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www.ssoar.info Bringing human rights into fashion: issues, challenges and underused potentials in the transnational garment industry Niebank, Jan-Christian Veröffentlichungsversion / Published Version Forschungsbericht / research report Zur Verfügung gestellt in Kooperation mit / provided in cooperation with: Deutsches Institut für Menschenrechte Empfohlene Zitierung / Suggested Citation: Niebank, J.-C. (2018). Bringing human rights into fashion: issues, challenges and underused potentials in the transnational garment industry. (Analysis / German Institute for Human Rights). Berlin: Deutsches Institut für Menschenrechte. https://nbn-resolving.org/urn:nbn:de:0168-ssoar-61194-6 Nutzungsbedingungen: Terms of use: Dieser Text wird unter einer Deposit-Lizenz (Keine This document is made available under Deposit Licence (No Weiterverbreitung - keine Bearbeitung) zur Verfügung gestellt. Redistribution - no modifications). We grant a non-exclusive, non- Gewährt wird ein nicht exklusives, nicht übertragbares, transferable, individual and limited right to using this document. persönliches und beschränktes Recht auf Nutzung dieses This document is solely intended for your personal, non- Dokuments. Dieses Dokument ist ausschließlich für commercial use. All of the copies of this documents must retain den persönlichen, nicht-kommerziellen Gebrauch bestimmt. all copyright information and other information regarding legal Auf sämtlichen Kopien dieses Dokuments müssen alle protection. You are not allowed to alter this document in any Urheberrechtshinweise und sonstigen Hinweise auf gesetzlichen way, to copy it for public or commercial purposes, to exhibit the Schutz beibehalten werden. Sie dürfen dieses Dokument document in public, to perform, distribute or otherwise use the nicht in irgendeiner Weise abändern, noch dürfen Sie document in public. dieses Dokument für öffentliche oder kommerzielle Zwecke By using this particular document, you accept the above-stated vervielfältigen, öffentlich ausstellen, aufführen, vertreiben oder conditions of use. anderweitig nutzen. Mit der Verwendung dieses Dokuments erkennen Sie die Nutzungsbedingungen an.
Analysis Bringing Human Rights into Fashion Issues, challenges and underused potentials in the transnational garment industry Jan-Christian Niebank
The Institute Author The German Institute for Human Rights is the Jan-Christian Niebank is a policy adviser in the independent National Human Rights Institution area of business and human rights in the Inter- in Germany. It is accredited according to the national Human Rights Policy Department of the Paris Principles of the United Nations (A-status). German Institute for Human Rights. He studied The Institute’s activities include the provision of law at Humboldt University in Berlin and Libera advice on policy issues, human rights education, Università Internazionale degli Studi Sociali Guido information and documentation, applied research Carli (LUISS) in Rome and specialised in Human on human rights issues and cooperation with Rights and Democratization in Venice and Stras- international organizations. It is supported by the bourg. Prior to joining the German Institute for German Bundestag. Human Rights, he acted as a legal adviser at the The Institute is additionally mandated to monitor European Center for Constitutional and Human the implementation of the UN Convention on the Rights (ECCHR). Rights of Persons with Disabilities and the UN Convention on the Rights of the Child and has The editors: Alper Baysan, Alison Borrowman, established Monitoring Bodies for these purposes. Anna Würth Acknowledgements We want to thank the Asia Pacific Forum of National Human Rights Institutions, the National Human Rights Commissions of Bangladesh, India, Mongolia, Myanmar, Pakistan, the Philippines and Thailand for sharing examples of their work to pro- mote and protect the rights of garment workers. Alper Baysan and Ceren Yildiz, former researchers at the German Institute for Human Rights, sup- ported this study with meticulous background research; numerous colleagues at GIZ provided us with concise and helpful feedback. We are very grateful to all of them.
Analysis Bringing Human Rights into Fashion Issues, challenges and underused potentials in the transnational garment industry Jan-Christian Niebank
Foreword A garment sector committed to upholding human Since then, the 24 members of the Asia Pacific rights standards has the potential to transform Forum of National Human Rights Institutions have the lives of all those who contribute to it. It can initiated a range of practical projects to deliver on help build a strong economic foundation for local this commitment. communities and provide men and women with decent, rewarding work. Across South Asia and South East Asia, our mem- bers have been working with stakeholders in the Companies and states have a responsibility to garment industry to build human rights awareness ensure that fundamental human rights are pro- and bolster protections available to workers and tected across all points of the industry supply communities. They have also sought reparations chain. This means eradicating forced labour and for victims of workplace tragedies, such as factory child labour, providing safe and healthy work- fires. places, properly remunerating workers and suppli- ers and ensuring fair treatment for all. NHRIs can be valuable partners for international agencies and other actors working to strengthen However, gaps in governance standards, weak human rights monitoring and protection across enforcement mechanisms and strong compe- the fashion supply chain. In turn, NHRIs have tition for the fashion dollar can create an envi- much to gain from these partnerships, including ronment where people are vulnerable to abuse drawing on research and good practice to improve and exploitation. An especially pressing issue is their impact. the discrimination and harassment experienced by women workers who toil long hours in the Industries such as the garment sector thrive when factories. workers, suppliers and retailers have a shared interest and receive a shared benefit from their National Human Rights Institutions (NHRIs) can collective efforts. Respect for human rights, play a critical role in closing these “governance respect for each other, should underpin this gaps” and using their unique mandate to prevent, shared endeavour. Rights should never be out of address and remedy human rights violations. fashion. NHRIs can advise governments and businesses The APF has been pleased to collaborate with the on their responsibilities under the UN Guiding German Institute for Human Rights in the develop- Principles on Business and Human Rights; they ment of this research. We trust it will be a valuable can monitor and document the operations of tool for NHRIs, business and government alike in businesses; they can investigate complaints and their efforts to make human rights a cornerstone deliver remedies for individuals whose rights are of the garment sector. violated; and they can promote awareness of rights among workers and communities vulnerable Pip Dargan, Deputy Director, Asia Pacific Forum to exploitation. of National Human Rights Institutions In the Edinburgh Declaration, adopted in 2010, NHRIs from around the globe pledged action to curb corporate abuse of human rights and provide greater support for victims of rights violations.
