News - #SolidarityWorks! © Taslima Akter 02 February 2021 Joint Front Against Exploitative Purchasing Practices - New Asian Initiative Develops Guidelines for Businesses Textile manufacturers' associations from six Asian countries have launched a joint initiative to strengthen their negotiating position for better purchasing practices vis-à-vis Western fashion brands. Because they face the same challenges - cancelled orders, arrears and discounts during the corona pandemic threaten the entire textile industry and thus lead to wage cuts and lost wages for the seamstresses. "When it comes to procurement, we are competitors, but we can set common guidelines that all buyers have to follow," says Miran Ali, spokesperson for the new initiative of the inter-Asian network STAR. Founded in 2016, the association represents nine associations in six nations, including the world’s largest textile producers – China, Bangladesh and Vietnam, as well as Pakistan, Myanmar and Cambodia. In addition to a discussion platform, the network serves, according to Ali, above all to build trust among Asian producers: “Normally, these countries do not cooperate or cooperate at any level. The fact that the textile and clothing industry is so important for each of our economies was the reason for the merger.” Together, Miran Ali estimates, the network represents around 60% of manufacturers of all global apparel exports. A market power that wants to use the new initiative to enforce ethical guidelines for textile purchasing. “For example, when a company negotiates directly with a factory in Bangladesh, it is never a fair dialogue. The influence and power of companies is extremely high. If you request: jump, the factory can only ask: How high?” explains Ali. “However, if we raise this discussion at association level, we can very well demand compliance with certain standards. Of course, this is only possible up to a certain point, otherwise the company will move to another country.” And this is where the guidelines of the new initiative should start. It is necessary to formulate ‘red lines’ for companies’ purchasing practices. The aim is for all associations to commit themselves to these guidelines in order to strengthen their own position, but also that of the entire Asian manufacturers. In this way, the bargaining power of the producers for better standards can be increased, which ultimately benefits the employees. Because if the same guidelines apply in all countries, it is not worthwhile for companies to relocate their production, as they would have to deal with similar demands at other locations. At least that's the hope of the initiative. In view of the fact that the interests of more than half of the global exporting producers are represented here, a very promising prospect. The guidelines are to be developed this spring by the representatives of the manufacturers' associations. Nevertheless, these are not legally binding for companies. The initiative can therefore only succeed if the associations themselves adhere to the requirements and do not give in to the pressure of the companies. A close cooperation of the network is necessary, but possible. Miran Ali is spokesperson for the STAR network's new initiative and managing director of the participating BGMEA (Bangladesh Garment Manufacturers and Exporters Association), based in Dhaka Bangladesh. FEMNET conducted the interview with Miran Ali on 29.01.2021.
