A survey by Business & Human Right Resource Center (BHRC) shows, out of 35 brands and retailers, just 19 are prepared to pay for their entire order. And this is having a devastating impact on millions of garment workers who have either lost their jobs or are not being paid since the last two months. This has left millions of women and migrant workers in fashion’s supply chains unable to put food on the table for their children, and wondering how they will pay the rent.
Also, eight companies have requested retroactive discounts from suppliers for orders they had previously placed. Debenhams has asked for a whopping 90 per cent discount. In addition, eight firms including Primark have delayed settling their bills by extending their usual payment term by up to 180 days, or six months. Three brands — Hermès, N Brown and Zalando — said that some suppliers were taking shorter payments in order to alleviate issues with cash flow during the crisis.
However, some brands have stood out against this norm, showing leadership, said Thulsi Narayanasamy, Senior Labor Researcher at BHRC. Another 23 have taken steps to ensure that workers are paid in March and April and 19 businesses said they are helping suppliers access financial resources. Narayanasamy says, this can help build their trust with suppliers and workers on whom their successful recovery will depend. He urged the industry to applaud brands who are transparent about their actions as this allows civil society and workers to monitor whether commitments are being met.












