27-7-2023 (LONDON) Zara’s parent company, Inditex, has announced that it has put a stop to purchases from Myanmar as part of a campaign by global workers’ union IndustriALL to encourage companies to divest from the country. A spokesperson for the company confirmed that Inditex is in the process of a phased and responsible exit from Myanmar, following IndustriALL’s call, and they are reducing the number of active manufacturers in the country. However, Inditex did not provide a timeline for its exit from Myanmar. As the company does not publish a list of suppliers, it remains unclear how many factories in Myanmar supply the fast-fashion giant.
Myanmar, which is a significant producer of garments for Western brands and retailers, has been under military junta control since a coup in February 2021. Since then, IndustriALL argues that labour rights have been eroded. Brands and retailers have been under pressure to disengage, but their exit could cause job losses and further economic pain for workers. Spanish fast-fashion retailer Mango has also confirmed that it has stopped sourcing from Myanmar.
Inditex has had an agreement with IndustriALL since 2007, which it renewed in 2022, according to its annual report. The agreement obliges the company to maintain dialogue with trade unions and address the needs of workers throughout the supply chain.
The European Union funds a project in Myanmar called MADE, a successor to the Smart Factories project that worked to improve conditions in the country’s garment factories. Seventeen retailers, including H&M, Adidas, Bestseller, and other brands, are members of MADE. However, Mario Ronconi, head of unit at the European Commission’s Directorate-General for International Partnerships, wrote in a letter to the president of the Industrial Workers’ Federation of Myanmar that the EU and MADE partners believe that the interests of workers are best served by ongoing sourcing from the country, provided that this is pursued responsibly.
Sourcing Journal reported last month that Inditex planned to exit Myanmar. The move by Inditex is a significant step in the campaign to encourage companies to divest from Myanmar
