Apparel manufacturers ask buyers not to renegotiate payment terms

Staff Correspondent | Published: 14:58, Apr 08,2020 | Updated: 15:19, Apr 08,2020


A file photo shows workers sewing clothes at a garment factory on the outskirts of Dhaka. — New Age photo

Nine textile and garment business associations in six countries including Bangladesh on Wednesday asked the global brands and buyers to honour the terms of readymade garment purchasing contracts and not re-negotiate price or payment terms during this unprecedented global pandemic of COVID-19. 

In a joint statement, the platforms requested brands, retailers and global buyers to consider potential impacts on workers and small businesses in the supply chain when taking significant purchasing decisions.

Sustainable Textile of Asian Region, a platform of six countries, called on their buyers to take delivery or shipment, and proceed with payment as agreed upon for goods already produced and currently in production with materials ready, and not cancel orders which are already in production.

The platform of manufacturing countries, known as STAR Network, called on buyers for offering fair compensation to suppliers if production or delivery has to be suspended or stopped.

The manufacturers associations also asked global buyers for putting no responsibility on suppliers for delay of delivery or shipment and claim no compensation for such delays and no further improper pressure on suppliers by additional costs, rush orders or unnecessary visits and audits.

The nine associations in six countries are Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, China National Textile and Apparel Council, Garment Manufacturers Association in Cambodia, Myanmar Garment Manufacturers Association, Pakistan Hosiery Manufacturers and Exporters Association, Pakistan Textile Exporters Association, Towel Manufacturers Association of Pakistan, and Vietnam Textile and Garment Association.

The statement said that responsible business had become more important than ever for the whole world to survive and recover from the coronavirus crisis.

‘Especially, responsible purchasing practices of brand companies, retailers and traders of the global textile and apparel supply chains, will bring enormous impacts on the fundamental rights of millions of workers and the livelihood of their families in the supplier end,’ the statement said.

STAR Network said that it was time for global businesses to uphold and honour their commitment to labour rights, social responsibility and sustainable supply chains.

It also called on the brands and buyers to make all efforts and engage with local stakeholders for a better understanding of the local situation and contexts and support business partners on supply chain as much as possible. It also called for aiming at a long-term strategy of business continuity, supply chain unity and social sustainability.

‘We appreciate the understanding, collaboration and support of our business partners and other stakeholders, and we are ready to work and walk with all responsible buyers globally to get through this crisis, towards a shared bright future,’ the statement said.

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