Preface Almost inevitably, discussions about human development was minimal, and the same may well rights and the garment industry begin with the be the case for the implementation and monitor- Rana Plaza factory collapse, which killed 1,134 ing commencing in 2018. workers in Dhaka, Bangladesh on 24 April 2013. Rana Plaza has become a symbol of human rights National Human Rights Institutions (NHRIs) abuses in the transnational garment industry and can take up some of the slack created by these of the governance gap characterising our global- deficits in governance and participation, both by ised economy. More than five years later, aware- supporting the initiatives of other stakeholders ness of the problem has increased, and numerous and by contributing new perspectives, momentum initiatives have been undertaken by a variety of and initiatives of their own. As key national players stakeholders. Yet, the situation of rights-holders with a mandate to promote the state duty to is still far from satisfactory. Quite the contrary: protect human rights, they can and should advise human rights abuses, including discrimination their governments on the human rights impacts in against women, child labour, inadequate social the garment industry. Moreover, most NHRIs have protection and unsafe working conditions, are complaint handling mechanisms and investiga- still common in the context of textile and garment tive powers and are thus in a position to identify production. barriers to access to remedy. Lastly, NHRIs can monitor business activities and their human rights The Guiding Principles on Business and Human impacts through transnational cooperation, i. e. by Rights, adopted by the UN Human Rights Council working with their sister institutions at the oppo- in 2011, aim to fill gaps in protection and account- site end of supply chains. ability. Germany, a country in which many gar- ment companies and retailers that manufacture This is why the German Institute for Human Rights their products in the Global South are domiciled, partnered with the Asia Pacific Forum of NHRIs to bears a special responsibility. In December 2016, undertake this study. Clearly, much works remains Germany adopted its National Action Plan on to be done to make sure that Rana Plaza is one Business and Human Rights (NAP). The NAP did day seen as a turning point; but as this study not seize the opportunity to reduce the numerous shows, NHRIs are key allies for bringing human barriers to access to judicial remedy in Germany rights into fashion. for victims of corporate human rights abuses that occur abroad. The involvement of rights- Michael Windfuhr, Deputy Director, German holders from production countries in the NAP’s Institute for Human Rights
7 Contents Summary 9 1 Introduction 11 2 A development engine prone to human rights abuses 13 2.1 The transnational garment industry’s economic importance 13 2.2 The industry’s susceptibility to human rights abuses 15 2.2.1 Production countries do not adequately protect human rights 15 2.2.2 Corporations do not adequately respect human rights 16 2.2.3 Home states do not adequately protect human rights 18 3 Human rights issues: garment manufacturing as a high-risk industry 19 3.1 Discrimination against women is rampant 19 3.2 Child labour remains widespread 22 3.3 Persisting problem of forced labour 22 3.4 Wages are too low 22 3.5 Social protection and work safety are inadequate 24 3.6 Biodiversity and human health are in danger 25 3.7 Access to remedy remains an exception 26 4 Policy challenges: actors, instruments, activities 29 4.1 Assessing corporate self-regulation 30 4.2 States in the global South: too little enforcement and monitoring 34 4.2.1 Bangladesh: improvements in fire and safety, gridlock with respect to trade unions 34 4.2.2 India: legislative improvements not met by enforcement 35
8 4.2.3 Pakistan: progress on the provincial level, but no federal strategy 36 4.2.4 Myanmar: transition process with opportunities, but only gradual development of human rights safeguards 38 4.3 States in the global North: greater depth and alignment needed 39 4.3.1 National Action Plans, legal regulation and the UN treaty process 39 4.3.2 German development policy 41 4.4 Challenges ahead 46 5 Underused potentials: National Human Rights Institutions and development cooperation 48 5.1 National Human Rights Institutions – what they are 48 5.2 National Human Rights Institutions in Asia – what they are doing 49 5.3 Cooperation among National Human Rights Institutions: what has been achieved so far 53 5.4 National Human Rights Institutions – opportunities for capacity- building 54 6 Recommendations: taking the human rights-based approach to development cooperation forward 56 Abbreviations 59 References 61
S UMMARY 9 Summary The transnational garment industry has the poten- retailers have their headquarters do not pro- tial to be an engine for socio-economic develop- tect human rights extra-territorially. They do not ment in the Asia-Pacific region. It provides ample usually regulate the behaviour of their businesses employment opportunities, particularly for women, abroad, either because they feel no responsibility enabling – at least in theory – their economic to do so or because they see due diligence obli- empowerment. However, there is a persistent gations along the garment supply chain as dispro- governance gap in the garment sector, resulting in portionate burdens for their companies. serious human rights impacts, which chiefly affect women, who make up the majority of garment Companies operate within and exploit this gover- workers both in the formal and informal sector. nance vacuum. As a result, adverse human rights This poor human rights record hinders sustainable impacts exist at virtually all stages of garment development. This analysis by the German Insti- production. Particularly affected are women and tute for Human Rights seeks answers to the ques- migrant workers, two groups who are already tion of what contributes to and perpetuates the exposed to discrimination; children are especially governance gaps in the global garment sector and vulnerable. The powerlessness of these groups what needs to be done to close them. The nor- exacerbates