Judges from three different continents concluded that international supply chain actors must take immediate steps to address the issue of poverty wages for factory workers. Their recommendation stated that brands should 'move beyond good intentions' and 'prioritize the need for human rights in the workplace in their pricing and procurement policies.'
The verdict followed a two day hearing in which over 200 garment workers gathered to give evidence pointing to the fact that a living wage is a pressing necessity in the industry. Testimonies were heard on mass fainting, slum living conditions, malnutrition, debt, repeated short term contracts and the dismissal of over 1000 union leaders after a sector-wide strike.
A number of experts also took part. One expert revealed that due to the massive inflation, Cambodian garment workers have seen a real wage loss of over 14% during the last 12 years. This low wage is now reaching an unmanageable level. Even the Cambodian government has published figures that show 120 USD a month is the absolute minimum survival line for an individual living in Phnom Penh. Yet the minimum wage for garment workers is 61 USD, and many have families and children to support on top.
Multinational brands Adidas and Puma presented evidence on their role as buyers at the tribunal. Both are taking part in a multi-brand initiative to identify what a 'fair wage' in the garment industry could be. They are considering a 'living wage' as one possible option.
Tribunal organisers, the Asia Floor Wage Alliance, expressed concern that too much discussion of wages and not enough real action was being undertaken by brands.
One 27 year old worker, a mother of a 2 year old son, working at a factory producing for Adidas said: “As my income is not able to cover all my family's basic needs, I took a loan from the landlord. I owe him 50 USD in addition to 10 USD interest every month. Usually I can only pay the 10 USD interest and not start paying back the loan. If I get sick I don’t have any money for treatment. I don’t know what I will do if it happens. I also worry that I don’t have money to support my son in going to school.“
Fashion brands H&M and Gap refused to attend the hearing despite the fact that testimonies centred on violations at their supplier factories. H&M and Gap are the largest buyers in the country, sourcing more goods from Cambodia than any other brand.
“The tribunal reveals a chasm between the CSR speak of international garment companies and the real situation faced by Asian garment workers,” said Ms. Anannya Bhattacharjee, coordinator of the International Asia Floor Wage Alliance. “The wage issue is a cross border problem and needs to be addressed as such. International players must work together and use the Asia Floor Wage figure to combat poverty pay in the garment sector.”
Dr. Jeroen Merk, of the International Clean Clothes Campaign said, “Consumers around the world must keep asking questions about the rights of workers making their clothes. Major buyers from Cambodia, such as H&M and Gap, need to answer the question of why they are still not paying a basic living wage to garment workers living in poverty.”
ACTION:
Labour Behind the Label are working with partners on what the next steps are to support this process. Watch this space for more news soon.
