Retailing’s Uniqlo, Hugo Boss and Adidas.
The exploitation of workers and poor safety standards were highlighted after the incident. Rana Plaza complex collapse in 2013 killed more than 1,100 garment workers, the deadliest incident in garment industry history.
The European Union warns consumers to stop using their clothes as throwaway items and says it plans to against polluting use mass market fast fashion.
