ANALYSIS-As fashion sales fall globally, big brands leave Asia's garment workers in limbo
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Coronavirus has driven Western retailers such as ASOS, Gap and Primark to pause or cancel orders, threatening an industry that employs about 60 million garment workers globally. LONDON/DHAKA/CHENNAI, April 30 (Thomson Reuters Foundation) - The livelihoods of millions of Asian garment workers are in jeopardy after cancellations by top fashion brands, with unions, researchers and campaigners warning coronavirus could lead to a rollback of labour rights in an industry often accused of abuse.
With stores globally closed and sales falling, many Western retailers have cancelled orders or demanded discounts from suppliers in countries including Cambodia and Bangladesh, leading to many workers going without pay or being fired.
An estimated 60 million garment workers could struggle to weather the crisis unless more brands take responsibility, according to several fashion industry insiders and watchers.
Heavyweights such as Adidas, H&M and Zara-owner Inditex have promised to pay in full for all orders, whether finished or still in production, said the Worker Rights Consortium (WRC), which analysed 27 of the world's leading fashion retailers.
Coronavirus: our latest stories
However the U.S.-based monitoring group found about half of them had made no such commitments to honour their contracts.
Several retailers including ASOS, C&A, Edinburgh Woollen Mill, Gap and Primark told the Thomson Reuters Foundation they had been compelled to pause or cancel some orders but were in contact with suppliers in a bid to mitigate the economic impact.
Yet manufacturers expressed frustration with the inability to negotiate with Western buyers which was causing job losses.
"As far as buyers are concerned, there has never been any real room for negotiations," said a major garment supplier in south India, who declined to be named to protect his business.
Several brands reversed some cancellations this month after public outcry but have not reinstated all orders, while others have asked for discounts, delayed payments or left suppliers in limbo, said WRC's assistant research director Penelope Kyritsis.
"Anything shy of committing to fulfil their full orders is irresponsible to suppliers," she said.
WRC previously estimated orders worth over $24 billion had been cancelled, but said this figure was now likely lower given some brands had backtracked. Garment orders are down nearly a third, the International Textile Manufacturers Federation said.
"Coronavirus, like the Rana Plaza disaster, has exposed how supply chains benefit businesses at the cost of suppliers, and, in turn, workers," Kyritsis told the Thomson Reuters Foundation.
The 2013 disaster in Bangladesh that killed 1,135 garment workers sparked global efforts to improve labour conditions and rights but experts are divided on the pace and scope of reforms.
Some industry watchers believe the attention generated by COVID-19 could provide fresh impetus to clean up supply chains but others fear the fallout may erode recent gains for workers.
REPUTATIONS AT RISK ...read the full text article following the link above
With stores globally closed and sales falling, many Western retailers have cancelled orders or demanded discounts from suppliers in countries including Cambodia and Bangladesh, leading to many workers going without pay or being fired.
An estimated 60 million garment workers could struggle to weather the crisis unless more brands take responsibility, according to several fashion industry insiders and watchers.
Heavyweights such as Adidas, H&M and Zara-owner Inditex have promised to pay in full for all orders, whether finished or still in production, said the Worker Rights Consortium (WRC), which analysed 27 of the world's leading fashion retailers.
Coronavirus: our latest stories
However the U.S.-based monitoring group found about half of them had made no such commitments to honour their contracts.
Several retailers including ASOS, C&A, Edinburgh Woollen Mill, Gap and Primark told the Thomson Reuters Foundation they had been compelled to pause or cancel some orders but were in contact with suppliers in a bid to mitigate the economic impact.
Yet manufacturers expressed frustration with the inability to negotiate with Western buyers which was causing job losses.
"As far as buyers are concerned, there has never been any real room for negotiations," said a major garment supplier in south India, who declined to be named to protect his business.
Several brands reversed some cancellations this month after public outcry but have not reinstated all orders, while others have asked for discounts, delayed payments or left suppliers in limbo, said WRC's assistant research director Penelope Kyritsis.
"Anything shy of committing to fulfil their full orders is irresponsible to suppliers," she said.
WRC previously estimated orders worth over $24 billion had been cancelled, but said this figure was now likely lower given some brands had backtracked. Garment orders are down nearly a third, the International Textile Manufacturers Federation said.
"Coronavirus, like the Rana Plaza disaster, has exposed how supply chains benefit businesses at the cost of suppliers, and, in turn, workers," Kyritsis told the Thomson Reuters Foundation.
The 2013 disaster in Bangladesh that killed 1,135 garment workers sparked global efforts to improve labour conditions and rights but experts are divided on the pace and scope of reforms.
Some industry watchers believe the attention generated by COVID-19 could provide fresh impetus to clean up supply chains but others fear the fallout may erode recent gains for workers.
REPUTATIONS AT RISK ...read the full text article following the link above
Keywords
fashion industry
environmental crisis
health impacts
textile fibres
economic analysis