16.01.2023: News Update KW 2

Studies and Co.

WWF & Open supply hub "Avant-Garde: The Water Risks and Opportunities Facing Apparel and Textiles Clusters" (PDF): The report leverages the power of "Big Data" by targeting nearly 100,000 data points of the Open supply hub It brings them together with datasets of dozens of water risk indicators covering over 60,000 global catchments. Some clusters are particularly densely populated (e.g. Dhaka), which puts them at greater risk but also gives them a greater chance of working together. While the industry often focuses on water scarcity and efficiency, flood risks and water quality are by and large the most important risks the industry needs to prioritize. With increasing climate instability, the industry needs to empower its suppliers to improve their resilience to avoid supply chain disruptions that are likely to occur - as the recent floods in India and Pakistan have shown. Given the dual challenge of flood risk and water quality risk, concentrating on the protection, management and restoration of wetlands provides a logical path for industry, as they not only help to contain flooding, but also purify water and can help combat water scarcity (Part 1 of the series: "Eau Courant: Water Stewardship in Apparel and Textiles" (PDF)).

Changing Markets Foundation "Synthetics Anonymous 2.0 - Fashion’s persistent plastic problem" (PDF): The report reveals the lack of progress the fashion industry has made in tackling its reliance on synthetic fibers. One year after "Synthetics Anonymous: Fashion Brands' addiction to fossil fuels" (PDF) (News Update of KW 27 2022The follow-up report assesses where global apparel companies stand in reducing reliance on synthetic fibres and their transparency in use. 55 brands were addressed with questions on various topics, including the use of synthetic fibres, the use of recycled fibres, the obligation to phase out the use of synthetic fibres, the disposal of synthetic fibres & release of microfibers, the climate targets and the position of companies on the legislation proposed in the EU Textile Strategy. Analysis of the questionnaire responses shows that the fashion industry's reliance on synthetic fibers has not changed significantly over the past five years. In the midst of an accelerating climate crisis, one in four of the largest fashion companies is increasingly dependent on materials derived from fossil fuels such as oil and coal. Thus, for example, refer to. Adidas, H&M and C&A From the Chinese Hengli GroupShe has invested in a $20 billion project to make 25 polyesters from coal by the end of '25. On the positive side, fashion brands strongly support several of the policy elements proposed in the EU Textile Strategy. The European Commission must promote the implementation of these legislative solutions in order to reduce the negative environmental impact of the fashion industry (summary (PDF)).

Better buying "Win-win partnership: How suppliers are investing savings when buyers accept recently completed audits - Highlights from the Better Buying Purchasing Practices Index": According to the study, workers benefit when global brands and retailers accept standardized audits of apparel factories. This means that buyers do not carry out their own audits, but accept recently completed audits and evaluations, e.g. from the Social & Labor Convergence (SLCP), a non-profit multi-stakeholder initiative that provides tools and the system for a high-quality, comparable dataset on working conditions that can be used by all stakeholders in the industry. This should increase transparency in supply chains, reduce the need for social audits and allow users to invest their resources in improving working conditions. Suppliers who are on Better Buying Purchasing Practices IndexTM 2022 Participants were asked whether their buyer accepted standardized audits instead of buyer-specific audits or evaluations. 63.8% said so, with just over one-fifth (22.5%) stating that their purchaser Converged assessment framework (CAF) the SLCP accepted. These suppliers reported a number of benefits arising from the acceptance of the CAF by its purchaser, including: More clarity on corrective actions (63.7%), less time spent on audit staff (58%) and savings on audit costs (46.7%). Of the suppliers who stated that, as a result of the acceptance of the CAF By saving money through their buyers, most (66.7%) estimated that they saved up to $5,000 per year, with 4.3% reporting savings of more than $20,000. When asked how they invested these savings, 36.7% said they invested in the workplace, 35.3% offered their employees new programs, and 7.7% paid higher wages.

News

Supply Chain Act: Since 1 January, the Supply Chain Act has been in force in Germany and obliges companies with more than 3,000 employees to take responsibility for working conditions in their supply chains. The Supply Chain Act initiative The law is a milestone., but criticises, among other things, the lack of a civil liability rule. Heike Drillisch, Coordinator of the CorA-Network for corporate responsibility, demands from Federal Office of Economics and Export Control (BAFA) effective implementation of the law in close cooperation with civil society and stakeholders. Also standard-setting organisations such as: Fairtrade and FairWear Welcome the new law and respond to the criticism of civil society (PDF) that multi-stakeholder initiatives and certifications can lead to problematic greenwashing if they alone serve as proof of a company's due diligence: ‘Although ambitioned and trustworthy standard and certification schemes can make an important contribution to the fulfilment of corporate due diligence obligations and should be included as an element in the implementation, they cannot, in principle or on a blanket basis, relieve companies of their responsibility to implement full due diligence obligations or fulfil them on their behalf.’ demanded the CDU/CSU- Group calls on the Federal Government to postpone the start of the Supply Chain Due Diligence Act until 1 January 2025to avoid further burdening companies in the current crisis. Business representatives criticize, among other things, the extensive questionnaire of the BAFAs We are calling for a simplification of the law.

