fashion supply chains

Union busting and violent suppression of union activity have had a long history in the garment sector across Central America, particularly in societies such as Guatemala, Honduras and El Salvador. And in the U.S. trade unions have been decimated since the 1980s as the country has moved towards a less regulated version of capitalism. Today, the percentage of workers who are members of unions in the U.S. is just over 10%, about half of what it was at the start of the 1980s. It’s sad to think that the once strong International Ladies’ Garment Workers’ Union (ILGWU) no longer exists. It was once one of the largest and most crucial trade unions in the country and was responsible for ushering in comprehensive safety and workers’ compensation laws that citizens across the U.S. benefit from today.

Research shows that trade unions are actually good for business

Despite this, research conducted many decades ago by Harvard economists Richard Freeman and James Medoff showed that unions are good for business and society, contrary to popular political rhetoric at the time. They found that unions are associated with lower employee turnover, improvements in workplace practices, increased productivity and efficiency, strong health and safety, better retention of skills and reduced wage inequality in companies More recently in the UK, research undertaken on behalf of the Trade Union Congress found similar benefits to business: fewer injuries, less time off, fewer compensation payments, less money spent on recruiting and training, which all means money saved for companies.

What are fashion companies doing to support freedom of association?

Some major fashion brands are taking steps to better ensure workers’ rights to freely associate, join trade unions and collectively bargain are upheld. ASOS, Esprit, H&M, Inditex (who owns brands such as Zara and Pull & Bear), Mizuno, and Tchibo have each signed a Global Framework Agreement with IndustriALL Global Union, the world’s largest global trade union representing clothing, textile and footwear industry workers. Global Framework Agreements are negotiated on a global level between trade unions and a multinational company. They establish a framework for protecting and strengthening the rights of garment workers making their products in countries around the world.

In the garment sector, IndustriALL Global Union has also recently set up the Action, Collaboration and Transformation (ACT) initiative to bring together trade unions and major fashion brands and retailers to negotiate and agree higher wages, fairer prices and better working conditions for the whole sector within a country. Collective bargaining at an industry level means that workers within a country can negotiate their wages under the same conditions, regardless of the factory they work in or the retailers and brands they produce for. Linking it to brands’ purchasing practices, it means that payment of the negotiated wage is supported and enabled by the price brands pay for the products they order from their suppliers. The long-term goal is to achieve living wages in the garment, textiles and footwear sectors. The initiative is still in the early stages, and we will see how this unique approach develops.

Without the ability for all workers to have true representation, a collective voice and bargaining power, we are unlikely to see a transformative and positive change in the global fashion industry. Workers need to be enabled to negotiate better wages and working conditions for themselves. Without that, we will only ever see small, incremental change and the risk of factory accidents like the Rana Plaza collapse will remain a reality.

NEGOTIATING FOR SOCIAL JUSTICE. In: The Role of Collective Bargaining in the Global Economy: https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/article/wcms_173298.pdf