Supply chain management – Weak links in Bangladesh

Author: Poulomi Mrinal Saha, Ethical Corporation, Published on: 5 February 2007

[R]ecent termination of Bangladeshi vendor contracts by US groups Wal-Mart and Hanesbrands is a signal that should be taken seriously. While Wal-Mart ended its relationship with its supplier over child labour allegations, Hanesbrands said pay and working hour violations were its reasons for pulling out...“...there are many [retailers] who are trying to form the ‘coalition of the willing’,” says van Heerden [chief executive of the US-based Fair Labor Association]. This “coalition...” faces the uphill task of overcoming the political inertia in Bangladesh...The government has...[passed] regressive amendments under the new...Labour Bill, which include a rise in daily working hours to ten, mandatory overtime, restricted union rights, and the reduction in retirement age from 60 to 57.

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Related companies: Hanesbrands Walmart