the negative impacts on human mative framework for the analysis is provided by rights: when rights abuses occur, those affected the United Nations Guiding Principles on Business have next to no access to effective remedies. and Human Rights and international human rights law. It is based on a desk study and interviews What has been done to close the governance with National Human Rights Institutions from the gaps? The analysis describes exemplary initiatives Asia-Pacific region focussing on their initiatives in undertaken by states and businesses, ranging the garment sector. from corporate self-regulation to legally binding measures introduced by states, to initiatives The analysis shows, firstly, that producing coun- supported by German development cooperation. tries do not adequately protect human rights, These initiatives have brought gradual improve- identifying abuses involving discrimination against ment, notably in fire and building safety, and women and core labour rights as the most wide- contain important aspects that future initiatives spread. Driven by intense economic competition can tie in to. Several states in the global North to keep or boost their share in global garment have adopted National Action Plans (NAPs) to exports, producing countries are entangled in a implement the UN Guiding Principles on Business race to the bottom, particularly with respect to and Human Rights (UNGPs). Overall, the process core labour rights. Secondly, corporations do not has been slow and ineffective due to a preference adequately respect human rights, again due to for voluntary arrangements over enforceable intense competition. They often prioritise effi- regulations governing corporations’ behaviour. ciency and consider human rights an undesired More significant achievements were reached cost factor. This leads to a systematic neglect of through binding regulations outside the scope human rights due diligence processes. In most of the UNGPs implementation. For instance, the cases, retailers and garment companies, as the European Union (EU) as well as its member states most influential actors in the supply chain, fail have imposed requirements on some companies to make adequate use their leverage over fac- to disclose information relating to human rights tory owners or managers to enhance respect for due diligence. German development cooperation human rights, e.g. through pricing policies. Thirdly, has increased its efforts with regard to the gar- countries in which transnational corporations and ment supply chain and rolled out social dialogues,
10 S U M M ARY training and awareness programmes as well as a independent monitoring and the integration of prominent multi-stakeholder initiative. external human rights expertise. What can be done to improve the human rights Particularly with regard to these last two devel- situation in the garment industry? The analysis opment policy can be a powerful leverage instru- argues that what is needed is a coherent system ment, given strong allies in the partner countries. of responsibilities and a densification of standards NHRIs can serve as such allies. They have a for what behaviour is expected or required from crucial role to play in closing the human rights businesses in their operations. To achieve this, it governance gap. Through their unique mandate is essential to recognise two points in this regard: to promote and protect human rights, they can firstly, corporate self-regulation alone will not ensure that states and businesses discharge their bridge the governance gap in the garment indus- respective duties and responsibilities. NHRIs have try, and secondly, no comprehensive legal regu- the potential to help coordinate state policies with lation of transnational economic activities can be instruments of corporate self-regulation, which expected in the near future. For this reason, the otherwise tend to run along separate, non-inter- largely ideology-driven rift between “voluntarism” secting tracks, and thus lack coherence. In many and “regulation” needs to be overcome; existing Asian countries, NHRIs are established players in voluntary and binding approaches must be intel- the field of business and human rights. They have, ligently linked together, and all policy channels for example, initiated or supported the develop- be used. This linkage must be designed to target ment of NAPs, conducted the relevant baseline the root causes of adverse human rights impacts assessments or investigated the use of child rather than just their symptoms. labour in the garment industry. There are a num- ber of opportunities for capacity-building of a kind In this sense, producing countries, home states that could be decisive in enabling NRHIs to make and businesses should all use all of the leverage the best use of their powers, for example, in the available to them to close the existing gaps in coordination between state and civil society and human rights protection. Removing the existing in the use of innovative monitoring instruments barriers to access to effective remedy through in garment production facilities. Strengthening court decisions and other effective grievance NHRIs is also of crucial importance to ensuring mechanisms will require the combined efforts of the presence of an independent voice in times of all parties. The “home states”, countries in which closing and closed spaces for civil society in many garment brands and retailers are headquartered Asian countries. By supporting the capacity of or registered, should legally require businesses NHRIs, development cooperation can contribute to conduct human rights due diligence along the to addressing the different and disproportionate entire textile and garment supply chain. In pro- impacts on women, children and migrant work- ducing countries, oversight over businesses and ers in the sector and can tackle structural root law enforcement mechanisms must be improved. causes. Building the capacities of NHRIs in all Voluntary initiatives need to be rendered more of these areas will not only enable them to gain effective, e.g. through the addition of more clout, but also advance human rights protection in the global garment industry and beyond.
