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.
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. No.
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 informed our buying, merchandising and in country sourcing teams that we continue to support our suppliers in Bangladesh and we will not seek any price concessions or discounts should any orders be delayed. We have paid for completed orders and continue to pay on our 30-day timeline. We have extended production delivery timelines in agreement with our suppliers to support them through this period.
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? Almost all workers have been paid for July, and we are working closely with the three remaining suppliers to ensure any outstanding payments are made without further delay. Our team are continuing to monitor the situation for August.
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. For the last year, we have been prioritising a move to digital wage payments as a way to drive wage transparency. In the current situation this has enabled wage payments to continue as normal on our 30-day payment timeline.
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
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. Bangladesh is and will continue to be a key sourcing country for Primark. We continue to work with the same level of commitment that we always have in place with our suppliers.
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.
Yes - we have paid for all completed orders and continue to pay on our 30-day timeline.
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. No.
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 actively collaborate with trade unions and worker representatives through forums like The Accord, ACT, ETI, Better Work Brands Forum and RSC to address the physical and mental wellbeing of workers in our supply chain. In Bangladesh, our team works closely with unions and stakeholders (through these forums) to promote social dialogue and address issues promptly.
Primark was one of the first signatories to The Accord on Fire and Building Safety in Bangladesh in 2013 - now known as the International Accord, and this continues to be central to our monitoring programme of suppliers' factories today. In addition to the programmes run under The Accord, we also established our own building safety programme (known as our Structural Integrity Programme) in 2013. Furthermore, in Primark-approved factories workers are also able to voice concerns anonymously through external grievance mechanisms like Amader Kotha and Tell Us. In 2022 we also launched The Moner Kotha Project in partnership with the British Asian Trust and Sajida Foundation, which aims to address mental health awareness and resilience levels among workers. This programme is currently being rolled out across our supply chain in Bangladesh, with plans to engage 2,500 workers by the end of 2024