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Yahoo
25-07-2025
- Business
- Yahoo
Inditex Has a Flights and Rights Problem, Activists Say
When a slew of labor and environmental campaigners converged outside Inditex's annual meeting in the Spanish port city of A Coruña last week, it wasn't to wish the Zara owner a happy 50th anniversary. Representatives from Campagna Abiti Puliti, the Clean Clothes Campaign, Fair, Fondazione Finanza Etica, Public Eye and Sete—to name a few—were there, instead, to take the fast fashion OG to task for what they said are its 'severe' environmental and human rights failures, including a reliance on air freight transportation and its alleged failure to get its suppliers to drop outstanding criminal charges against workers in who protested the insufficiency of Bangladesh's minimum wage in 2023. More from Sourcing Journal US DOT Slams Mexico Over Relocation of Air Cargo Flights As US Tariff Pressure Grows, Can Bangladesh Still Manifest a Just Transition? Trump's Trade War Could Kill Lesotho's Garment Industry It's the least that the Spanish conglomerate, which gleaned a record profit of 4.5 billion euros ($5.3 billion) in 2024, can do, they said. And though Inditex has since posted weaker-than-expected earnings in the first fiscal quarter of 2025—the result, it said, of a slower start to its summer sales because of cooler weather, along with overall economic uncertainty—it still managed to eke by with 8.3 billion euros ($9.7 billion), just a a hair short of the 8.4 billion euros ($9.8 billion) forecast by LSEG analysts. Net income also came in at 1.3 billion euros ($1.5 billion) for the quarter, a rounding error less than what was expected. A spokesperson said that Inditex, which also operates Bershka, Massimo Dutti and Pull&Bear, declined to comment. David Hachfeld, textiles expert at Public Eye, was among those calling Inditex to pull back on its 'airborne fashion.' A report from the Swiss watchdog group said that the retail giant's transport emissions jumped by 37 percent in the 2023 fiscal year. In 2024, Inditex's greenhouse gas emissions from transport and distribution rose by another 10 percent, surpassing 2.6 million metric tons of carbon dioxide and making up 20 percent of the group's total footprint. In contrast, H&M Group keeps air freight under 1 percent of its transport emissions. 'Inditex should publish transparent data on its cargo flights and set clear targets for a logistics model that functions without these climate-damaging practices,' said Hachfeld, urging the company to begin a phase-out that starts with 'being honest' and extends into redesigning a logistics system that's less reliant on flights. Zipping clothing in the skies also has implications beyond fossil fuel pollution that leads to greater climate precarity, Public Eye said. It indicates that larger orders are being split into multiple smaller ones with truncated delivery times that can increase deadline pressures on workers, increasing the risk of forced overtime or subcontracting to shadier outfits. The practice is a hallmark of the 'test and repeat' model that gauges how the first couple of deliveries perform before putting rush orders on popular styles. Unfair contractual conditions that leave no wiggle room for unscheduled delays, say because of last-minute change requests or other hiccups, can also lead to unplanned air transportation, Hachfeld said. 'Above all, Inditex is still uttering the refrain about its well-known climate target of net zero by 2040,' he added. 'If the fashion giant does not change its course and start taking measures to protect the climate, air freight volumes at the airport are likely to increase.' Likewise, Inditex could be doing more to address a pre-Sheikh Hasina crackdown on labor rights that hasn't completely lifted, said Bogu Gojdź, public outreach coordinator at the Clean Clothes Campaign, the garment industry's largest consortium of trade unions and labor rights groups. Nearly 3,000 workers in Inditex's supply chain are still facing prison 'simply for demanding livable wages,' she said, calling the threat of arrest on blanket charges a 'brutal intimidation' tactic that the company has the leverage to stop. 'Its failure to do so makes it complicit in the repression of workers who make their profits,' Gojdź said. More protestors took to the streets outside Inditex stores in cities such as Barcelona and Milan to wave picket signs. Social and climate justice are interconnected, said Deborah Lucchetti, president of Fair and spokesperson for Campagna Abiti Puliti. 'Activists and consumers are demanding clarity from the Spanish giant on its risk mitigation policies for truly responsible business conduct,' she said. 'The demand for a living wage from the workers who make its clothes and the demand to abandon the reckless use of fossil fuels to transport them are two sides of the same struggle.' But despite a request by Fondazione Finanza Etica, the Italian member of Shareholders for Change, a group of institutional investors engaged in progressive causes, to read a statement explaining why it voted against the 2024-2025 Consolidated Sustainability Report, this did not happen, the organization said. In addition, none of the questions sent in writing before the meeting regarding an air-freight phase-out, protection of workers' rights in Bangladesh and an independent review of Inditex's business model received any response, said FFE analyst Mauro Meggiolaro. 'This is not how an AGM should function,' Meggiolaro said, using an acronym for annual general meeting. 'It shows a lack of respect for concerned shareholders.' Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
27-05-2025
- Business
- Yahoo
