Global fashion cos urged to prioritise workers' rights and living wages

Global fashion companies should adopt responsible purchasing practices to support workers' rights and ensure fair compensation, including living wages for all, according to a latest global report.

Global Fashion Agenda (GFA), a Copenhagen-based non-profit organization, in its new report titled 'Fashion CEO Agenda 2024' has outlined five pivotal opportunities for fashion executives and the industry at large to create transformative impacts for both people and the planet.

The GFA published the special edition of the report on Tuesday, on the occasion of the 15th anniversary of the inaugural Global Fashion Summit in Copenhagen, aiming at guiding fashion organisations toward achieving a net positive industry by 2050.

Acknowledging the rights and needs of the 300 million people employed globally by the fashion industry is not only a moral imperative but integral to the industry's long-term viability and sustainability of its operations, the report mentioned.

The report also emphasised implementing concrete measures that ensure equity, fair compensation, well-being, and dignity for all workers.

It also necessitated advocating for worker representation and rights, such as freedom of association and collective bargaining, especially during crises when workers are less likely to unionize.

In regions with restricted freedom of association rights, companies should leverage their collective influence alongside local governments, NGOs and labour organisations to explore parallel mechanisms that empower workers and protect their rights, it suggested.

"Simultaneously implementing responsible purchasing practices is imperative to foster conditions conducive to upholding worker rights and enabling fair compensation, including the payment of living wages to all," read the report.

The Fashion CEO Agenda aims to empower fashion leaders and the wider industry to embrace five key opportunities, including operationalizing sustainability, redefining growth, activating consumers, prioritising people, and mobilizing based on materiality, to unlock the next level of positive impact through a comprehensive understanding of interdependencies and system-wide solutions, the GFA said in a statement.

Over the past 15 years since the Global Fashion Summit began in 2009, sustainability has shifted from a peripheral issue to a central focus in the fashion industry, driving significant advancements throughout the sector.

However, despite these strides, the rapid escalation of global warming and the exponential increase in clothing production demand urgent, unified action from fashion industry leaders, the report said.

Drawing from the five priorities of the Fashion CEO Agenda-respectful and secure work environments, better wage systems, resource stewardship, smart material choices, and circular systems-this special edition highlighted five cross-cutting opportunities aimed at achieving the next level of progress on these priorities.

Tailored for fashion brands, retailers, and producers, this edition of the Fashion CEO Agenda diverged from previous editions by focusing on challenging norms, amplifying efforts, and serving as a crucial inflection point for the industry to foster positive outcomes for both society and the environment, it said.

Upholding the rights of workers, championing diversity and inclusivity, redefining success metrics, and reshaping growth paradigms are keys to enabling profound transformation, the report added.

Despite providing employment for millions of people, bolstering economies, and making considerable improvements in occupational health and safety in many workplaces, the industry still faced significant challenges, particularly in low-wage countries where workers lacked adequate protection, according to the Agenda.

Over the past 15 years, millions of garment workers were denied legally mandated severance pay, totaling an estimated 4.0 billion pounds, the report claimed.

It also said that persistent economic instability facilitated the rise of authoritarian regimes and precarious work conditions in major textile hubs.

Meanwhile, increased demand for fast-paced, flexible, and low-cost production heightened hostility towards labor unions, it identified.

Fashion companies faced with market volatility and disruption can quickly lose sight of the imperative for deeply ingraining sustainability across business functions.

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