As H&M rapidly expands its retail empire in Australia, the chain is being criticised for widespread labour rights violations and the “painfully slow” progress of safety renovations at factories. An Asia Floor Wage Alliance report, based on 251 interviews with workers from 17 H&M supplier factories in Cambodia and India, found women were being routinely fired during their pregnancy. Other common workplace abuses included illegal short-term contracts, low wages and forced overtime. Women in nine of 12 factories reported sexual harassment at work.”H&M’s response to our report has been completely inadequate,” the alliance’s Anannya Bhattacharjee told Fairfax Media from India. “H&M has told us they are testing out new practices with pilot factories, but when we asked them for the names of the factories they refused to tell us.” Armed with the report, the group will urge leaders at the International Labour Conference, starting in Geneva on Monday, to establish a global standard for supply chains, including the recognition of a living wage as a human right. The fast fashion business, spearheaded by Zara, Topshop and H&M, has enjoyed phenomenal growth in recent years, swiftly offering the latest catwalk looks for a fraction of the price in their multi-level stores. H&M alone has opened nine stores in Australia in two years, with plans to double the number by the year’s end. But the global supply chain, heavily reliant on cheap labour, has seen workers suffer and their lives placed at risk. A separate report on H&M’s safety efforts in Bangladesh – three years after the Rana Plaza factory collapse and signing of a pact to protect workers – revealed most of its factories were behind schedule, with 70 per cent of its 54 “gold and platinum” suppliers lacking adequate fire exits. “The pace of progress remains painfully slow. On average each of these factories still has 26 uncompleted renovations and the majority lack adequate fire exits,” Liana Foxvog, from the International Labour Rights Forum, told Fairfax Media from the United States.It is unacceptable in the majority of H&M factories in Bangladesh workers still run the risk of being trapped in the building in case of a fire.”There are about 140,000 workers in H&M’s “gold and platinum” factories.H&M Australia’s spokeswoman said delays in the “huge and complex work” were partly caused by import delays of safety equipment and the lack of technical expertise in Bangladesh.Initial timelines for remediation set up by the Accord were also too optimistic,” she said.She said safety upgrades were being “gradually implemented” and its suppliers have reported all locking features as well as all collapsible, sliding or rolling shutter doors have been removed – which the Clean Clothes Campaign disputes. In regards to the Asia Flood Wage Alliance report, the spokeswoman said the labour rights violations highlighted were industry-wide problems.”They are often difficult to address as an individual company and we firmly believe that collaboration is key,” she said.”That is why partnerships with organisations such as the ILO, Better Work, SIDA as well as global and local trade unions are important.” H&M was awarded a “B+”, based on the self-reported strength of its labour rights efforts, in the latest Australian Fashion Report by Baptist World Aid.H&M said the high grade was obtained by providing “accurate information of [their] efforts”.But founder of ethical clothing brand Etiko, which nabbed an A+, said the report, in its effort to scrutinise local and global brands, had potential to confuse consumers.” Paying 100 per cent living wage nets an A+ rating, while some respondents who could only show that a living wage is paid in 1 per cent to 25 per cent of facilities still achieved an A rating,” said Etiko’s Nick Savaidis.He also pointed out his claims were backed up by third-party certification, such as Fairtrade, unlike most others. It is also important for consumers to remember the underlying fast fashion model, of high volume and low margin, is a big part of why there have been so many problems for so long in garment supply chains,” he said.In the first accounts H&M Australia posted a net profit of $3,831,000 for the financial year to November 30, 2015, a turnaround from the loss of $1,475,000 recorded in 2014.It was the first ever profit; sales for 2015 almost tripled, rising to $161,940,000 in 2015 against $67,680,000 in 2014. Gross profit more than doubled to $111,370,000.
