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Article

23 Mar 2020

Author:
March Bain, Quartz

Cambodia & Asia: Covid-19 threatens garment workers' livelihoods globally, with Cambodia, Bangladesh and Myanmar hit hard

"Coronavirus threatens the livelihoods of garment workers around the world", 21 March 2020

Across much of Asia, Europe, and the US, Covid-19 has brought shopping for anything but necessities practically to a standstill. Among the industries most at risk is clothing…

The impact is rippling through fashion’s supply chain, putting at risk the livelihoods of garment workers, who are already some of the most vulnerable workers in the global economy…

Many garment factories were already under pressure due to a lack of raw materials, much of which come from coronavirus-hit China. But now companies are halting new orders (paywall) and asking factories not to ship clothes they’ve already made. H&M, for instance, has had to “temporarily pause new orders as well as evaluate potential changes on recently placed orders” due to the global drop in demand, a spokesperson said…

In Bangladesh, factories have already seen $138 million in orders canceled or postponed due to the coronavirus, Reuters reported

Myanmar has seen at least 20 factories close, mostly from the shortage of raw materials, leaving more than 10,000 workers potentially jobless. Thousands of workers in Cambodia have been left unemployed

Cambodia has announced a plan for garment workers to receive 60% of the minimum wage if their factories closed, with 40% coming from the factory owners and 20% provided by the government…

H&M’s spokesperson said the company’s “long-term commitment to suppliers will remain intact and we are in close and transparent dialogue with them, but in this extreme situation we need to respond fast, together with our business partners, and take decisions that can be difficult in the short-term, but necessary in the long-term.”…