C&A's response to garment industry crisis amid protests and gas shortage
BHRRC sent a short survey aimed at understanding in detail the engagement apparel brands have had with their suppliers amidst the continued disruption of the garment industry in Bangladesh caused by the gas crisis and quota reform protests in 2024.
We asked brands to respond to the following questions regarding their suppliers in light of the ongoing gas crisis and protests that began in May 2024.
- Have you, as a matter of policy, directed your sourcing team to forgive any delivery delays resulting from the disruption to the garment industry and suspend the imposition of penalties until the region has recovered? If yes, please include details. If no, please explain why this decision was made.
C&A does not intend to cancel any orders in Bangladesh; no penalty will be applied for the related delays, and we will also not seek discounts from our suppliers for the related delays. We are in close contact with suppliers to find appropriate solutions if further issues arise and we continue to closely monitor the developments with our teams and adjust our actions accordingly. C&A is committed to adhere to its policy for responsible purchasing practices.
2. Have you, as a matter of policy, directed your sourcing team not to seek price concessions from suppliers in the affected region on both new and current orders? Please share details on specific actions and measures taken.
Yes, C&A has a clear guideline to not apply any procedures for late shipments. This means no cancellations, sea/air or air freight at supplier cost and no penalties will be applied in Bangladesh until further notice.
3. How has your company monitored the payment of worker wages in supplying factories and ensured that wages have been paid on time and in full during July-August?
- i. Accelerated payment on orders recently delivered, in transit, or in production? N
- ii. Improved payment terms on new orders? N
- iii. Provided low-interest or no-interest financing to suppliers? Y
- Provided direct financial assistance to suppliers? N
- Covered the cost of air shipments? Y
4. How are you ensuring order stability at the suppliers you source from, to ensure suppliers can maintain business operations and maintain jobs for workers, including confirming future orders and prices with factories? Please share details.- Have you committed to receiving and paying for all orders placed with suppliers before and during the crises the industry has faced since May 2024. Please share details.
Yes. - Have you transferred orders from your suppliers in Bangladesh to suppliers in other apparel-producing countries in response to the crises? Please share further details on why this decision was made.
No.
5. What steps are you taking in collaboration with trade union and worker representatives at supplier factories to ensure the physical and mental wellbeing and safety of your workers? How do you plan to support your suppliers and workers long-term?
- Have you committed to receiving and paying for all orders placed with suppliers before and during the crises the industry has faced since May 2024. Please share details.
As a signatory of Better Work in Bangladesh and the International ACCORD, C&A has a strong focus and prioritization on the wellbeing and safety of workers. Especially during the past month, we have been in close contact with the organizations and local stakeholders to monitor the situation comprehensively. In case of non-compliances and disruptions, the local C&A team is supporting and following-up necessary remediations.
Additionally, as most of our factories are part of Better Work, a holistic training program is conducted at C&A factories by Better Work advisors. The training covers different aspects, such as managing health and safety in the workplace, enabling worker and management representatives to diagnose and improve their own grievance mechanisms, and educating supervisors on how to treat workers respectfully and training on setting up proper human resources systems.
Furthermore, C&A has its own Fairness Channel, a grievance mechanism which workers can reach out directly to C&A anonymously. A dedicated team within C&A is following-up and remediate the complaints.
Feel free to provide any further comments.