Pakistan ACCORD: 10 years after the devastating fire in the factory Ali Enterprises in Karachi became the International ACCORD Announced for Pakistan. This agreements Oriented to Bangladesh ACCORDIn response to the collapse of the textile factory Rana Plaza It was signed in 2013. It provides for essential mechanisms to improve safety standards in factories that are legally binding on the signatory brands. Trade unions and NGOs celebrate the announcement of the agreement as a great success. The decision to extend the Agreement to Pakistan was taken during a meeting of the Signatories' Trademark Committee on 14 June. December 2022 announced. The 188 Trademarks of the International ACCORD will receive an information package on the Pakistan Agreement and will be invited to sign from 16 January 2023. Textile alliance companies Kik had already announced his support before the decision and appealed to all parties to clear the way quickly.

ILO 190: On 21.12.22 The Federal Government has ratified the ILO Convention 190 on the elimination of harassment and violence in the world of work. On 21 June 2019, the Convention was adopted by the ILO Adopted after years of negotiations; Since then, civil society and trade unions have been pushing for ratification. Also Companies of the Textile Alliance In a letter to Hubertus Heil and Svenja Schulze The Federal Government has requested that the ILO Convention 190 to sign. With the Convention and Recommendation 206, there is for the first time an international convention that creates clear guidelines for the world of work in the fight against violence and harassment in the workplace. With the start of the ratification process, Germany is sending an important signal for good working conditions and gender equality worldwide and creating a clear framework for action to end discrimination and violence in the workplace.

Countries of production

General update: The decline in demand continues to lead to factories being closed and workers being laid off in many countries. In Sabhar, Bangladesh were Thousands of workers informed by announcements at the gates about the closure of the factories indefinitely. Deputies of the factory cited a decline in orders and a lack of raw materials as reasons. The factory group had already suspended wage payments during the corona crisis. In Surat, India have 15 Textile dyeing and printing plants pause production due to high costs and scarce supply of coal. In Cebu, Philippines have been approximately 4,000 employees dismissed due to lack of contracts. This Business and Human Rights Resource Centre requested the relevant trade marks (e.g. Adidas) to provide information: (1) there is a recent or planned change in the volume of the contract; and (2) how they work with suppliers to ensure appropriate social dialogue and consultation. All in all, in the Philippines More than 9,400 workers (3.5% of textile workers in total) have already been laid off or sent on special leave. The Executive Director of the Confederation of Wearable Exporters of the Philippines (CONWEP) The number could rise to 8-10% if global demand continues to fall. In the Turkey About 20,000 people have lost their jobs in the textile industry since August. The Chairman of the VTurkish Clothing Manufacturers (TGSD) suspected In the future, production will fall by 20-30%, meaning that around 130,000 people could lose their jobs.. In Vietnam are the Orders decreased 30-40% year-on-year from the United States and 60% from Europe. In the last four months of the year, the working hours of more than 470,000 workers have been cut, while about 40,000 people have lost their jobs - 30,000 of them women aged 35 years or older. In a video of AFP A lay-off clothing worker declares that her current Situation worse than during the COVID-19 crisis be.

Thailand: In the factory VK Garment On the border with Myanmar, hundreds of Burmese workers provided jeans for Tesco here. They report from Exploitation conditions with 99-hour weeks, a day off a month and illegally low wages. In August 2020, 136 workers lost their jobs after demanding a minimum wage. Others report child labor and that during audits they were afraid of losing their job if they told the truth. More than a dozen workers reported that the factory took control of their bank accounts, changed their passwords, and paid them out in cash, leaving a false mark indicating a minimum wage. In October 2020, about 130 employees filed a complaint with the Thai Occupational Safety and Health Authority. They demanded unpaid wages, overtime pay, holiday pay and compensation for weekly rest days. However, the authority ordered only the payment of severance payments and termination allowances; So far nothing has been paid. The apparel workers are now suing the company in the UK court. The lawsuit is also directed against the audit firm. Intertek. According to the lawyers, this is the first time that a social auditor has been involved in such a legal dispute. Among the plaintiffs there is also a Girl who was raped at the Fabik's accommodation when her mother worked late at night. The Thai police began interrogating more than 100 former factory workers at the end of Decemberto find out if they were victims of forced labour. In retrospect, it turned out that this was only a "sham examination" and the police refused to include the workers' statements in writing and later reported that no laws had been violated. In another article, the General situation in factories in the border region Mae Sot described: Almost all clothing factories here rely on the influx of cheap Burmese workers fleeing war and economic hardship. Their hard work, willingness to accept wages well below the Thai minimum wage, and lack of legal rights make them attractive workers for factories trying to cut their costs.