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Article

12 Nov 2020

Author:
Hannah Abdulla, Just-Style

ALDI and Lidl policies on supplier price reductions & discounts positive step for protecting garment workers during pandemic

“Aldi Nord, Sud and Lidl vow not to squeeze on price to protect supply chain workers”, 12 November 2020

Aldi Nord, Aldi Sud and Lidl have each implemented a new policy not to ask factories for price reductions/discounts relative to comparable items with last season, in an attempt to ensure workers in its supply chain are protected from the fallout of the Covid-19 pandemic.

Aldi Nord and Aldi Sud both said they have developed a document on ethical purchasing practices in times of Covid-19 for its buying department. The document summarises the recommendations of major international organisations.

And as members of the German Partnership for Sustainable Textiles, they also participated in the development of a guideline, which contains recommendations for handling orders as well as health risks in production facilities.

Other initiatives Aldi Nord has undertaken include supporting suppliers with access to local finance. It also confirmed its commitment to paying in full for all in-production and completed orders and that it had not requested discounts on any orders.

Meanwhile, Lidl confirmed it had not cancelled any orders from its factories and is in "continuous dialogue" with its purchasers to avoid any negative impact on its supply chain actors. It is also actively involved in ensuring workers are paid outstanding wages, severance and benefits.

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