In This Edition ...
In the July 2010 issue...
Calm after violence in Bangladesh, Pakistan and Cambodia - but arguments go on
Business seemed to be returning to something near normal as work resumed after violent labour protests in Bangladeshi, Pakistani and Cambodian textile and garment plants.
Pakistani strikers attacked weaving plants in Faisalabad, burning at least one, as a strike by around 150,000 weavers went into its second week, but the strike was called off on July 30 after assurances their claim for a 17% pay rise would be accepted. Nine strikers at Cambodia's PCCS factory were injured during fights with the police in a dispute over labour recognition that ended after ten days. But a group of 15 unions have now indicated their rejection of a pay deal announced in June. Most of the reported 350 factories closed in Bangladesh during riots over worker disappointment at an 80% rise in minimum wages have now reopened - but, as police indicated the possibility of legal action against thousands of rioters, and unions squabbled publicly about who really represented workers, the risk of long-running labour protests looked even higher. Activists began inserting protest leaflets into Bangladesh-made garments in WalMart's UK stores
No sign of "China Flight" or Chinese inflation
Chinese garment exports in June reached an all time record, as average Chinese garment prices to the US continued to show little sign of growth in spite of near hysteria about rising costs. China's official reaction to growing cost concern is to encourage factories to move outside the congested East Coast. But, though its Ministry of Technology issued s decree encouraging banks to lend to textile and garment businesses wishing to relocate, most research among manufacturers showed little interest in moving away from the Guangdong-Shanghai belt.
US adds Guatemala to "compliance" hit list
After stripping Madagascar of its AGOA duty-free concessions in December, the US has stepped up its investigations into labour abuses in other major garment-making centres. After the announcements (reported in THE SOURCE 2010 Ed 6) of probes into child labour in the Thai and Indian garment industries and into more general labour abuses in Sri Lanka, the US announced an examination into Guatemala's compliance with labour standards it agreed to follow when signing up to the CAFTA treaty. The announcement almost precisely coincided with the renewal of the US ban on all imports from Burma
Lower fibre duties become fashionable
The US agreed to abolish import duty on a range of acrylic fibres - partly at the instigation of the generally protectionist National Council of Textile Organisations. India's Textile Ministry announced it was going to press ahead with its policy of cutting taxes on man-made fibres, in spite of string opposition by cotton lobbyists. Pakistan announced it was suspending export duty on cotton yarn
Clothesource Sourcing Monitor helps businesses understand changing in buying environment
The new Clothesource Apparel Sourcing Monitor provides detailed analysis of the changes in the world of garment sourcing, updated to the end of the first quarter, 2010. Till the end of August, subscribers to THE SOURCE can get FREE quarterly updating for a year
Other monthly highlights
Potentially carcinogenic dyes found in Chinese garments. Pakistan's Textile City finally has a start date - for construction. Provincial government threatens Raymond seizure. WalMart identifies regional sourcing vulnerabilities, as America's first Fairtrade label launched and Nike climbs down over Honduras compensation
