RMG struggles to survive as int’l fashion brands offer less than the production cost

Major international fashion brands are operating unfairly toward Bangladesh clothing suppliers, with some allegedly paying for items below the cost of production. More than half of the factories experienced at least order cancellations or refusal to pay or price reductions or delayed payment for goods. Such practices resulted in lower wages for the factories’ workers and job losses.
According to a study report, one in five factories revealed that they had struggled to pay the legal minimum wage as a result. It also uncovered incidents where some companies demanded reductions for clothing ordered before the pandemic erupted in March 2020. And some fashion firms refused to budge on price, despite soaring costs and rampant inflation. The study recommended establishing a fashion watchdog that would help to curb unfair practices by ensuring “that buyers/retailers cannot dump disproportionate and inappropriate risks onto their suppliers and that retail and brands conform to the norms of fair commercial practices”.
In August, Bangladesh’s garment industry faced a double whammy from slowing global demand and an energy crisis at home that was threatening to thwart the nation’s pandemic recovery. In the same month, major global retailers agreed on a two-year pact with garment workers and factory owners in Bangladesh, extending a pre-existing agreement that makes retailers liable if their factories do not meet labour safety standards, including retail giants H&M, Inditex, Fast Retailing’s Uniqlo, Hugo Boss, and Adidas.
The exploitation of workers and poor labour safety standards have been highlighted after the Rana Plaza complex collapse in 2013 that killed more than 1,100 garment workers, the deadliest incident in garment industry history. The European Union warned consumers to stop using their clothes like throwaway items and said it plans to counter the polluting use of mass-market fast fashion. Responsible consumption and global partnership will support the producers’ safety in terms of economy and rights.