I NT RODUC TION 11 1 Introduction States have a duty to protect human rights against While global trade has certainly increased eco- abuse by third parties, including businesses. Yet, nomic output at the macro level, individuals at the producing countries often fail to take sufficient bottom of the production pyramid – such as those protective measures in the garment industry. working in the garment industry in Asia-Pacific Vying with one another to attract businesses to region – have still benefited too little from eco- their countries, producing countries are caught up nomic globalisation. in a race to the bottom. Placing high demands on companies will continue to be seen as a deterrent This study seeks to take stock of developments in to investors as long as there is no level playing the global garment industry. It does so by analys- field with uniform human rights due diligence ing structural market characteristics and pressing specifications across production countries. Volun- human rights issues as well as existing instru- tary approaches alone are not capable of solving ments and initiatives. Specific attention is paid to this problem, but governments in the global North1 the role of NHRIs and to development policies in remain, with a few exceptions, reluctant to take the global North. Analytically, the investigation is binding legal measures to regulate corporate guided by the framework of the UNGPs. Import- respect for human rights in transnational supply ant input for the study was obtained at a joint chains.2 Their reluctance is related to constraints workshop held by the German Institute for Human posed by economic competition: the costs of Rights and the Asia Pacific Forum of National compliance could reduce profits for brands and Human Rights Institutions (APF) in Bangkok in retailers in the short term. Home countries may January 2017 at which NHRI representatives from also be concerned by the risk of disadvantaging Bangladesh, India, Malaysia, Mongolia, Myanmar, national companies compared to foreign compa- Pakistan, Philippines and Thailand shared their nies and a distortion of competition. expertise on human rights issues in the garment industry and discussed the challenges their NHRIs The garment industry is an important economic are facing.3 growth engine for the Asia-Pacific region. It is also an industry with a rather poor human rights track This study argues that, in the absence of bind- record. Employment opportunities are of limited ing and effective international law, bridging the value if structural forces systematically inhibit human rights governance gap in the global gar- socio-economic development, female emancipa- ment industry will require simultaneous efforts tion and empowerment. Personnel in production through all existing policy channels. These efforts plants and farm workers in the cotton fields work should be interlocked and thus reinforce each under very difficult conditions and for low wages. other. Tackling root causes, such as discrimination 1 The terms “global North” and “global South” may obscure specific local features and dynamics resulting from different economic, social, socio-political and cultural contexts. Scholars caution against the idealisation of the “global North” as a uniform model of success- ful development and criticise that instruments of development cooperation are too strongly based on Eurocentric assumptions. See: Burchard (2017), S. 273–291. 2 To address the obligations of states at both ends of the garment supply chain, this analysis uses the terms “producing countries” or “production countries” and “home states” (of brands and retailers). Though aware of the pitfalls of the terminology, we have nonetheless chosen to use “global North” and “global South” to indicate that in the course of globalisation, labour-intensive parts of the supply and value chain have increasingly been outsourced from industrialised countries to developing and emerging countries. 3 APF (10.02.2017).
12 IN T RO DUCT I ON against women, and a stronger focus on using the different human rights issues in the industry, the leverage available to the relevant actors, will ranging from discrimination against women to the be crucial. Moreover, the competent authorities lack of effective grievance mechanisms. Section in the producing countries must be enabled to 4 examines a variety of instruments with which better fulfil their tasks of monitoring and enforce- states and businesses have tried to improve the ment vis-à-vis the companies. Complementary to industry’s human rights track record. Taking Ban- this, voluntary initiatives can contribute towards gladesh, India, Pakistan and Myanmar as exam- achieving significant progress – provided they ples, the study shows that the instruments used meet certain effectiveness criteria. have not yet succeeded in closing the garment governance gap. Moving forward will require not This study first delineates the economic rele- only the strengthening of efforts under the current vance of the garment industry and the associated approaches, but also coordination and interlock- development opportunities. It then examines the ing. Making greater use of the potential of NHRIs aspects specific to the sector as well as the gen- is one of several ways to achieve this, and Sec- eral root causes of the persistently poor human tion 5 sets out how this can be done. Section 6 rights situation in the producing countries in Asia addresses recommendations to German develop- (Section 2). In Section 3, it takes a closer look at ment policy.
A DEVELOPMENT ENG I NE P RONE TO HU M A N R I G H TS AB U S ES 13 2 A development engine prone to human rights abuses 2.1 The transnational The garment industry is characterised by a global division of labour. Knowledge-based production garment industry’s steps – e.g. the design, logistics and sale of gar- economic importance ments – are mostly situated in the global North, the more labour-intensive production processes The garment sector has great potential to foster take place in the global South. There is a strong economic development and inclusive growth. competitive pressure which affects these pro- Globally speaking, the industry is worth USD duction processes. Competition takes place at 1.7 trillion.4 In 2014, the Asia-Pacific region three levels: firstly, among transnational retail- accounted 59.5 per cent of global exports in the ers and brands in the global North, which seek categories of garments, textiles and footwear.5 Of to attract customers through low prices and to the around 75 million people (2000: 20 million) secure market shares; secondly, among suppliers employed in the industry worldwide, most work in in the global South, which compete for purchas- developing Asian economies.6 Many more people ing agreements; and thirdly, among the garment worldwide are said to earn their living through producing countries, which compete for foreign indirect employment opportunities created by the business by maintaining low environmental and industry, around 300 million people from cotton social standards and thus “favourable” production production alone.7 conditions.9 The garment industry generates exports, eco- Definition: garment production nomic output, foreign exchange and significant Garment production is the act or process of employment effects in production countries, and making clothes from fabric. Fabric is made from many Asian economies depend on it. From the threads of cotton, nylon, silk or other fibres perspective of persons working in the sector in using one or more production techniques, e.g. producing countries, the garment industry pro- weaving or knitting (textile production). The vides households with an income. Its expansion term “garment industry” or “garment sector” has allowed many workers to move from the infor- as used in this study has a twofold meaning: mal to the formal employment market,8 which is it can refer to the manufacturing process of crucial because regulations and oversight can only converting fabric into an item of clothing, but it be effective in the formal economy. can also encompass all prior production stages. For the purposes of this study the term is to be understood in the latter sense, if not indi- cated otherwise or used differently by quoted sources. 4 Euromonitor International, as quoted in: The Industry (19.01.2017). 5 ILO Regional Office for Asia and the Pacific/ILO Regional Office for the Arab States (2016). 6 Clean Clothes Campaign (2015); ILO Regional Office for Asia and the Pacific/ILO Regional Office for the Arab States (2016). 7 Brot für die Welt (2016), p. 22. 8 European Parliament (2017), p. 9. 9 Schultz/Scherrer (2017), p. 92.
