Fashion brands accused of exploiting workers at risk of layoffs

Millions of garment workers could lose their jobs as global brands are demanding price cuts and delaying payments to suppliers who are desperate for orders to survive the new coronavirus pandemic, US researchers said on Friday. Suppliers have been asked to make their prices an average of 12 per cent cheaper than last year, research by the Center for Global Workers’ Rights (CGWR) at Penn State University found, describing such practices as “leveraging desperation”.

Second crisis

Manufacturers and labour rights groups said some orders that were cancelled or suspended earlier in the year were being restored, along with new orders, but they were less than the number of firms jostling for contracts. “Buyers are taking advantage of this,” said Anner, dubbing it an “emerging second crisis” for suppliers after the billons lost in cancelled and unpaid orders earlier in the year.The British-based Ethical Trading Initiative, whose members include H&M and Primark, said that the pandemic was not an excuse to row back on human rights and that it was in everyone’s best interest to ensure a sustainable and robust supply chain.