After two years of Corona – with unstable supply chains and difficult-to-calculate consumer behavior – the Fair Wear Foundation used 70 brand performance checks in 2021 to examine how its own members behaved towards their suppliers during the crisis.
The result: Since the beginning of the pandemic, they have structured their relationships with suppliers in the manufacturing countries in such a way that both the rights of the textile workers and social standards in production continue to be respected and the consequences of the pandemic for the people in the sewing workshops are cushioned in the best possible way. At the same time, however, it became apparent that there is a need for action in the area of wages.
Improvements despite the crisis
Most member companies have shown during the pandemic that positive changes are possible even in times of crisis. As part of the Brand Performance Checks, five other fashion brands have achieved so-called leader status, the highest possible status at Fair Wear. Three other members were rated “good”, bringing the total in this category to 28. Many brands have managed to limit the damage caused by the pandemic by being flexible and supportive in working with garment factories.
Important measures to support suppliers
Niki Janssen, Member Brands Coordinator at Fair Wear: “Right at the beginning of the pandemic two years ago, we asked our members not to cancel orders that were ready for dispatch or already in production. The majority of our member brands have agreed on this.” Fashion brands that have entered into dialogue with textile factories and asked which measures are currently helping them the most have also behaved positively.
In addition, member brands have taken over the payment of outstanding wages during the lockdown and the pre-financing of needed materials, adjusted prices to cover costs related to the corona pandemic, prepaid orders in full, ordered additional collections such as face masks, and canceled with suppliers to balance orders from other buyers. Another positive aspect was the fact that all members continued to employ 100 percent of the employees from the areas of sustainability and social standards, while other employees were furloughed.
Wages remain an important focus of Fair Wear
In addition to these positive sustainability efforts, the study also shows that wages in the production facilities need to be given even more attention.
The 2021 Brand Performance Checks required members to prove that the people working in the sewing workshops were paid the minimum wage during the lockdown. “If this proof was not provided, we received negative points for the minimum wage indicator in our company evaluation,” explains Janssen. “That was the case with some brands. It is good that we were able to determine this with our checklists and are focusing more on the topic. Because that means there is a need for action now.”
The Brand Performance Checks conducted in 2021, which formed the basis of the Fair Wear Foundation’s research, evaluate the practices of the member brands and their initiatives for the implementation and improvement of social standards in sewing in 2020. The detailed results of the analysis of the Brand Performance Checks 2021 is available online at fairwear.org. The next company assessments will be carried out by Fair Wear in 2023 and will cover the year 2022.