Working conditions in the garment industry are degrading, but there is now a major shift in how Western companies deal with this. Nora Lohmeyer, assistant professor of organisational design & development and head of the IMR Academy, is researching how these companies are implementing new regulations around human rights due diligence. 'Companies now take their responsibility more seriously because there are real sanctions behind it.'
Working long hours, high work pressure, coming into contact with hazardous chemicals and still not being able to make ends meet financially. Working conditions in textile factories in global supply chains have been harrowing for decades. Currently, there is a lot of media attention on the exploitation of web shops Shein and Temu, but according to Lohmeyer these Chinese companies are not the only 'bad guys'. 'The clothes sold by Western fast fashion retail chains are made under similarly poor conditions. For these companies, it is convenient that now the attention lies on Shein and Temu.'
Revolutionary
Despite the misery in the garment industry, Lohmeyer is hopeful. Since recently, change is underway that she calls 'revolutionary'. Previously, Western companies addressed working conditions supply chains on a voluntary basis, often under pressure from civil-society organizations. They did so by, for example, implementing health and safety measures in individual factories. 'Such initiatives can bring immediate relief for some workers, but they are very limited in changing the situation for workers on a more structural basis,' says Lohmeyer. ‘More so, because they are voluntary, such initiatives are often let go in times of economic crisis.’ Now, through with new legislation on the national and international level – like the German Supply Chain Act or the European Corporate Sustainability Due Diligence Directive –, governments make sure that certain standards need to be upheld by all companies and irrespective of the economic situation. 'Western firms are now held legally responsible for what happens in their supply chains. They can no longer point the finger at the factories.'
Financial power
This is very important, according to Lohmeyer, because it is Western companies that need to change for things to improve in global supply chains. 'They have great financial power and often determine what happens in their supply chains.' The role of consumers in this is limited, she argues. 'It is convenient for companies to put responsibility on consumers and to just continue with business as usual. As consumers, we shouldn't have to think about whether a child has made our trousers.' Of course, everyone has a responsibility to buy sustainably produced or second-hand clothes, Lohmeyer points out, but it is the companies that need to change how they source their clothes. 'What you can do as an individual is to vote for a political party that is in favour of regulating businesses, because it is the companies that determine the conditions under which our clothes are made.'
Companies started to implement meaningful changes but, right now, they are unsure whether and how to proceed.
Sanctions
That something has started to move is due to new legislation. Lohmeyer is studying the impact of these regulations and is very positive. ‘Companies are taking their responsibility more serious now because legislation means there are real penalties attached to putting workers at risks.’ From her current research she knows that this can change the dynamic within Western companies in important ways. ‘Human rights officers in firms are gaining more leverage now, because human rights in supply chains has become a legal issue. Firms want to avoid sanctions like financial fees or being excluded from public tenders.’
Overburdened
Lohmeyer is, however, concerned about the current political 'backlash' against the new regulations at both national and European level. 'With the increasing popularity of far-right and neoliberal parties, sustainability related business regulations are put into question again. From that corner, the argument is that companies are getting overburdened by legislation, an argument that even some companies themselves reject. They can handle it. It is a challenge, but they are managing.'
Old debates
The current backlash causes laws to be delayed, to be watered down or even to be abandoned altogether. ‘The renewed debate on the European level also causes national governments to slow things down. In the Netherlands, for instance, the Child Labour Duty of Care Act was passed in 2019, but is still not in force.’ Old discussions are also being rehashed. 'It is a shame that after these regulations had been agreed upon, we have to talk about their importance again.' The political back and forth also creates uncertainty among companies. 'Companies started to implement meaningful changes but, right now, they are unsure whether and how to proceed.'
Trade union
According to Lohmeyer, when would the garment industry be perfect? 'It would already be great if all regulations were implemented and enforced. But really, while that's just the baseline, looking at how things are right now, it seems already super-ambitious.' Ultimately, she hopes for a world where workers in global supply chains no longer have to fear for their lives, earn a living wage, and have a voice in their work. What would be crucial for that would be independent trade unions, according to Lohmeyer. 'Then workers would be empowered to take matters into their own hands.'
Text: Willem Claassen