Issue 318
April 2, 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 37 factories in 11 countries:
Cambodia, China, Haiti, Honduras, India, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, and Vietnam.



 


Bangladesh
Many global apparel brands and buyers say that the Bangladesh supply chain has too many weak links in order to remain competitive and reliable. Risk analysis firm Verisk Maplecroft says that the country has lost over US$4 billion in orders this year due to ongoing political protests between the ruling Awami League and the opposition BNP. Experts say that blockades enforced by protesters have caused shipments through the Port of Chittagong to slip by 40%. Over 100 people have also lost their lives as a result of the unrest. ( The Loadstar)

Labor leaders in Bangladesh say that several multi-national brands and export-oriented factories are receiving special, unfair exemptions from the country's labor laws. These include exemptions from policies pertaining to working hours as well as daily and weekly breaks. Labor activists say that the companies are using the exemptions as a way to circumvent labor laws, though government officials contend that the practice is legitimate and that all exemptions are given full consideration before approval. (New Age BD)

S mall and medium garment factories in Bangladesh are requesting more low-cost financing from the Alliance for Bangladesh Worker Safety in order to make needed repairs and upgrades. In a meeting between the Alliance and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), industry representatives in Bangladesh noted that many smaller factories were struggling to meet the demands put on them by Western buyers, and that further financing would be needed to achieve the Alliance's goals. The meeting was called after the Alliance submitted a list to the BGMEA of 110 factories that had failed to complete mandated engineering assessments on time. ( New Age BD )

Global retailer Primark says it has completed disbursing long-term compensation payments to 95% of the 668 workers who were working in the New Wave Bottoms factory at the time of the collapse. Payments were calculated according to the impact of the injuries sustained by the workers and by the level of disability. Primark has contributed a total of US$14 million to the victims as well as an additional US$1 million to the Rana Plaza Donors Trust Fund, administered by the International Labor Organization (ILO). (The Daily Star)

Bangladesh's highest court has rejected a bail petition filed by Aminul Islam, one of the owners of a Rana Plaza garment factory. He was one of 17 people charged with corruption for constructing the building twice as high as it was supposed to be and for allowing it to be used for industrial purposes instead of for commercial use as it was designated for. The building collapsed on April 24, 2013, killing over 1,100 people. (New Age BD)

Cambodia

Cambodian Prime Minister Hun Sen recently met with a delegation of U.S. Congress members, including Minority Leader Nancy Pelosi, in Phnom Penh to address concerns over unfair labor practices and suppression of freedom of expression. One of the primary focuses of the meetings were to address allegations of labor abuses in the country's burgeoning garment sector. Pelosi released a statement following the meetings praising them as "productive and useful" in addressing the challenges. (Cambodia Daily)

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WRAP Blog 
Latest Entry:
By: Russell Jowell
Purchasing Managers Index (PMI)

March 2015 Readings
Brazil: 46.2
China: 49.6
Indonesia: 46.4
South Korea: 49.2
Taiwan: 51.0
USA: 55.7
Vietnam: 50.7
S ource: Markit Economics

The Purchasing Managers' Index (PMI) measures growth in a country's manufacturing based on surveys of selected companies. Readings above 50 indicate growth while readings below 50 indicate contraction.

Canada

Canada has restored General Preferential Tariff (GPT) and Least Developed Country Tariff (LDCT) status to Myanmar, allowing imports from the country to enter Canada duty-free. Canada revoked Myanmar's GPT and LDCT status in 1997 amid a global response to allegations of human rights abuses in the country. The Canadian government says that there have been "positive developments" in the country since then, including civilian elections in 2010 and the implementation of economic reforms and labor policies. (Just Style)

*NOTICE: This article requires a paid subscription. 

