Bestseller, a Denmark-based clothing and accessories company, has identified four most salient human rights risks in its supply chain in Bangladesh that include payment of due wages and excessive overtime.
In its 'Enhanced Human Rights Due Diligence Report: Bangladesh' in September, Bestseller said Bangladesh required enhanced due diligence in fulfilling the UN 'Protect, Respect and Remedy' Framework amid protests and a government transition.
According to industry insiders, Bestseller is among the top 10 buyers that source apparel from over 130 garment factories, including 33 subcontracting units, and they create employment for some 350,000 people here.
"Given Bestseller's significant business presence in Bangladesh, the ongoing political instability and associated risks necessitate a continuous assessment of emerging threats to human rights and a proactive approach to human rights due diligence," reads the report.
During the recent political unrest, Bestseller remained in daily communication with its suppliers to reaffirm its commitment to them and offer support.
Regarding the payment of due wages, it claimed to have clearly communicated to suppliers that there should be no deductions from wages, including bonuses or attendance bonuses, for non-working days for government holidays.
At the beginning of August, out of the three-day general holiday that began on August 05, most of Bestseller partner factories secured exemptions from the general holiday and operated as usual on August 07, it said.
During protests in Ashulia in mid-August, 11 of its supplier units were shut on August 15 for Nabinagar-Chandra highway blockade over equal employment opportunities within the Dhaka EPZ to avoid endangering their workforce.
Furthermore, one of its supplier factories near Chittagong was closed for a day due to local flooding, adding another layer of disruption.
Bestseller said it instructed its brands to engage with their suppliers to adjust delivery timelines and set realistic plans.
"Delayed orders won't be penalised during this period. However, we recognise that the risk of excessive overtime is high during this period. A compounding factor the increased cost of living due to political disruptions may prompt workers to seek additional income through overtime."
The company maintained clear expectations that factories had robust procedures in place to control excessive working hours, ensuring in case of critical backlogs and bottlenecks, as it engaged in dialogue with suppliers on potential adjustment of delivery times to find a solution.
Citing surveys, it said 95-98 per cent of factory workers walked to work while most protests over the past month tended to start around 10:00 am. Most factories began working day at 8:00 am reducing the likelihood of workers encountering protests during their commute.
"We are particularly concerned about the safety of factory security teams, especially given recent attacks on other manufacturing facilities in the Dhaka Export Processing Zone (DEPZ)."
About discrimination and harassment of vulnerable groups, it said, "Bestseller is closely monitoring the situation through worker interviews and stakeholder engagement, particularly focusing on religious and ethnic minorities."
It suggested that suppliers provide flexibility for workers on arrival and departure times and coordinate safe transportation to and from work.
All grievances should be adequately followed up, monitored, and the progress and status effectively communicated to workers.
Factories should fully support industry-level grievances and dispute resolution mechanisms and engage in good faith if any grievance is raised and continue to ensure that wages, bonuses and benefits are paid in due on a monthly basis.
When asked, Fazlee Ehsan Shamim, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said less than 2.0 per cent of factories, mostly the large ones located in major industrial belts of Ashulia and Gazipur, have been affected in recent labour unrest.
On the other hand, the majority are in operation in other belts, including Narayanganj and Chattogram.
About excessive overtime, Mr Shamim said there were brands that extended time considering disruptions due to the student movement and labour unrest.
So, the factories working for those need not do excessive overtime, but there are other cases too. To meet the lead time, factories might need to do some additional overtime for their sustainability and job security of workers.
Mr Shamim, however, opined that affected factories were facing air shipments, discounts and deferred shipments or some asked to adjust production with that of next season, which ultimately involves financial costs.
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