Int'l brands' business practice questioned; staff interest ignored

Collected
International brands and buyers' business practice are "questioned" amid cancellation of orders putting vast RMG workers in immense trouble though owners invested a lot in post-Rana Plaza incident bringing massive reforms. 
 
Bangladesh, the most notable garment exporter on the planet after China, is heavily reliant on European and American orders.
 
Bangladesh government and industry leaders started raising the issue of cancellation of orders by the international brands and buyers at various levels amid coronavirus crisis. 
 
Foreign Minister Dr AK Abdul Momen remarked that orders worth $3.18 billion have already been cancelled or suspended by international brands and buyers, affecting 1,150 factories and 2.28 million workers. 
 
"Such approach from the brands isn't acceptable which pushed personnel towards uncertainty. Factories in Bangladesh have invested a lot in the last six years," Dr Nazneen Ahmed, Senior Research Fellow at Bangladesh Institute of Development Studies (BIDS), told UNB.

She said garment factories in Bangladesh made those investment so you can get better purchase orders from the global brands and buyers.
 
"But, as of this crisis moment, brands cancelled orders or are unwilling to pay against orders and produced products or offering partial payment. That is unethical," Dr Nazneen said reminding the efforts by the hard-working workers. 
 
She also reminded the brands that their wealth is built on tireless efforts of millions of personnel and urged them never to betray them, when they need their support the most.
 
"We expect that the international brands will maintain their business ethics. Order cancellations, partial payments or non-payment resistant to the ready products for shipments are appearing as threats to long-term method of trading. It's inhumane and unethical," Dr Nazneen said. 
 
UK Based Retailers 
 
British lawmaker Rushanara Ali has written to the Chancellor and the Secretary of State for International Trade urging them to lead efforts to protect global trade and supply chains. 
 
The letter highlighted the damage caused by multinational Western firms backing out of business contracts and impacts on Bangladesh. 

It included the example of the Readymade Garments (RMG) industry in Bangladesh, where $3.7 billion of orders have been cancelled already. 
 
Nearly £2.4 billion of these contracts are from UK-based retailers, including ASDA, New Look, Edinburgh Woollen Mills, Peacocks, Sports Direct and Urban Outfitters. 
 
“In addition, Bangladesh is the world's major producer of garments and textiles after China. If this supply chain collapses, then the world's capacity to create PPE will be damaged," said Rushanara Ali, MP.
 
“THE UNITED KINGDOM must lead efforts to ensure that global trade and supply chains are protected," she said.
 
Rushanara called on the united kingdom government for taking all the necessary steps to support those British companies that are struggling to stay afloat, so they could fulfil their obligations to suppliers. "In doing this, this will protect those who work to provide our UK high-street goods." 
 
She said it is morally reprehensible for big multinational firms, who are able to pay, to back out with their contracts.
 
"In doing this, they’re putting millions of workers and their families vulnerable to starvation. Their actions are potentially de-stabilising countries and damaging the prospect of recovery from a worldwide recession," said Rushanara Ali.
 
The coronavirus pandemic has sent global markets into turmoil and the detrimental effect on the global economy is constantly on the evolve at an unprecedented speed.
 
Global supply chains have been disrupted, local economies have been wrecked by businesses collapsing, and millions have lost their jobs, according to a note UNB received from her office on Monday.
Source: https://unb.com.bd

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