Sydney to Join Global Protest at Big Brand Fashion Labels

Media release September 17, 2014

In early October, the Labor Advisory Committee in Cambodia is to announce a new minimum wage for workers in the garment, textile and footwear industry, which generates US$5 billion in revenue for the country.

According to Tailored Wages Report – Are the Big Brands Paying the People Who Make Our Clothes Enough to Live On? published by the Clean Clothes Campaign and the Asia Floor Wage Alliance on March 2014, only four of 50 big brand multinational clothing and footwear companies contacted were able to demonstrate they had taken any steps that might lead to improved wages for the Cambodian workers who make many of their expensive fashion products.

The report also pointed out that none of the companies surveyed are as yet paying a living wage to these workers.

A call for global solidarity action on September 17 follows Cambodian unions’ general strike to increase the national minimum wage in January, in which 5 workers were killed, 40 seriously injured and 25 workers arrested.

“Despite the violence and repression, Cambodian garment workers are continuing to fight to lift the minimum wage from US$100 to US$177/month for workers who produce for international brands like Levi’s, Adidas and GAP who profit from the poverty wages and sweatshop conditions in Cambodia”, says Joyce Fu, the organiser of a solidarity action to be held in Sydney.

The action – organised mainly through internet social networks took place at12 noon today outside the Westfield Shopping Centre in the heart of Sydney’s central shopping district.

Protest against multinational clothing brands exploiting Cambodian garment workers (Photo taken by Sergio Leyva Seiglie)

Australian trade unionists have also held a protest in Canberra outside the Cambodian Embassy on the same day at 11 am.

“For demonstration in Sydney today, we do commend ZARA/Inditex for being one of the four big brands who have taken some steps to make sure their workers are paid a living wage and have freedom of association, based on the findings of the Tailored Wages Report. We will further encourage them to take the lead on helping trade unions’ negotiation with Government on the raise of minimum wages.”

Joyce Fu says, “Our main targets are GAP, Adidas, Levi’s and Puma. Especially GAP, for its little proof of real work that will improve wages for workers making its clothes, and Levi’s, for doing very little to directly combat wage issues in its supply chain.

According to the Tailored Wages Report, GAP scored only 6 out of 40, Adidas scored only 10 out of 40, Puma scored 12 and Levi’s didn’t even respond to the survey.

Cambodian Sweatshops Threaten Brand Equity

Brand name apparel manufacturers such as H&M, ZARA/Inditex, Adidas and GAP could risk brand equity over their use of Cambodian sweatshops. An international movement to protest the low wages paid by multinational apparel companies to workers in Cambodia is gaining momentum. On 17th September, rallies will be held around the world for the International Day of Solidarity with Cambodian Workers.

Many major clothing manufacturers produce garments in sweatshops in developing countries to pursue large profit margins through cheap labor and a lack of government regulations and environmental protection. However companies that engage in unethical practices could also seriously damage their brand value. Brand value or brand equity is the premium a well-known brand name can earn above its generic competitor. Big brands often capitalize on consumers’ belief that a product with a well-known name is better than lesser known names.

According to the “Best Global Brands” report published in 2013, H&M, ZARA/Inditex, Adidas and GAP are among some of the most valuable global brands worth approximately $18.1, $10.8, $7.5 and $4 US billion respectively.

It takes a long time and careful management to build up a strong brand and positive recognition with consumers but it is easy to undo all of that work as well. Nike’s use of sweatshops in the 1990’s led to a global boycott campaign that was so successful that it has now become a lesson in how giant corporations can be brought to account by ordinary consumers.

PROFITS OVER PEOPLE

It is clear that big brand names profit off of cheap labor costs in developing countries. In 2013, the profit/net income for H&M, ZARA/Inditex, Adidas and GAP was $2.6, $3.1, $1.6 and $1.1 billion USD respectively according to the annual financial report of each company.

Despite this, Cambodian workers currently earn approximately $100 per month. Malnutrition and poor working conditions have been blamed for thousands of cases of collapsed workers in the past few years. Unions are now demanding multinationals increase the minimum wage to $177 USD per month.

As consumers become increasingly savvy about the environmental, social and governance considerations of large companies, brands that embrace ethical practices and treat workers fairly will be rewarded in the long term. Not only do poorly treated workers typically make poor-quality goods, but international brands could damage their brand equity.

Sydney Stands with Cambodian Garment Workers

Join the International Call to Action: Fight for a Living Wage in Solidarity with Cambodian Garment Workers!

The Cambodian Garment Workers Fashion Show “Beautiful Clothes, Ugly Reality!” (25 May 2014)

Sep 17th (Wed) 12PM

Starting at ZARA, then Adidas and GAP (Pitt Street Mall, 188 Pitt St Sydney)

This call to action follows Cambodian unions’ general strike to increase the national minimum wage in January, in which 5 workers were killed, 40 seriously injured and 25 workers arrested. Despite the violence and repression, Cambodian garment workers are continuing to fight to lift the minimum wage from $100 to $177 USD per month for workers who produce for international brands like ZARA, Adidas and GAP who profit off poverty wages and sweatshop conditions in Cambodia.

Eight multinational companies have been targeted for this campaign. Five of them have a store in Sydney, including Zara, Adidas, The Gap, Levi Strauss and Puma. Because the first three are all located at Pitt Street Mall, we decide on taking action against them. We will meet in front of ZARA/Pitt Street Mall on Pitt St. at 12pm. Since Westfield Shopping Mall is a private property, demonstrators are not allowed in. Representatives from the group will deliver our letters to the nearby Adidas and GAP.

Please spread the word and share this to your network. We need to have a strong voice against sweatshops and show our support toward garment workers in Cambodia.

Welcome to bring your own signs/posters with messages to the stores and the customers.

Please RSVP on Eventbrite website under the event name. Or, register your interest on our Facebook Page.

Fair Wages for Fair Work

Many world famous apparel brands are produced in Cambodia, including (but not limited to) H&M, Zara, Puma, Levi’s,  Adidas/Reebok, Old Navy/GAP, C&A and Walmart.  These brands are known globally for their quality, attractiveness and price. Their CEOs such as GAP Inc. earned up to US$19 million per year – sometimes a thousand times more per hour than the workers in their retail stores, and far more than that when compared to the garment workers’ wages. Furthermore, these companies make tremendous annual profits such as Adidas made of approximately US$1.5 billion and H&M made about US$2.62 billion in 2013.

The Cambodian Garment Workers Fashion Show “Beautiful Clothes, Ugly Reality!” (25 May 2014)

Cambodia’s textile industry employs about 700,000 workers, and most are young women migrating from rural areas. They work 10 to 12 hours a day, six or seven days a week, earning a minimum wage of US$100 per month. Compared to the brand companies, workers in the factories only get tiny. Based on a government calculation of the minimum wage needed to cover basic necessities in Cambodia, US$177 per month is demanded for survival.

Garment workers want dignity and a decent living, just like everyone else. A living wage of $177 per month and better working conditions have been advocated by the labor unions. However, these demands have been ignored. Instead workers face horrible treatment from the government and security forces such as repression, imprisonment, and even deadly violence.

Garment workers in Cambodia deserve to live in dignity and receive a fair wage. Poverty wages mean that many workers are undernourished and compelled to work exhausting overtime hours to survive. The income gap between garment workers and the selected CEOs of brand companies needs to be closed.

Please join the International Call to Action: Fight for a Living Wage in Solidarity with Cambodian Garment Workers on Sep 17. Please find a place near you.