Swedish fashion giant H&M has garnered a positive reputation for its strong environmental, social, and governance (ESG) performance, surpassing many of its competitors.

The company has established a constructive relationship with IndustriALL, an influential global union federation. However, H&M's refusal to halt sourcing from Myanmar, a country ruled by a military dictatorship that bans unions and utilizes foreign exchange for purchasing weapons, raises significant concerns. IndustriALL raised this issue at the company's Annual General Meeting (AGM) held recently.

The Myanmar Labor Alliance, representing the majority of the trade union movement in Myanmar, has called for divestment from the country. Myanmar, under military rule, lacks freedom of association. By continuing to source from Myanmar, H&M facilitates the inflow of foreign exchange into the country, indirectly supporting the oppressive regime.

H&M responded by emphasizing the strength of its local team and its collaboration with the EU MADE program. However, Myanmar unions have condemned this program, dismissing it as a mere attempt to whitewash the situation.

IndustriALL holds a global framework agreement with H&M, which has been instrumental in addressing union-busting and remedying workers' rights violations in supplier factories. The global brand has set significant precedents by upholding freedom of association and prioritizing workers' health and safety. However, its refusal to sever ties with Myanmar contradicts these principles.

It is worth noting that H&M was the first company to sign the Bangladesh Accord, an agreement formed following the Rana Plaza collapse a decade ago. Furthermore, H&M played a crucial role in securing the release of 35 trade unionists who were arrested in Bangladesh in December 2016.

Additionally, the company is a founding member of the ACT on Living Wages initiative, highlighting its commitment to fair wages.