Despite continued instability, at least 12 international textile manufacturers have acknowledged that they have not moved orders to other nations, guaranteeing order stability in Bangladesh, according to a research by the Business and Human Rights Resource Centre (BHRRC).
22 significant apparel businesses that source from Bangladesh were contacted by the group to evaluate how they were responding to the interruptions brought on by the recent political unrest.
Adidas, ASDA, C&A, H&M, Inditex, Marks & Spencer, Next, PUMA, PVH Corp, Tesco, Primark, and Walmart were among the brands who responded, reaffirming that they would keep placing orders in Bangladesh. Nevertheless, Gap withheld information about the progress of their order.
In response, Walmart stated that its approach in Bangladesh has not changed and made it clear that it is not searching for other suppliers for the next apparel season. The retailer affirmed that it is not penalising suppliers for production delays because of the current circumstances and mentioned that any modifications regarding order movements are a normal part of business operations.
The poll also showed that 13 brands have supported suppliers during supply chain interruptions by waiving penalties for delayed delivery. During the unrest, the BHRRC attacked a number of well-known companies for not answering questions about their purchasing policies and the wellbeing of their employees, including Mango, JC Penney, and Bestseller.
The speed and completeness of worker salary payments for July and August were among the main issues brought up by the rights organisation, with seven brands confirming full and timely wage payments: Gap, PUMA, PVH, Primark, Tesco, Next, and H&M. On the other hand, M&S, ASDA, and adidas detailed how they tracked wage payments in July and August, but they omitted information about whether or not wages were paid on schedule or in full.
The findings indicate that C&A, Walmart, and Inditex were unable to reply to this crucial question.
According to the paper, the Bangladeshi garment industry is facing hitherto unseen difficulties, such as political instability and infrastructural problems. These have resulted in factory closures and work stoppages, which will cost the sector between US $ 150 million and US $ 500 million every day between 20th and 23rd July 2024. Mandatory overtime, higher output targets, and higher transportation costs have all had an influence on the workforce.
Industry groups have claimed an additional cost of at least US $ 83 million as a result of buyers demanding discounts for delayed shipments and suppliers trying to meet deadlines driving up air freight costs. Penalty reduction is being negotiated, but the expenses of expedited shipping continue to be a major source of concern.