Textile brands damaging Bangladesh economy through defaulting payments for orders
Developing countries’ textile suppliers lost 13 billion dollars in 3 months
Picture taken by Associated Press and published by Euronews
Worldwide fashion operating brands are on the eye of the hurricane after Center for Global Workers 'Rights (CGWR) and Worker Rights Consortium (WRC) revealed the astronomical numbers the textile suppliers of these brands all over Africa and Asia, were left with already proceeded orders but never receiving the payments for them. The loss has been measured to reach 13,800 billion dollars just between the months of April and June, being Bangladesh, Camboya and Myanmar, country where employees were fired due to asking for masks to Inditex this June, some of the most affected states.
This pause of payments by the brands has come in a period of a pandemic that has caused cancelations of entire collections. This has a direct effect on the huge numbers of dismissals, in a sector dominated by women. The number has reached 2 million people, each with a family to support. The remaining employees will face a very probable cut on their already low salary and harsh working conditions.
Bangladesh’s government has tried to manage this economical damage by giving a 425 million dollar aid to factories to confront the dramatic drop. Many NGOs have pointed their fingers in disbelief to the brands, blaming their lack of “heart and empathy” for millions of workers, and only paying their investors. However, this is not shocking news, especially after
the still recent and vivid collapse of a factory in Dacca, Bangladesh, which lead to the removal of the curtain and discovery of the dark businesses of the fashion world in these countries.
Some fashion brands like H&M, Inditex and Primark, after the pression received, have promised to pay the orders already produced. Many others haven’t pronounced or announced anything yet.