H&M in foretells support Bangladesh staff as lockdowns hit livelihoods

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Fashion giant H&M said on Tuesday it really is working with others to support garment personnel in Bangladesh, where more than 2 million have been hit by factory closures as coronavirus lockdowns hit orders.

Millions of folks in impoverished Bangladesh rely on the garment industry to feed their own families and the cancellation of around $3 billion in orders is hitting them hard.

Union leaders said almost all of the workers that they had spoken to have been temporarily laid off or sent on paid leave, although official numbers are not yet available.

Swedish fashion retailer H&M, the major buyer of Bangladeshi apparel, said it had been in talks to locate a solution after rival Primark pledged to keep paying staff damaged by its decision to cancel orders.

“We are well aware that the suppliers, and their employees, are really vulnerable in this situation,” the company told the Thomson Reuters Foundation by email.

“We are in this instance intensively investigating how we can support countries, societies and individuals from a health insurance and financial perspective.”

Bangladesh is among the world’s top suppliers of clothes to Western countries, with some 4,000 factories employing about 4 million people, mostly women.

With Western economies struggling because of the crisis and retailers in lots of countries closed, brands have begun cancelling orders, while some - including H&M - have pledged to take delivery of garments already made or in production.

Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association, praised H&M for standing by its suppliers and urged others to follow suit.

“A few (brands) have agreed to accept both ready goods and stocks happening, (but) we are yet to have any acceptable conditions of releasing such orders,” said Huq.

“With exception of a few, most of the brands have cancelled their orders and distanced from the contracts they have entered with suppliers.”

Bangladesh’s Ministry of Labour and Employment has asked garment factory owners not to sack workers, but with orders cancelled and a shutdown imposed by the federal government until mid-April, most plants experienced to close.

Although Bangladesh has less than 200 confirmed coronavirus cases so far, there are fears it might spread rapidly through the densely-populated country, whose weak healthcare systems risk quickly becoming overwhelmed.

But the effect on the economy can be triggering concern in a country where many live from hand to mouth and both Unions and human rights groups have asked major Western buyers to supply financial support.

On Tuesday, British retailer Tesco said its orders would keep on. “We will continue steadily to source from our suppliers on their current payment terms. We are focused on ensuring personnel are treated fairly,” it said in a statement.

Bestseller, which produces fashion brand Jack & Jones, also said it could take delivery of garments already made and the ones in production.

The IndustriAll Global Union last week said that it was dealing with major Western buyers to support Bangladesh’s garment staff financially.
Source: https://www.reuters.com

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