Issue 319
April 9, 2015
logo

Welcome to the  WRAP Weekly Newsletter! Please enjoy it and thank you for being a loyal reader. 
The WRAP Up
Last week we certified 49 factories in 16 countries:
Bangladesh, Bolivia, China, Egypt, El Salvador, Honduras, India, Indonesia, Jordan, Mauritius, Nicaragua, Pakistan, Sri Lanka, Thailand, USA, and Vietnam.



 


Asia
A new survey from MasterCard says that consumers in emerging Asian markets are more likely to factor social responsibility into their buying decisions than their counterparts in more developed Asian nations. According to the company, over 70% of Chinese, Malaysian, Thai, Indian, and Filipino customers said they consider whether a product is ethically made before making a purchasing decision, as compared to just 39.3% in Japan, 38.2% in South Korea, and 29.16% in Australia. The survey was conducted between October and December of 2014 in 14 Asian markets. ( Master Card /  CNBC)

Bangladesh
A recent survey by global NGO ActionAid found that over half of the survivors of the 2013 Rana Plaza collapse are still unemployed. The group says that the major drivers of this trend include a lack of available jobs, the physical and mental weakness of many of the workers, and an unwillingness from many employers to recruit new workers. The findings were announced as part of a larger project being undertaken by the group that looks at the reintegration of the Rana Plaza victims into society. ( Dhaka Tribune

The family of slain Bangladeshi labor leader Aminul Islam is expressing frustration over the slow pace of the investigation into his death over 3 years ago. Islam's widow, Husne Ara, maintains that her husband's life was not taken over any political fallout, as some reports have suggested, and is speaking out against Bangladesh's Criminal Investigation Department (CID) over their inefficient handling of the case. Aminul Islam was abducted on April 4, 2012 and found dead in the Tangail region of Dhaka a few days later. ( The Daily Star)

Bangladesh's Department of Labor has launched a new tool for trade unions and trade union federations to register online. Operated with assistance from the International Labor Organization (ILO), local officials say they also plan to add a function for workers to file complaints online as well as educational and welfare resources for union members. The ILO hopes that the new system will bring more transparency and accountability to the union registration process. ( Just Style)
*NOTICE: This article requires a paid subscription.
Like us on Facebook Follow us on Twitter View our profile on LinkedInView our videos on YouTube
 
 Upcoming Events   

Upcoming Training

April 9
Dhaka, Bangladesh

April 17-18
Chennai, India

April 21-25
Delhi, India

April 27-28
Delhi, India

April 30
Dhaka, Bangladesh


WRAP Blog 
Latest Entry:
By: Russell Jowell

Readymade garment exports from Bangladesh grew by 3.18% year-on-year between July 2014 and March 2015 to reach US$18.62 billion, according to the country's Export Promotion Bureau. Knitwear and woven products all posted individual year-on-year gains for the period as well at 2.7% and 3.64% respectively. So far, the country has earned nearly US$23 billion from RMG exports this fiscal year. (Fibre2Fashion

 

Cambodia

Cambodian garment industry watchdogs say that the country's government has discrepancies regarding industry export data between various departments. In February, the Commerce Ministry announced that the country had achieved US$5.75 billion in exports in 2014, while the Finance Ministry indicated exports of US$6 billion, representing a US$250 million discrepancy. Both departments say they are looking into the matter. (Cambodia Daily)

   

Ethiopia

Ethiopia's textile industry is poised for an unprecedented boom, according to local officials, and could become the "Bangladesh of Africa." Local stakeholders in Ethiopia's industry say that the country is an ideal location for textile and garment sourcing and that opportunities for investment are growing. Officials says that numerous Chinese, Turkish, and European companies have already made significant investments into the country and the government has put policies in place to support future growth. (Fibre2Fashion)


Germany
Germany is pushing the other members of the G7 to take responsibility for the effective implementation of labor, social, and environmental standards around the world. The move is being made as part of a new initiative called "Good Work Worldwide," which will focus on creating decent work environments and sustainable production processes. German officials say that multilateral collaboration will be crucial to the success of the initiative. ( Fibre2Fashion)

