H&M, the world’s second-largest fashion retailer, has declared its intention to gradually cease its sourcing operations in Myanmar due to growing concerns surrounding labor abuses in the country’s garment factories.
This move aligns H&M with other major retailers such as Zara owner Inditex, Primark, Marks & Spencer, and others, who have also severed ties with suppliers in Myanmar.
In a statement to Reuters, H&M explained its decision: “After careful consideration, we have now taken the decision to gradually phase out our operations in Myanmar. We have been monitoring the latest developments in Myanmar very closely and we see increased challenges to conduct our operations according to our standards and requirements.”
The company also revealed that it is currently investigating 20 alleged instances of labor abuse at Myanmar garment factories that supply its products. Reports from a UK-based campaign group have highlighted cases of alleged abuses, including wage theft and forced overtime, which have multiplied since the military coup in February 2021.
The military takeover has plunged Myanmar into a political and humanitarian crisis. The garment sector, which employs predominantly female workers and encompasses more than 500 factories producing clothing and footwear for major brands, plays a crucial role in the country’s economy.
Some experts have expressed concerns that the trend of multinational companies pulling out of Myanmar could potentially leave workers in a worse position.
Vicky Bowman, director of the Myanmar Centre for Responsible Business and former British ambassador to the country, commented, “I regret H&M’s announcement, as it will have a negative impact on thousands of women workers in Myanmar.”
H&M stated that its withdrawal would follow a “responsible exit framework” developed by IndustriALL, a global union that has been advocating for brands to discontinue their business operations in Myanmar.
It’s worth noting that several major corporations in other sectors have also withdrawn from Myanmar, including oil companies TotalEnergies and Chevron, who announced their exit in January of the previous year.
The Myanmar government was approached for comment on this development.
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