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Welcome to the
WRAP Weekly Newsletter! Please enjoy it and thank you for being a loyal reader.
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The WRAP Up
Last week we certified 18 factories in 8 countries:
Bangladesh, Cambodia, China, Egypt, India, Indonesia, Pakistan, and Vietnam.
Australia
Global international development group Baptist World Aid has released a new report looking at how dozens of global apparel brands are protecting their foreign workers from exploitation. "The Australian Fashion Report 2015" is based on research from 219 companies, both within and outside of Australia, looking at their supply chain security and social compliance policies and practices. This is the third report in the organization's "Behind The Barcode" series. (
Baptist World Aid /
Fibre2Fashion)
The Center for Policy Dialogue (CPD) think tank says that many of the survivors of the Rana Plaza collapse are worse off than they were before the disaster. During a recent policy dialogue hosted by the group, industry experts noted that while many affected families have received compensation payments from various stakeholder groups, most of that money has gone toward medical expenses, leaving them with little means of day-to-day support. Many also say that they are unable to return to work in the RMG industry due to either physical or mental ailments.
The Rana Plaza Coordination Committee, a coalition of global brands, retailers, NGOs, and industry stakeholders, says that it has paid out nearly US$10 million in compensation to nearly 3,000 people affected by the Rana Plaza disaster 2 years ago. The actual amount of compensation for each recipient was determined by the International Labor Organization's (ILO) Employment Injury Benefit Convention 121 and was awarded after factoring in the last salaries of the deceased, missing, or injured workers. This amount only represents 70% of the total commitments however, committee representatives say the remainder will be disbursed once funds are available. (Sourcing Journal)
*NOTICE: This article requires a paid subscription
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Salvage workers at the site of the Rana Plaza collapse say they found human remains on April 20, just 4 days before the second anniversary of the disaster. Local police say a team searching for iron scraps on the site came across skeletal parts while conducting their sweep of the area. So far, the remains have not been identified. (Bangla News 24)
The head of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Atiqul Islam, says that trade union leaders in the country are abusing their power and have become vulnerable to malpractice. Speaking at a recent garment industry stakeholder gathering in Dhaka, Islam said that there was a lack of education and awareness about the role of labor unions among workers and that raising awareness on this issue was crucial the industry to succeed. Islam also says that workers should be further educated on the implications of broader external influence on Bangladesh's RMG industry. (The Financial Express)
Several hundred workers of two apparel factories staged a massive protest in front of the BGMEA headquarters building on April 19 demonstrating against the sudden closure of their factories and demanding immediate payment of their back wages. The workers allege that the owner of the facilities, a Hong Kong native, sold off all of the factory's equipment and left the country earlier this month without paying owed wages. The owner was reportedly spotted at the Dhaka airport by a group of workers who confined him inside the factory for 3 days to convince him to make the payments. (
New Age BD)
The International Labor Organization (ILO) is calling for greater social dialogue among the various stakeholders in Bangladesh's garment industry, citing the incredible benefits that would be reaped from doing so. The ILO says that engaged workers, for instance, are more likely to be productive and profitable, which in turn will help drive growth and investment. The push was made at a recent ILO gathering in Dhaka to get input on new collaboration initiatives. (
UNB /
ILO)
The High Court of Bangladesh is pushing the Rajdhani Unnayan Kartripakkha (the Capital Development Authority of the Government of Bangladesh) to comply with a 2-year-old mandate to submit a list of all risky buildings in the city of Dhaka. The order was first issued shortly after the collapse of the Rana Plaza building in 2013, though the group failed to comply at the time. Lawyers for the group say that the list would be submitted in a matter of days. (
The Daily Star)
The Accord on Fire and Building Safety in Bangladesh says that it has inspected over 1,250 factories and has begun sharing its reports with the Alliance for Bangladesh Worker Safety in order to avoid redundant inspections. The announcement was made as part of the Accord's most recent monthly update in which they also announced that they have received over 950 Corrective Action Plans (CAPs) from factories, over 500 of which have been posted online. The Accord says it will invite its company signatories to attend its next Steering Committee meeting in June. (
UNB /
Bangladesh Accord)
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says that it has signed a Memorandum of Understanding (MoU) with the country's Finance Ministry to train over 43,000 garment workers in an effort to improve the industry's productivity. The "Skill for Employment Investment Program (SEIP)" is funded by the Asian Development Bank (ADB) and will be executed over the next 3 years.
(
Just Style)
*NOTICE: This article requires a paid subscription.