14 A DEV ELO PMEN T EN G IN E PRO N E TO H U MAN R IG H TS A BUS E S Figure I: Garment manufacturing: where the growth engine is roaring Bangladesh Cambodia Pakistan Sri Lanka Vietnam India China Myanmar Indonesia Lao PDR Thailand Philippines Malaysia 0 10 20 30 40 50 60 70 80 90 100 Textile and clothing export share (in % of total exports) in 2015, selected garment manufaturing countries Data on textile and clothing export shares derived from WITS database (URL: https://wits.worldbank.org/). WTO statistics show that the Asian countries The garment industry is also an important provider among the world’s top ten clothing and textile of jobs. A 2016 International Labour Organization exporters accounted for 58.9 per cent of world (ILO) study of ten Asian economies estimates that exports in 2016.10 In the same year, more than 67 the industry employed a total of more than 40 mil- per cent of the EU’s imports of textiles and 77 per lion people there and that almost three-fifths of cent of its clothing imports came from Asia.11 In that total were employed in China (6.7 million) and the case of Germany, for instance, China is the India (16.8 million). source of most of the ready-made garments sold, followed by Bangladesh, India, Vietnam, Cambodia Within the industry in Asia, garment production and Pakistan.12 accounts for the highest share of all employees, employing more than 60 per cent of workers in The garment industry is of enormous macro- manufacturing wage employment in Bangladesh economic significance for the economies of and more than 80 per cent in Cambodia. Within the the Asia-Pacific region. For instance, the textile textile, clothing, footwear and luggage sector the and clothing sector generated 82 per cent of all footwear and luggage subsector is relatively small.15 Bangladesh’s exports in 2015.13 In Pakistan, the sector generated between 63 and 68 per cent of Women constitute the majority of employees in all exports in 2014.14 garment manufacturing. Cambodia has the largest percentage of women in its garment workforce, 80.8, followed by Vietnam with 76.3 per cent. 10 WTO (2017), p. 120. 11 European Commission, Directorate General for Trade (2017), p. 4. 12 Brot für die Welt (2016), p. 23. 13 ADB (2016), p. 3. 14 Clean Clothes Campaign (2015a), p. 1. 15 ILO (2016), p. 6.
A DEVELOPMENT ENG I NE P RONE TO HU M A N R I G H TS AB U S ES 15 By contrast, in India and Pakistan, men make rights from infringement by third parties. In what up the majority of the workforce in the sector.16 follows, these three causes are analysed in more Worldwide, education levels among workers are detail before the analysis turns to flesh out the generally low, with men tending to have higher impacts on rights-holders. education levels than their female counterparts.17 Three quarters of the global garment industry 2.2.1 Production countries do not workforce are low-skilled female workers.18 adequately protect human rights The countries in which the production facilities are 2.2 The industry’s located frequently lack governance structures to effectively enforce human rights and states com- susceptibility to human pete with each other to keep business operations rights abuses in the country. Overall, the lack of human rights protection in production countries is due to a com- Why does the garment industry have such a poor bination of a lack of capacity and of political will. human rights record? Structural and economic factors, such as globalisation, international trade As a result, local laws are inadequate, frequently and competition, as well as not always clear-cut falling short of the minimum level defined in responsibilities of states and business complicate international human rights treaties, the ILO core the effective implementation of human rights in labour standards and the UNGPs. Consequently, the garment industry. The global garment supply companies benefit from weak local standards. In chain itself has several characteristics that cre- addition, most production states undertake only ate severe human rights risks: minimisation of lax monitoring of compliance with their – however production costs tends to be the deciding factor deficient – regulatory requirements. This, together for production location and production needs to with widespread corruption19 and extremely be able to quickly adjust to ever changing market limited access to grievance mechanisms, dimin- demands. In addition, the network of business enti- ishes the impact of legislation on the subject of ties involved is large and complex. Accordingly, it is environmental, economic, and social performance not always possible to trace adverse human rights standards.20 impacts directly to their causes and attributing specific impacts to a specific business behaviour There are other reasons for the lack of political can be difficult. will to protect human rights as well: economic considerations take precedence vis-à-vis human However, the causes of the existing gaps in human rights obligations and impact considerations for rights protection along the garment supply chain many political decision-makers.21 They welcome are fairly straightforward: firstly, businesses do foreign direct investment as a way to create not adequately respect human rights. Secondly, jobs, upgrade infrastructure, and build new production countries, despite the many measures export-oriented industries capitalising on lower they have taken, are still not adequately discharg- labour costs. Ahmed et al. (2014), for example, ing their duty to protect human rights. And thirdly, attribute the economic success of the apparel home states have also failed to take sufficient sector in Bangladesh to a general restraint on the action to comply with their duty to protect human part of the government to directly engage with 16 Ibid., p. 5. 17 Ibid., p. 6. 18 European Parliament (2017), p. 7. 19 Transparency International’s Corruption Perception Index ranks countries by the perceived level of corruption among officials and politi- cians. Corruption is still strong in many countries in the Asia Pacific Region. See: Transparency International (2017). For a more detailed analysis of public sector, executive, legislative and judicial corruption, see: V-Dem (2017). 20 Thomas (2015), p. 16. 21 Ibid., p. 17.
