Femnet e.V.

05.09.2022: News from KW 35

Studies and Co.

Better work "Sourcing Practices in the Garment Industry: The Root Cause for Poor Working Conditions" (PDF): This study builds on previous research that attributes poor working conditions to buyer procurement practices in an industry characterized by strong power asymmetries. Based on data in the form of a survey of workers and managers conducted in Cambodian garment factories, the question of whether procurement practices have an impact on working conditions is examined in a descriptive way and by means of statistical analyses. From the survey of the workers, a measure of different aspects of the working conditions is created and attributed to the procurement practices perceived by the factory managers as problematic. Although the data are limited, the results suggest that several procurement practices are worsening working conditions: Uncertain orders, changes in the scope of orders, urgent orders and, in particular, changes in technical requirements after the start of production.

WaterAid "Boosting business: why investing in water, sanitation and hygiene pays of" (PDF): The study shows that companies involved in water supply, sanitation and hygiene (WASH) invest their employees, enliven their business. Productivity, punctuality, health, work ethic and loyalty improve, absenteeism and staff turnover decrease - and ultimately increase company profits through higher productivity. The new data were collected over a period of two years in six workplaces in India and Bangladesh, among others in the apparel and leather industry. In Indian tanneries, absenteeism decreased by 29%, punctuality increased by 6%, productivity increased by 2%. In sewing plants in Bangladesh, product quality was increased by 35%, absenteeism fell by 15%, medical care costs fell by 19%.

News

Global cotton crisis: The world's major cotton supplying countries are affected by extreme weather conditions. Analysts fear that there will be major disruptions in the supply of the raw material in the coming days. The largest cotton-producing country, India, has been hit hard by heavy rainfall and pest infestations. China, Brazil and the US are also struggling with excessive heat and drought. According to Bloomberg Cotton production will fall by 28% in the US and 27% in Brazil. In Pakistan, an estimated 40-45% of the country's cotton crop has been devastated by storms. With nearly two-thirds of Pakistan's population submerged, the consequences of people and the destruction of their homes and livelihoods are catastrophic. It is feared that the global availability of cotton - and hence cotton prices - will become increasingly unpredictable due to changing global weather patterns linked to climate change.. However, Chinese cotton prices are currently developing in opposition to the world market. According to an analysis, the China cotton index (CCI) decreased by 31,10 % since February 2022, when prices peaked. After the US import ban in June of this year due to forced labour by the Uyghurs (see News Update of KW 2), prices fell by 24.13 %.

State of the economy: After a short period of relaxation, the Inflation back to almost 8%. Economists expect double-digit inflation rates in the coming months. The Global inflation tracker the Financial Times shows on a map the global national inflation developments (for comparison: India 6.7%, Bangladesh 7.5%, Pakistan 24.9%, Turkey 79.6%, Sri Lanka 66.7%, Myanmar 17.8%). Retail trade in Germany recovered in July. The recovery was driven by the Internet and mail order trade. The Trade in textiles, clothing, footwear and leather goods was able to stop the recent downward trend and recorded slight sales growth. However, the high energy costs have pushed the purchasing mood of the people in Germany to a record low. In September, it fell from the GfK identified Consumer climate index 5.6 points to minus 36.5 points as of the previous month. According to a survey of YouGov on behalf of the German Press Agency 51% of citizens buy less clothing and electrical appliances.

Countries of production

Economic situation in the producing countries: Inflation and energy scarcity also have a strong impact in the producing countries. In Bangladesh the subdued consumer sentiment in Europe leads to a sharp declines in orders (by June about 15% less). In the middle of the month they were Oil Prices Increased by More Than 50% in Just One Week, what to large protests led. The government also has an Plan published for a zonal weekly holiday for industrial facilities across the country to address energy shortages and ensure uninterrupted power supply. Manufacturers are afraid because of this. Losses in production and unsustainable delivery times. Many Textile workers can buy less nutritious food due to increased food prices. In addition, they can no longer send money to support their families as usual. In Vietnam The situation looks similar: As the number of orders decreases, the factories are forced to give workers alternate days off. It is expected that the Change in working hours will reduce salaries of employees by 10-20% in September and October. The Ministry of Commerce and the Association of Apparel Manufacturers Cambodia have Concerned about a decline in purchase orders from Western countries. Some companies are considering a temporary halt to production. In Pakistan This led to an interruption of gas supply. Closure of large-scale factories resulting in mass redundancies. In view of the severe shortage of fuel and the increase in prices throughout Myanmar say they Companies that they will soon cease their activities if availability does not improve.

Myanmar: FEMNET Reports on the situation of textile workers in MyanmarThey are still suffering greatly from the repression of the military. Surveillance in the factories is increasing and workers are being specifically intimidated and threatened. Cell phones are controlled, those who speak out against the military are arrested. FEMNETcontinues to support the position of the trade unions and calls on companies to stop placing orders. In addition, the EU The legitimacy of the trade agreement EBA check. In one Research brief (PDF) evaluates the ILO the impact of the military takeover on trade unions and civil society organisations and make recommendations to the international community on how to effectively support them.

Pakistan: In Pakistan, the annual monsoon period usually lasts from June to September. Since mid-June, the South Asian country with its approximately 220 million inhabitants has been affected by unusually heavy monsoon rains. . Natural disasters such as floods, droughts and landslides have increased in Pakistan in recent years. Experts blame climate change for this. Although the South Asian country emits less than one percent of the world's climate-damaging CO2 emissions, Pakistan is in eighth place among the countries most exposed to the effects of climate change, Prime Minister Shehbaz Sharif wrote on Tuesday evening. In the face of the devastating floods in Pakistan, which killed more than 1,000 people, Prime Minister Sharif has once again appealed to the international community. "In particular, developed countries should not extradite developing countries like Pakistan to climate change," he wrote on Twitter..