H&M investigates Myanmar factory abuses as pressure builds up

H&M investigates Myanmar factory abuses as pressure builds up

Swedish quick style big H&M is investigating 20 alleged situations of labor abuse at Myanmar clothes factories that provide the world’s No. 2 retailer, it advised Reuters, simply weeks after main rival and proprietor of Zara, Inditex introduced it was discontinuing purchases from the Southeast Asian nation.

A British-based human rights advocacy group tracked 156 circumstances of alleged employee abuses in Myanmar garment factories from February 2022 to February 2023, up from 56 within the earlier 12 months, indicating a deterioration of staff’ rights since a navy coup in February 2021.

Wage discount and wage theft had been probably the most ceaselessly reported allegations, adopted by unfair dismissal, inhumane work charges, and compelled time beyond regulation, based on a report by the non-governmental group, the Business and Human Rights Resource Centre (BHRRC), seen by Reuters and is ready to be revealed on Wednesday.

“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 a press release.

“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 been monitoring allegations of staff’ rights abuses in garment factories because the navy junta took energy in Myanmar, plunging it right into a political and humanitarian disaster. The tracker contains abuse circumstances at 124 separate factories.

The BHRRC stated it tracks circumstances of alleged abuses by means of sources together with union leaders, worldwide media, and native media resembling Myanmar Labour News, and seeks to confirm studies by checking with manufacturers and interviewing staff. Reuters didn’t independently confirm its findings.

There have been 21 circumstances of alleged abuses linked to Inditex suppliers over the two-year interval, and 20 linked to H&M suppliers, based on the report. Inditex declined to touch upon the report.

A spokesperson for Myanmar’s navy 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

Spanish group Inditex was the newest model to say it could reduce ties with Myanmar suppliers, after Primark and Marks & Spencer final 12 months, in a pattern that some say may finally depart garment staff worse off.

Primark stated the choice to cease sourcing was “very difficult”. It expects its remaining orders from Myanmar suppliers to ship earlier than the top of this 12 months 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.

Other manufacturers persevering with to supply from Myanmar have additionally ramped up monitoring of suppliers by means of discipline workplaces within the nation enabling them to conduct their very own inspections as a substitute of counting on exterior audits.

Danish style firm Bestseller elevated its variety of employees on the bottom from three to 11 because the coup, the BHRRC present in a survey of manufacturers. Bestseller didn’t instantly reply to a request for remark.

H&M and Bestseller are amongst 18 manufacturers which can be a part of the European Union-funded MADE undertaking geared toward bettering labor situations in Myanmar’s garment factories.

The EU’s stance is that corporations ought to proceed sourcing clothes from Myanmar, the place the business is a key employer, with greater than 500 factories producing garments and sneakers for giant manufacturers.

“By engaging as a company in discussions with local labor rights groups and trade unions on wages and labor conditions you can have leverage,” stated Karina Ufert, CEO of 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 underneath strain to cease shopping for from Myanmar are additionally the most probably to supply steady 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 labor and do not worry about factory conditions,” Bowman advised Reuters.

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