Fashion brands sourcing Bangladeshi clothing for the British market are said to have paid factories below production cost, a study by the University of Aberdeen together with the UK-based justice charity Transform Trade found.
A total of 1,000 factories were surveyed for the study and found that many were paying the same prices as before the pandemic two years ago – despite higher material costs. The report looked at the period from March 2020 to December 2021.
“Two years on from the start of the pandemic, garment workers in Bangladesh are not being paid enough to live on, with one in five manufacturers struggling to make minimum wage while many fashion brands that use Bangladeshi labor have increased their profits,” Muhammad said. Azizul Islam. , professor of sustainability and transparency accounting at the University of Aberdeen and project leader.
“Rising inflation rates around the world are likely to have exacerbated this further,” he added.
He also said that larger brands that buy from multiple factories were engaging in unfair purchasing practices more often than smaller brands, according to suppliers.
One in five factories surveyed for the research said they were struggling to pay Bangladesh’s minimum wage of £2.30 a day.
The study found that 90% of the largest brands that buy from four or more factories reported engaging in unfair purchasing practices; which included cancellations, non-payment, late payment and discount requests; with negative effects, including forced overtime and harassment.
Several retailers denied the claims made in the report.
“Retailers say in their reports that they have a commitment to workers and have made progress, but transparency is a big problem in the sector and it is difficult to determine whether certain products are ethically produced,” Professor Muhammad added. Azizul Islam.