16 A DEV ELO PMEN T EN G IN E PRO N E TO H U MAN R IG H TS A BUS E S the industry through central policies and other political decision-making. Across sectors, gender forms of intervention.22 One of the underlying stereotypes result in job segregation and dispar- factors here is lobbying activities by businesses: ities in wages and benefits. Women’s ability to economic actors, both in garment producing organise collectively is impaired by stereotypes of countries as well home states, use their discursive women as being more docile, dexterous or making power to frame and define public interest issues.23 fewer demands of their employers and by their Another factor is the overlap between economic obligations to perform unpaid care work.28 Sexual and political actors: it is not unusual for members harassment and violence against women have of governments and parliaments to be factory reached endemic proportions in many production owners themselves.24 Decision-makers also take countries, whose governments have responded into account the risk that apparel sourcing mar- either ineffectively or not at all. kets may shift to a less regulatory environment in the face of tightened national regulations relating However, failure to protect of human rights in pro- to human rights or more vigorous enforcement. duction countries is not always the result of a lack High demands on companies, they reason, would of political will. Even where regulatory frameworks hamper their country’s socio-economic devel- and enforcement mechanisms are in place, states opment. However, this assumption is not always face difficulties in discharging their obligation to correct: while the relocation of markets for this protect. One reason for this is the fact that the reason has often been observed,25 not all com- business enterprises involved are often legally panies prefer the lowest possible degree of state separate entities domiciled in a different jurisdic- regulation.26 tion. The garment supply chain is made up of a complex network of subsidiaries, contractors, sup- Another area where a lack of political will is partic- pliers and joint ventures. Even when they operate ularly prominent is the systematic discrimination as an economic unit, the centre of activity, regis- of women, which is entrenched in most production tration or domicile can be located in one country countries. All of the Southeast Asian states have (the home state), while it operates in another (the ratified the Convention on the Elimination of All production country).29 Regulating such complex Forms of Discrimination Against Women (CEDAW), structures requires capacities that may not exist and thus undertaken to eliminate all forms of in all production countries. discrimination against women, but their record in this area is poor (see below, Section 3.1), as the 2.2.2 Corporations do not adequately respective UN treaty body has pointed out more respect human rights than once in recent Concluding Observations.27 International human rights treaties do not impose Discrimination against women occurs in the areas direct legal obligations on companies. Corporate of education, health care, social relationships and respect for human rights thus depends on the 22 Ahmed/Greenleaf/Sacks (2014), p. 260. 23 Ruggie (2017), p. 5. 24 Transparency International reports that in Bangladesh “reform has been compromised by a craving for quick profits by factory owners and exporters who make up at least 10 % of parliament.” Transparency International Bangladesh (2014). 25 East African countries might emerge as important garment production countries. See McKinsey (2015): Emerging Garment Producing Coun- tries. https://www.mckinsey.com/industries/retail/our-insights/east-africa-the-next-hub-for-apparel-sourcing (accessed 05.07.2018). 26 German retailer Tchibo believes that fair competition needs clear rules and sanctions for non-compliance: “A regulatory framework is important for creating a level playing field.” See: https://www.bundestag.de/dokumente/textarchiv/2016/kw48-pa-recht/481036; https://www.tchibo-nachhaltigkeit.de/servlet/cb/1255826/data/-/TchiboNachhaltigkeitsbericht2017.pdf (accessed 05.07.2018). 27 UN, Committee on the Elimination of Discrimination against Women (2016b), para.10–12, 16–88, 22; UN, Committee on the Elimination of Discrimination against Women (2013), para.12–46; UN, Committee on the Elimination of Discrimination against Women (2016a), para.14–46. 28 ILO Regional Office for Asia and the Pacific (2012). 29 UN, Committee on the Rights of the Child (2013), Para. 40.
A DEVELOPMENT ENG I NE P RONE TO HU M A N R I G H TS AB U S ES 17 regulatory framework within which businesses year). Companies with numerous product cycles operate.30 Gaps in protection are created through or seasons per year typically necessitate that the the lack of effective frameworks, and these are products be manufactured at shorter time inter- exploited at the expense of human rights by many vals. Changes to orders or rushed orders may con- retailers, brands and manufacturers. tribute to labour and human rights abuses, such as excessive or forced overtime and outsourcing to Transnational corporations benefit from locat- third parties where respect for human rights may ing the different segments of their operations in be even lower. Likewise, the more product cycles the most cost-effective location.31 Yet, retailers there are, the higher the material and resource and brands, as the most influential actors in the consumption in the manufacturing process, garment supply chain, do not adequately use which in turn results in increased water consump- their leverage to improve the human rights sit- tion, higher carbon dioxide emissions and more uation in production countries. Often, even the waste. Similarly, a company’s sourcing model can risk management methods of more progressive increase the risks of adverse human rights impacts retailers do not comply with human rights due in its supply chain. The risks vary depending on diligence requirements. Instead of using their whether it sources from a large range of suppliers, leverage to minimise the adverse human rights the nature of its contractual relationships, and impacts associated with their business practices, whether sourcing is direct or indirect. For example, they confine themselves to defining standards it can be more difficult to control relationships with for production and processes, which are passed on down the supply chain. Suppliers in the global Corporate social responsibility and human South produce according to the specifications rights due diligence of their buyers. They have to constantly adapt to In many Asian countries, corporate social new and sometimes very short-term requirements responsibility (CSR) is understood to mean and at the same time comply with buyers’ price philanthropy, i. e. voluntary charity, and CSR is expectations. As a result, they are often forced perceived to be in tune with the region’s cul- to keep production costs low; often done by not tural and religious norms. Awareness of respect paying living wages for instance, and by disregard- for human rights as a corporate responsibility ing environmental and social standards.32 Recent is only gradually developing. As a consequence, trends towards ‘fast fashion’33 have only exacer- philanthropy is often used to conceal or white- bated the social and environmental situation in wash adverse impacts on human rights.36 production countries.34 This understanding of CSR has resulted in a focus on companies’ voluntary contributions In particular, purchasing practices, pricing strate- to community development and other social gies and cost structures put pressure on suppliers and environmental efforts. The fundamental and have a negative impact on wages and working difference between this understanding of CSR conditions.35 Business-model risk factors include and the UNGPs is that implementation of the the number of product lines sold and how often latter is expected of all companies rather than a those product lines are changed (i. e. seasons per voluntary effort on the part a company. 30 The United Nations Guiding Principles on Business and Human Rights and OECD Guidelines for Multinational Enterprises contain stan- dards of behaviour expected of business enterprise in relation to respect for human rights (human rights due diligence), but these are not binding and do not provide for the sanctions of business that fail to apply them. 31 Zhan (2013), p. 135. 32 Schultz/Scherrer (2017), p. 92; European Parliament (2017), Para. 21. 33 Fast fashion leads to frequent adjustments in the supply chain to allow mass-market retailers to design and produce the latest fashion trends quickly and cost-effectively. 34 There is an increasing demand for fashion items. The per capita consumption of cotton in Germany is about 10 kg per year, surpassed only by the USA (19 kg) and Japan (11 kg). See Brot für die Welt (2016), p. 21. 35 OECD (2017), pp. 45–47. 36 Thomas (2015), p. 17.