Experts warn of disturbing factory conditions still happening years after disaster: 'This needs to be reversed'
Twelve years have passed since the Rana Plaza building collapse in Bangladesh killed 1,138 people and injured more. However, garment industry workers and advocates say major fashion brands are still dragging their feet on meaningful reform. Nonprofits like the Clean Clothes Campaign (CCC) and the Bangladesh Revolutionary Garment Workers Federation (NGWF) are sounding the alarm over stalled progress on workplace safety in the world's second-largest textile-producing country. Many brands tied to factories in the Rana Plaza — including Walmart, Urban Outfitters, and Amazon — have still not taken full responsibility, advocates say. "Twelve years since the Rana Plaza collapse, it is vital that worker safety remains safeguarded," said Salahuddin Shapon, president of the Bangladesh NGWF, to Just Style. He warned that factory safety committees are weaker now due to a 2022 labor code amendment that reduced workers' rights and gave more power to factory owners. "This needs to be reversed," he said. After the collapse, more than 260 brands signed the Accord on Fire and Building Safety, a legally binding agreement for five years to improve factory conditions. But many major brands never signed on. Despite the international attention, dangerous working conditions, poverty wages, and union suppression remain widespread in Bangladesh's fast fashion supply chain. The CCC reports that only a few of the 30 brands linked to the Rana Plaza disaster have made meaningful contributions to worker protections since. These problems are not isolated. They're built into the fast fashion model, which churns out massive volumes of cheap, low-quality clothing designed to wear out quickly and be replaced. This results in a flood of textile waste that ends up in landfills and our environment, all while workers remain stuck in unsafe, underpaid jobs, hurting progress towards a healthier, greener future for all. Bangladesh has seen some progress, including a 2022 Employment Injury Scheme that provides limited support to injured workers and their families, and major strikes last year that resulted in 18 worker demands being met by owners. Still, advocates say stronger labor laws around workers' rights and injury compensation are urgently needed. "These 12 years have shown that real change can only happen if brands' behaviors and practices are regulated by robust legal obligations," said Kalpona Akter, labor leader and founder of the Bangladesh Centre for Worker Solidarity, to Just Style. What should the government do about the fast fashion industry? Set strict regulations Incentivize sustainable options Use both regulations and incentives Nothing Click your choice to see results and speak your mind. One promising step via global effort is the Corporate Sustainability Due Diligence Directive, a European policy that will require brands to take responsibility for their supply chains by 2026. But consumers also have the power to change things right now. Shopping secondhand at thrift stores or online, or supporting transparent, ethical brands, can help save money and reduce demand for fast fashion's exploitative practices. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Fashion Network
26-04-2025
- Business
- Fashion Network
Trade war raises concerns over worsening conditions for global textile workers
As tensions between the U.S. and China persist, NGOs warn that mounting cost pressures from brands could jeopardize hard-won progress in protecting the rights of textile workers. The Clean Clothes Campaign raised this concern on April 24, marking exactly twelve years since the Rana Plaza garment factory collapse in Dhaka, Bangladesh. The disaster claimed 1,138 lives and sparked a global outcry over labor conditions in factories serving Western markets. 'All additional costs resulting from U.S. tariff policies should be absorbed by companies that have the means to do so, rather than passed down to the most vulnerable links in the supply chain,' stated the Clean Clothes Campaign. The NGO, along with its French affiliate Collectif Éthique sur l'Étiquette, called on companies not to repeat the mistakes made during the pandemic, when major apparel groups prioritized profitability by suspending payments and canceling orders without notice, often leaving suppliers unable to pay their workers. 'The first signs of the old reflex to exploit the situation by cutting wages and rolling back workers' rights are already visible,' the NGOs noted, citing companies such as Gap, Walmart, and Levi's. These brands have reportedly begun demanding price cuts or pressuring suppliers to absorb the full cost of tariffs. Observers have also noted that several governments are now openly considering lowering minimum wages in anticipation of potential production relocations. Signs of strain are mounting across textile supply chains, particularly among the largest suppliers to the U.S. after China. Vietnam is among the first to feel the pressure, with its economic balance threatened by U.S. tariffs that have not been lifted but only suspended. India's jewelry sector is also feeling the impact. Meanwhile, Bangladesh—the second-largest apparel supplier to Europe—f ears losing the fragile stability of its textile industry. For their part, Sri Lankan manufacturers are talking about the potential loss of several thousand jobs if the announced surcharges are applied, while Burma is appealing to Washington's "indulgence" regarding its textile production. But the effects of Donald Trump 's trade war are not just of concern to Asian industries: African textile producers are also fearful of a slaughter within their industry.
