Blog: Factory compensation talks stall
Leonie Barrie | 16 September 2013
Talks last week to try to agree compensation payments for the victims and survivors of two Bangladesh factory disasters failed to reach a decision, with brands and retailers set to meet again in a fortnight to consider their next steps.
Not surprisingly, frustrations are rising over the length of time it is taking to agree a framework for long-term compensation - with those companies who have not taken part in the discussions being singled out for particular criticism.
But there are signs that three separate initiatives underway to boost the safety of factory workers in Bangladesh are now beginning to look at ways of collaborating on common standards.
And Bangladesh features prominently in the latest Social & Environmental Responsibility Report from Gap Inc - even though it did not have a business relationship with either of the premises caught in recent tragedies. The report also highlights the retailer's efforts to help communities at home and abroad, as well as its work to improve its environmental record.
The availability of raw materials is another issue at the forefront of the global garment industry. But a country's access to local fibre does not necessarily translate into a competitive advantage, suggests David Birnbaum.
Likewise, economists' "productivity" rankings don't necessarily translate to efficient garment makers, with Mike Flanagan pointing out that the most productive workers depend on the environment they're working in.
Payment terms for general merchandise suppliers to Marks & Spencer have been extended in an effort to boost cash flow. Freight on board (FOB) suppliers have seen their payment terms lengthened from 60 days to 75 days, while full-service vendors (FSV) will see their payment delayed to seven weeks from five.
PVH Corp, meanwhile, says it is on track with the integration of the Warnaco business it bought earlier this year, despite the fact acquisition costs pushed the apparel giant to a second-quarter loss.
Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...
Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....
One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....
As the Brexit roller-coaster continues to twist and turn, and the US presidential election campaign nears its unpredictable and possibly protectionist end, there's no doubt these events – and the perc...
- Steps to piloting living wage in garment factories
- How to ensure sustainability is more than a slogan
- Trump blows the case for Brexit out of the water
- US apparel retailers' November 2016 sales roundup
- Duty-free trade key to build Africa supply chains
- US Q3 in brief – Destination Maternity, Cherokee
- Taiwan textile maker investing in first US plant
- Esquel efficiency drive continues to boost brands
- Outdoor apparel sector set for double-digit growth
- Myanmar garment industry "lacking labour rights"