The Business and Human Rights Resource Centre has released a report that unveiled the dark reality of fashion brands worldwide indulging in serious human rights abuses linked to their supply chains.
The reports mentioned renowned brands like Ralph Lauren, H&M, Mango, Michael Kors, Coach, Asos, and Gucci, among the few that were found having forced labour and unsafe working conditions to wage theft and discrimination, as per the report.
With nearly 28 cases and 36 high-profile fashion brands, both luxury and fast fashion sectors were observed over a span of 9 months from January to September 2024, and were found causing unethical practices for workers. The suspected reasons for the massive layoffs, unpaid wages and sudden factory closures includes the dropping percentage of buyers that was experienced along with the luxury market slump period.
Luenthai Philippines Factory, which supplied to brands such as Michael Kors, Ralph Lauren, Tapestry, Adidas, and Fast Retailing, was among the ones that underwent drastic transitions in May 2024. The factory laid off 2,000 workers, constituting 60 per cent of its workforce.
Another similar case includes Anzir Apparels in Bangladesh which supplies brands like Mango, Asos, and River Island. This factory was forced to close due to a lack of orders. While some brands, on being questioned, claimed to have ceased sourcing from these factories in 2021, the impact on workers was severe.
In response to the allegations, many of the implicated brands have stated that they have taken steps to address the issues, such as conducting audits and terminating relationships with non-compliant suppliers. However, critics argue that these measures are often insufficient and lack transparency.
