Van Klaveren, M., & Tijdens, K. (2024) German garment-selling brands and their suppliers in Bangladesh. WageIndicator Research Report. Amsterdam: WageIndicator Foundation.
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ABSTRACT
This report traces the relationships between the supply chains of German garment-selling brands and efforts to improve wages and working conditions in the garment factories in Bangladesh supplying these chains, in particular through multi-stakeholder initiatives (MSIs). On this behalf 50 German brands and ten MSIs were selected. The global value chains (GVCs) at stake are large. Recently all 50 brands made use of foreign garment suppliers; 31 of them worked with suppliers from Bangladesh. In spite of the efforts of MSIs such as the Bündnis für nachhaltige Textilien (BNT), Fair Wear Foundation (FWF) and the RMG Sustainability Council (RSC) detailed in the report, for majorities of Bangladeshi garment workers extremely low wages and adverse working conditions have continued to exist. The merger of interests of top officials of the Awami League regime with those of major factory owners has been at play here.
The report has been finalized in for Bangladesh challenging times. In August 2024, a rebellion of students, garment and other workers led to the fall of the regime and its replacement by a caretaker government led by Muhammad Yunus. In a White Paper, a special commission subsequently painted a bleak picture of Bangladesh’s economy but also provided a roadmap for recovery. Economic diversification, while focusing on small and medium enterprises, is regarded as key.