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H&M to phase out Myanmar suppliers after labour abuses probe

H&M to phase out Myanmar suppliers after labour abuses probe
Author: Wpcpey

In this episode we speak to Matt Dalton, consumer sector leader at Forvis Mazars. Matt discussed the biggest challenges facing the retail sector, from cost pressures and wage increases to polarised property markets and geopolitical shocks, and the ways in which retailers can best navigate these. We also explore how short-term cost-cutting could undermine long-term resilience, and how retailers can best remain agile and adaptable in unforecastable times.

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H&M has announced that it is planning to “gradually phase out” its operations in Myanmar following a report from the Business and Human Rights Resource Centre (BHRRC).

The company launched an investigation H&M into 20 alleged instances of labour abuse following the report.

The BHRRC tracked 156 cases of alleged worker abuses in Myanmar garment factories between February 2022 to February 2023.

The most common allegations were wage reduction and wage theft, followed by unfair dismissal, inhumane work rates, and forced overtime.

H&M said in a statement: “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.

“After careful consideration we have now taken the decision to gradually phase out our operations in Myanmar. During this process we will continue to engage with our stakeholders as part of our enhanced due diligence process.”

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