Forever 21 among ethics backlash

Seed Heritage, Forever 21, Victoria's Secret and General Pants have copped criticism over their supply chains.

Baptist World Aid has released its latest fashion report into production standards at national retail chains.

The report graded over 300 major global and domestic fashion brands from A to F.

The brands were judged on the systems to mitigate the risk of forced labour, child labour and exploitation in their global supply chains.

It revealed while brands have improved traceability of production, many are still not paying workers a living wage.

Top performing fashion brands included Zara, Cotton On Group, Country Road Group and Pacific Brands (Bonds)

Baptist World Aid advocacy manager Gershon Nimbalker said Seed Heritage, Victoria’s Secret, Forever 21 and General Pants all scored a D or F grade.

“These grades tell us that consumers cannot be confident that these brands know who is making their clothes and conditions their clothes are being made in.

The research found that two thirds of companies were not taking any action to ensure that workers received a living wage to meet their basic needs, leaving them trapped in a cycle of poverty.

“We know that labour costs represent just a fraction of the price tag – there is some research that suggests that an additional 40 US cents more could ensure Bangladeshi garment workers are able to receive a living wage."

According to Nimbalker, Fairtrade brands Etiko and Audrey Blue pay a living wage to all workers in the final production stage.

Popular brands like H&M, Kmart Australia and Pacific Brands (Bonds) were also praised for taking steps to ensure suppliers are paid enough to live on.

“These companies show that it is possible to pay higher wages and operate profitably. Paying workers, a living wage would be relatively painless for consumers and companies, yet it would transform the lives of millions of workers around the world.”

The report also noted a significant increase in companies which knew their suppliers at the final manufacturing stage, 77% up from 61% a year before.

Industrie and APG & Co (Saba, Sportscraft, JAG and Willow) showed significant improvement in tracing deeper, demonstrating that they had traced deeper into their supply chain, back to their fabric mills.

However, deeper into the supply chain, just a third of companies had traced the majority of their input suppliers like fabric mills, and just 5% had traced their raw materials, predominantly cotton farms.

Nimbalker said this is a concern for workers.

“On our recent trip to India, we found that it’s those parts of the supply chain, which are unknown and unmonitored, are where the worst forms of worker exploitation occur.”

“If companies don’t know, or don’t care, where their materials are being made than it’s virtually impossible for them to know that workers aren’t being exploited or even enslaved.”

The third annual Australian Fashion Report is a significant expansion on previous reports, adding 50% more companies.

Nimbalker added the purpose of the report is ultimately to provide consumers and companies with the tools to drive change in how garment workers are treated in developing regions like India, Bangladesh, China, Myanmar, Uzbekistan and Cambodia.

“We hope consumers use this research and our ethical shopping guide to vote with their wallets and help transform the practices of fashion companies.

"Likewise, we urge apparel companies to do more to trace their entire supply chain all the way down to the raw material level and ensure they are paying workers a living wage.”

Individuals can download the 2016 Australian Fashion report and order the Ethical Fashion Guide at www.behindthebarcode.org.au.