Why supplier visibility is critical for responsible labour

Almost two years on from Boohoo’s Leicester factory scandal that revealed workers being paid as little as £3 per hour, new research has found that more than half of Leicester garment workers are still paid below minimum wage and receive no holiday pay.

The Garment and Textile Workers Trust report clearly highlights that poor labour practices are still rampant in many Leicester factories. It’s clear clothing retailers need greater visibility into the labour practices of their suppliers, otherwise they risk significant reputational and financial damage. This comes at a time when our own research has shown that 62% of UK suppliers say buyers rarely or never include responsible labour practices in contracts or agreements.

To improve visibility into supplier labour practices, retailers must take a holistic approach, ensuring they can gather relevant data from the organisation, suppliers – even sub-tier suppliers – and third parties. This requires a smart approach to procurement that can facilitate supplier collaboration and offer actionable insights on ESG standards, helping to drive continuous improvement to supply chains.

 

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