New research has uncovered how global garment brands have been unilaterally cancelling orders, delaying payments and changing contracts to their betterment during the pandemic – leaving factories and workers to shoulder the burden.
Shoppers walk outside a Topshop store in central London.
As casino dealers know, the odds always favour the house – and in the case of the garment sector, the odds have always slanted heavily to the benefit of global brands over local suppliers and workers. With the onset of the Covid-19 pandemic, this heavily tilted power dynamic has only become more pronounced.
Some factories have since reopened but with reduced operations and uncertainty over orders and job security for workers.
Ken Loo, secretary general of the Garment Manufacturers Association in Cambodia , said that since the onset of the pandemic, it is not uncommon for payment to suppliers to be made as long as 180 days after shipment, affecting cash flow and wage payments. U.S. department store Kohl’s Inc. cancelled $150 million worth of orders on 22 March without consulting or negotiating with long-term suppliers. The cancellation clause found in the standard purchase order used by Kohl’s Inc. contains provisions they can cancel any order at «Kohl’s sole and absolute discretion in the event of acts of God», such as a natural disaster like a pandemic.
This article was written by ALEXI DEMETRIADI
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