Global apparel brands pledge to improve conditions for workers

Updated 29 January 2016
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Global apparel brands pledge to improve conditions for workers

MUMBAI: Clothing companies H&M, Inditex, C&A and PVH have committed to improving the lives of workers in India’s southern city of Bengaluru, after a report said employees lived in appalling conditions and were denied decent wages and freedom of movement.
Gap Inc., which also sources apparel from Bengaluru, did not respond to the report by the India Committee of the Netherlands (ICN), according to a statement by the Dutch non-governmental group. A draft of the report, Unfree and Unfair, was presented to the companies last November.
The conditions of garment workers in South Asia have come under sharp scrutiny following the 2013 Rana Plaza disaster in Bangladesh, in which 1,135 workers were killed, many of them employed by suppliers to Western retailers.
The ICN report said hostels run by the Bengaluru factories lacked basic amenities such as beds and clean water, and that workers earned between 95 euros ($104) and 115 euros per month, just above the official minimum wage of 93 euros to 103 euros.
Bengaluru, a hub for apparel exporters, is also known as India’s Silicon Valley for its numerous information technology companies, and draws migrants seeking better economic prospects from its home Karnataka state, as well as from neighboring Andhra Pradesh and Tamil Nadu and the country’s north and east.
There are an estimated 1,200 garment factories in and around Bengaluru, making apparel for large global brands.
Many of the workers are women from poor backgrounds who do not know the local language and are unaware of their rights, making them more vulnerable to exploitation, according to the report based on interviews with 110 migrant workers at four garment factories in the city.
“Global companies have a responsibility to ensure better conditions for the workers, as they are directly benefiting from their labor,” Raphel Jose, vice president of supply-chain sustainability at the Center for Responsible Business in Bengaluru, told the Thomson Reuters Foundation.
“This is an area where the brands can come together and collaborate with a local agency and pressurise the industry to improve conditions.”
Dutch clothing retailer C&A, Swedish retailer H&M and Spain’s Inditex, which owns the Zara and Massimo Dutti brands, will work together and liaise with local trade unions to provide training and address workers’ grievances, ICN said.
Inditex will evaluate the state of workers at its suppliers and factories across India, while PVH Corp., which owns brands including Tommy Hilfiger and Calvin Klein, is developing new guidelines for its suppliers, ICN said.
“If the brands commit to these issues and their plan of action, we expect that considerable progress can be made in addressing the working and living conditions of young migrant garment workers in Bangalore,” ICN said in the statement.


Saudi Arabia and UAE launch a new joint cryptocurrency

Updated 20 January 2019
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Saudi Arabia and UAE launch a new joint cryptocurrency

  • The cryptocurrency will be limited to banks during its first stages
  • The program will also help the two countries evaluate the monetary policies of a centralized currency

Saudi Arabia and the UAE have launched a joint cryptocurrency during the first meeting of the Saudi-Emirati Coordination council Saturday in Abu Dhabi, UAE’s national press agency WAM said.

The cryptocurrency will be limited to banks during its first stages, until the governments have a better understanding of how Blockchain technology operates cross-borders.

The currency operates on the use of a “distributed database between the central banks and the participating banks from both sides,” aiming to protect customer interests, set technology standards and assess cybersecurity risks. The new program will also help evaluate the impacts of a central currency on monetary policies.

During the meeting, representatives of Saudi Arabia and the UAE also signed the Joint Supply Chained Security Cooperation program, which tests the two countries abilities to provide vital supplies during times of crisis and national emergencies, as well as share expertise and knowledge in the field.

All 16 members of the executive committee of the council followed up on the execution of the initiatives mentioned in the Strategy of Resolve.

Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports, improving airports to make it easier for people with disabilities to travel, creating a financial awareness program for children aged 7-18, starting a joint platform to support local SMEs, and the integration of civil aviation markets,

The committee was headed by Mohammad bin Abdullah Al-Gergawi, minister of cabinet of affairs and the future of UAE, and Mohammed bin Mazyad Al-Twaijri, minister of economy and planning in Saudi. The committee will also monitor the implementation of the initiatives.