18 A DEV ELO PMEN T EN G IN E PRO N E TO H U MAN R IG H TS A BUS E S a large number of suppliers in relation to the size reasonable link exists when a business enterprise of the enterprise and the amount of its resources has its centre of activity, is registered or domiciled dedicated to supply chain due diligence. Short- or has its main place of business or substantial term relationships with suppliers may mean that business activities in the state concerned.39 Home an enterprise does not have time to take adequate state obligations include ensuring access to effec- action to prevent or mitigate risks that were identi- tive judicial and non-judicial mechanisms to provide fied in supplier assessment processes. It may also remedy to those whose rights have been violated mean that the enterprise lacks leverage over the by business enterprises operating extraterritorially supplier to prevent or mitigate any impacts that when there is a reasonable link between the state have been identified.37 and the conduct concerned.40 So far only a few legal initiatives relating to man- datory due diligence and corresponding disclosure 2.2.3 Home states do not adequately requirements – although not specific to the gar- protect human rights ment supply chain – have been taken,41 notably States that have jurisdiction over international at the EU level.42 Home states consider regulation brands and retailers (home states) often do not feel a last resort, due to a reluctance to burden busi- responsible for regulating the behaviours of their nesses disproportionately, as regulation is some- companies in their operations abroad. Although times thought to do. Instead, they tend to restrict no consensus has been reached in international themselves to formulating expectations and favour law on the extent of extra-territorial human rights providing incentives and guidance on human rights obligations, home states do have obligations to due diligence. The UNGPs, however, envisage a respect, protect and fulfil human rights in the smart mix of voluntary and binding measures – context of businesses’ extraterritorial activities and which none of the NAPs on business and human operations, provided that there is a reasonable link rights have adopted so far (see Section 4.3.1). between the state and the conduct concerned.38 A 37 Ibid., pp. 69–70. 38 UN, Committee on Economic, Social and Cultural Rights (2017). 39 ETO Consortium (2013), principle 25c. 40 UN, Committee on the Rights of the Child (2013), Para. 44. 41 France adopted a law on corporate human rights due diligence in 2017: LOI n° 2017–399 du 27 mars 2017 relative au devoir de vigilance des sociétés mères et des entreprises donneuses d’ordre, see Legifrance (27.03.2017); in the Netherlands, a Child Labour Due Diligence Law is about to be enacted and is expected to enter into force in 2020. Other disclosure requirements were introduced by the UK Modern Slavery Act and the US California Transparency in Supply Chains Act. 42 Directive 2014/95/EU on the disclosure of non-financial information, including the respect for human rights; Regulation (EU) 2017/821 laying down supply chain due diligence obligations for Union importers of certain conflict minerals originating from conflict-affected and high-risk areas.
HUMAN RIGHTS ISSU E S: G A R M E NT M A NU FAC TU R I N G AS A H IG H - R IS K IN DU ST RY 19 3 Human rights issues: garment manufacturing as a high-risk industry Global garment manufacturing is a high-risk industry with respect to almost all human rights. 3.1 Discrimination against Garment workers are often barred from joining women is rampant or forming a trade union. The resulting absence of collective bargaining leads to a broad array of Women make up the majority of the workforce human rights abuses, ranging from forced and in the garment industry in most countries and, child labour, arbitrary dismissals, unsafe work- accordingly, are the group most affected by its places and unhealthy working conditions, to physi- human rights impacts. The profound discrimina- cal and sexual harassment and abuse of women.43 tion that women face in garment producing coun- Bribery and corruption enable and exacerbate tries makes them particularly vulnerable to abuse abuses and hinder access to remedy. The envi- and exploitation. ronmental risks arising from manufacturing also adversely impact people’s livelihood. The depth and extent of sexual harassment and gender-based violence in the garment industry is While some of these abuses are more difficult to rarely acknowledged.44 A non-representative sur- eradicate than others – ending corruption and vey carried out by Sisters for Change found that violence against women for example requires not roughly 14 per cent of women garment workers in only legislation and the stringent enforcement Bangalore had been sexually harassed or raped. thereof but also profound social change – others Sixty per cent reported having been intimidated are less so. The right to form trade unions, for or threatened with violence, while between 40 example, requires mainly an act of omission, i. e. and 50 per cent had experienced humiliation and to refrain from forbidding them. verbal abuse. More than one in seven women workers said they had left a job due to harass- In what follows, the human rights risks that are ment.45 The majority of harassment and violence prevalent and widespread within the industry in factories is committed by supervisors and “floor are examined in an attempt to illustrate the in-charge” managers acting within a widespread effects of the described governance gap on climate of impunity.46 Management does not show rights-holders. Special attention is paid to issues ownership for the issues, let alone follow up on that – unlike occupational health and safety (see incidents of abuses reported to them.47 Although Section 4.2.1) – have neither received sufficient required by law to do so, most factories around attention in the debate nor seen significant prog- Bangalore do not have a functioning grievance ress in recent years. or complaint mechanism. While the cited study’s results are neither representative of India nor of the region as a whole, the problems they illustrate are emblematic of the entire industry: sexual 43 European Parliament (2017), p. 7. 44 Dovey (2014), p. 57. 45 Sisters for Change/Munnade (2016), p. 35. 46 Ibid. p. 5. 47 Ibid. p. 35.