 

China

A Chinese court has sentenced a man to death for starting a fire in the garment factory where he worked, an incident which claimed the lives of 14 other workers. Liu Shuangyun said he started the fire at the Shantou factory after his boss refused to pay him US$500 in wages that he claimed he was entitled to. He was captured just hours after the blaze and admitted his motive on state TV shortly afterwards. (BBC) 

 

Ethiopia

Over 9,000 small cotton farmers in Ethiopia will now receive support from the Aid by Trade Foundation (AbTF) after successful verification in accordance with the Cotton made in Africa (CmiA) sustainability standard. AbTF says it will cooperate with the Ethiopian Cotton Producers, Exporters, and Ginners Association (ECPGEA) to provide support to these growers. With this latest addition, CmiA will now reach over 5 million people in Africa. (Fibre2Fashion)


Germany
Global NGO Human Rights Watch (HRW) is asking German apparel and footwear brands to disclose the factories that produce their products around the world. In a public statement, HRW said that public disclosure of a company's suppliers is a major step toward ensuring good working conditions in their factories, citing Adidas as an example, which has publicly disclosed its supplier base since 2007. HRW says that public disclosure of suppliers would also help the public and third-party monitoring groups to identify and address issues. ( Fibre2Fashion /  Human Rights Watch)

Hong Kong
The Hong Kong General Chamber of Textiles (HKGCOT) has signed a Memorandum of Understanding (MoU) with the International Apparel Federation (IAF) aimed at increasing the flow of knowledge and business opportunities. Specifically, the IAF hopes that the MoU will help grow awareness among Hong Kong-based designers and investors regarding opportunities in the 50 other countries in which the IAF has an agreement. Hong Kong has become a major hub of textile design and investment over the past few years. ( Fibre2Fashion )

India

A study conducted by an Indian NGO found that many young girls working in the textile mills of Tamil Nadu under the controversial Sumangali scheme are regularly subjected to physical, mental, and sexual abuse. The group Vaan Muhil surveyed 193 girls between October 2014 and February 2015 and found that many of them had developed chronic health conditions due to a lack of protective measures provided to them while on the job. They also discovered that many of the girls were being coerced into working over 12 hours each day due to threats of sexual or physical violence from factory managers. Leaders in Vaan Muhil are calling on the government and other stakeholder groups to intervene in the matter. (The Hindu)

 

India's Ministry of Commerce says it plans to release a strategy paper int he coming weeks outlining ways to increase the competitiveness of Indian textiles in export markets. The ministry says that countries like Sri Lanka and Turkey are quickly gaining on India in terms of textile competitiveness and that ensuring success in textile product exports is essential. Textile products account for over 10% of India's total exports. (Fibre2Fashion)

 

The foundation stone for a new Apparel and Garment Making Centre has been laid in the state of Manipur. The centre is part of a new initiative announced by Prime Minister Narendra Modi last year in which all Northeast India states would get a similar centre constructed in an effort to organize the textile industry in the region. Each centre is expected to generate employment opportunities by training budding entrepreneurs to set up their own manufacturing units. (Fibre2Fashion)

 

Myanmar

Myanmar has unveiled its first National Export Strategy to strike a balance between imports and exports. Working in conjunction with the World Trade Organization (WTO) and the UN's International Trade Centre, the 5-year plan aims to increase productivity and value addition in several export-oriented sectors, including textiles and garments, and normalize export procedures around the country. The plan will include the public publication of data and history for all of the country's exported products. (Myanmar Times)

 

Representatives of more than a dozen European brands recently visited Myanmar as part of a trade visit organized by SMART Myanmar to discuss implementation of the country's new garment industry Code of Conduct. Following the meeting, the Myanmar Garment Manufacturers Association (MGMA) praised the productivity of the gathering and committed to implement several ongoing activities to ensure that the code is implemented properly. The group also said it would focus on improving the industry's management systems instead of just focusing on single issues. (Fibre2Fashion)

 

Nepal

Authorities in Nepal have arrested 3 owners of a carpet factory after discovering they were illegally employing 45 underage children. The children were between the ages of 12 and 16 and were rescued by a joint effort of local and national authorities. Nepalese law states that children under the age of 18 may not engage in "hazardous" work while children under the age of 14 may not be employed at all. (The Himalayan Times)

