Home World News Fashion brands pay Bangladesh factories less than actual value, engage in purchasing malpractices, claims research

Fashion brands pay Bangladesh factories less than actual value, engage in purchasing malpractices, claims research

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Fashion brands pay Bangladesh factories less than actual value, engage in purchasing malpractices, claims research

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Fashion brands pay Bangladesh factories less than actual cost, engage in purchasing malpractices, claims research

In this image taken on March 15, 2021, Ruma works in a garment manufacturing unit in Gazipur, Bangladesh. AFP

Dhaka: Big-shot excessive road style brands have paid Bangladesh factories producing garments for them less than their actual value, says new research.

According to a survey of 1,000 factories, many of those manufacturing models have been paid pre-pandemic ranges of costs, regardless of hovering costs of supplies.

Many claimed, based on BBC, that owing to malpractices in purchasing, factories are unable to pay staff Bangladesh’s minimal wage of $2.80.

Bangladesh is the one among world’s largest readymade clothes exporters, solely second to China. The nation exports 81 per cent of clothes to the remainder of the world. The business employs round 20 million staff and is the foremost driving pressure of Bangladesh’s financial system.

What did the research discover?

The research was carried out by Aberdeen University’s Business School alongside a justice charity known as ‘Transform Trade’.

The report, which is predicated on information from 2020 to 2021, discovered that as many as 90 per cent of the bigger high-street style brands engaged in unfair purchasing practices together with cancellations, failure to pay, delays in fee and low cost calls for.

Muhammad Azizul Islam, an Aberdeen University professor who led the undertaking stated, “Two years on from the start of the pandemic, Bangladeshi garment workers were not being paid enough to live on, with one in five manufacturers struggling to pay minimum wage while many fashion brands which use Bangladeshi labour increased their profits.”

“Inflation rates soaring around the world are likely to have exacerbated this even further,” he added.

Also, suppliers declare that bigger brands indulge in such practices extra typically than smaller brands.

Following the pandemic, factories employed 75 per cent of the workforce that they had earlier than, which may imply that as many as 900,000 staff might need misplaced their jobs over the time period.

‘Research a wake-up call for retailers’

Fiona Gooch, a member of Transform Trade stated that the research is a “wake-up call.”

“When retailers treat suppliers badly by breaching previously arranged terms, it’s workers who suffer,” she advised BBC.

She added, “If a retailer fails to pay the agreed amount, or delays payments, the supplier has to cut costs some other way, and this is frequently passed on to their workers, who have the least power in the supply chain.”

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