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资讯披露

31 十月 2024

Target's response to garment industry crisis amid protests and gas shortage

BHRRC sent a short survey aimed at understanding in detail the engagement apparel brands have had with their suppliers amidst the continued disruption of the garment industry in Bangladesh caused by the gas crisis and quota reform protests in 2024.

We asked brands to respond to the following questions regarding their suppliers in light of the ongoing gas crisis and protests that began in May 2024.

Target's response

1) Have you, as a matter of policy, directed your sourcing team to forgive any delivery delays resulting from the disruption to the garment industry and suspend the imposition of penalties until the region has recovered? If yes, please include details. If no, please explain why this decision was made.

a) Has your company imposed any penalty on a supplier in the region as a result of delayed delivery? If yes, please share details on any penalties imposed and the circumstances for such penalties.

We work with our partners to understand the issues and resolve or make concessions in cases where the situation is out of their control. Due to recent protests in Bangladesh, we have accepted production delays without penalty or airing at the vendor’s expense.

2) Have you, as a matter of policy, directed your sourcing team not to seek price concessions from suppliers in the affected region on both new and current orders? Please share details on specific actions and measures taken.

We have not asked for concessions or price reductions after the program placements.

a) How has your company monitored the payment of worker wages in supplying factories and ensured that wages have been paid on time and in full during July-August?

3) Regarding worker wages, has your company provided any of the following forms of assistance or improved payment terms to suppliers in the region in order to help them continue business operations and ensure workers’ July-August wages are paid in full? Please share any details.

  1. Accelerated payment on orders recently delivered, in transit, or in production? Y/N
  2. Improved payment terms on new orders? Y/N
  3. Provided low-interest or no-interest financing to suppliers? Y/N
  4. Provided direct financial assistance to suppliers? Y/N
  5. Covered the cost of air shipments? Y/N

Our vendors have made full payments to their workers July-Aug.

4) How are you ensuring order stability at the suppliers you source from, to ensure suppliers can maintain business operations and maintain jobs for workers, including confirming future orders and prices with factories? Please share details.

a. Have you committed to receiving and paying for all orders placed with suppliers before and during the crises the industry has faced since May 2024. Please share details.

b. Have you transferred orders from your suppliers in Bangladesh to suppliers in other apparel-producing countries in response to the crises? Please share further details on why this decision was made.

Response to 4b: No.

5) What steps are you taking in collaboration with trade union and worker representatives at supplier factories to ensure the physical and mental wellbeing and safety of your workers? How do you plan to support your suppliers and workers long-term?

We conduct ongoing due diligence and engage with stakeholders to strengthen our understanding of human rights issues applicable to our operations and supply chain. Target partners with Nirapon and Better Work to support worker wellbeing and safety along with capability building programs.

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