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20 April 2020 Textile factories stand still – how do companies react?

The coronavirus pandemic has severely affected the entire textile industry, both here and in the producing countries. Many companies cancel orders, no longer accept ordered goods or trade discounts. Others try to agree with their producers on burden sharing.

In Germany, all clothing stores are currently closed, manufacturers and retailers without online sales are particularly bad. Strongly affected by the closures are in particular the fast fashion chains, which change their assortment every 4-6 weeks and buy huge quantities. Now they remain on the spring collection, which probably can no longer be fully sold when the shops reopen. Discount battles are to be presumed.

Corona’s beneficiaries are, on the one hand, food retailers, in particular discounters, and, on the other hand, online retailers Amazon and Zalando – although their food trade is minimal. Their sales are booming, so they are hiring new employees. In the US, Amazon wants to hire 100,000 temporary workers, and together with the permanent employees, Amazon then employs 1 million people worldwide. If coronavirus cases are detected, the work in the department is not stopped, but simply new temporary workers are hired, as an article in Le Monde Diplomatique from April 2020 shows.

Impact of Corona on Employees in India & Bangladesh

However, the coronavirus affects workers in the supply chain the most. They are not absorbed by measures of the government or the companies, short-time work allowance is not known there. Due to the effects of Covid-19, markets are collapsing and textile production is succumbing. Factories stand still, fashion brands cancel ongoing orders and no longer issue new ones. This is because: The buyers no longer have their own storage capacity, especially Fast Fashion serves the immediate sale of the goods. The burden is shifted to the producers. Employees, mostly women, are the worst hit. They don't just lose their livelihoods for their families. The curfews bring families together in a confined space, leading to increased domestic violence.

• With the outbreak of the corona crisis, the Indian government of Tamil Nadu imposed a curfew. Suddenly there were no more trains or intercity buses. Thousands of migrant workers are stuck, without jobs and without basic services.
  >> The Situation of Migrant Workers in Tamil Nadu during the Corana Pandemic
• In India's Bangalore production centre, workers fear for their livelihoods. Even in the slums, where many of them live, they will not be able to keep their modest shelters without wage payments.
  >> Importance of the COVID-19 pandemic for textile workers in Bangalore
• In Bangladesh, factory owners quit their employees and often don't even pay their wages for March anymore. There were street protests.
  >> Impact of the corona crisis on textile workers in Bangladesh

How the Alliance for Sustainable Textiles reacts

At the end of March, the Steering Committee of the Textile Alliance decided to suspend the current activities to a large extent, even with the consent of civil society representatives. The review process, which had just been revised, was postponed to April 2021. Project plans and alliance initiatives are to be pursued on a voluntary basis.

Measures to deal with the corona crisis in producing countries are under discussion, e.g. through recommendations for action on responsible purchasing practices. The website of the Textile Alliance regularly publishes Information on the situation in the producing countries. It is clearly stated that responsible purchasing practices include the need to pay for goods ordered and in production.

The representatives of civil society in the Textile Alliance have companies in a public communicationto show solidarity now and not to cancel orders.