H&M says it will “phase out” clothes sourcing from Myanmar suppliers, as reports of human rights abuses increase.
“After careful consideration we have now taken the decision to gradually phase out our operations in Myanmar,” H&M said in an email to Reuters.
“We have been monitoring the latest developments in Myanmar very closely and we see increased challenges to conduct our operations according to our standards and requirements,” it added.
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The news follows the fashion retailer investigating 20 alleged cases of labour abuse at Myanmar’s garment factories.
The Business and Human Rights Resource Centre (BHRRC) tracked 156 cases of alleged worker abuse in Myanmar garment factories from February 2022 to February 2023, up from 56 in the previous year, indicating a deterioration of workers’ rights since a military coup in February 2021.
Wage reduction and wage theft were the most frequently reported allegations, followed by unfair dismissal, inhumane work rates, and forced overtime.
“All the cases raised in the report by BHRRC are being followed up and where needed remediated through our local team on the ground and in close cooperation with relevant stakeholders,” H&M said in a statement.
Myanmar Centre for Responsible Business and former British Ambassador Vicky Bowman for the country “regret’s” H&M’s decision “as it will have a negative impact on thousands of women workers in Myanmar.”
H&M said its withdrawal would follow a “responsible exit framework” developed by IndustriALL, a global union that has been campaigning for brands to stop doing business in Myanmar.