H&M probes surge in Myanmar labour violations amid global fashion exodus

A shocking increase in labour violations at Myanmar garment factories supplying global fashion giant H&M has instigated an immediate follow-up from the retailer. This comes shortly after Inditex, owner of Zara, declared its decision to cease purchases from Myanmar, located in Southeast Asia.

This suspension results from a report compiled by the Business and Human Rights Resource Centre (BHRRC), a respected human rights advocacy organisation based in the UK. In its year-long study from February 2022 till now, the BHRRC documented 156 cases of alleged labour misdemeanours in Myanmar garment factories – nearly three times the 56 cases studied in the preceding year. This suggests labour rights in the nation have significantly declined after a military coup in February 2021.

The primary allegations revolve around wage reduction and wage theft, followed closely by inhumane work rates, forced overtime, and unfair dismissal.

Responding to the allegations noted in the BHRRC report, H&M committed to following up on all cases through its local team working in conjunction with key stakeholders. They have also expressed deep concern regarding ongoing developments in Myanmar, acknowledging the growing challenges in maintaining the standard of operations.

The BHRRC actively monitored labour rights violations in garment factories since the military coup brought Myanmar under a military junta, resulting in a political and humanitarian crisis. The abuse tracker incorporates cases from 124 distinct factories, reported Bangkok Post.

Methods used to track allegations of wrongdoing include inputs from union leaders, international and local media resources such as Myanmar Labour News, and worker interviews. Verification of the reports is achieved by liaising with corresponding brands. However, these findings were not independently confirmed by Reuters.

The BHRRC report presents a surprising 21 cases of alleged misdemeanours connected to Inditex suppliers. The Spanish group recently became the latest brand to sever connections with Myanmar suppliers, following Primark and Marks & Spencer last year.

Requests for comment on the findings from a representative of Myanmar’s military government and from the Myanmar Garment Manufacturing Association have failed to elicit a response.

Meanwhile, other brands have chosen to intensify their surveillance of Myanmar suppliers. Evidence suggests Primark, based in Dublin, even doubled staff numbers based in Yangon. This was surprising, given its declaration last September to cease sourcing from Myanmar. Similarly, Danish fashion entity Bestseller increased its in-country staff numbers from merely three to 11 post-coup.

Both H&M and Bestseller form part of the MADE project, an initiative funded by the European Union concentrating on enhancing labour conditions in Myanmar garment factories. As per EU recommendations, companies should persist with sourcing garments from Myanmar, a crucial employer boasting over 500 factories manufacturing clothing and footwear for major brands.

Locals state that active involvement from companies addressing wages and labour conditions can exercise significant influence. The alternatives are seen as leaving the country, risking job losses, and factory shutdowns, or associating with disinterested buying agents focused merely on inexpensive labour and factory conditions.