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24.06.2022: News from KW 25

Studies and Co.

IndustriALL Global Union "Investor brief: What is social protection and why should it matter to investors?" (PDF): IndustriALL and their allies are committed to a global and enforceable collective agreement between trade unions, buyers and suppliers on social security. The objective of IndustriALL is to reach an agreement with the brand manufacturers on the establishment of a bridging fund for the social protection of garment workers until the national social security systems in the garment exporting countries can be improved. Social protection is a crucial factor in making production in the textile and clothing supply chain more equitable and can also serve to mitigate risks for companies and investors.

Federal Ministry for Economic Affairs and Climate Protection "Human Rights and Corporate Due Diligence - Expert Opinion of the Scientific Advisory Board at the Federal Ministry for Economic Affairs and Climate Protection (BMWK)" (PDF): The Advisory Board sees the risk that companies could withdraw entirely from problematic supplier countries if compliance with due diligence obligations entails high costs. In order to counteract this risk, the Advisory Board makes proposals for the design of corporate due diligence obligations. In the opinion of the Advisory Council, preventive risk management should be avoided in countries where human and labour rights can be effectively enforced by the state and violations can be heard in independent courts. For countries whose legal system is less reliable, there should be positive and negative lists for companies based there. The Advisory Council also argues that it would be presumptuous for the EU to impose its standards and values on all other countries. Transparency about the production conditions abroad can be produced via fair trade, eco- and animal welfare seals. However, further SDGs should not be included in supply chain laws, according to the Council. The researchers also see a potential conflict between competition law and, among other things, the agreements between companies provided for in the Supply Chain Act to improve the enforcement of human rights. In order not to violate competition law, EU competition law must be amended. However, the recommendations of the Advisory Council largely ignore the content of the UN Guiding Principles on Business and Human Rights.

Public eye "Blackbox Online Modehandel - How responsible and transparent are Zalando, Shein & Co.?" (PDF): For the company check has Public eye Ten of the most well-known online retailers in Switzerland: About you, Alibaba, Amazon, Asos, Bonprix, Galaxus, La Redoute, Shein, Wish and Zalando. The main results: 6 out of 10, at least, do not provide any specific information on the manufacturers of their own brands in a transparent manner; no trading platform makes supply chain transparency for third-party brands a criterion for inclusion in its shops; Not found at any online retailer Public eye indications that only a part of the textile workers receive a living wage; only one company has published a vague obligation to secure subsistence wages (Asos).

News

H&M/Higg index: H&M The Norwegian Consumer Protection Agency (NCA) receive a warning. The The Authority does not want H&M Data from the Higg index used for marketing purposesIt says on the NCAwebsite. In a letter from NCA to H&M, published online, states that the use of the data can be considered ‘misleading’ and ‘infringement’ of national marketing laws. On September 1st, the NCA a further examination at H&M perform. If violations of marketing law regarding sustainability claims are detected, sanctions may follow, according to the authority. The use of data from the Sustainable Apparel Coalition (SAC) Higg Index for communication to consumers had been hailed by the SAC as a major step towards greater transparency.

Sustainability reporting in the EU: The trilogue negotiations between the European Commission, the Parliament and the Council with an agreement on the EU directive on corporate sustainability reporting (EU Corporate Sustainability Reporting Directive) completed: Sustainability reporting rules tightened by mandatory ESG standards. The reformed rules aim to address the major issues related to the quality, consistency and comparability of sustainability information disclosed by companies under existing EU legislation. The Alliance for Corporate Transparency welcomes the new requirements, but criticises inter alia the exclusion of small and medium-sized enterprises (SMEs) and the delayed implementation from 2024/25.

EU-trade: The European Commission presented a new plan to improve the contribution of EU trade agreements to the protection of the climate, the environment and workers' rights worldwide. If important labour and climate commitments are not met, sanctions will be resorted to. The EU also wants to promote compliance with international labour and environmental standards through technical and financial support. The new TSD (Trade and Sustainable Development) approach also includes the support and increased participation of civil society. They also want to make it easier for civil society and national advisory bodies (DAGs) to submit complaints about breaches of sustainability commitments.

ILO Core labour standards: The International Labour Conference takes Safety and health in the ILO-Core labour standards open. The groundbreaking decision means that all ILOoblige Member States to respect and promote the fundamental right to a safe and healthy working environment, whether or not they have ratified the relevant conventions. So far, there have been four categories of fundamental principles and rights at work: freedom of association and the effective recognition of the right to collective bargaining; the abolition of all forms of forced or compulsory labour, the abolition of child labour; Elimination of discrimination. The Conference's decision means that health and safety will become the fifth category.

Countries of production

Pakistan: Employees in the Pakistani province Sindh, an important center of clothing production, have won an important victory: The Minimum wage for unskilled workers increased by 40% from 17,500 Pakistani rupees (PKR) to 25,000 PKR (approximately 116 euros) per month It shall enter into force retroactively on 1 June. The wage increase was first announced by the Sindh provincial government on 9 July 2021, but the order was delayed due to objections from employers, fearing that they would not be able to cover the increased costs.

India: The Asia Floor Wage Alliance publishes an investigation report on: Infringements of labour rights in the Shahi-factory in Kuppam, Andhra Pradesh. In the case of: Shahi More than 113,000 workers work in 50 factories for brands such as H&M and Primark. In the interviews with the AFWA The workers complain about low wages, too high production targets, dirty toilets, accidents in the factory, insults (also box-related) and the suppression of trade union activities. In addition, they are prohibited from speaking to colleagues and denied the right to breaks. Nearly all women surveyed say they have had menstrual cramps since they Shahi work. Workers were also not allowed to report sick if they had side effects due to COVID-19 vaccinations.

Turkey: The new Country profile the Clean clothes campaign Revealed: The Minimum wage finances only a quarter of the basic cost of living. Despite increases in the statutory minimum wage of 51%, employees can only survive through constant debt restructuring and second jobs. A worker says, "Our wages cannot cover our monthly costs. The children have to go sewing during school holidays and on weekends. The ARTE DocumentaryToxic jeans" criticizes the use of chemicals and the lack of protective measures in the Turkish textile industry.

Thailand: 1,250 Thai apparel workers at the factory Brilliant Alliance After more than a year, they were able to achieve a victory and were granted the right to Additional wage payments totalling 7.7 million euros - on average a good 6,150 euros per person. The Enemies (Clover Group) from Hong Kong initially refused to pay severance payments after the factory was closed. After months of efforts, including Worker Rights Consortium and the Clean clothes campaign) declared Clover Ready to pay the employees. Victoria's Secret undertook to make payments through a loan to Clover to finance.