Western brands demand big discounts from Bangladesh factories

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Western clothing brands that agreed never to cancel orders as a result of coronavirus epidemic are actually demanding price cuts of up to 50 %, Bangladeshi manufacturers reported recently, heaping economical pain on a region already reeling from the crisis.

An incredible number of Bangladeshi households depend on the garment sector, which includes been reach hard by the epidemic. Exports fell by 84 per cent in the first one half of April as $3 billion-worthy of of orders had been cancelled or suspended, regarding to factory owners.

"We remain observing their departure from classic contract terms... which include renegotiating prices as low as 50% of the initial deal," explained Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association.

Bangladesh, which ranks at the rear of only China as a supplier of clothes to Western countries, depends on the garment sector for a lot more than 80 % of it has the exports, with some 4,000 factories employing about 4 million people, mostly women.

Huq said many had yet to say when they would pay or have delivery, accusing them of "carrying out a strategy to buy time".

"We have no idea of any other manufacturer except one which has declared its method at length regarding delivery and repayments centrally in dark and white," explained Huq, citing Swedish manner huge H&M, the largest buyer of garments from Bangladesh.

"(The) rest have all been conditional, mostly predicated on deferred payments, discounts and deferred deliveries."Kalpona Akter, a labour activist, warned that personnel would bear the brunt of reduced or perhaps renegotiated orders.

"We will be in a position to see the impact by the following month, when workers will have to be paid out their Eid bonuses and salaries," she said.

With Western economies struggling because of the crisis and vendors in lots of countries closed, brands have begun cancelling orders, while some have pledged to take delivery of garments already made or in development.

A good government official said cancelling or renegotiating orders was unjust and authorities were addressing the problem through diplomatic negotiations.

"Our factory owners have spent lots of money to be compliant and secure. It's an injustice to still not get good rates," Md Jafaruddin, secretary of the Ministry of Commerce, informed the Thomson Reuters Base.

The government announced a $588 million package to greatly help the key export sector pay its workers last month.

Labour leaders tell you that this is simply not more than enough and that buyers need to come forward to aid workers.

Hundreds of workers took to the streets this week, defying a good authorities lockdown to protest the non-repayment of wages, according to law enforcement.
Source: https://en.prothomalo.com

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