H&M probes alleged Myanmar factory abuses as pressure intensifies
LONDON –
H&M is investigating 20 alleged situations of labour abuse at Myanmar garment factories that provide the world’s second-largest style retailer, it instructed Reuters, simply weeks after prime rival Zara-owner Inditex stated it was phasing out purchases from the Southeast Asian nation.
A British-based human rights advocacy group tracked 156 instances of alleged employee abuse in Myanmar garment factories from February 2022 to February 2023, up from 56 within the earlier yr, indicating a deterioration of staff’ rights since a army coup in February 2021.
Wage discount and wage theft had been essentially the most ceaselessly reported allegations, adopted by unfair dismissal, inhumane work charges, and compelled additional time, in response to a report by the non-governmental group, the Business and Human Rights Resource Centre (BHRRC).
“All the cases raised in the report by BHRRC are being followed up and where needed remediated through our local team on the ground and in close cooperation with relevant stakeholders,” H&M stated in an announcement.
“We are deeply concerned by the latest developments in Myanmar, and we see increased challenges to conduct our operations according to our standards and requirements,” the Swedish retailer stated.
The BHRRC has tracked allegations of staff’ rights abuses in Myanmar garment factories because the army junta took energy, plunging the nation into political and humanitarian crises. The tracker consists of abuse instances at 124 separate factories.
The BHRRC stated it tracks instances of alleged abuses by way of sources together with union leaders, worldwide media, and native media resembling Myanmar Labour News, and seeks to confirm experiences by checking with manufacturers and interviewing staff. Reuters has not independently verified its findings.
There have been 21 instances of alleged abuses linked to Inditex suppliers over the two-year interval, and 20 linked to H&M suppliers, in response to the report. Inditex declined to touch upon the report.
A spokesperson for Myanmar’s army authorities didn’t reply to a request for touch upon the findings. The Myanmar Garment Manufacturing Association didn’t reply to a request for remark.
MADE IN MYANMAR
The choice by Inditex to chop ties with Myanmar suppliers got here after Primark and Marks & Spencer introduced plans to exit final yr, in a development that some say may finally depart garment staff worse off.
Spanish style retailer Tendam additionally plans to cease sourcing from Myanmar, it stated in its response to a BHRRC survey of manufacturers revealed alongside the report.
“We do have a plan to leave the country but has not been announced yet,” Tendam wrote, with out detailing its causes. Tendam didn’t instantly reply to a request for remark.
Primark instructed Reuters it expects its last orders from Myanmar suppliers to ship earlier than the top of this yr, however has additionally elevated its presence on the bottom.
“As we work towards our exit, we’ve doubled the size of our Ethical Trade team on the ground, enabling us to more regularly visit the factories we still work with and giving us greater visibility,” Primark stated in an e-mail on Wednesday.
Some manufacturers persevering with to supply from Myanmar have additionally ramped up monitoring of suppliers.
Danish style firm Bestseller elevated its variety of employees in its Myanmar workplace from three to 11 because the coup, it stated in its survey response.
H&M, Bestseller and Tendam are amongst 18 manufacturers forming a part of the European Union-funded MADE challenge geared toward bettering labour situations in Myanmar’s garment factories.
The EU’s stance is that corporations ought to proceed sourcing from Myanmar, the place the garment trade is a key employer, with greater than 500 factories producing garments and sneakers for large manufacturers.
“By engaging as a company in discussions with local labour rights groups and trade unions on wages and labour conditions you can have leverage,” stated Karina Ufert, CEO on the European Chamber of Commerce in Myanmar. “By leaving the country, it is difficult to see how you can have an influence on local conditions.”
Vicky Bowman, former British ambassador to Myanmar and director of the Myanmar Centre for Responsible Business, stated the worldwide manufacturers below stress to cease shopping for from Myanmar had been additionally the most probably to offer secure jobs and take extra steps to protect towards rights abuses.
“If they leave, either the jobs disappear entirely, or factories scrabble to receive orders from footloose buying agents who care only about cheap labour and do not worry about factory conditions,” Bowman instructed Reuters.
In the BHRRC survey, a number of the world’s largest attire manufacturers detailed their strategy to the dilemma.
In its response, sportswear large Adidas wrote: “Despite the human rights and labour rights risks which have been identified, we believe that through enhanced human rights due diligence measures, we can continue to do business in Myanmar in a responsible manner and in alignment with core ILO (International Labour Organization) conventions, the UN Guiding Principles, and the OECD Guidelines.”
Britain’s Next wrote that it had thought-about withdrawing from Myanmar, however “whilst it can send a clear signal to the local government that its policies and practices are unacceptable, it can do huge damage to local communities and workers, depriving them of desperately needed investment and wages.”
(Reporting by Helen Reid, Additional reporting by Corina Pons, Editing by Emelia Sithole-Matarise, Alexandra Hudson and Mark Potter)
