Global labour union IndustriALL explained 24 April 2024 marks both 11 years since the Rana Plaza disaster that killed more than 1,100 people and the final vote being approved in the European Parliament on the Corporate Sustainability Due Diligence Directive (CSDDD) that will make both environmental standards and workers' rights mandatory along global value chains.

Impact of a final CSDDD vote on the Rana Plaza anniversary

IndustriALL European Trade Union general secretary Judith Kirton-Darling explained ahead of the vote that MEPs [Members of the European Parliament] could make a real positive change to workers’ lives, including those in the international textiles sector, which unfortunately continues to be infamous for the abuse of workers’ rights.

He said: "All workers deserve to work in safe environments with decent conditions and we must do all that we can to prevent another disaster like Rana Plaza. We need strong EU rules on due diligence to hold companies accountable for their supply chains wherever they are.’’

The Corporate Sustainability Due Diligence Directive will require EU and non-EU companies with a minimum turnover of €450m ($480.81m) in the EU to conduct human rights and environmental due diligence across their value chains.

Professor Muhammad Azizul Islam of The University of Aberdeen’s Business School, who has conducted extensive research on apparel workers pointed out to Just Style: "Fashion retailers involved in widespread unfair purchasing practices, including sudden cancellation of orders, price reduction, refusal to pay for goods dispatched/in production and delaying payment of invoices, are partly responsible for the low wages, exploitation and forced labour on the factory floors."

He continued: "I particularly observe that suppliers are scared to take any legal action against the concerned retailers (buyers) for such unfair purchasing practices. The fear of losing future contracts from any retailer is always in the suppliers’ minds before they consider taking any legal action.”

UNI Europa regional secretary Oliver Roethig believes the CSDDD will make essential advancements in ensuring that a company can no longer unilaterally decide its approach to human rights due diligence.

Instead, he said: "It will be obligatory to meaningfully involve trade unions through the due diligence process. As the directive comes into force, these provisions will ensure that the new requirements are a substantive step forward from the failed approaches of corporate social responsibility."

IndustriALL noted the legally binding International Accord for Health and Safety in the Textile and Garment Industry which was set up after the collapse has been signed by over 200 of the world’s biggest brands and fashion retailers.

It has also resulted in more than 56,000 independent inspections in supplier factories, over 140,000 safety issues have been fixed and two million workers have received health and safety training and more recently a similar Accord was set up in Pakistan.

Professor Islam highlighted that since the Rana Plaza tragedy fashion retailers have used a wide range of accountability and transparency tools, including CSR Reports,  Ethical Codes of Conduct, integrated reports, compliance audits, and, more recently, ESG reports.  

He stated: "The evolving modern slavery and due diligence regulations on both sides of the Atlantic have now mandated companies to produce modern slavery and due diligence reports.

Despite these, he remains sceptical and added: "Workers’ vulnerability and suffering in their factories located in the global south have not changed."

Impact of CSDDD's implementation on apparel suppliers

When CSDDD was first approved on 15th March some apparel industry experts issued concerns the "watered-down" version of the approved legislation could diminish its impact on apparel sourcing countries.

Following the final approval of CSDDD the Solidaridad Network has stated that suppliers in general, and smallholders in particular, cannot be expected to shoulder the burden of its ambition by themselves.

The organisation stated it is crucial that:

• The guidelines and model contract clauses are built on internationally recognised norms and guidance and make it clear that it is not a proper implementation to put cost and responsibilities for human rights and sustainable production on suppliers without adequate support.
• The EU and Member States commit to provide financial support and information to different supply chain actors, civil society, and producers throughout the world. We believe that the EU Delegations play a key role in ensuring that farmers, workers and civil society organizations can use this law and that supply chain actors in vulnerable positions do not get left without support.

Just Style takes a closer look at the complications CSDDD has faced in recent months and how it will impact the global apparel value chain.

On the tenth anniversary of the Rana Plaza tragedy the global apparel industry reflected on how far the industry has come since the worst incident to hit the sector and Just Style has also updated a timeline from 2013 to date with the changes that have been made to improve worker and building safety within the country's ready-made garment (RMG) industry since the Rana Plaza disaster.