Issue 322
April 30, 2015
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Welcome to the  WRAP Weekly Newsletter! Please enjoy it and thank you for being a loyal reader. 
The WRAP Up
Last week we certified 42 factories in 10 countries:
Bangladesh, Cambodia, China, Dominican Republic, El Salvador, Honduras, India, Pakistan, Sri Lanka, and Vietnam.





 

Bahrain
Bahrain's textile industry is bracing for a major economic blow as a traiff clause in the country's Free Trade Agreement with the United States approaches its expiration date next year. The clause waives limits of how much yarn and fabric could be sourced from third parties to be used in products bound for the United States. The clause expires on July 31, 2016 and lawmakers in Washington have so far failed to secure its extension. ( Fibre2Fashion)

Bangladesh
Hundreds of garment workers in dozens of factories across Bangladesh were injured on April 26 after the country was rocked by a major earthquake centered in neighboring Nepal. Authorities say that many of those injuries were caused as workers panicked while evacuating their factories fearing that the buildings would collapse. Over 5,000 lives have so far been claimed in connection with the quake, at least 4 of them in Bangladesh. ( Dhaka Tribune)

Both the Alliance for Bangladesh Worker Safety and the Accord on Fire and Building Safety in Bangladesh have announced fresh rounds of building inspections following the major earthquake that struck the country on April 26. Both groups say that they have identified numerous vulnerable facilities whose structural integrity may have been affected by the quake and will visit all of these facilities in the coming days to determine if their internal structures have been compromised.

At least 7 women were injured by police gunfire on April 26 amid a scuffle outside of their factory. Police were called to the facility in an attempt to disburse a group of 400 workers who were staging a sit-in in front of their facility, which closed suddenly earlier this month, demanding immediate payment of their outstanding salaries. Tension ensued after the workers refused to leave their posts, which reportedly led to physical actions from both sides. ( New Age BD)

A new 3-year Worker Empowerment Program has been announced in Bangladesh  to support labor rights, union organizing, and women's empowerment in the readymade garment sector. The program will be administered by the U.S. Agency for International Development (USAID) and will work to build the capacity of RMG workers to protect their rights and promote their own interests. This program will compliment the existing Global Labor Program which has trained over 65,000 people. ( USAID  /  Fibre2Fashion )
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Global NGO Transparency International says that 220 garment factories have been shuttered since the Rana Plaza tragedy in 2013, resulting in over 150,000 job losses. The findings were revealed in a new report released by the group which looked at data between April 2014 and March 2015 and found that the rate of factory closures during that period was 4 times greater than in the previous 12 months. The report also says that another 700,000 jobs may be lost if this trend continues. (Reuters)

 

Cambodia

The Garment Manufacturers Association of Cambodia has released a statement reaffirming its commitment to a "high level of labor and social compliance" ahead of International Labor Day on May 1. The statement said that Cambodia "continues to be recognized as a pioneer in setting standards for labor and social compliance" and that the country's example is being emulated in other places around the world. This comes as some labor rights groups have accused the country of allowing unethical labor practices to persist in the country. (Khmer Times)

   

Germany

Global research firm GfK has released the results of a new study that found that 75% of global consumers are demanding that the brands they buy from be environmentally responsible. The findings are based on over 28,000 interviews conducted in over 23 countries about how strongly people agree with certain statements regarding ethical fashion. GfK says that consumers in India and Indonesia expressed the strongest preference for environmentally conscious brands at 94% and 93% respectively, with Turkey, France, and Brazil rounding out the top 5. (GfK / Sourcing Journal)

*NOTICE: Sourcing Journal link requires a paid subscription

 
India

Powerloom workers in Pallipalayam have staged an indefinite strike after talks to increase the minimum wage collapsed. During a recent meeting between workers, powerloom owners, and textile manufacturers, workers brought up the proposed increase, which was subsequently rejected in favor of a 2-year pact proposal that would give powerloom owners a 20% hike in their wages which would then be passed on to the individual workers. Workers' representatives rejected the proposal and say they will continue their demonstration until the receive a 25% increase in wages. (The Hindu)

 

Indonesia

Indonesian trade officials are considering filing a complaint against Turkey with the World Trade Organization (WTO) over their anti-dumping measures on yarn. Last week, Turkish trade authorities announced that higher levies would be implemented on Indonesian yarn for at least the next 5 years, a move which Indonesian officials say would hurt local companies. Turkish imports of Indonesian yarn account for about 10% of their total market. (Fibre2Fashion

 
Iran

Tehran recently hosted a German Textile Symposium aimed at growing interest among Iranian textile companies in German-made machinery. Demand for German products among Iranian textile producers has waned in recent years thanks to sanctions placed on the country by the German government, but machinery suppliers say they are now embarking on a mission to reinvigorate that demand and make Germany the supplier of choice for textile machinery in Iran. The organizers of the event say it was a success with many German companies coming away with solid Iranian prospects. (Fibre2Fashion)

 

Japan

The government of Japan has relaxed its Generalized System of Preferences (GSP) rules of origin for knitted and crocheted apparel articles and clothing accessories, allowing duty-free imports from 137 countries, including Bangladesh, Cambodia, and Myanmar, even if the products contain fabric not produced in the final exporting country. The new policy took effect on April 1 and has given many countries, including Bangladesh, hope for a strong boom in exports to Japan. The country relaxed the GSP rules of origin for woven apparel back in 2011. (Sourcing Journal) *NOTICE: This article requires a paid subscription

