The OECD has released a new handbook to help businesses implement living incomes and living wages in agriculture, garment, and footwear supply chains. The guide utilizes the OECD due diligence framework, offering practical tools for companies to turn their commitments into tangible actions.
2024
The Indonesian Textile Association (API) has announced that an additional 30,000 workers in the textile and garment industry will lose their jobs by the end of 2024, raising the total number of layoffs in the sector to 70,000 this year.
SHEIN has become the second-largest fashion brand in France, nearly equaling Zara in market share. According to rankings from a French consumer journal, SHEIN's 2023 sales in France surpassed those of H&M, Primark, and Kiabi.
In Farrukhabad, India, thousands of fish have been dying in the Ganges River near Bhairoghat for the past 15 days, likely due to chemical-laden wastewater from local textile factories. Experts believe pollution, stagnant water, and low oxygen levels are contributing factors.
Almost all garment factories in Narayanganj, Gazipur, and Dhaka Metropolitan are now open, signaling a return to normalcy in the sector, according to a report from the Chief Adviser's Press Wing. While a few factories in Savar-Ashulia and Gazipur remain closed, about 99.26% of the facilities are operational, with minimal disruptions reported.
Golden Integrating International Investment, based in Singapore, will invest in a green textile industrial zone in Cambodia, starting this November. The project aims to create an eco-friendly, sustainable manufacturing hub for textiles and is expected to boost employment and exports in the region.
Better Cotton Pakistan has signed a "Memorandum of Understanding" with a local manufacturing giant and the Central Cotton Research Institute. Over the next 3 years, the Mahmood Group will fund the training to support 8,000 farmers in promoting sustainable cotton production in Pakistan. The partnership aims to rebuild Pakistan's cotton sector, after it suffered from floods.
Myanmar’s labor ministry now requires migrant workers in Laos to send 25% of their wages through official channels to boost foreign currency reserves. Workers, concerned about low exchange rates and fees, say this impacts their take-home pay. The policy mirrors similar remittance requirements for Myanmar workers in Thailand.
Cambodia’s government approved a 2025 budget of 37.950 billion riels ($9.32 billion), slightly lower than the previous year, aiming to support economic growth, institutional development, and infrastructure. The budget, accounting for 18.14% of GDP, now awaits legislative approval.
Emek Kumaş, a prominent Turkish textile company operating for 67 years, has gone bankrupt with a debt of 500 million TL, which would be approximately 15 million USD. Known for producing fabrics for global brands like Marks & Spencer, Naf Naf, Bestseller, Koton, and H&M, the company couldn't overcome financial struggles during the concordat timeframe.
On November 21, 80,000 Spanish textile and garment sector workers, led by the CCOO union, will strike to demand fair wages, improved labor rights, and action on gender pay disparities. Announced after stalled negotiations with employers, the strike aims to end poor working conditions and inequality.
Tunisia’s secondhand clothing sector, known as “Frepe,” faces a 30% decline in demand as purchasing power falls and quality decreases. Al-Sahbi Al-Maalawi, head of the National Chamber of Used Clothes Merchants, highlighted the sector’s challenges and called on the Ministry of Commerce for support and reform.
Male workers at Myanmar’s QI Yuan Garment factory report verbal abuse, wage inequities, and denial of benefits due to non-permanent status. Female workers confirm issues like insufficient overnight meal allowances, forced overtime, and deductions without explanation.
The Asian Floor Wage Alliance (AFWA) report reveals that Vietnam’s garment industry workforce is 90% female, with over half under 35, only 13% of the survey participants were over 45 years old. Workers are at risk for being treated as "disposable goods" as factories prioritize young, low-wage employees.
Donald Trump’s election victory and proposed tariffs of up to 60% on Chinese goods could increase costs for U.S. apparel companies, raising prices and potentially reducing consumer demand. While this poses challenges, it may also benefit manufacturers in Vietnam and Bangladesh as brands diversify away from China, though Bangladesh remains disadvantaged by standard U.S. tariffs.
With U.S. policy changes looming, the fashion industry’s sustainability efforts face significant obstacles, yet some leaders remain determined to push forward. Brands like Patagonia, H&M, and Levi's remain committed to sustainability. State laws, such as New York’s Fashion Act, may push stricter standards, while bipartisan support for the Americas Act could promote circular production.
A committee has been formed to review and potentially revise the minimum wage for Bangladesh's garment workers, with a decision expected by April 2025. The committee will assess inflation adjustments and submit recommendations by then.
IndustriALL and Myanmar unions have filed OECD complaints against Next, New Yorker, and LPP for sourcing from Myanmar despite documented worker rights abuses since the 2021 coup. The regime has banned unions and fostered exploitation, with brands accused of enabling these violations.
The fashion industry is adopting AI to reduce waste, monitor emissions, and improve sustainability, with brands like H&M investing in recycling and resource optimization. However, this shift endangers millions of jobs, particularly in labor-intensive countries like Bangladesh, where up to 60% of garment roles are at risk.
SHEIN's evoluSHEIN roadmap highlights steps taken to address labour rights and governance issues, including audits and a Supplier Code of Conduct. However, despite claims of progress, concerns remain about forced labour, child labour, and working conditions across its vast supply chain. While SHEIN has terminated relationships with suppliers, questions linger about the effectiveness of its efforts and the depth of its commitment.
Experts in Bangladesh have emphasized the need to formalize the country's informal textile waste management system to comply with EU sustainability regulations. A structured policy could create jobs, reduce import reliance, and address labor unrest. Key stakeholders call for technology transfer, financing, and a national circularity strategy, with the next five years deemed crucial for the garment sector’s transition to circular production models.