Asian ready to wear manufacturers make a joint statement to buyers
Asian ready to wear manufacturers make a joint statement to buyers
Nine representatives from six major garment purchasing countries jointly called on global brands and retailers to consider the potential impact on workers and small businesses in the supply chain when making purchasing decisions.
Representatives of garment manufacturers from Cambodia, Vietnam, Pakistan, China, Myanmar and Bangladesh all voiced that they were under pressure from global buyers to cancel orders (already in stock production) and / or delay payment.
The alliance is composed of nine associations of textile and garment enterprises of star network "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 Federation (CNTAC), Cambodia Garment Manufacturers Association (GMAC), Myanmar Garment Manufacturers Association (MGMA), Pakistan hosiery manufacturers and Exporters Association (PHMA), Pakistan Textile Exporters Association Ptea, TMA, Vitas.
During the global outbreak of the covid-19 epidemic, the world can survive and recover from the crisis, and responsible enterprises will become more important than ever, the statement said. In particular, the responsible sourcing practices of brand enterprises, retailers and traders in the global textile and ready to wear supply chain will have a huge impact on the basic rights of millions of workers in the supply side and the livelihood of their families. It is now global business to keep and fulfill its commitment to labor rights, social responsibility and a sustainable supply chain.
In view of this, we hereby appeal to global brand enterprises, retailers and traders through the joint agency of 9 textile and garment associations from 6 export manufacturing countries under star network:
（1） When making major purchase decisions, carefully consider all potential impacts on workers and small enterprises in the supply chain; abide by the terms of purchase contracts, fulfill contractual obligations, and do not renegotiate or amend payment terms;
（2） Take delivery or shipment of goods, and agree that goods already produced and materials ready for production will be paid according to the contract, and orders already in production cannot be cancelled;
（3） If it is necessary to suspend or stop production or delivery, or directly provide wages to the supplier's workers, it is necessary to provide fair compensation to the supplier (100% compensation according to the FOB quotation);
（4） The supplier shall not be liable for the delay in delivery or shipment, and shall not be liable for such delay;
（5） Do not put undue pressure on suppliers due to extra costs, urgent orders or unnecessary visits and audits;
（6） Make every effort to work with local stakeholders to better understand the local situation and environment;
（7） Always resort to dialogue and joint settlement to ensure that both sides can accept the settlement of disputes;
（8） Support business partners in the supply chain as much as possible, and commit to long-term strategies of business continuity, supply chain integration 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 overcome this crisis and work together for a better future.
Many high street brand retailers have cancelled orders from suppliers and are said to be delaying payments, as stores around the world have been forced to suspend operations as part of a nationwide blockade to curb the spread of the virus.
Newlook recently said it would suspend payments to suppliers and new orders. The retail supplier arrangement expert "retail brand solution" (s4rb) warned that the move could cause irreparable damage to the "newlook supply chain" and that its supplier relationship would take several years to repair. If this happens, its relationship might not be able to repair.
Prior to this, Primark was widely criticized for canceling all orders of suppliers on a large scale after closing its stores on March 22, but now Primark has set up a fund to pay for canceling orders of suppliers in Bangladesh, Cambodia, India, Myanmar, Pakistan, Sri Lanka and Vietnam.
Meanwhile, H & M, a Swedish retailer, said it would pay and agree to pick up the goods the supplier has manufactured and is producing. INDITEX, a Spanish fashion giant with Zara fashion chain, will pay Spanish workers full wages until April 15, including the wages of its domestic factory workers.
Representatives of garment manufacturers in Cambodia and Bangladesh have called on buyers to honour their purchase contracts.