H&M rocked by abuse claims at Myanmar factory : Pressure on firm to follow rivals and quit country

H&M has said it will probe 20 alleged instances of abuse at its Myanmar clothes factories as pressure mounts on Western brands to leave the region.

The world’s second-largest fashion retailer said it was looking into cases highlighted in a damning report from leading human rights group.

Pressure is now mounting on H&M to follow in the footsteps of Zara owner Inditex, Primark and Marks & Spencer – and ditch Myanmar suppliers.

The Business and Human Rights Resource Centre (BHRRC) tracked 156 cases of alleged worker abuses between February 2022 and February 2023, up from 56 in the previous year. The claims included reduced wages, unfair dismissal and harassment at work.

Reduced wages are the most common rights violation since the military coup in Myanmar in 2021.

Pledge: H&M said it was looking into 20 alleged instances of abuse at its Myanmar clothes factories highlighted in a damning report from leading human rights group

Wage abuses were found in more than half of the allegations and affected at least 82,000 workers, the British human rights body said.

While H&M had 20 cases linked to suppliers, Inditex, the world’s largest retailer, had 21.

H&M said: ‘We are deeply concerned by the latest developments in Myanmar, and we see increased challenges to conduct our operations according to our standards and requirements.’

Inditex, which owns brands such as Bershka and Zara, last month said it was phasing out goods from Myanmar because of the political and humanitarian crisis there. 

This followed Primark and Marks & Spencer who both said they planned to move away from Myanmar suppliers last year.

M&S said it did not ‘tolerate any human rights abuses within any part of our supply chain’ while Primark said it was working on a ‘responsible exit’.

Campaigners said H&M should follow suit. Anna Bryher, of Labour Behind the Label, said: ‘Any brands doing business in Myanmar must know abuse is rife.

‘The military go into factories to crack down on pro-democracy activists. Wage violations, forced overtime and gender-based violence are common.

‘At what point does “fashion brands supporting jobs in an economy under threat” tip over into to “fashion brands profiting from mass worker abuse and evasion of civil liberties”? H&M need to do much more or, responsibly, make an exit.’

H&M declined to comment on whether it would stop buying clothes from Myanmar.

Many foreign companies immediately cut ties after the military junta seized control.

But retail giants are an outlier, as Lidl, Matalan and Next import goods from the region.

Even as the sector has contracted since 2021, the garment industry remains one of Myanmar’s largest employers, accounting for more than 30 per cent of total exports.

There are an estimated 500 factories producing clothes and shoes for big brands in the South East Asian country.

Some groups have accused employers in Myanmar of taking advantage of uncertainty in the country to deprive workers of their rights.

BHRRC’s research found that Primark and M&S had a respective 19 and three allegations made against them. 

But despite alleged abuses, there are also challenges with commercial giants closing operations.

‘If they leave, either the jobs disappear entirely or factories scrabble to receive orders from footloose buying agents who care only about cheap labour and do not worry about factory conditions,’ said Vicky Bowman, former UK ambassador to Myanmar and director of the Myanmar Centre for Responsible Business.

And Europe’s stance is that companies should continue sourcing from Myanmar, as long as they do so responsibly. 

Karina Ufert, chief executive of the European Chamber of Commerce in Myanmar, an independent group representing brands, said that ‘disengagement of the responsible brands will only lead to a further deterioration in the situation for the workers’ rights and contribute to greater unemployment’.

The Clean Clothes Campaign advocacy group said that brands continuing to source goods from Myanmar must ‘conduct ongoing and heightened due diligence’.

This post first appeared on Dailymail.co.uk