Fashion Network
25-04-2025
- Business
- Fashion Network
Trade war raises concerns over worsening conditions for global textile workers
As tensions between the U.S. and China persist, NGOs warn that mounting cost pressures from brands could jeopardize hard-won progress in protecting the rights of textile workers. The Clean Clothes Campaign raised this concern on April 24, marking exactly twelve years since the Rana Plaza garment factory collapse in Dhaka, Bangladesh. The disaster claimed 1,138 lives and sparked a global outcry over labor conditions in factories serving Western markets. 'All additional costs resulting from U.S. tariff policies should be absorbed by companies that have the means to do so, rather than passed down to the most vulnerable links in the supply chain,' stated the Clean Clothes Campaign. The NGO, along with its French affiliate Collectif Éthique sur l'Étiquette, called on companies not to repeat the mistakes made during the pandemic, when major apparel groups prioritized profitability by suspending payments and canceling orders without notice, often leaving suppliers unable to pay their workers. 'The first signs of the old reflex to exploit the situation by cutting wages and rolling back workers' rights are already visible,' the NGOs noted, citing companies such as Gap, Walmart, and Levi's. These brands have reportedly begun demanding price cuts or pressuring suppliers to absorb the full cost of tariffs. Observers have also noted that several governments are now openly considering lowering minimum wages in anticipation of potential production relocations. Signs of strain are mounting across textile supply chains, particularly among the largest suppliers to the U.S. after China. Vietnam is among the first to feel the pressure, with its economic balance threatened by U.S. tariffs that have not been lifted but only suspended. India's jewelry sector is also feeling the impact. Meanwhile, Bangladesh—the second-largest apparel supplier to Europe—f ears losing the fragile stability of its textile industry. For their part, Sri Lankan manufacturers are talking about the potential loss of several thousand jobs if the announced surcharges are applied, while Burma is appealing to Washington's "indulgence" regarding its textile production. But the effects of Donald Trump 's trade war are not just of concern to Asian industries: African textile producers are also fearful of a slaughter within their industry.
Fashion Network
25-04-2025
- Business
- Fashion Network
Trade war raises concerns over worsening conditions for global textile workers
As tensions between the U.S. and China persist, NGOs warn that mounting cost pressures from brands could jeopardize hard-won progress in protecting the rights of textile workers. The Clean Clothes Campaign raised this concern on April 24, marking exactly twelve years since the Rana Plaza garment factory collapse in Dhaka, Bangladesh. The disaster claimed 1,138 lives and sparked a global outcry over labor conditions in factories serving Western markets. 'All additional costs resulting from U.S. tariff policies should be absorbed by companies that have the means to do so, rather than passed down to the most vulnerable links in the supply chain,' stated the Clean Clothes Campaign. The NGO, along with its French affiliate Collectif Éthique sur l'Étiquette, called on companies not to repeat the mistakes made during the pandemic, when major apparel groups prioritized profitability by suspending payments and canceling orders without notice, often leaving suppliers unable to pay their workers. 'The first signs of the old reflex to exploit the situation by cutting wages and rolling back workers' rights are already visible,' the NGOs noted, citing companies such as Gap, Walmart, and Levi's. These brands have reportedly begun demanding price cuts or pressuring suppliers to absorb the full cost of tariffs. Observers have also noted that several governments are now openly considering lowering minimum wages in anticipation of potential production relocations. Signs of strain are mounting across textile supply chains, particularly among the largest suppliers to the U.S. after China. Vietnam is among the first to feel the pressure, with its economic balance threatened by U.S. tariffs that have not been lifted but only suspended. India's jewelry sector is also feeling the impact. Meanwhile, Bangladesh—the second-largest apparel supplier to Europe—f ears losing the fragile stability of its textile industry. For their part, Sri Lankan manufacturers are talking about the potential loss of several thousand jobs if the announced surcharges are applied, while Burma is appealing to Washington's "indulgence" regarding its textile production. But the effects of Donald Trump 's trade war are not just of concern to Asian industries: African textile producers are also fearful of a slaughter within their industry.
