"H&M probes Myanmar factory abuses as pressure intensifies", 16 August 2023

H&M is investigating 20 alleged instances of labor abuse at Myanmar garment factories that supply the world’s second largest fashion retailer, it told Reuters, just weeks after top rival Zara owner Inditex said it was phasing out purchases from the Southeast Asian country.

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Wage reduction and wage theft were the most frequently reported allegations, followed by unfair dismissal, inhumane work rates, and forced overtime, according to a report by the nongovernment organization, the Business and Human Rights Resource Centre (BHRRC), seen by Reuters [...].

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“All the cases raised in the report by BHRRC are being followed up and where needed remediated through our local team on the ground and in close cooperation with relevant stakeholders,” H&M said in a statement.

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“We are deeply concerned by the latest developments in Myanmar, and we see increased challenges to conduct our operations according to our standards and requirements,” the Swedish retailer said.

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A spokesperson for Myanmar’s military government did not reply to a request for comment on the findings. The Myanmar Garment Manufacturing Association did not reply to a request for comment.

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Spanish group Inditex was the latest brand to say it would cut ties with Myanmar suppliers, after Primark and Marks & Spencer last year, in a trend that some say could ultimately leave garment workers worse off.

Primark said the decision to stop sourcing was “very difficult.” It expects its final orders from Myanmar suppliers to ship before the end of this year, but has also increased its presence on the ground.

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“As we work towards our exit, we’ve doubled the size of our Ethical Trade team on the ground, enabling us to more regularly visit the factories we still work with and giving us greater visibility,” Primark said in an email on Wednesday.

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Danish fashion company Bestseller increased its number of staff on the ground from 3 to 11 since the coup, the BHRRC found in a survey of brands. Bestseller did not immediately reply to a request for comment.

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