While the fashion world is slowly resuming back to the ‘new normal’ scenario by re-opening outlets and factories, H&M seems to be going the other way. The Swedish retail brand recently canceled orders leaving thousands of Indian workers jobless, curbing to the global pandemic.
Sacked workers are still protesting outside the factory Euro Clothing Company factory, owned by Gokaldas Exports, in Srirangapatna, Karnataka, weeks after its shut down.
Garment workers are protesting outside Euro factory in Bangalore
H&M cancelled orders and is REFUSING TO PAY FOR WORK DONE@hm made $1.8 BILLION in profit last year
Yet factory workers (85% women)
are paid $2.3 per hour, in appalling abusive conditions
pic.twitter.com/rZ71Mw60KF— Dr Sonia Adesara - #Racism is a health crisis #BLM (@SoniaAdesara) June 22, 2020
An announcement was made on June 6 that confirmed the layoff of around 1200 employees with immediate effect. The announcement further stated that workers would be paid half of the remaining wages and the factory would no longer be operational. Gokaldas Exports also released a statement, stating, “The lay-off is due to reduction and cancellation of orders from its customers based out of key markets consequent to the Covid-19 pandemic.”
Trade unions and local tehsildars claimed that the company did not give a one-month notice period prior to the closure, thus refuting the mandatory legal requirement. In the wake of this situation, the H&M spokesperson told The Independent, “Covid-19 has caused an unprecedented situation for the whole industry. The drop in customer demand will inevitably have an impact on production levels, in particular when a country has been in lockdown for a long period, as is the case with India.
The drop in customer demand due to COVID-19 will inevitably impact suppliers, however we are placing orders with this supplier and we fully stand by our responsible purchasing practices. We are in dialogue with the supplier and the trade unions to resolve the conflict peacefully.
— H&M Customer Service (@hm_custserv) June 22, 2020
When asked by a user on social media space regarding the same, the retail brand said that they are trying to resolve the conflict peacefully.
Fashion's vigilante, Diet Sabya also shed some light on the same:
(Source- The Independent)
