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    Home»Fashion»Major high-street fashion brands reportedly undercut production costs.news
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    Major high-street fashion brands reportedly undercut production costs.news

    pleasevisitmywebsite_3kuhkbBy pleasevisitmywebsite_3kuhkbJanuary 8, 2023No Comments6 Mins Read
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    A Bangladeshi female garment worker wearing a mask using a sewing machine inside a factory

    H&M, Gap, Next, Primark and Zara have been named as brands that treat their suppliers unfairly.Image Credits: Shutterstock

    Major fashion brands sourcing garments from Bangladesh for the UK market reportedly undercut production costs, according to a large survey of 1,000 Bangladeshi manufacturers released today. .

    Most of the factories in Bangladesh that sell to 24 of the world’s largest retailers say they are paying the same prices almost two years after the start of the pandemic despite rising costs of raw materials. reporting.

    A number of high street fashion brands mentioned in the study “Impact of unfair practices of global clothing retailers on Bangladeshi suppliers during COVID-19” are buying from factories facing rising costs of raw materials. nearly 1 in 5 reported suffering. Bangladesh’s minimum wage, he pays £2.30 a day.

    A study conducted by the University of Aberdeen and the trade justice charity Transform Trade reported that a total of 90% of large high-street brands that buy from four or more factories were involved in unfair buying practices.

    More than 50% of suppliers report experiencing unfair purchasing practices such as cancellations, payment defaults, late payments, and discount requests, with ramifications such as forced overtime and harassment. I’m here. Larger brands that buy from many factories were more frequently involved in unfair purchasing practices than smaller brands, according to suppliers. reportedly involved in at least one of

    Bangladesh is the second largest garment exporter in the world, supplying millions of garments to the UK market.

    “Two years after the start of the pandemic, garment workers in Bangladesh are not being paid enough to live on, while a fifth of manufacturers struggle to pay the minimum wage. , Many fashion brands using Bangladeshi labor are making profits,” said project leader U Muhammad. Azizul Islam, Professor of Sustainability Accounting and Transparency at his School of Business, University of Aberdeen.

    “Soaring inflation rates around the world are likely to exacerbate this.”

    The study also found that post-lockdown garment factories employed only 75% of their former workers, suggesting that up to 900,000 workers may have lost their jobs.

    Soaring inflation rates around the world likely exacerbated this.”
    Project Leader, Muhammad Azizul Islam, Professor of Sustainability Accounting and Transparency

    Fiona Gooch, Senior Policy Advisor at Transform Trade, said: “When a retailer treats a supplier badly in violation of pre-arranged terms, it is the worker who suffers. Costs need to be reduced in the supply chain, and this is often passed on to the least empowered employees in the supply chain.Rehiring for poor wages and conditions, bullying, reports of unpaid overtime are predictable outcomes. We need a fashion watchdog to regulate UK clothing retailers, much like the existing supermarket watchdog.

    “ALDI and LIDL food buying practices are regulated in both the UK and European markets, but their clothing purchases are unregulated, continuing unethical behavior. We need fashion watchdogs to thwart unacceptable buying practices of clothing retailers who profit from large consumer markets, as well as existing protections for food suppliers. Suppliers can only provide good working conditions for their employees if they can plan ahead with confidence that they will earn as expected.”

    Nearly two-thirds of the factories reported receiving financial support from the Bangladesh government or Bangladeshi banks to survive.

    Of the brands in the report, 12 are members of the Ethical Trading Initiative, which aims to promote workers’ rights around the world.

    “Millions of fashion brands are siphoning wealth from the world’s poorest countries in the form of 21st-century neocolonialism,” says Pamela, director and collaborator of the Center for Global Development at the University of Aberdeen. Professor Abbott said. project. “Due to the unequal power dynamics between suppliers and buyers, the suppliers who reported illegal contract breaches in the investigation did not take legal action to recoup their losses.”

    The readymade garment industry accounts for 85% of Bangladesh’s export earnings, with more than 12 million Bangladeshis dependent on the sector.

    This research was funded by the University of Aberdeen through an award from the Scottish Funding Council under the Global Challenges Research Fund (GCRF).

    relevant content

    Impact_of_Global_Clothing_Retailers_Unfair_Practices_on_Bangladesh_Suppliers_During_COVID-19.pdf

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    Note to editors

    • The research team consists of Prof. Muhammad Azizul Islam, Prof. Pamela Abbott and Dr. Shamima Huck of the University of Aberdeen, and Fiona Gooch of Transform Trade.
    • Transform Trade is a trade justice charity that works with a network of workers, farmers and social entrepreneurs in South Asia and East Africa to fight for trade that puts people over profit. Its roots lie in the alternative trade movement in the North East of England. The charity’s focus areas are fashion, tea and agriculture. Transform Trade is a registered charity. number 1048752 www.transform-trade.org
    • This study covers the period from March 2020 to December 2021 and was funded by the University of Aberdeen through an award from the Scottish Funding Council under the Global Challenge Research Fund (GCRF).
    • A full copy of the report can be downloaded from the Related Content section above.
    • Table 1 – Shows the challenges related to buyer practices that suppliers reported they faced between March 2020 and December 2021, by factory size.
    • Table 4 – Shows the brands/retailers that factories reported in relation to the four challenges.
    • On July 13, 2022, the Fashion Supply Chain (Code and Arbitrators) parliamentary bill was introduced with the support of each political party. The bill proposes the establishment of a watchdog body to monitor fair buying between clothing retailers operating in the UK and their suppliers, regardless of where the suppliers are located. world.
    • The existing Groceries Code Adjudicator enforces statutory codes of conduct that prohibit certain unfair purchasing practices of food and grocery suppliers by large retailers, regardless of geographic location. I’m here.
    • In the EU, large food companies doing business in the EU must comply with the European Unfair Trade Practices Directive in their relationships with their smaller business partners, regardless of the geographical location of their suppliers. .
    • More than 16,000 people in the UK have called for #FashionWatchdog, with support from parliament, as growing awareness of unfair buying practices of fashion brands impacting suppliers, small brands, the environment and workers. More than 79,252 of her in the EU are petitioning the EU to end unfair trade practices as part of a series of measures to ensure a living wage for those who make our clothes.
    • The Fair Trade Advocacy Office launches a campaign to raise awareness of poor working conditions and calls on the EU to end abusive buying practices by clothing brands.

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    January 8, 2023



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