Using figures supplied by textile workers' unions in Bangladesh, the Trades Union Congress (TUC) calculated that doubling wages from the minimum wage of $41.50 per month would only add 4 cents to the cost of an average t-shirt. The figure is based on the idea that workers are expected to make six t-shirts an hour, for which they are paid 24 cents. The Trade Unions Congress is a federation of … [Read more...]
UK’s Marks and Spencer Reports Worst Performance in 4 Years
May 22, 2013 by
After two consecutive years of falling profits, the UK’s Marks & Spencer is under increased pressure to defend its strategy. Clothing and homeware sales have dropped for seven consecutive quarters, and the company posted a 6% drop in profits during the fiscal year ending March 2013—its worst performance in four years. Marks & Spencer’s food business, however, has not only … [Read more...]
Indian Reverse-Sourcing to Create U.S. Factory Jobs
May 22, 2013 by
We’re used to outsourced labor from the U.S. to India, but later this year, Indian textilers Alok Industries will reverse the course. The Mumbai-based textile manufacturer, which counts Wal-Mart and Macy’s among its clients, has announced plans to open a mill in the U.S., citing energy savings. Arun Agarwaal, Alok’s CEO, told the press that the U.S.’s high cotton production was part of … [Read more...]
Cambodia Factory Collapse Wounds 23
May 21, 2013 by
Another factory has collapsed in Cambodia wounding 23, in the latest episode in a recent string of garment industry disasters. This factory was producing goods for Swedish retailer H&M. The structure that collapsed was a concrete and metal shelter where workers were resting during a break. Local police chief Hy Narin told reporters, "The shelter is old and it collapsed into the lake while … [Read more...]
Chinese Yuan Goes Up; Exporter Profits Go Down
May 21, 2013 by
Chinese exporters in the country's Pearl River Delta are trying to squeeze profits from their exports now that the Yuan has risen against the U.S. dollar. Although orders for April have spiked in the delta region, margins are now thinner because of the rising yuan. Data collected from some 2,000 companies in the delta area show April exports have increased a substantial 47.3 percent … [Read more...]
Editorial: New Bangladesh Deal Should Be Universal
May 21, 2013 by
Major retailers and brands are signing on to a new safety plan for Bangladesh, in a move that has been applauded by labor and consumer groups. H&M, Inditex, PVH (owner of Calvin Klein), Tesco, Tchibo, Primark, and C&A have agreed to sign the deal. Together, they make up a large percentage of total goods sourced from Bangladesh. H&M sources more goods from Bangladesh than any other … [Read more...]
China, Vietnam Gain Share of US Apparel Market in First Quarter
May 20, 2013 by
Apparel imports from Vietnam and China grew fastest in the first three months of 2013, giving these countries significant share gains in the US apparel market. Bangladesh and Pakistan also saw their exports to the US grow, though their increases were smaller. Total apparel import growth slowed in March, resulting in a 3% dollar value increase for the first three months of 2013 compared to the … [Read more...]
Cambodia Shoe Factory Ceiling Collapses; At Least Six Dead In Latest Industry Disaster
May 18, 2013 by
The collapse of an over-loaded floor in a Cambodian shoe factor is the latest fatal accident in a series of deadly fires and collapses in third world garment factories. Six workers are known dead in the disaster at a factory near Phnom Penh, the nation's capital. The factory supplied footwear to Asics Corporation, a Japanese company, which sells its products in the U.S. and … [Read more...]
Asulia Apparel Factories Reopen Friday
May 17, 2013 by
Apparel factories in Ashulia Industrial belt will be reopened on Friday after three days of indefinite shutdown enforced by the owners amid labor unrest. The owners announced the decision Thursday as the government assured that they could provide necessary securities to run the factories. A meeting was held at the Ministry of Labor and Employment on Thursday, with participation from … [Read more...]
Gap Wants Changes to New Safety Deal
May 16, 2013 by
Gap is refusing to sign on to a new safety agreement in Bangladesh, and Walmart is mute on the topic. Gap is calling for modifications to the dispute resolution aspect of the agreement. In a statement released May 13th, Gap said, "Gap Inc. is ready to sign on today with a modification to a single area – how disputes are resolved. This proposal is on the table right now with the parties … [Read more...]
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