FASHION REVOLUTION | FASHION TRANSPARENCY INDEX 2022
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VIEWPOINT: GLOBAL BRANDS MUST TAKE PART IN COLLECTIVE BARGAINING; THE ULTIMATE WAY TO IMPROVE WORKERS’ RIGHTS
HAN DONGFANG EXECUTIVE DIRECTOR, CHINA LABOUR BULLETIN
The 2022 FTI shows that 209 brands out of 250, or 84%, published policies on freedom of association, right to organise and collective bargaining, but only 13% of brands disclosed which suppliers had worker-led unions at the factories, while only 10% disclosed the percentage of workers in their supply chain covered by collective bargaining agreements, among them only 1% were provided wages higher than the legal minimum. This shocking picture well illustrates the reality; brands and suppliers continue to pay lip service instead of practicing collective bargaining as the ultimate solution to fix workplace issues at the root.
By 2019, two suppliers for global brands signed MoUs with the Karnataka Garment Workers Union (KOOGU) in Bangalore, India, recognising the union’s role in collective bargaining. In the first factory, in 2021, KOOGU proposed bargaining for wage increases stagnated since 2019. Management plainly stated that they had very narrow margins due to the brands’ low purchasing prices. KOOGU wrote to brands, inviting them to discuss purchasing price adjustments to help bring workers’ wages closer to a living wage. Three responded: one replied that it made payments “according to local laws,” another one argued it had not cancelled or delayed any orders, a third one said it would ensure steady cash flow and business continuity for suppliers. No global brand recognises that purchasing prices ultimately set workers’ wages. In a second factory, in 2022, the most outspoken worker representative presented her resignation after several male managers spread rumours sexually stigmatising her integrity. Managers
also told workers that brands would withdraw orders because of the union. KOOGU proposed that the employer put this on the bargaining table as a violation of the right to freedom of association. “After understanding and analysing the given situation, it is informed that there is no need for any discussion on this issue or to meet on the same agenda”, the employer replied. KOOGU followed up with brands, one responded, “[O]ur investigation did not verify the allegations.” No worker representatives nor union members were interviewed. Despite management continuously alienating worker representatives at both factories, KOOGUs’ members are holding their ground and persistently push for collective bargaining. The good news is that the EU and other countries such as the United States and Japan are leading efforts to support a legally binding instrument on business and human rights.
Findings from the FTI 2022 indicate that just 4% of brands, a decrease from 9% in 2021, disclose their method for isolating labour costs in price negotiations. Starting from here, if more brands created a separate sheet showing the total for workers’ salaries in each supplier factory, and publicly disclosed this information, union and employer collective bargaining for wages would be greatly facilitated. If more unions in the Global South push for collective bargaining like KOOGU, and more stakeholders support these workplace efforts, only then would brands be more willing to act on their promises, and step by step, a living wage and respectful workplace would be achieved.