 

Pakistan

Authorities in Pakistan have arrested 3 men accused of starting the 2012 Ali Enterprises fire that killed over 250 people. Police say they tracked the men to a hideout behind a local market and apprehended after a brief armed standoff. The men, who admitted to being affiliated with a local political party, admitted their involvement in the incident, saying that they were told to go to Baldia Town and spread gasoline throughout the factory to set it on fire. (The News International)

 

The government of the Punjab province has secured a major investment into its textile sector from a prominent Chinese bank. The funds were secured during a recent visit by Punjab's Chief Minister to Beijing, where officials at the Industrial and Commercial Bank of China promised billions of dollars in investment to Punjab's textile sector as well as a guarantee to work to secure funding from other major world sources. The China National Textile and Apparel Council (CNTAC) has also expressed interest in investing in a new Apparel Park in Sheikhupura. (Fibre2Fashion)

 

Sri Lanka

The government of Sri Lanka has begun the process to seek re-entry into the European GSP+ program (Generalized System of Preferences). An eight member European Trade Working Group (TWG) held discussions with officials in Colombo this week aimed at resolving issues around bilateral trade and investment. The group also reviewed progress of the Doha Development Agenda implemented by the World Trade Organization (WTO) and expressed hope that the Trade Facilitation Agreement would come into effect during the upcoming WTO Ministerial Conference in December. (Fibre2Fashion)

 

United Kingdom

U.K.-based company Worn Again says it has partnered with global fashion brand H&M and lifestyle group Kering in a new effort aimed at eradicating clothing and textile waste. Worn Again says it hopes to work with H&M and Kering to deploy a new textile recycling technology that extracts polyester and cotton from used garments to be used in the production of new items. H&M and Kering say that they will be heavily involved with the testing of the new technology. (Fibre2Fashion)

 

United States

Indirect sourcing, or subcontracting, is more prevalent than many major apparel brands believe, according to Sarah Labowitz at the Center for Business and Human Rights at New York University. Labowitz made the statement during a panel discussion at the recent Ethical Sourcing Forum in New York City, where she said that many factories are pressured to outsource some of their own production to subcontractors that fall outside of inspection and social compliance schemes in order to meet price and delivery demands. She notes that while audits and inspections have increased in recent months, they are still missing many of the subcontracting facilities used by the so-called "hub" facilities. (Sourcing Journal)

*NOTICE: This article requires a paid subscription.

 

Major fashion brand Eileen Fisher says it will achieve 100% sustainability in its supply chain by 2020. The effort has been coined "Vision 2020" and will focus on all aspects of the company's supply chain "from field to the factory to the landfill," according to a company press release. The company has published a website that outlines its specific goals and the progress it is making in relation to those goals. (Eileen Fisher)

 

U.S.-based non-profit Textile Exchange has released the latest version of its Responsible Down Standard (RDS) aimed at ensuring the ethical treatment of waterfowl birds used to harvest feathers for the production of down material. This latest revision was the result of a year-long effort put forth by an International Working Group (IWG) composed of brands, animal welfare groups, and suppliers. The standard was initially launched in January of 2014. (PR Web)

 

Vietnam

Thousands of workers at a Vietnamese shoe factory have entered the sixth day of a strike over a new social insurance law slated to take effect next year. The new law says that workers would receive a social insurance monthly allowance when they retire instead of getting a one-time payment if they resign from their job. The workers contend that many of them would not be able to wait until retirement, which occurs at age 60 for men and 55 for women, to receive payment if they were to leave their current job, (Associated Press)

 

Textile and garment industry officials in Vietnam say that a partnership with Thailand would prove highly beneficial for both countries. Speaking at a recent joint press conference between the two countries, officials with the Vietnam Textile and Apparel Association said that Thailand's vertically-integrated textile supply chain would couple greatly with Vietnam's strength as a final manufacturer and that a partnership would solidify the competitiveness of both countries as buyers increasingly shift their focus to the region. (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.

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