H&M investigates Myanmar factory abuses under mounting pressure.

H&M investigates Myanmar factory abuses under mounting pressure.

H&M Investigating Alleged Labor Abuse in Myanmar Garment Factories

H&M Logo

LONDON, Aug 16 (ANBLE) – H&M (HMb.ST) has recently announced that it is investigating 20 alleged instances of labor abuse at garment factories in Myanmar. This comes just weeks after its top rival, Zara owner Inditex (ITX.MC), stated that it is phasing out purchases from the country. The garment industry in Myanmar has seen a deterioration of workers’ rights following a military coup in February 2021.

A UK-based human rights advocacy group, the Business and Human Rights Resource Centre (BHRRC), has been tracking cases of alleged worker abuses in Myanmar garment factories since the military junta took power. Their latest report, set to be published on Wednesday, reveals a concerning increase in the number of cases. From February 2022 to February 2023, the BHRRC recorded 156 cases, up from 56 in the previous year. Some of the most frequently reported allegations include wage reduction, wage theft, unfair dismissal, inhumane work rates, and forced overtime.

H&M has acknowledged the report’s findings and stated that they are deeply concerned about the situation in Myanmar. The company is actively following up on all the cases raised in the report and working closely with local stakeholders to remediate the issues. The Swedish retailer emphasizes its commitment to conducting operations according to their standards and requirements.

The BHRRC report includes abuse cases at 124 separate factories, with 21 cases linked to Inditex suppliers. Inditex has not commented on the report. The Myanmar Garment Manufacturing Association and the spokesperson for Myanmar’s military government also declined to comment on the findings.

The Impact of Leaving Myanmar

Spanish group Inditex’s decision to cut ties with Myanmar suppliers follows similar moves by Primark and Marks & Spencer last year. However, some experts argue that these decisions could ultimately leave garment workers worse off. Instead of entirely cutting ties, some brands have chosen to strengthen their monitoring of suppliers in Myanmar.

The BHRRC survey reveals examples of brands increasing their presence and staff on the ground in Myanmar. Primark, despite announcing last September that it would stop sourcing from the country, has actually doubled its number of staff based in Yangon. Danish fashion company Bestseller has also increased its staff from three to 11 since the coup.

H&M and Bestseller are part of the European Union-funded MADE project, which aims to improve labor conditions in Myanmar’s garment factories. The EU advocates for companies to continue sourcing garments from Myanmar, recognizing its importance as a key employer. With over 500 factories producing clothes and shoes for big brands, there are concerns that leaving the country completely would have a negative impact on job opportunities and factory conditions.

Vicky Bowman, former UK ambassador to Myanmar and director of the Myanmar Centre for Responsible Business, highlights the role that international brands play in providing stable jobs and taking steps to guard against 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 told ANBLE.

Karina Ufert, CEO at the European Chamber of Commerce in Myanmar, emphasizes that engaging in discussions with local labor rights groups and trade unions can provide leverage for companies to influence wages and labor conditions. Leaving the country entirely would diminish their ability to make a positive impact.

Conclusion

As H&M investigates the alleged labor abuse in Myanmar’s garment factories, it adds to the growing concern over workers’ rights in the industry. The rise in reported cases highlights the need for continuous monitoring and improvement of labor conditions.

While some brands have chosen to cut ties with Myanmar suppliers, others, like H&M and Bestseller, are taking a different approach. They believe in remaining engaged to have influence and effect positive change in labor conditions. This is in line with the European Union’s stance on the matter, recognizing the importance of the garment sector in Myanmar’s economy.

The ultimate goal should be to ensure that workers in Myanmar’s garment factories are protected and provided with fair wages and safe working conditions. By actively addressing labor abuse allegations and working with local stakeholders, companies have the potential to make a meaningful difference in the lives of these workers.

6 upcoming cool electric cars this year
Musk’s X social media platform closes...
Break your phone addiction?
Hollywood writers to respond to studiosR...
We transformed a $12,000 shuttle bus into a...
On Monday, a mega-cap tech stock increased ...
Tech

Tech