There has been a concerning rise in labour infractions in Bangladeshi garment manufacturers, according to a new analysis by QIMA, a top supplier of supply chain compliance solutions. According to the report, major concerns pertaining to pay and working hours were discovered in 37 per cent of audited factories between January and September 2024, a sharp increase over prior years.
Working hours and pay accounted for over half of all critical non-compliances found in these plants, which is much higher than the global average of about one-third. Compared to just 9 per cent in 2022 and 17 per cent in 2023, this is a significant growth.
According to QIMA, the average compliance scores in the field of pay and working hours decreased by 26 per cent from the year before. The findings emphasise the persistent challenges faced by garment workers in the area as well as trade union concerns about worker compensation difficulties in Bangladesh’s supply chains.
Even though Bangladesh has achieved progress since the Rana Plaza catastrophe, new worker protests have brought attention to ongoing issues in the ready-made garment (RMG) industry, specifically those related to freedom of association, working hours, and compensation. Notwithstanding these obstacles, a new deal in late September between industry participants and labour unions may portend future advancements for the nation’s apparel sector.
According to the report, Bangladesh’s textile and apparel industry is facing serious challenges in 2024 as a result of industrial action and political unrest, which have caused factory closures. Global brands are thus looking more and more for alternate sourcing choices for their Christmas season inventory.
In sharp contrast to Bangladesh, demand for textile and clothing inspections has increased in other nations, with China, Vietnam, Indonesia, and India all seeing year-over-year increases of 25 per cent, 49 per cent, and 65 per cent, respectively, in the third quarter of 2024. Nevertheless, during the same time period, Bangladesh’s demand for inspections increased by just 3 per cent.
Global sourcing patterns are still changing, the research explains, even if some Southeast Asian sourcing saw a drop in September due to changes in demand and company losses brought on by Typhoon Yagi. Armed conflicts, natural disasters, and industrial actions are just a few of the supply-side issues that have complicated the sourcing environment.
Businesses are extending lead times, reevaluating relationships, and getting ready for any trade shifts, especially with regard to China, as the US presidential election approaches. The third quarter saw a 21 per cent growth in the demand for inspections and audits from U.S. and EU buyers in China, despite some attempts to reduce reliance on Chinese supply chains, according to QIMA.
The upcoming months may be crucial for U.S.-China trade relations, prompting concerns about the future of international trade, particularly as firms get ready for the 2024 holiday season. This is because retailers and brands are bracing for disruptions in global sourcing.