India

Authorities in India have rescued 22 child laborers, ages 5-13, from hazardous working environments Hyderabad, including leather production units. Local police say that the children, mostly from the Gaya district in Bihar, were forced to hide in various locations around the city when they were not working to avoid detection. Two people have been arrested in connection with the sting and police say they are looking for a third suspect. (Indian Express)

 

India's new National Textile Policy will address several major issues with the sector, according to Textiles Minister Santosh Gangwar. A draft of the new policy was submitted by an expert panel convened last year and sets a goal to achieve US$300 billion in exports by 2024 and to create an additional 35 million jobs through new investments. The new policy still needs the approval of the Cabinet. (India Times)

 

The government of India says it will set up 800 industry clusters by 2017 under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) in an effort to boost rural handweaving (khadi) industries. During a recent gathering in Delhi, Micro, Small, and Medium Enterprises (MSME) Minister Kalraj Mishra noted that India's rural khadi industry is an essential part of job creation and growth throughout the greater textile industry, and can boost the economy in an environmentally-friendly way. SFRUTI was first launched back in 2005 as a way to promote cluster development throughout the country. (Fibre2Fashion)

 

Textile industry leaders in Andhra Pradesh say the state's new industrial policy has proved extremely beneficial for the industry. The current policy, which will be in effect until 2020, provides a host of incentives for the industry, including a 12.5% interest subsidy and a generous energy subsidy for spinning and ginning units. The policy also includes benefits for employees of these facilities, including training and transportation subsidies. (Fibre2Fashion)

 
Jordan

A new report released by a Jordanian research group says that the country's garment sector is more attractive to foreign workers than to Jordanian residents. According to the National Centre for Human Resources Development (NCHRD), current Jordanian labor policies favor bringing foreign workers into the country as opposed to attracting local workers. An example of this is a current policy which requires garment factories to offer health insurance and housing to foreign employees, offerings that are not mandated for Jordanian workers. It's estimated that over 15,000 of a total of 19,650 textile jobs in the country are currently vacant. (Jordan Times)

 

Lithuania

The Prime Minister of Lithuania is praising a new cooperative agreement aimed at promoting textile exports from the country. The agreement was reached between the Lithuanian Apparel and Textile Association and the Centre for Physical Sciences and Technology, the country's state-run research body. During a recent visit to textile factories in the capital city of Vilnius, Prime Minister Algirdas Butkevicius said that the new agreement would help his country "successfully compete" in the international textile market. Lithuania was named one of the top 3 fastest-growing textile producing countries by the European Apparel and Textile Organization in 2014. (Fibre2Fashion)

 
Myanmar

Government and industry leaders in Myanmar say that they are struggling to form a robust national minimum wage policy. In 2013, the country passed a revised minimum wage policy that gave the power to set the country's minimum wage to a tripartite committee who would consider a number of factors, including worker productivity. Some members of that committee say that they are struggling to agree on a suitable definition of what exactly a minimum wage is and say that there are internal rifts over how factors like productivity should be factored into the decision. Many garment industry stakeholders, including the Myanmar Garment Manufacturers Association (MGMA), had hoped that a new rate would have been set before this year. (Myanmar Times)

 

A proposed bilateral trade deal between Europe and Myanmar could put excessive downward pressure on wages for female garment workers in the country, according to the London-based non-profit group ActionAid. The group says that the deal would undermine the ability of local government officials to regulate their country's business practices and negate efforts to improve lives for garment workers in the country. Initial talks on the deal were conducted in February and negotiations are expected to continue in May. (Irrawaddy)

 

Pakistan

Textile industry leaders in Pakistan are speaking out against a proposal to merge the Textile Ministry with the Commerce Ministry. Industry stakeholders say that an individual ministry focused solely on Pakistan's textile sector is necessary for success because it accounts for over 54% of the country's exports and 42% of jobs. They also point to the necessity of India's Textile Ministry to that country's textile sector, even though it only accounts for about 12% of exports. Merging the two ministries was recently proposed by the country's Finance Minister. (Fibre2Fashion)

 

Labor activists in Pakistan are urging federal and local government authorities to implement policies to protect home-based garment and textile workers. The push was made at a recent event organized by HomeNet Pakistan (HNP), with assistance from the U.S. Agency for International Development (USAID), where activists stressed the need for the government to provide the same labor protections to home workers as it does to factory workers because home-based labor is a crucial link in Pakistan's textile economy. (Dawn)

