28.07.2021: News from KW 29

Studies and Co.

Clean clothes campaign "Still Un(der)paid - How the Garment Industry failed to pay its Workers during the Pandemic" (PDF file): Over 10 billion euros in unpaid wages and severance payments owed by international fashion companies to textile workers: In August 2020, the CCC estimated the amount of lost wages for textile workers at around 2.7 – 4.9 billion euros (3.2 – .8 billion US$). The new report builds on the study ‘Un(der)paid in the Pandemic’ at the time and now puts the loss of revenue for the period March 2020 to March 2021 at over €10 billion ($11.85 billion). About 1.6 million textile workers from Bangladesh, Cambodia, India, Indonesia, Sri Lanka, Myanmar and Pakistan lost their jobs. Two groups of workers in particular face a particularly high risk of losing their jobs and income: Trade union members and informally or temporarily employed workers who often do not have access to social health and safety regulations.

Fair wear & SANEM "The Impact of the COVID Pandemic on the Cost of Production and Orders in Bangladesh" (PDF file) and Fair Wear and Karmojibi Nari "The Impact of COVID Pandemic
on the Garment Workers in Bangladesh
" (PDF file): In the two studies, fundamental problems in the clothing industry research that has come to the surface as a result of the pandemic. For this purpose, the SANEM (South Asian Network on Economic Modelling) Interviews conducted with 54 factories in the four production centers: Dhaka, Gazipur, Narayanganj and Chittagong. Karmojibi Nari - a women-led, non-profit organization - examined the impact of the pandemic on garment workers by means of a questionnaire survey (500 workers). The workers reported arbitrary methods of dismissing workers and violations of notice periods. The fact that the producers were forced to meet buyers' demands for price reductions or to accept abrupt cancellations and late payments for orders already delivered illustrates the power imbalance between the brand and the factory and the lack of assertiveness of the producers in negotiating fairer terms and conditions.

Asia Floor Wage Alliance "Joint Employer Liability Legal Strategy - Holding Global Apparel Brands Legally Liable for Labour Rights Violations in their Supply Chains in Asia": In addition to the report "Money Hei$t - COVID-19 Wage Theft in Global Garment Supply Chains" (see News Update KW 27 - Studien Special) published the Asia Floor Wage Alliance a briefing on the legal framework for joint liability of clothing companies and factories. The Asia Floor Wage Alliance want to use legal remedies to argue that global clothing brands should be considered as joint employers together with their suppliers under national laws and should be held accountable for wage violations during the Covid-19 pandemic. The Guardian Reports on two complaints already filed in India and Sri Lanka against H&M, Levi Strauss and Tommy Hilfiger (among others).

News

wages: Public eye quantifies the wage theft of selected Cambodian suppliers compared to the profits of the fashion companies. Among other things, the companies were examined Adidas (estimated wage theft: $11.7 million/earnings after tax: $650 million), H&M ($6.5 million/$123 million), Puma ($5.9 million) and C&A (5,1/not public). In total, fashion companies owe Cambodian textile workers $109 million for April and May 2021. More information can also be found in the report "Breaking Point - Wage theft, violence and excessive workloads are pushing garment workers to breaking point during pandemic" the Clean clothes campaign (see News Update KW 27 - Studies Special). 

factory Jaba Gamindo: In the 12-minute documentary "How to Steal Your Workers' Future", from the Clean clothes campaignTwo women talk on camera for the first time about their experiences after being fired from the factories they once depended on. The film gives an insight into the harsh reality of severance theft and shows what it really means when big brands turn their backs on their workers. In addition, the case of Jaba Garmindo, an Indonesian clothing factory which, among other things, Uniqlo and s.Oliver produced and went bankrupt in 2015, illuminated. Since then, 2,000 former employees of Jaba Garmindo have been battling for the $5.5 million in compensation they are legally entitled to. The film will be released one week after the Fair Labor Association (FLA) published the results of their 18-month investigation into the Jaba Garmindo case and the responsibility of two of their member brands, Uniqlo and s.Oliver, who were both buyers of the factory. The Clean Clothes Campaign welcomes the report's recommendation that brands should provide financial support to former Jaba Garmindo workers (see News Update KW 28).

Purchasing practices: A group of multi-stakeholder initiatives (MSI) has launched the "Common Framework for Responsible Purchasing Practices" is launched. It integrates existing frameworks and documents from MSIs and NGOs on responsible purchasing practices and builds on five principles: Responsible Purchasing Practices are integrated into the commercial and other relevant departments of a company, purchasing companies and their suppliers respect each other as equal business partners, critical path and production planning is carried out in cooperation between the purchasing companies and the suppliers, purchasing companies and suppliers agree on fair and transparent payment terms, the calculation levels and procedures of the purchasing company support wage increases and sustainable production. Involved are, among others, the Ethical trading initiative, this Better Buying Institute and Fair wear. Also this Covenant of Textiles will be involved in further elaboration and implementation. The Clean clothes campaign and other human and labour rights organisations are simultaneously calling on the European Commission to develop legal measures against unfair purchasing practices.

Countries of production

Bangladesh: This Department of Inspection for Factories and Establishment (DIFE) has examined 300 selected clothing, plastics and chemical factories. The investigation has shown that the examined In most cases, factories fail to comply with 60 percent of fire risk minimization regulations. In the industrial city of Narayanganj, 127 fires were counted in 2020, in which 105 people lost their lives. 33 exporting textile factories and 13 textile factories for the domestic market were affected. Recently, a fire in a food factory in the city Media reportsMore than 50 people died. The fire brigade from the region complains that 90% of the factories do not have suitable extinguishing equipment.    

Cambodia: The government has proposed keeping night shift wages in the apparel and footwear industry at 130 percent of regular wages It rejects a recent proposal to reduce the wage for the night shift to the same amount as for the day shift. The Chairman of the Cambodian Apparel Workers' Democratic Union, Ath Thorn, but criticises the fact that the amendment of some other articles of the current labour law could have a negative impact on the interests of workers, as the government is more likely to attract investors. He is also concerned that some employers are not implementing the requirements correctly.

Vietnam: On 13 July The Ho Chi Minh City authorities explained that companies that can provide accommodation and food to workers on their premises or transport workers between production facilities and accommodation in other places, such as dormitories and hotels, can work normally, while all other factories must close from 15 July. Many factory owners complained that the time was not enough to make the appropriate arrangements.

India: The Karnataka Garment Workers Union (KOOGU) reported, that the increasing pressure in the factories after the lockdown leads to increased serious accidents at work (including amputations). According to the union, the reasons for the accumulation of accidents include unrealistic production targets and insufficiently trained workers.

Myanmar: FEMNET reports on the current situation of textile workers in Myanmar: The military coup that took place at the beginning of February has severe consequences for the textile workers in Myanmar. Many workers have lost their jobs, trade unionists are persecuted and have to go into hiding. Since June, the number of coronavirus cases has also increased, making the situation of people fighting for democracy in their country more difficult. The military is using the pandemic as a weapon against the people and making access to medical care more difficult. The Industrial Workers’ Federation of Myanmar (IWFM) is calling on companies to stop placing orders in Myanmar.