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.

Tesco response:

1. 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.

a. Has your company imposed any penalty on a supplier in the region as a result of delayed delivery? If yes, please share details on any penalties imposed and the circumstances for such penalties.

We are aware of, and understand the difficult situation our suppliers are facing in Bangladesh, and the reasons for factory closures and related disruptions for production. We have worked closely with our suppliers through this period and have assured them of our understanding of the situation they’re in. We’ve encouraged them to keep us updated and to share any challenges they face. We have accepted all delivery delays and we have not imposed any penalty for the delays.

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.

We have not made any policy changes, and our sourcing team has not asked any suppliers for price concessions. This applies to both current and new orders that have been impacted by the disruptions caused by the recent upheaval in the country.

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?

We are monitoring the payment of worker wages closely to ensure they have been paid on time, and in full, with all our suppliers. We have received assurance from all suppliers for the completion of the July payment. We have also checked payment records to confirm all legal dues are paid, and there has been no deduction for the days declared as holidays by government and BGMEA. We will continue to follow up on the August wage payment over the coming weeks.

a. Regarding worker wages, has your company provided any of the following forms of assistance or improved payment terms to suppliers in the region in order to help them continue business operations and ensure workers’ July-August wages are paid in full? Please share any details

i Accelerated payment on orders recently delivered, in transit, or in production? Y/N

ii Improved payment terms on new orders? Y/N

iii Provided low-interest or no-interest financing to suppliers? Y/N

iv Provided direct financial assistance to suppliers? Y/N

v Covered the cost of air shipments? Y/N

We have not changed any of our commercial terms and conditions for suppliers in Bangladesh in response to the situation the country is facing. Therefore none of the points above are applicable to us.

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.

a. 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.

We have not approached any suppliers for any price concessions as a direct consequence of the disruptions caused by the recent upheaval in the country.

b. 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.

We have not transferred any orders away from suppliers in Bangladesh in response to the crises.

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?

We are a member brand of multistakeholder organisations such as ACT and ETI in which trade unions are also members, and we collaborate with trade unions on various issues, for example, moving towards living wage in the garment industry, investigation and settlement of disputes, or unfair dismissal of workers or union members.

We have been running a programme, Respect, for the last few years to cultivate a culture of respect in the workplace and eliminate harsh treatment for workers. All our supplier factories in Bangladesh are required to join the programme and to establish effective management mechanisms, mandatory behavioral training for supervisors, and measures to incentivise the right behaviours and disciplinary procedures for wrong behaviour.

We reiterate the significance of workers awareness on workplace safety, anti-harassment, grievance handling mechanisms, and regular management-worker representatives communication meetings. We also check with worker representatives during our factory visits.