Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Business

Asian garment makers fashion united front to pressure Western brands

2021 01 20T161234Z 1 LYNXMPEH0J16P RTROPTP 4 HEALTH CORONAVIRUS SOUTHASIA - Global Banking | Finance

By Naimul Karim

DHAKA (Thomson Reuters Foundation) – Manufacturers from the six nations that make most of the world’s clothes have forged a common front to negotiate better terms with Western fashion brands, whose cancelled orders devastated Asian garment workers early in the pandemic.

“We want to come together to tackle the common problems we face. This is not about setting a minimum price for orders. This is about ethical business practice,” Miran Ali, a spokesman for the STAR Network of Asian suppliers, said on Wednesday.

Ali said that the new initiative – launched on Monday – would give Asian manufacturers a “stronger voice” in setting pay and delivery terms with Western high-street brands.

The group represents nine associations in six nations: the world’s largest garment producers – China, Bangladesh and Vietnam – as well as Pakistan, Myanmar and Cambodia.

Collectively, they represent 60 percent of the world’s clothing exports, said Ali, and employ millions of workers.

Suppliers in other nations are free to join, he added.

RAISING THE BAR

The aim is to bolster the textile sector, devastated by a pandemic that has worsened widespread job insecurity and low pay.

“We are banding together to create …standard conditions,” said Ken Loo, spokesman at a Cambodia-based garment association. “No one is under any obligations to abide by these terms but we hope it will be a guideline for all buyers and suppliers.”

Early last year, fashion companies cancelled billions of dollars worth of orders as COVID-19 shuttered stores worldwide, leading to wage losses of up to $5.8 billion, according to the Netherlands-based pressure group Clean Clothes Campaign.

While orders picked up in the second half of 2020, Western brands demanded price cuts and delayed payments to suppliers desperate for any orders to survive, according to researchers.

Ali said a united front would help firms hold out against such pressure, and that unions would sit on its advisory board.

“There is no platform that calls a buyer out on unethical regional practice. For instance, a buyer can’t just place an order in South Asia, leave us with the liability and then decide to place its orders in another region. That’s unethical.”

About 60 million people work in Asia’s garment industry and industry experts say the falling sales have left workers open to fresh exploitation, be it out of work altogether or employed by firms that undercut rivals on price to win scarce contracts.

Campaigners have urged manufacturers to use the initiative to improve workers conditions, not just boost their own profits.

“We would hope that the initiative would include a clear roadmap of how better deals with brands will lead to higher wages and safer work conditions for workers,” said Meg Lewis, head of campaigns at Labour Behind the Label, a non-profit based in Britain.

(Reporting by Naimul Karim @Naimonthefield; Additional reporting by Matt Blomberg; Editing by Lyndsay Griffiths. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers the lives of people around the world who struggle to live freely or fairly. Visit http://news.trust.org)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post