While the brand has taken positive steps, the fact that Primark, like so many other fast fashion brands, does not own factories and outsources production to its suppliers means that despite all the talk about ethical practices and audits, it does not control its supply chain and can therefore effectively get rid of any responsibility to factory workers and any labour issues that arise. In addition, it received a score of 31-40% in the Fashion Transparency Index, revealing inadequate policies or protections to protect suppliers and workers in its supply chain from the effects of COVID-19. For these reasons, we also rated Primark as `not good enough` for people. Our research highlights several ethical issues with Primark, including environmental reporting, pollution and toxins, workers` rights, animal rights, animal testing, the use of controversial technologies, anti-social financing and the likely use of tax avoidance schemes. Instead of severing relationships with suppliers who employ vulnerable refugees, Primark works with local suppliers and partners to help them secure documentation for legal employment and a living wage. NGOs and professional organisations agree that this, along with working with trade unions, is crucial for any fashion retailer to combat cases of forced labour in developing countries. For example, Primark seemed to understand what its main environmental impacts were, such as chemicals management, sustainable cotton, energy efficiency, transport and greenhouse gas emissions. However, there were no quantified or dated environmental reduction targets to address these issues. Primark is fighting to salvage its reputation after new revelations of illegal labour practices and poor working conditions in its supply chain in January.
Report on the legal review commissioned by BHRRC which concluded that Boohoo could be held legally liable if a human rights due diligence law had been put in place in the UK. However, there is a difference between a code of conduct and compliance with it, as Primark does not have its own factories. While factories are supposed to be audited and audited annually, they are audited in the later stages of production with no indication of what happens in the first and second phases, and illegal outsourcing is notoriously easy to hide in fashion`s complex supply chains. And just because factory owners sign codes of conduct doesn`t mean they will actually follow them. Primark is now assisting the UK authorities in their investigation. Immigration authorities have visited TNS several times since mid-January. However, it is difficult to provide the right information on the employment of foreign workers to suppliers because UK law is complex in this area, says Henrietta Lake, Primark`s ethics adviser, and because illegal work issues are widespread. “The Fair Wear Foundation 12 has conducted some interesting research that shows the possibilities. Brands could also cooperate on other labour rights issues, such as supporting trade unions, setting up workers` committees, setting realistic workloads and working hours.
Primark should be more transparent in its sustainability efforts. Publicly showing their salary calculations would be a good start. I also asked Lister, “You work with the developing world and accept the problems that exist, but you also benefit from them? Then you pay for the audits, which is probably a lot cheaper than paying for your own factory…? Sri Lanka has a working time limit of 57 hours and a minimum wage of €79 per month in the garment industry. The average weekly working time of respondents was 59 hours and some worked only 73 euros. According to the study, the average base salary of respondents was only 2% above the legal minimum. This figure increased with overtime to around €153 per month. Official figures from Sri Lanka suggest that at least €150 per month is needed to feed a family. In addition to working with SCAP and ECAP, Primark has been working with I:CO 7 in recent months to pilot garment recycling in select stores in Germany and the UK. The pilot project has been well received by Primark buyers in test stores, and Primark is currently developing all legal requirements to roll out the initiative in all its stores in all markets. “We probably don`t see the full potential of the recycling program yet because we haven`t promoted it,” Stewart says. “But we were very pleased with the study and our decision to introduce it.” Stewart notes that they may have to adopt a slightly different model in the U.S.
for legal reasons, but they are aiming for a similar system abroad. Primark is not the first fashion retailer to launch an in-store recycling scheme with I:CO, but a key difference between Primark`s recycling pilot for apparel and other fashion retailers` textile recycling programmes is the incentive for customers. Instead of giving customers a coupon for their next in-store purchase, Primark offered customers an organic cotton bag in exchange for a donation of clothes. “[Giving a voucher] seems a bit counterintuitive to me.” For example, if an audit reveals that factory workers are working more than the overtime allowed per week, Primark will work with plant managers to create a more flexible schedule that offers workers less overtime. Primark will then contact the relevant factory at a later stage, either through a pre-announced review or spot check, to ensure that issues have been addressed effectively. “We try to be proactive and helpful partners when it comes to audits,” Stewart says. “Some factories need help to improve certain areas, which is why we make sure to work with them by explaining the impact and solutions on the audit checklist. Primark also operates an online supplier management system that offers training programmes on how suppliers can improve their labour standards. Its reputation may take a hit, but behind the scenes, Primark is increasing its investment in ethical trading. The company admits that it starts from a low base. To date, Primark has not hired a permanent full-time Director of Group-Level Ethical Trading.
This role is currently held by external consultant Henrietta Lake, who has been working with other leading brands on workforce issues in their supply chains for 10 years. “Through our audit process at each of the plants over the past three to eight months, we have found a small number of issues at these three sites, including a worker working excessive overtime. In accordance with our policy, the Ethical Trading team works with these suppliers to resolve issues and track progress. In addition, Primark did not perform very well in the first Corporate Human Rights Benchmark 12, the first public ranking of companies` human rights performance. Primark`s parent company, Associated British Foods (ABF), is listed in the 20-29% range, alongside Next, Kering and TJX. The ranking awarded points to Primark for taking appropriate action against excessive overtime, forced labour and child labour, but did not award points to Primark for failing to take sufficient action against the alleged effects of these problems.