21.10.2022: News from KW 42

Studies and Co.

INKOTA and SOMO "Spotlight on leather: An analysis of 100 companies on supply chain transparency" (PDF): The report analyzes the practice of transparency of 100 companies selling leather goods - jackets, shoes, belts, gloves, bags (List of 100 companies here). The conclusion: People who want to buy sustainable products made of leather are left in the dark about the origin of the products. There is no information on the observance of human rights or the handling of substances hazardous to health. Less than a third of the companies surveyed publish a list of suppliers. Only seven companies provide information on social audits, not a single one on wages or human rights. The supply chain transparency of the 100 selected companies is insufficient. Of the 29 supplier lists, twelve only contain information about first-level suppliers. The deeper supply chain remains in the dark and thus also the tanneries (English long version of SOMO) (PDF).

forced labour

KnowTheChain "Forced Labour Risks, Remedy and Changing Regulation" (PDF): The briefing presents the main findings of the data on 184 companies assessed in the 2020 and 2021 benchmarks with regard to the spread of forced labour in global supply chains across three high-risk sectors: ICT, Food & Beverage, Clothing & Shoes. Despite some progress, the risk of forced labour persists in these sectors and where forced labour is detected, the remedial measures identified remain limited. Only half of all companies assessed report carrying out a human rights risk assessment in their supply chains; two thirds of the companies assessed do not report that they have identified forced labour risks in their supply chains; out of 43 companies linked to allegations of forced labour in their supply chains, almost three quarters (72 %) could not prove that the workers concerned were compensated.

ILO, Walk free and the International Organization for Migration "Global Estimates of Modern Slavery Forced Labour and Forced Marriage" (PDF): According to recent global estimates, 50 million people lived in modern slavery in 2021. Of these, 28 million were imprisoned in forced labour and 22 million in forced marriage. Unfortunately, the number of people living in modern slavery has increased significantly in the last five years. In 2021, 10 million more people will live in modern slavery than in the 2016 global estimates. Women and children remain disproportionately at risk. Migrant workers are more than three times more likely to be affected by forced labour than adult workers without a migrant background.

News

Supply Chain Act: End of September demanded FDP-Vice bird a postponement of the supply chain law until at least 2024 (or until the entry into force of the EU Supply Chain Act) to relieve companies. The SPD Subsequently, he published an Press release, in which it was made clear that delaying the law was out of the question for them. After criticism birds, the competent authority, the BAFAIf there were not enough staff, countered this BAFA, the preparations were in full swing and on schedule. In one Interview with the Economic week The President of the BAFAs, Torsten SafarikIf anyone refuses to obey the law or chooses any excuses, we will crack down.

Follow-up forced labour: In the latest news update (KW 38), we reported on the published plans of the European Commission for a European ban on products made in forced labour. More than 70 civil society organisations and trade unions now call for a tightening of the proposal and identify the following key areas: Legal protection for workers, due diligence (companies must not hide behind codes of conduct, social audits and other contractual clauses), sanctions (besides a ban, there are no other possible sanctions, so products remain available during the long process of testing), systemic issues are ignored (but forced labour is often systemic), lack of transparency in supply chains.

State of the economy

Inflation and recession: In September, the Inflation rate in Germany to 10%. The Prices for clothing and shoes increased relatively moderately: They increased by 4.7% compared to the previous month. Leading Economic institutions expect a recession in Germany (Autumn report). As a result, GDP is expected to fall by 0.6% at the end of 2022. If there is a gas shortage, there is even a threat of a 7.9% economic slump. The rising Energy costs have a strong impact on energy-intensive supply chains in the clothing industry. The energy costs were noisy Carlo Capasa, Head of the Italian Fashion Association, formerly about 10% of the final product, but now at least 30%. However, clothing manufacturers often cannot pass on their increased energy costs to customers indefinitely. "As a medium-sized textile and fashion industry, we are very concerned about winter," he said. Uwe Mazura, General Manager of the German Textile and Fashion Industry Association. One Federal Government's economic defence shield The aim is to mitigate rising energy costs and the most serious consequences for consumers and businesses. The relief package is in the criticism, because above all well-earners benefit. Criticism also comes from the EUGerman companies would have advantages over competitors from other countries.

Consumer mood: The negative trend in consumer sentiment continues in October. This the Consumer Barometer German Trade Association (Handelsverband Deutschland) (HDE) goes back for the third month in a row and reaches an all-time low again (84.14 points). Consumer pessimism is expected to have a negative impact on private consumption in the coming months. E-commerce also suffers from poor consumer sentiment. Between June and September, e-commerce revenues of EUR 19.8 billion were 10.8% lower than in the previous year. However, the textile trade in Germany is doing good business at the moment despite the lower consumer mood with warm underwear, socks, hand and slippers as well as warm blankets, sweaters and jackets. In view of rising energy prices and high inflation, the HDE 60% of consumers are already shopping. For the coming months, 76% of those surveyed are gearing up to shop more sparingly. In the retail sector, it is particularly relevant in the field of fashion and clothing. Nearly three-quarters of respondents plan to make savings here. The Consumers' willingness to spend more on sustainable products than on comparable conventional consumer goods has fallen significantly over the course of the year. While on average 67% of respondents accepted additional costs for sustainability in 2021, this share has more than halved a year later and now stands at only 30%.

Countries of production

India:

1. In the report "Maximum exploitation" (PDF) examines the Rosa Luxemburg Foundation the fatal impact of the pandemic on the Indian apparel industry and the question of whether the easing of the coronavirus measures is accompanied by an aggravation of the labour and human rights situation in the Indian apparel industry and what counter-strategies are available to workers.

2. One 19-year-old clothing worker from Ludhiana She was raped by her colleague. She filed a complaint after the rapist posted pictures and videos on the internet after the crime. He's being searched for to arrest him.

Cambodia:

1. Since September '20, this ReFashion-Project conducted a longitudinal study to track and document the experiences of over 200 seamstresses in Cambodia during the pandemic. In the study "Building Forward Worse - How COVID-19 has accelerated the race to the bottom in the global garment industry" (PDF) will address the following questions: What are the risks of the COVID-19 pandemic for the livelihoods of garment workers and their families? How does formal and informal social protection contribute to the different risk and resilience experiences of workers during the crisis? What lessons can we learn for other low- and middle-income countries to strengthen social protection for garment workers worldwide? In an interview with the mirrors Author Lawreniuk talks about the implementation and results of the study.

2. Again and again it comes to Accidents of textile workers on their way to the factory (see News Update KW 27 from '22 and KW 38 from '21). Many Trucks transport too many workers and are driven by inexperienced drivers. Nike and the ILO That is why we have an Joint initiative to reduce injuries and deaths in road accidents among garment and footwear workers started. The new project aims to find out why textile workers are disproportionately affected by traffic accidents and offer tools to improve safety.