Dozens of fast fashion and luxury brands - including H&M, Ralph Lauren, ASOS, MANGO, Michael Kors, COACH, Gucci and others - have been linked to violations of labour rights in new research released today.

The Business & Human Rights Resource Centre has tracked 28 cases of alleged human rights abuses linked to ruthless brand purchasing practices from March to September 2024. These cases impacted thousands of workers across the world, including in Indonesia, Portugal, the Philippines, eSwatini, Argentina, China, Estonia, Kenya, Bangladesh and Romania.  

We have tracked the cancellation or reduction of orders as brands increasingly shift to alternative sourcing countries:, prioritising low price and order stability, and allegedly misusing their power within the supply chain, by abruptly changing order volumes and prices with their suppliers This practice leads to workers bearing the consequences, with garment workers facing mass layoffs with little or no notice. Workers also face suspended employment and unpaid severance and wages. 

• In May 2024, it was reported that the Luenthai Philippines factory in the Philippines (allegedly or previously supplying brands including adidas, Dillard's, Fast Retailing, Michael Kors, Ralph Lauren, Tapestry and Victoria's Secret) retrenched 2000 workers (60% of its workforce), due to a reduction in demand for its products that had persisted over two years.  
• In Argentina, two Textil.com factories were closed due to a drop in orders, leaving 267 workers without a job and without their owed wages. In one of the plants, workers occupied the factory in protest. Textil.com has reportedly supplied brands including Mimo, Grisino, Topper, Penguin, Cristobal Colon, 47 Street and Sporting.  
• In one case in Bangladesh, Anzir Apparels factory, linked to six brands (MANGO, Lojas Renner, ALDI SOUTH, River Island, ASOS and C&A), reportedly closed due to a lack of orders. Out of the five brands which responded to our invitation to respond, two stated they stopped sourcing from the factory in 2021, and one stated it had stopped sourcing from the factory over one year ago. This appears to corroborate reports from the factory, as outlined in The Business Standard, that they were compelled to close due to ‘dwindling orders from foreign buyers’.  

Explore the full list of allegations here.

All 28 allegations related to brands cutting orders they placed with factories. 24 allegations were linked to garment workers losing their jobs through layoffs, and 17 allegations were directly linked to factory closures or suspended operations.  

Natalie Swan, Labour Rights Project Manager at the Business & Human Rights Resource Centre, said:  

“Yet again, our latest data reveals widespread unfair purchasing practices by powerful fast fashion and luxury brands, leading to dire consequences for vulnerable garment workers at the sharp end of fashion supply chains. 

As brands respond to global crises – including natural disasters, conflict and economic shocks – often by abruptly cancelling orders and switching to new suppliers, garment workers (mostly women in the Global South) are losing their jobs and chasing unpaid wages or severance pay. These unfair purchasing practices are at the root of labour rights abuses in fashion supply chains.

While the fashion industry faces ever more criticism of its business model, there is an opportunity for brands to stop passing the pain of these crises on to garment workers, and instead centre sustainable growth and the rights of people and planet. Our engagement with workers and businesses in the sector has revealed the critical role purchasing practices must play in ensuring adherence to labour rights for the workers who make the clothes we wear.”  

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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. 
• The ‘Who pays for the crisis?’ portal from the Business & Human Rights Resource Centre looks at how apparel brands’ purchasing practices are affecting workers’ rights across the globe. The online portal hosts key information and analysis on supply chain shocks, how brands are responding to these, and the ultimate impact their actions have on workers. 
• Media contact: [email protected]