     
Myanmar

The secretary of the Myanmar Garment Manufacturers Association (MGMA) says that the country opened one new garment factory every week in 2014. MGMA leaders say that foreign buyers are being attracted to the country thanks to economical wages, a plentiful labor supply, and that numerous buyers driven out of Bangladesh by safety and compliance concerns now have their eyes on Myanmar. It's estimated that Myanmar is now home to over 300 factories employing over 200,000 people and the MGMA has plans to up the number of factories to 3,000 by 2025. (Nation Multimedia)

 

Pakistan

Workers' groups in Pakistan are pushing the government to increase the country's minimum wage to US$245 per month and implement stronger worker protections like mandatory appointment letters and more robust workplace inspection policies. The push was made at a recent conference in Hyderabad organized by the National Trade Union Federation (NTUF) where laborers also spoke out against labor contracts and hiring through third-party organizations. Pakistan's current minimum wage sits at about US$124 per month. (Dawn)

 

Garment and textile exports from Pakistan reached US$10.207 billion between July 2014 and March 2015, according to the Pakistan Bureau of Statistics. In terms of specific sectors, knitwear exports grew by 7.54% year-on-year during the period while exports of non-knit readymade garments grew by 8.51%. The increase in the amount of finished garments over the exports of cotton, yarn, and fabric is seen as a positive indicator for Pakistan's value-added textile industry. (Fibre2Fashion)

 

Philippines

The government of the Philippines has signed a Memorandum of Understanding (MoU) with the Foreign Buyers's Association of the Philippines (FOBAP) aimed at increasing international labor compliance among export-oriented factories in the country. According to the country's Department of Labor and Employment (DOLE), the agreement will help improve compliance among production facilities as well as educate producers on the importance of submitting to voluntary compliance certifications and taking a proactive approach to the process. These activities will be administered by a technical working committee set up by both parties. (DOLE / The Philippine Star)

  

United Kingdom

Heriot-Watt University in Edinburgh, Scotland has launched a new Master of Science in Fashion Ethics degree program. University officials say the degree will consist of a "research led, taught programme, focused on analysing and understanding the industry, whilst mapping the changes in practice, monitoring the voices and diversity of stakeholders in the supply-chain." The university says that it established the degree program after identifying a growing need for professionals versed in the theory and practice of ethical fashion supply chains. (Heriot-Watt University)

 

United States

Victims of the 2013 Rana Plaza collapse in Bangladesh have filed a federal lawsuit against 3 major retailers and the government of Bangladesh claiming that all of these parties knew of the unsafe conditions in the Rana Plaza building before it collapsed, yet they failed to act. Along with the government of Bangladesh, the suit alleges that J.C.Penny, The Children's Place, and Wal-Mart all either knew or should have known that the Rana Plaza building was unfit for occupancy and that they failed to take proper measures to ensure "safe and healthy" working conditions. So far, all parties named as defendants have refused to publicly comment on the suit. (The Daily Star / AM Law)

 

Two U.S. Senators have introduced a bill designed to lower or eliminate tariffs on recreational outdoor apparel and help boost America's outdoor economy. Senators Kelly Ayotte of New Hampshire and Maria Cantwell of Washington have both released statements praising the measure, saying it would modernize what is seen as an outdated tariff structure and help lower costs for consumers. They also say the bill would help boost the burgeoning outdoor recreational economy present in several states across the country. (Fibre2Fashion)

 

Global management consulting firm McKinsey & Company has released a new report looking at the opportunities and challenges involved in sourcing from East Africa. The report is compiled from data gathered after visiting dozens of factories in the area, analyzing market data, and surveying over 40 Chief Purchasing Officers (CPOs) working at apparel companies around the world.

(McKinsey & Company / Sourcing Journal*NOTICE: Sourcing Journal link requires a paid subscription

 

The Footwear Distributors and Retailers of America (FDRA) has partnered with the British Footwear Assocaition (BFA) to form a trans-Atlantic partnership to increase trade between Britain and the United States. In order to reach this goal, the two groups have agreed to share market data, regulatory insights, and customs updates to keep footwear designers and industry professionals better informed. In a statement, the FDRA noted that the partnership was spurred by a meeting between the two groups seeking clarity on production matters. (Footwear News)

 

Vietnam

Policymakers in Vietnam are working on more robust protections for workers following several incidents where factory owners suddenly shuttered their facilities without paying workers their due wages. At least two separate incidents have occurred this month where workers arrived at their factories to find them shuttered with no sign of management to distribute owed wages. Labor organizers are urging the government to revise their enforcement policies because they say their powers are limited when it comes to preventing these incidents from occurring. (DTI News)

 

Ho Chi Minh City is the proposed site of a new garment and textile industrial park funded by India, according to that country's Synthetic and Rayon Textiles Export Promotion Council (SRTEPC). The group says that the effort is a move to put India in a position to reap the potential benefits of the proposed Trans-Pacific Partnership (TPP) act, in which Vietnam would be a major player. The park will also eventually support production facilities for higher-value products like healthcare products, appliances, and furniture. (Tuoitrenews.vn)


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.

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