The article discusses the Dindigul agreement, a labor management agreement between the Indian garment factory Natchi and several brands including H&M. The agreement was signed in 2018 after a young worker named Kathiravel was murdered by his colleagues, and it included provisions for better working conditions, training, and grievance mechanisms.
The article reports that since the agreement's implementation, there has been an improvement in working conditions at Natchi, with workers reporting reduced harassment and a stronger sense of freedom. However, some brands, such as Walmart and Zara's owner Inditex, have not signed the agreement or placed orders with the factory.
Experts believe that one reason for this is that the industry is hesitant to adopt collective bargaining agreements, fearing they may lead to strikes or disruptions in production. Another factor is the impact of the US-China trade tensions, which has led to tariffs and made it difficult for brands to source goods from Natchi.
The article also mentions that the EU's corporate sustainability due diligence directive was intended to provide a framework for companies to improve their supply chain practices, but it has been watered down. Experts believe that unless there is another major tragedy or incident, little will be done to address these issues.
Overall, the article highlights the challenges of creating and enforcing labor management agreements in the garment industry, particularly in countries like India where workers often face exploitation and harassment. The Dindigul agreement serves as a model for how companies can work with suppliers to improve working conditions and ensure that their products are produced with dignity and respect for workers' rights.
The article reports that since the agreement's implementation, there has been an improvement in working conditions at Natchi, with workers reporting reduced harassment and a stronger sense of freedom. However, some brands, such as Walmart and Zara's owner Inditex, have not signed the agreement or placed orders with the factory.
Experts believe that one reason for this is that the industry is hesitant to adopt collective bargaining agreements, fearing they may lead to strikes or disruptions in production. Another factor is the impact of the US-China trade tensions, which has led to tariffs and made it difficult for brands to source goods from Natchi.
The article also mentions that the EU's corporate sustainability due diligence directive was intended to provide a framework for companies to improve their supply chain practices, but it has been watered down. Experts believe that unless there is another major tragedy or incident, little will be done to address these issues.
Overall, the article highlights the challenges of creating and enforcing labor management agreements in the garment industry, particularly in countries like India where workers often face exploitation and harassment. The Dindigul agreement serves as a model for how companies can work with suppliers to improve working conditions and ensure that their products are produced with dignity and respect for workers' rights.