At least 12 surveyed global apparel brands have confirmed that they have not transferred orders to other countries, thus maintaining order stability in Bangladesh despite the ongoing unrest, according to a global rights organisation.

The Business and Human Rights Resource Centre (BHRRC) contacted a total of 22 global clothing brands that source from Bangladesh, seeking information on how they were managing disruptions in the country.

They inquired about the brands’ responsible purchasing practices and how they were protecting worker welfare during the recent turmoil.

The BHRRC urged the fashion sector to publicly account for their engagement with suppliers in Bangladesh while prioritising the needs of workers.

The report indicated that 12 responding brands—namely adidas, ASDA, C&A, H&M, Inditex, Marks & Spencer, Next, PUMA, PVH Corp, Tesco, Primark, and Walmart—affirmed they had not transferred orders to other countries, thus maintaining order stability in Bangladesh despite the crisis.

Gap did not provide information on this matter.

In its response, Walmart stated that its strategy in Bangladesh remained unchanged and it was not seeking alternative sources for next season’s clothing.

“Any movement of orders in or out of Bangladesh is standard business practice,” the brand said.

Walmart confirmed that it was not imposing penalties for production delays or late deliveries related to the current situation.

The survey also noted that PVH, Tesco, and H&M highlighted their alignment with ACT member brands’ commitment to responsible purchasing practices to maintain stability in Bangladesh.

The BHRRC inquired whether any penalties had been imposed on suppliers for delayed deliveries, and 13 responding brands confirmed they had forgiven delays without imposing penalties following the supply chain disruptions.

The rights organisation has criticised seven major fashion buyers—Bestseller, Mango, JC Penney, Kontoor Brands, Levi Strauss, Target, and Tom Tailor—for their lack of response.

According to the resource centre, many brands were reluctant to disclose how the protests had impacted their efforts to uphold responsible purchasing practices and protect worker welfare during the unrest.

The resource centre also asked how brands monitored worker wage payments to ensure that wages were paid on time and in full for the July-August period. Regarding wage payments, seven brands—Gap, PUMA, PVH, Primark, Tesco, Next, and H&M—reported that wages for July were paid in full and on time.

In contrast, adidas, ASDA, and M&S outlined their monitoring processes for wage payments during July and August but did not confirm whether wages were paid as scheduled and in full. C&A, Inditex, and Walmart did not respond to this crucial question.

According to the report, when it comes to financial support for suppliers, among the 13 brands that responded, Gap, Inditex, PUMA, and Walmart chose not to provide any information.

In contrast, Next, PVH, Primark, and Tesco indicated that they had not offered any specific financial assistance to their suppliers.

The BHRRC report highlighted that the garment industry in Bangladesh is grappling with unprecedented challenges due to political unrest and infrastructural crises, including a recent violent crackdown on protests against the government’s employment quota system and an escalating gas shortage.

The resource centre has been monitoring disruptions in Bangladesh’s apparel industry, reporting factory closures and work stoppages that have cost the sector an estimated $150 million to $500 million per day from July 20-23, 2024.

Indirect losses are even more substantial, with industry insiders estimating nearly $543 million due to delayed shipments, stockpiling, increased shipping costs, and concerns over the long-term impact on the industry.

The reported effects on workers include mandatory overtime to meet lead times, increased production targets to offset financial losses or prevent order cancellations, higher transportation costs for commuting to factories, and issues with wage payments, such as non-payment or delays.

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that exporters have faced significant costs, including at least $83 million due to late shipment discounts demanded by buyers and high air freight charges as suppliers strive to deliver goods on time and mitigate delays.

While industry bodies are working to negotiate relief from penalties, the high costs associated with air shipments remain a pressing concern, he added.