9 representatives from six major garment purchasing countries jointly called on global brands and retailers to consider whether the decision will affect workers and small businesses in the supply chain when making purchasing decisions. potential impact.
Representatives of garment manufacturers from Cambodia, Vietnam, Pakistan, China, Myanmar, and Bangladesh stated in unison that they are facing cancellation of orders by global buyers (already stocked for production) and/or pressure to pay late.
The alliance is composed of 9 textile and garment enterprise associations of STARNetwork “Sustainable Textile Organization in Asia”. Organizations participating in signing the joint statement include: Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitting Manufacturers and Exporters Association (BKMEA), China Textile Industry Council (CNTAC), Cambodia Garment Manufacturers Association (GMAC) ), Myanmar Garment Manufacturers Association (MGMA), Pakistan Hosiery Manufacturers and Exporters Association (PHMA), Pakistan Textile Exporters Association (PTEA), Pakistan Towel Manufacturers Association (TMA), Vietnam Textile and Garment Association (VITAS) .
The statement stated: During the global outbreak of Covid-19, as the world survives and recovers from the crisis, responsible companies will become more responsible than ever. important. In particular, the responsible sourcing practices of brand companies, retailers and traders in the global textile and garment supply chain will have a huge impact on the basic rights of millions of workers on the supply side and the livelihoods of their families. It is now up to global companies to uphold and fulfill their commitments to labor rights, social responsibility and sustainable supply chains.
In view of this, under the joint signature of 9 textile and garment associations from 6 export-manufacturing countries under the STARNetwork organization, we hereby send a letter to global brand companies, retailers and Traders made a call:
(1) Carefully consider all potential impacts on workers and small businesses in the supply chain when making major purchasing decisions; Commit to purchasing Contract terms, fulfill contract obligations, and not renegotiate or revise payment terms;
(2) Take delivery or shipment of goods, and agree on goods that have been produced and prepared Good materials ready for production will be paid as agreed, and orders already in production cannot be canceled;
(3) If production or delivery must be suspended or stopped, or directly If wages are provided to supplier workers, fair compensation must be provided to the supplier (100% compensation based on FOB quotation);
(4) For delayed delivery or shipment , no responsibility will be placed on the supplier, and no compensation claims will be made for such delays;
(5) No claims will be made due to additional costs, urgent orders or unavailability Factors such as necessary visits and audits put undue pressure on suppliers;
(6) Do everything possible to better understand the local situation and environment Efforts to cooperate with local stakeholders;
(7) Always resort to dialogue and joint resolution to ensure that both parties accept solutions to disputes;
(8) Support business partners in the supply chain as much as possible and commit to long-term strategies of business continuity, supply chain unity and social sustainability.
We thank our business partners and other stakeholders for their understanding, cooperation and support, and we are ready to work with all responsible buyers around the world to tide over this crisis, Let’s move towards a better future together.
Many high street brands have canceled orders from suppliers and are said to be delaying payments as stores around the world are forced to close due to the epidemic in an attempt to contain the virus. The spread is part of a nationwide lockdown.
NewLook recently stated that it would suspend payments to suppliers and new orders. Retail supplier arrangements specialist Solutions for Retail Brands (S4RB) warned that the move could cause “irreparable damage to the NewLook supply chain” and that its supplier relationships would take years to repair if this happened. Their relationship may be beyond repair.
Primark has been widely criticized for canceling all orders from suppliers on a large scale after closing its stores on March 22, but now Primark has set up a fund to pay wages for previously canceled orders from supply factories in Bangladesh, Cambodia, India, Myanmar, Pakistan, Sri Lanka and Vietnam.
At the same time, Swedish retailer H&M said that it will pay and agree to pick up goods that have been manufactured and produced by suppliers. Spanish fashion giant Inditex, which owns Zara fashion chain, said , will pay all Spanish workers until April 15, including the wages of its domestic factory workers.
Representatives of garment manufacturers in Cambodia and Bangladesh have called on buyers to honor their purchase contracts.