Bangladesh could increase its readymade garment exports to Canada by 5 times by 2021, according to the Canada Bangladesh Chamber of Commerce and Industry (CanCham Bangladesh). At US$1.1 billion, Canada is the 5th-largest export market for Bangladesh, with over 77% of that revenue coming from garments. Overall, Bangladesh is aiming to achieve US$50 billion in global exports by 2021. (
Fibre2Fashion)
Bangladesh's Commerce Minister Tofail Ahmed says the government plans to set up a Special Economic Zone (SEZ) to entice more Chinese investment to the country. Following a meeting the the Chinese ambassador to Bangladesh, Ahmed noted that plans are also in the works for an industrial park to be established that will be home to 250 readymade garment production units, again for the sake of attracting more Chinese investment. Additionally, the two countries have announced that they are working on a bilateral agreement that would allow duty-free exports from Bangladesh to China. (
Fibre2Fashion)
Cambodia
Union activists in Cambodia are speaking out against a controversial endorsement of a proposed labor law by Prime Minister Hun Sen. In a statement dated April 10, but released only last week, the Prime Minister praised the proposed policy, saying that it would strengthen the freedom of unions and crack down on the creation of illegal unions. Critics say the policy would hurt the formation of independent unions if passed and that it would unfairly back pro-government groups. (Phnom Penh Post)
Over 100 workers at a Phnom Penh factory staged a protest on April 20 after returning from the Khmer New Year holiday to find that their factory had been closed. Cambodia's Labor Department was asked to investigate the matter and said that they were unable to locate any of the factory's management representatives. It is suspected that the factory was closed due to bankruptcy and officials are deciding whether or not to auction off factory property in order to fund back pay for the workers. (Phnom Penh Post)
China
Over 30 Chinese textile plants that supply to many of the world's largest apparel brands are now saving nearly US$15 million per year after adopting eco-friendly, efficient practices, according to the Natural Resources Defense Council (NRDC). The announcement was made in a new NRDC report on their "Clean By Design" initiative that has helped the factories cut back on their use of several resources, including water, energy, and hazardous chemicals. The "Clean By Design" initiative is a joint effort of the NRDC and the International Finance Corporation (IFC). (NRDC / Fibre2Fashion)
Germany
Germany-based global athletic apparel brand Adidas says it plans to push its suppliers toward greater self-governance in managing their individual downstream supply chains. The announcement was made as part of the release of the company's latest Sustainability Progress Report, which also revealed a new partnership with an ocean conservation group as well as a commitment to further engage its customers in the sustainability dialogue. (Adidas Group / Reuters)
Textile testing company Oeko-Tex says it has released a new tagging technology that will allow products to be traced on their entire journey through the supply chain. The company says that its "Made in Green" labels will allow buyers and producers to track their products throughout every step of production and offer new levels of transparency to their customers. The company says that the label can be added to any product at any stage of production. (Fibre2Fashion)
A major fire broke out at an Agra shoe factory on April 22 injuring 2 firefighters and 3 workers. Authorities say that an electrical short circuit sparked a cache of chemicals stored in a nearby warehouse and the blaze eventually spread to the main factory. This was the second major fire in the city in a 24-hour period after a clothing store caught fire on April 21. (Times of India)
Thousands of powerloom workers in Tamil Nadu have returned to work following a 2 week strike to press for higher wages. Workers walked off of the job on April 8 after government officials failed to increase their wages during a mandatory bi-annual wage review. They were demanding a 75% increase in their wages, but returned to work after reaching a compromise with factory managers. (The Hindu)
Cotton textile mills in Telangana are urging both the state and national governments to intervene to save them from a severe shortage of raw cotton. The Telangana Spinning and Textile Mills Association (TSTMA) says that unfair trade practices by the Cotton Corporation of India (CCI) has resulted in prohibitive price increases that have put the commodity out of reach for many mills. It's estimated that the mills need a total of 50,000 bales per day to operate and the TSTMA says that there may only 4-5 months of supply left if action is not taken. (Fibre2Fashion)
The Tirupur Exporters' Association is praising an announcement by Prime Minister Narendra Modi that he plans to conclude negotiations on the Comprehensive Economic Partnership Agreement with Canada by September of this year. Modi made the statement at a recent joint press conference with Canadian Prime Minister Stephen Harper in Ottawa, where the two also committed to resolving the issues in implementing free trade between the two countries. Canada is the 11th-largest export market for Indian knitwear. (Fibre2Fashion)
The Centre for Monitoring Indian Economy (CMIE) says that 6 readymade garment projects worth over US$47 million are slated to begin in 2015-16. These projects are spread out in various locations around the country, from Pune to West Bengal to Tirupur. (Fibre2Fashion)
Members of the All India Trade Union Congress (AITUC) recently staged a demonstration in Tirupur against the Labor Department and workplace inspectors for reportedly having a relaxed attitude toward the enforcement of labor laws. Leaders with the AITUC say that only about half of Tirupur's textile production units are covered under government insurance schemes and that many employers are skirting regulations pertaining to contract workers which make up a considerable proportion of the workforce. (The Hindu)
Indonesian imports of man-made filaments and knitted and crocheted fabrics increased by 11.15% year-on-year during Q1 2015 to reach US$330 million, according to national statistics. Most of these purchases were made to support the country's burgeoning textile and apparel industry, employs over 2 million people. (Fibre2Fashion)
Global fashion retailer Benetton says it will contribute US$1.1 million to the Rana Plaza Trust Fund, doubling the amount recommended by an independent assessment conducted by accounting firm Pricewaterhouse Coopers (PwC). This follows a previous contribution made by the company to BRAC for US$500,000. Benetton's CEO Marco Airoldi says that while there is no real redress for the tragic loss of life at Rana Plaza, he hopes that the mechanism used to calculate this contribution will be used more widely as a demonstration of a company's commitment to social responsibility. (Benetton Group / Associated Press)
WRAP has endorsed Benetton's decision to make this contribution to the Rana Plaza Trust Fund. Click here to read the press release.
