Off the Peg: Tesco and the clothing industry in Asia
Sunday, 12 June 2005 00:00
Despite Tesco's assertions about its ethical performance, the structure of global sourcing in the garment industry means that the way it operates will always contribute to an undermining of workers' standards worldwide. This is due to the power of the big retailing corporations such as Tesco who can bargain for the lowest prices and find the most competitive and flexible production sources. The result is that the most vulnerable people in the chain, the factory workers, are likely to suffer from low wages, poor working conditions and job insecurity. The end of the Multifibre Agreement is putting further pressure on suppliers and therefore workers. Since its end at the start of 2005 conditions in Bangladesh and Sri Lanka in particular appear to be getting even worse.
In the UK, Tesco holds an increasing share of the British clothing market. Tesco's low prices, makes it difficult for other companies to compete so they, in turn, pressure their suppliers to lower their prices. Whilst many other retailers are failing to fulfill their responsibility to workers in the supply chain, the constant pressure on prices results in a downward spiral, led by Tesco and the other supermarkets, which affects working conditions in the garment trade worldwide.
