Report Highlights Spiking Labor Abuse in Myanmar Garment Industry

A new report from a human rights research group reveals over 200 recent allegations of labor abuses in Myanmar’s garment industry and highlights the due diligence challenges faced by fashion companies and other businesses sourcing from the region. The report, produced by the Business and Human Rights Resource Centre, said abuse allegations have spiked since the country’s military coup in 2021, and have included wage reductions, wage theft and forced overtime.

The researchers said they found allegations levied against Myanmar-based garment factories that supply a range of large clothing companies, including 20 allegations against H&M, five against Adidas, 21 against major fast fashion company Inditex and 19 against Primark, which has outlets across the U.S. and Europe. BHRRC sent a survey to 46 of the fashion brands linked to the allegations to ask about their due diligence procedures.

The Aug. 16 report said BHRRC found 156 total abuse allegations involving Myanmar’s garment industry that were reported between February 2022 to February 2023, up from 56 during the same period the previous year. "In other words: things are getting worse for garment workers -- and quickly," the report said.

H&M plans to "gradually phase out" its manufacturing and operations in Myanmar, a spokesperson said in a statement. "We are deeply concerned by the latest developments in Myanmar and we see increased challenges to conduct our operations according to our standards and requirements," H&M said. The company is working to remediate the cases mentioned in the report "where needed.”

Adidas and Inditex, which owns fashion brand Zara, did not immediately respond to requests for comment. The report said both Inditex and Primark made “decisions to leave Myanmar.”

Primark told BHRRC that it’s “aware of the allegations” raised in the report and has “investigated and attempted remediation in each case.” The report "highlights the stark reality of sourcing from Myanmar in the current environment and the worrying impact on workers' rights and safety,” the company said. “We welcome the spotlight organisations such as the BHRRC put on these issues, and we will continue to fully investigate and remediate any allegations we are made aware of, where possible.”

Although the allegations mentioned in the report primarily involve wage reduction and wage theft, others involve unfair dismissals, "inhumane work rates” and forced overtime, each linked to 42% of the allegations examined by the research group. The researchers also found gender-based violence and harassment is "widespread" in the industry, along with crackdowns on unions.

The report recommends that apparel brands and retailers that source from Myanmar maintain "a fully up-to-date and publicly available" list of their suppliers in the country and explain their business decisions. The report also recommends that brands work closely with workers and trade union representatives to help with "risk identification and assessment, remediation and evaluation.” If brands plan to continue to source from Myanmar, they must show "their adherence to the highest requirements of human rights due diligence."

"As labour rights frameworks in Myanmar are outdated and the rule of law is non-existent, brands should protect workers’ fundamental rights, including the rights to decent wages and collective bargaining, through responsible purchasing practices and international human rights instruments," the report said. "This means brands must ensure that the process is transparent and risk-based."

The report did applaud some companies’ efforts to combat forced labor in Myanmar, saying 21 of the 46 companies that responded to a survey sent by BHRRC referenced an existing "supplier code of conduct" that includes a focus on human rights. Those companies also indicated they "understood" the need for more due diligence in Myanmar. Most of the responding companies also said they take "regular field visits" and engage in "capacity building" for their suppliers in Myanmar.

"Nonetheless, our research makes clear that brands continuing to source from Myanmar must take further measures to assess whether they can ensure the absence of employer-military collusion, that worker-driven stakeholder engagement takes place and that livelihood needs are met," the report said.

The report also made recommendations to governments and to investors in apparel brands and retailers. Governments should develop "comprehensive mandatory human and environmental due diligence legislation" that focuses on "high-risk contexts" such as Myanmar, the report said.

BHRRC added that companies buying from the country "have an unequivocal obligation to conduct heightened human rights due diligence on their supply chains; and where this is not possible, brands must consider a responsible exit from Myanmar.”