In our ongoing commitment to providing insight into the evolving landscape of labor rights within the textile and garment industry, we offer updates on the latest developments and progress, with a particular focus on developments in Bangladesh. Among other intriguing topics, this edition focuses a larger part of its attention on the current situation in Bangladesh and attempts to understand the impact of the protests on the textile industry.
We hope you enjoy reading!
Your project team
ILO Report: Heat Stress Poses Growing Risks to Worker Safety and Health
The ILO's latest report examines the increasing dangers of heat stress in the workplace, highlighting its significant impact on worker safety and productivity.In Bangladesh, the impact of excessive heat at workplaces is higher than the global average. The report calls for urgent measures to protect workers, especially in high-risk industries, as global temperatures continue to rise.
Fashion Transparency Report: Major Brands Lag in Supply Chain Disclosure
Fashion Revolution's latest report highlights the growing demand for transparency in the fashion industry, revealing that most major brands still fall short in disclosing critical information about their supply chains and environmental impact. Among its key findings, the report includes indicators on Just Transition.
FH Dortmund Study: Sustainability in Sales Drives Profit and Retention, Lagging Companies Struggle (in German)
A study by researchers at FH Dortmund reveals that companies that proactively integrate sustainability into their sales strategies see significant financial and competitive advantages, while those lagging behind face challenges in employee retention and recruitment.
Now online: The Textile-Incidents-Website
As of today, our Textile Incidents website is online. It is a “test opening” as we want to test it for bugs and gaps until early September. We would therefore be happy if you could take a look and comment. Please send us your feedback to Diese E-Mail-Adresse ist vor Spambots geschützt! Zur Anzeige muss JavaScript eingeschaltet sein!.
Our new website documents incidents within the textile and garment sector in Bangladesh as well as other key production countries. It provides an argumentation basis for the need to enhance due diligence obligations. It is designed to be a valuable tool for risk analysis within the framework of the UN Guiding Principles on Business and Human Rights as well as the German Supply Chain Act.
In September, we plan to launch a wider promotional campaign of the website. Today we are sharing this news with you as recipients of this news update. Head over to textile-incidents.info.
Latest Incident: AFWA Exposes Severe Labor Exploitation at Chelsea Mills LLP in India
In July 2024, the Asia Floor Wage Alliance (AFWA) exposed severe labor rights violations at Chelsea Mills LLP in India. AFWA reported widespread abuse of workers, highlighting a workplace environment of exploitation, intimidation and disregard for basic workers' rights. Key issues included sexual harassment and gender-based violence against female workers, such as verbal abuse, threats and wrongful dismissal of those who resisted such advances.
Bangladesh Garment Industry Faces Crisis Amid Global Order Reductions
Bangladesh's garment industry is in crisis as global brands reduce orders by up to 40% and demand price cuts up to 20% due to the ongoing energy crisis. Additionally, European brands such as Hugo Boss and Intersport are shifting production from Asia to Europe in response to supply chain challenges and sustainability concerns. These dynamics have led to higher prices, factory closures and job losses, exacerbating existing labor rights issues in the industry.
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Disclaimer: Events have been unfolding rapidly. Initially, contact with our local partners BILS and ESDO was lost, but communication has since been reestablished. This is only a brief outline and rough contextual categorisation, with the further course of development remaining uncertain.
Bangladesh Protests Escalate, Threatening Garment Industry Stability
Bangladesh is currently grappling with severe unrest that began in mid-July 2024, triggered by student protests against a controversial job quota system. The initial demonstrations quickly escalated as Prime Minister Sheikh Hasina’s government cracked down on demonstrators. The death toll rose into the hundreds, with further deaths reported after Sheikh Hasina fled the country on August 5th. Her departure, seen as a victory by opposition figures, has plunged the country into uncertainty. Nobel laureate Professor Yunus has since been sworn in as the interim leader, expected to bring democracy back to Bangladesh. The interim government now faces the critical task of stabilizing the country.
