Job cut fears as fashion brands slash orders in Bangladesh with coronavirus

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Factory employees in Bangladesh could go hungry as global fashion brands have cancelled or delayed orders worth $US138 million because of coronavirus, manufacturers said on Thursday.

A lot more than 100 Bangladeshi factories have already lost orders, manufacturers said, as retail sales plummeted globally and giants like Zara owner Inditex and H&M temporarily closed stores in Europe - the existing epicentre of the flu-like virus.

"We are totally reliant on our export proceeds," said Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association, which includes a lot more than 4,000 members, describing coronavirus as the "curse of the century".

"[Our] plea to the brands has gone to continue taking our orders until June. Also to support us in virtually any form to ensure that the employees don't go hungry...how will their lives and livelihood be sustained if there are cancellations?"

Bangladesh, the world's second largest garment supplier after China, is heavily-reliant at the top fashion brands. The industry employs a lot more than four million people, mostly women, and accounts for more than 80 % of its exports.

The world's wealthiest nations ramped up spending and poured unprecedented aid into the traumatised global economy on Thursday as coronavirus cases ballooned, prompting widespread emergency lockdowns.

H&M said it turned out hit by a drop in global demand but it was in close and transparent dialogue using its suppliers.

"Our long-term commitment to suppliers will remain intact," a spokesman told the Thomson Reuters Foundation in emailed comments.

"In this extreme situation we have to respond fast, together with our business partners, and take decisions which can be difficult in the short-term, but necessary in the long-term...[and] find solutions that are suitable for all parties."

Labour activists said no staff had been fired therefore of coronavirus however they were afraid of losing their jobs.

"These personnel live hand-to-mouth plus they are panicked because they have heard that orders are being cancelled," Kalpona Akter, founder of the Bangladesh Centre for Worker Solidarity.

Akter said workers were also scared of catching coronavirus, with Bangladesh reporting 27 cases and two deaths to date.

The International Labour Organization said in emailed comments that protective equipment, flexible working and better hygiene procedures were needed in Bangladesh's garment factories to avoid the spread of coronavirus.

Huq said factories were exercising utmost caution and practising good hygiene.
Source: https://www.sightmagazine.com.au

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