Pakistan
The families of those who died in the 2012 Ali Enterprises fire in Pakistan were recently assured by a group of German lawmakers visiting Pakistan that they would be compensated by German denim brand KiK, who was a major buyer of the Ali Enterprises factory at the time of the fire. The announcement came after the Pakistan Institute of Labour, Education, and Research (PILER) announced that it would be filing a lawsuit against the company after they reportedly failed to live up to previous commitments made to the victims' families. The lawmakers also say they have pushed for stricter sourcing and transparency laws for apparel brands based in Germany. (The News International)
United States The U.S. Senate has introduced a much-anticipated renewal of the Trade Promotion Authority (TPA) bill. The TPA bill outlines U.S. trade negotiating objectives and priorities while allowing the President to carry out those negotiations with Congress retaining final approval authority on any agreement. This most recent renewal effort comes as the U.S. is involved in several major trade negotiations, including for the Trans-Pacific Partnership, and has gained the endorsement of many apparel trade groups, including the U.S. Fashion Industry Association (USFIA), the American Apparel and Footwear Association (AAFA), and the National Council of Textile Organizations (NCTO). (Fibre2Fashion / U.S. Trade Representative) Three former employees of Los Angeles-based American Apparel are suing the company after being laid off earlier this year. The suit, filed in U.S. District Court in California, claims that the workers were not given appropriate legal notice of the layoff and is seeking US$1 million in damages. The company has declined to comment on the matter, though Reuters says it has acquired a corporate memo from the company saying that they were acting within the law when notice of the layoff was given. (Reuters) A U.S. court has upheld a law banning the "Made in the USA" label on products containing foreign-made components and has rejected a motion to dismiss a subsequent lawsuit brought forth by Macy's and denim company Citizens of Humanity. The two companies recently fielded complaints from California customers that their "Made in the USA" labels were misleading because a California law requires that all parts of an item be American made in order to carry that label. In a statement, the presiding judge noted that the law does not violate the commerce clause of the U.S. Constitution and is not pre-empted by more lenient regulations under the Federal Trade Commission Act or the federal Textile Fiber Products Identification Act (TFPIA). (Just Style) *NOTICE: This article requires a paid subscription. Vietnam A new report released by the World Bank says that Vietnam's GDP is poised for gradual but steady growth in the medium-term future. The bank's East Asia and Pacific Economic Report for April 2015 noted that Vietnamese GDP growth picked up to 7% in Q4 2014, contributing to a growth rate of 6% for the year, the highest since 2011. The report did mention, however, that the country is still performing below its potential due to "slow-moving structural reforms." (Fibre2Fashion) |
About WRAP
Headquartered in Arlington, Virginia, U.S.A., with regional offices in Dhaka, Bangladesh, Hong Kong S.A.R., and representatives in India and Southeast Asia (Thailand and Vietnam), WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane, and ethical manufacturing around the world through certification and education. To learn more about WRAP, please visit www.wrapcompliance.org.
Notice: The WRAP Weekly Newsletter is a collection of links to current news articles, relevant to social compliance. While most articles are freely available, some may require a paid subscription to access. WRAP is not responsible for the content of external internet sites.
Tel: 1.703.243.0970 Fax: 1.703.243.8247
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