The textile and garment industry has been hit particularly hard by the turmoil. Factories and port services were shut down for several days in early August due to a decision by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to prevent potential damage and losses. Despite these delays, buyers initially assured that they would not cancel orders or demand discounts, understanding the challenges posed by the shutdown and subsequent internet outages. The Clean Clothes Campaign Network urged brands sourcing from Bangladesh to ensure that workers are paid for the time that their factories were forcibly closed and to extend order deadlines to avoid excessive overtime and pressure on workers. Amid this unrest, an attempt to change the leadership of the BGMEA board, led by the FORUM Panel on August 7th, further exacerbated the tense situation. The BGMEA’s close ties to the ruling Awami League had already sparked criticism from apparel exporters who expressed “no confidence” in the current leadership. The unrest has resulted in significant disruptions to production, shipment delays, financial losses, and strained communication with international buyers. This might have opened the door for neighboring India to capitalize on the supply gap, potentially reshaping the region's textile industry. As the stability of the garment sector is crucial for the country’s economy, the interim government faces the challenge of ensuring to protect workers’ rights during this transition period to democratic rule.
For further information, check out:
Opinion Pieces:
New Worker Representation Requirements in China's Revised Company Law
For the first time, China’s revised Company Law requires companies to establish worker councils and include workers’ representatives on boards of directors, the Fair Labour Association (FLA) states in their latest Issue Brief. This change, previously limited to state-owned enterprises, aims to enhance workers' voices in corporate governance, impacting areas such as company strategy and workplace policies.
Chinese Workers Face Growing Pressures from Supply Chain Shifts
A new report by the China Labour Bulleting (CLB) and the Centre for Research on Multinational Corporations (SOMO) reveals that global supply chain de-risking strategies are placing increasing burdens on Chinese workers, leading to heightened job insecurity and worsening working conditions. As multinational corporations shift risks to protect themselves, the consequences are being felt most by vulnerable laborers in China, who are struggling under these new pressures.
3rd Sept 2024, Online Workshop:
Colonial Legacies in Fashion Supply Chains – an Intro
Explore the deep-rooted colonial structures still shaping the global fashion industry in a two-hour workshop that challenges the myth of a post-colonial world. This event promises to disrupt comfort zones by exposing the economic disparities and historical injustices embedded in fashion supply chains. Rethink, reimagine, and resist the status quo. Invited by Beyond Sustaina-Bullshit.
19th Sept 2024, Online Event:
Addressing Gender-Based Violence through Enforceable Brand Agreement
Join this online event to explore how enforceable brand agreements can be a powerful tool in addressing gender-based violence within the fashion industry. The discussion will focus on the mechanisms that hold brands accountable and protect workers, offering insights into creating safer and more equitable workpla
27th Sept 2024, Conference (in German):
China and Human Rights: Navigating Due Diligence in Complex Supply Chains
Much has changed in China in the era of Xi Jinping. From a European perspective, the country is increasingly perceived as a rival and a hotspot for human rights violations. At the same time, debates about sustainable supply chains and companies' human rights due diligence obligations have become more important in Europe. How do these developments fit together? And how can companies with supply chains starting in China fulfil their human rights due diligence obligations? This in-person conference in Bonn, Germany requires registration. Hosted by Südwind.
Our News Update is a monthly publication that serves as a chronicle of news, insights, and analysis, striving to amplify the voices of workers and advocating for meaningful change within the textile industry. This is an open invitation to all interested parties who wish to support an ambitious, sustainable textile industry and become part of this new network. If you have suggestions for specific topics or wish to submit news or information under the "Network" category, please feel free to write to Diese E-Mail-Adresse ist vor Spambots geschützt! Zur Anzeige muss JavaScript eingeschaltet sein!.
Textile Insight is a part of the Multi-Actor Partnership for Improved Due Diligence Implementation in the Textile Sector, a collaboration between Bangladeshi partners ESDO and BILS along with German civil society organizations HEJSupport, INKOTA-netzwerk e.V., SÜDWIND e.V., and FEMNET e.V. Further project partners include WageIndicator, MFNV and BLF.
Our project focuses on community- and worker-based monitoring to address labor rights violations and environmental risks from a rights holders' perspective. The aim is to improve working and living conditions and enhance the due diligence of purchasing brands.