 

Sri Lanka

A factory manufacturing footwear for the Sri Lankan army caught fire on April 3, according to local fire officials. Firefighters say the factory was closed at the time and that the blaze was reportedly sparked by repairs that were going on at the time. So far, there have been no reports of injuries. (Daily Mirror)

 

Sri Lanka has become the first country to implement a new labor inspection app developed by the International Labor Organization (ILO). The Labor Inspection System Application (LISA) is a tablet-based application that allows labor inspectors to instantly snap photos of violations and attach them to a digital report which can then be sent to an external database for analysis and follow-up. Several other countries in Asia have also expressed interest in using the app with their own inspectors. (ILO)

 

Thailand

Labor leaders in the city of Rangsit say they will begin a push to increase the daily minimum wage from B300 (US$9.21) to B421 (about US$12.90) on May 1, which is National Labor Day. The decision was made after local union leaders met with the local trade bodies and passed a resolution declaring that the present rate of B300 was not sufficient to live on, a conclusion reportedly verified by some local academic leaders. Local labor activists say that many workers in the area are forced to work overtime just to meet their basic needs like food and shelter. (Bangkok Post

 

The first even Global Textile Congress recently concluded in Bangkok. Organized by the Textile Association of India in conjunction with the Thailand Convention & Exhibition Bureau (TCEB), the 3-day event brought together textile industry stakeholders from around the world to form lasting relationships between the world's top textile producing nations. The theme of this year's show was "Opportunities and Challenges in an Integrated World." (Fibre2Fashion)

 

United States

Apparel and related accessories were the top category of counterfeit goods seized by U.S. Customs and Border Protection (CBP) in FY2014. While the rate for this period was down slightly from the previous fiscal year, it also represented the third-highest seizure rate since 2005. The agency says that 63% of the seizures originated from China with Hong Kong representing the second-highest rate at 25%. (Just Style)

*NOTICE: This article requires a paid subscription

 

Retail giant Wal-Mart says it will look to its global supply chain for cost-cutting measures as it seeks out lower prices for its products. Speaking at a recent investor meeting, the head of Wal-Mart's U.S. division said the company is aiming to re-establish the price competitiveness it used to hold over its rivals in some of its most competitive markets and will change the way it works with some suppliers in order to achieve that. The company also says it will balance these measures with a US$1 billion investment in customer service at its stores. (Reuters)

 

The manager of a Southern California garment factory has been indicted on bribery charges after he allegedly tried to bribe an inspector with the U.S. Department of Labor. Authorities say that the manager of the Seven-Bros. Enterprises facility in La Puente paid the labor inspector who was looking into allegations that he had failed to pay some of his employees. He is scheduled to be arraigned later this month and could face up to 15 years in a federal prison if convicted. (Los Angeles Business Journal)

 

American Apparel says it has laid off about 180 employees, mostly from its manufacturing operations, as an effort to cut costs. This represents about 1.8% of the company's 10,000 employees. Despite the cutbacks, the company says it does not plan to cut wages as well and is committed to keeping production in their downtown Los Angeles facility. (New York Times)

 

A union caucus representing thousands of dockworkers at West Coast ports has given its approval to a labor contract deal reached with port operators following months of tedious negotiations that brought the ports to a virtual standstill. The International Longshore and Warehouse Union reached a tentative five-year deal with the Pacific Maritime Association, which represents port operators, on February 20. The deal still must be ratified by the greater union membership. (Reuters)

 

U.S. textile and apparel imports showed a slight year-on-year increase in February with each sector posting 0.2% year-on-year growth for the month, according to the U.S. Office of Textiles and Apparel (OTEXA). China continues to be the top supplier of these products to the United States, followed by India and Vietnam, which along with Cambodia, also posted a double-digit drop in year-on-year imports for February. (OTEXA)

 

Vietnam

Workers at a major Vietnamese footwear factory have ended their strike after government officials agreed to meet their demands regarding retirement payouts. The workers were demonstrating against a new policy regarding the payment of social insurance benefits after resigning from a company which stated that monthly payments would be made after a worker retired instead of giving them a lump sum immediately following their departure from a company. Government officials say they are working with legislators to change the policy to give workers a choice between the lump sum or monthly payment options.

(Associated Press)

 


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