Working Conditions and Workers’ Rights Become Major Considerations as Work Moves from China to Lower-Cost Nations

A heart-breaking tragedy in very poor nation of Bangladesh may prove to be a game-changer for the apparel manufacturing industry. In April 2013, Rana Plaza, a multi-story apparel factory building collapsed suddenly, trapping workers and resulting in a death toll that exceeded 1,100. This was only one of multiple accidents, tragic fires and other mishaps in apparel factories in recent years, in nations including China and India. In fact, the industry suffered a devastating accident only a few months prior to the April 2013 debacle. In September 2012, more than 300 workers died in two factory fires in Pakistan. In Cambodia, as many as 2,000 factory workers passed out in a short period of time as a result of poor nutrition, heat and/or poor ventilation.

At the same time, workers in many locations are demonstrating, demanding higher wages and better working conditions. The bottom line is that apparel brands simply cannot afford to be associated with unsafe facilities and factory deaths, despite their unending need to keep costs low so that they can be competitive in the challenging global marketplace. The industry is undergoing a significant tightening of demands that customers place on factories in terms of factory safety, child labor, forced overtime and other workplace issues. The end result will be the closing of some poorly run firms, and higher costs at others. These costs will eventually be passed along to consumers around the world.

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Working Conditions and Workers’ Rights Become Major Considerations as Work Moves from China to Lower-Cost Nations, Business and Industry Trends Analysis

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