A new report released today (18 September 2024) has revealed how leading apparel companies in Mexico are failing to address human rights risks associated with their operations. The research, published by the Business & Human Rights Resource Centre, analyses the human rights policies and supply chain transparency of 18 major parent companies of the country’s top apparel brands. It reveals a concerning lack of transparency and inadequate mechanisms to address human rights impacts in Mexico’s apparel industry.

Mexico’s apparel industry is plagued by poor working conditions – including precarious wages, lack of social security, long hours and unsanitary conditions, with the female majority workforce facing systemic discrimination and gender-based violence. The report highlights how the country’s complex and fragmented apparel supply chain make traceability and accountability for these abuses difficult, with the large companies behind the main apparel brands outsourcing their operations to smaller companies (maquilas).

These companies appear unwilling to engage with civil society on human rights issues, as demonstrated by their lack of engagement with this report – and very few are undertaking three components essential for adequate human rights due diligence. The report sets out recommendations for these companies and for the government, which have the ability and influence to improve the labour rights landscape across the sector.

Key findings from the research on 18 leading apparel companies in Mexico:

Only one company (C&A México) responded to a survey about their human rights due diligence. However, its larger parent company, Alfar Group, did not.

Only three companies (H&M, Levi Strauss México and Diltex Group) publicly disclose information about their supply chain below the first tier.

Only three companies (H&M, Levi Strauss México and El Puerto de Liverpool) have publicly available human rights and responsible supply chain policies that apply to all suppliers and partners. One company (Diltex Group) reported it has internal procedures in place to ensure the use of suppliers that respect human rights.

Five companies (H&M, Levi Strauss México, El Puerto de Liverpool, Diltex Group, and Palacio de Hierro Group) publish Codes of Conduct for suppliers that include human rights. Two companies’ (Kaltex Group and Sanborns Group) Codes of Conduct only apply to their direct operations.

A new wave of regulatory developments is seeing a shift away from voluntary to mandatory human rights due diligence, which will force apparel companies in Mexico – and their parent companies – to pay closer attention to abuses taking place in their supply chains. Mexico’s labour reforms, the United States-Mexico-Canada Agreement (USMCA) and the adoption of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) will make it imperative for these companies to undertake robust due diligence processes in their own purchasing practices, as well as ensure their suppliers do the same. This will mean urgently identifying, mitigating and remedying any harms associated with their supply chains.

Mariana Franco González, Mexico, Central America & the Caribbean Researcher, Business & Human Rights Resource Centre, said: “Mexico’s apparel sector is plagued by labour rights abuses. Reports of extremely poor conditions have been well-documented for over 30 years, with workers facing precarious wages, long hours and unsanitary conditions.

Most garment workers are employed informally, making it nearly impossible to document the true reality of labour rights abuses that are occurring within the industry. Meanwhile, women – who make up the majority of the apparel workforce in Mexico – face additional harms, including systemic discrimination and gender-based violence, while Indigenous Peoples often encounter worse labour conditions than their counterparts and cultural appropriation.

“All of this is propelled by a complex and fragmented supply chain, where a handful of large companies own the biggest apparel brands produced and sold in Mexico. These parent companies often outsource operations to medium-sized companies, who in turn outsource production to small and micro-maquilas, making it impossible to ensure traceability and accountability for human rights abuses occurring along the supply chain.

“There is an urgent need for an overhaul of the industry – which must be led by the large parent companies who hold the power and influence to improve human rights policies and implement change across the board. They can, and must, ensure that labour rights and environmental standards are respected throughout the sector. As a first step, brands must ensure transparent due diligence processes in their own purchasing practices, and those of their suppliers, particularly in the maquilas. They have the potential to promote better practices and eradicate abuses – or at the very least set up mechanisms to ensure they are identifying risks and remedying them where they are taking place.

“The Mexican Government has a duty to protect against human rights abuses taking place in this industry. This requires taking appropriate steps to prevent, investigate, punish and redress such abuse through effective policies, legislation, regulations and adjudication. Considering the ongoing government transition, it is crucial to develop and enforce national and sub-national human rights due diligence policies and legislation, in line with international standards, that mandate supply chain transparency, require worker engagement and extend the scope of due diligence requirements to the entire supply chain – beyond the first tier.”

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Notes to editors:

Business & Human Rights Resource Centre (BHRRC) is an international NGO that tracks the human rights impacts of companies across the globe.

Read the full report here.

Media contact: Kate Bermingham, Media Officer, Business & Human Rights Resource Centre, [email protected]