Retailers squeeze their suppliers in Bangladesh, Cambodia, India, Myanmar and Pakistan so hard financially that suppliers cut costs in ways that exacerbate workplace abuses and heighten brands’ exposure to human rights risks, says Human Rights Watch.

Suppliers across Asia face relentless pressure from international retailers to meet an enormous demand for poorly forecast garment orders. Companies do not adjust pricing for local wage increases, shortening the due dates for shipments, and delaying payments to suppliers — all of which worsen labor abuses in factories. Among other pressures, retailers also impose unfair penalties for missed production deadlines.

Brands try to drive down the price without accurately costing for labor and social compliance. It takes a toll on workers because factories begin to make them work excessive overtime. In 2018, nearly 40 per cent of retailers were late to pay their suppliers and 60 per cent of suppliers were not given incentives to comply with their buyers’ public labor standards. Brands push suppliers for low prices, short lead times, and maximum flexibility. In order to drive down costs and meet short deadlines, suppliers hide excessive overtime hours, suppress wages, and employ child labor, among other strategies that increase human rights risks.