(qlmbusinessnews.com Thur, 17th Aug, 2023) London, UK —
H&M, one of the world's major fashion retailers, has launched an inquiry into 20 reported instances of labour abuse within garment factories in Myanmar, which serve as suppliers for the company. This move comes in the wake of Zara-owner Inditex's recent announcement that it is phasing out its purchases from the Southeast Asian nation.
A UK-based human rights advocacy group has tracked 156 cases of alleged worker abuse in Myanmar's garment factories between February 2022 and February 2023. This figure is a significant increase from the 56 cases reported in the preceding year, indicating a concerning decline in workers' rights since the military coup in February 2021.
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Among the reported allegations, wage reduction and wage theft were the most commonly cited, followed by unjust dismissals, inhumane work conditions, and instances of forced overtime. These findings were detailed in a report by the Business and Human Rights Resource Centre (BHRRC), a non-governmental organisation dedicated to addressing such issues.
H&M has issued a statement affirming their commitment to addressing all the cases highlighted in the BHRRC report. The company's local team is working in tandem with relevant stakeholders to follow up on these cases and implement remedial actions where necessary. Expressing their deep concern about the evolving situation in Myanmar, H&M acknowledges the mounting challenges in maintaining operations aligned with their standards and requirements.
The BHRRC has been actively tracking allegations of workers' rights abuses within Myanmar's garment factories since the rise of the military junta, which has precipitated a political and humanitarian crisis. The organisation's tracker encompasses reported abuse incidents across 124 separate factories.
The BHRRC conducts its tracking using sources that include union leaders, international media, and local outlets like Myanmar Labour News. They validate these reports by consulting with brands and conducting interviews with workers. These findings have not been independently verified by Reuters.
The report reveals that over the past two years, there were 21 alleged abuse cases linked to Inditex suppliers and 20 linked to H&M suppliers. Inditex has chosen not to comment on the report.
A spokesperson for Myanmar's military government did not respond to a request for comment on the findings, while the Myanmar Garment Manufacturing Association also did not provide a comment.
Addressing Industry Shifts
Inditex's decision to sever ties with Myanmar suppliers followed the footsteps of Primark and Marks & Spencer (M&S), both of which announced their exit plans last year. This trend has raised concerns about the potential negative impact on garment workers.
Spanish fashion retailer Tendam has also expressed intentions to halt sourcing from Myanmar, as indicated in its response to a BHRRC survey of brands released alongside the report.
While Tendam plans to leave the country, the specifics of its decision have not yet been disclosed. The retailer did not respond immediately to a request for further comment.
Primark, on the other hand, expects its final orders from Myanmar suppliers to be fulfilled by the end of this year. Concurrently, the company has expanded its on-ground presence to facilitate a smooth transition. In their email response on Wednesday, Primark outlined how they have increased the size of their Ethical Trade team to enhance their oversight of the factories they continue to work with.
Several brands that persist in sourcing from Myanmar have amplified their monitoring efforts of suppliers. For instance, Danish fashion company Bestseller has expanded its Myanmar office staff from three to 11 since the coup.
H&M, Bestseller, and Tendam are among the 18 brands participating in the European Union-funded MADE project. This initiative aims to enhance labour conditions within Myanmar's garment factories.
The European Union's perspective is that companies should continue sourcing from Myanmar, given the significance of the garment industry as a major employer. The country boasts over 500 factories producing clothes and shoes for prominent brands.
Karina Ufert, CEO at the European Chamber of Commerce in Myanmar, stressed the importance of engaging with local labour rights groups and trade unions on matters of wages and labour conditions to wield influence. Ufert notes that leaving the country could diminish the ability to shape local conditions.
Vicky Bowman, former British ambassador to Myanmar and director of the Myanmar Centre for Responsible Business, contends that the international brands under pressure to cease procurement from Myanmar are the ones most likely to offer stable jobs and adopt additional measures to prevent rights abuses.
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Bowman warns that if these brands were to leave, jobs could vanish, or factories might resort to seeking orders from buying agents solely focused on cost-effectiveness and less concerned about factory conditions.
In responses to the BHRRC survey, some of the world's largest apparel brands outlined their strategies for navigating this complex situation. Sportswear giant Adidas expressed its belief in continuing business in Myanmar while adhering to human rights and labour rights standards. Next, a prominent UK fashion retailer, discussed the consideration of withdrawal from Myanmar, noting the potential damage to local communities and workers due to the absence of investment and wages.
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