20 H U M A N RIG H TS IS S U ES : G AR MEN T MAN U FAC T U R IN G AS A H IG H - R IS K IN DUST RY harassment and gender-based violence add up to women are frequently paid significantly less than the widely known discrimination and labour right men (see Section 3.4). The gender pay gap in the abuses in the industry. sector is the result of pre-existing discriminatory societal structures, which are the reason that Another key issue concerns the precarious work women only find employment in the lowest paid situation of many female workers. This applies to jobs that have very poor prospects for promotion. both the formal and informal sector. Women who are informally employed cannot enjoy any social Migrant women are particularly susceptible to security benefits and are also endangered by the exploitative working conditions. The informal temporary nature of their employment: they are sector of the garment industry, in particular, hired during economic upturns and laid off when thrives on migrants.54 While systematic data is a recession hits.48 Women who do have formal not available, it is estimated that women outnum- employee status tend to have particularly short ber men among migrant workers in the garment careers in the sector, often of ten years or less. sector.55 Those with an irregular status are partic- Around 40 per cent of female workers in Indonesia ularly exposed to certain forms of forced labour; and around 60 per cent in Cambodia and Vietnam their passports may be withheld by employers, stay in the sector for one to five years. The limited recruitment agencies or labour brokers.56 In some possibilities for advancement constitute one of the countries, such as Thailand and Malaysia, migrant reasons for this phenomenon.49 Other reasons are workers are prohibited by law from forming or the lack of appropriate childcare facilities provided taking up positions in trade unions, and in other by the state or at the factory level. Where such cases their right to freedom of association is childcare is available, it is often not responsive to restricted through contracts.57 Women migrant women’s and children’s needs. This helps explain workers who lose their jobs at times of economic why many women leave formal factory employ- down-turn may also lose their visa status, and risk ment upon marriage and do not return once they falling victim to trafficking in the sex industry.58 have children, opting instead for informal, even The Clean Clothes Campaign reports that migrant more precarious forms of employment.50 Women women workers face particular difficulties in who do continue in employment beyond marriage accessing social protection, for example, the right face obstacles in access to maternity benefits, to paid maternity leave enshrined under Thai- which various domestic laws provide for but are land’s labour laws is practically never upheld for poorly implemented.51 Also, employers prefer migrant workers.59 A pregnant migrant worker is to hire young and unmarried women (15 years also at risk of being dismissed from work once her is a common age to start), who can be paid low pregnancy advances, which – although a violation wages.52 As digitalisation increases in the industry, of Thailand’s labour laws – is a common practice it is likely that unskilled women will be the first among employers. Furthermore, discriminatory ones to lose whatever precarious livelihood their measures targeting female migrant workers are jobs in the garments sector provide.53 In addition, supported by public authorities: pregnancy testing 48 ADB/ILO Regional Office for Asia and the Pacific (2011), pp. 16, 18. 49 ILO (2016), p. 6. 50 Business for Social Responsibility (2017), p. 22. 51 Business for Social Responsibility (2017), pp. 22–23.; Chowdhury (2017), pp. 122–123. 52 Beresford/Cucco/Prota (2017), p. 142. 53 Business for Social Responsibility (2017), p. 8. 54 Save the Children (2015), p. 42. 55 In some countries – like Thailand where approximately 80 per cent of the migrant workers are from Myanmar – women outnumber male migrant workers by at least 2:1, see Clean Clothes Campaign (2014), p. 29. 56 OECD (2017), p. 124. 57 SOMO (2016). 58 This risk is particularly prevalent in Malaysia and Thailand, see Clean Clothes Campaign (2009), p. 18. 59 Clean Clothes Campaign (2014), pp. 29–30.
HUMAN RIGHTS ISSU E S: G A R M E NT M A NU FAC TU R I N G AS A H IG H - R IS K IN DU ST RY 21 is part of the process for obtaining a work permit, makes it even more difficult for them to organise and the employer sees the results. These discrim- at the workplace.63 All these well documented inatory policies often lead migrant women to seek impacts on women demonstrate that discrimina- out dangerous abortions, as documented in the tion against women in society is not merely going case of migrants from Myanmar.60 unaddressed, but is actually being actively repro- duced by the garment sector.64 All these factors taken together limit the ability of female employees take action to improve their Gender inequality remains a serious issue in the working conditions. For example, Thai and Malay- global North as it does in the global South. Figure sian unions have pointed out the difficulty they II shows the levels of gender inequality in 2005 experience in recruiting women. Women may feel and 2015 in selected garment manufacturing that male-led unions inadequately address wom- states and compares these countries with the en’s specific concerns.61 Women also often lack European Union (EU-28, averaged values). India, knowledge about how to engage in debate in a Pakistan and Bangladesh rank at the bottom in manner targeted at advancing their working condi- this comparison, China is well in the lead. It is tions, which may in part be the result of a cultural noteworthy that gender inequality in Vietnam and stigmatisation of outspoken women.62 Further- Thailand actually increased between 2005 and more, many women spend the little time they have 2015. On balance, some progress can be seen, away from work doing unpaid care work, which but challenges lie ahead. Figure II: Two steps forward, one step back: gender inequality in selected garment manufactur- ing countries in 2005 and 2015 Gender Inequality Index 2005 Gender Inequality Index 2015 0,7 0,6 0,5 Gender Ineqaulity Index 0,4 0,3 0,2 0,1 0 a n h sia s ar ka nd ia m a 28 ne di in es ta ys Na m an ila EU ne Ch In kis d pi ala n iL a gla ya do et ilip Th Pa M Sr Vi M n In Ph Ba Data derived from the UN Gender Inequality Index (2015). URL: http://hdr.undp.org/en/data#. Figures for the EU-28 are based on our own calculations. Data for Myanmar was available only for 2010 and 2015. 60 Ibid. 61 Clean Clothes Campaign (2009), p. 17. 62 Chowdhury (2017), p. 126. 63 Hamm (2012), p. 225. 64 Schultze (2015).
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