World's second-largest fashion retailer, H&M has announced its decision to gradually halt its sourcing from Myanmar, citing increasing reports of labor abuses in the country's garment factories. This move follows similar actions by other major brands such as Zara owner Inditex, Primark, and Marks & Spencer.
The decision comes amid a backdrop of political turmoil and humanitarian crisis in Myanmar, exacerbated by a military coup in February 2021. The resulting violence and disruptions to the economy have raised significant challenges for companies operating in the country.
H&M disclosed that it is investigating 20 alleged instances of labor abuse at Myanmar garment factories supplying them. A report by the Business and Human Rights Resource Centre revealed a substantial increase in reported cases of worker abuse, including wage theft and forced overtime, since the coup.
Despite the challenges, H&M emphasised that its decision to withdraw from Myanmar was not solely based on the report but rather stemmed from its own evaluation of the situation. The company stated its commitment to a responsible exit strategy, developed in collaboration with IndustriALL, a global union advocating for brands to cease operations in Myanmar.
Vicky Bowman, Director, Myanmar Centre for Responsible Business, expressed highlighted the potential negative impact of the brand’s decision on thousands of women workers in Myanmar. However, she acknowledged the challenging environment for labor rights organisations and trade union organisers under the military junta.
Other brands like Primark have also announced their exit from Myanmar, with shipments expected to cease by the end of the year. However, concerns remain about the potential repercussions on local communities and workers, as withdrawing could deprive them of vital investment and wages.
This move by H&M and other corporations reflects the complex ethical dilemmas faced by multinational companies operating in regions with poor human rights records. Despite the desire to distance themselves from labor abuses, their exit could have unintended consequences for vulnerable workers and communities.
