ECGC has introduced a new scheme to provide enhanced export credit risk insurance cover to the extent of 90% to support small exporters under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIBWTPC & PS). The scheme is expected to benefit a number of small-scale exporters availing of export credit with banks which hold the ECGC WT-ECIB covers. This will also enable the small exporters to explore new markets/new buyers and diversify their existing product portfolio competitively. Addressing a press conference in Mumbai today, ECGC Chairman M Senthilnathan said, “We expect the cover to play a game changing role. We expect this to bring up percentage of accounts with up to Rs. 20 crore, thereby lending further stability to ECGC portfolio”. He further said, “By giving 90% cover to banks, we expect more small companies to get export credit from banks, benefiting these industries greatly. We expect banks to provide more concessions. The net effect will be benefit to exporters, involving reduction in interest rate”. Thanking the Commerce Ministry and the Minister Shri Piyush Goyal, ECGC Chairman said, “The Government supported us with adequate capital infusion in recent years. This, as well as the need to make our cover more helpful to exporters has led us to take the decision being announced today”. Explaining the role played by the premier Export Credit Agency of the Government of India, Shri Senthilnathan said, “Countercyclical role played by organizations like ECGC is similar to that of a fireman, when credit is suffering, credit insurance agencies step in to stabilize the market”. Shri Senthilnathan further remarked, all governments took various measures to stabilize the market in view of COVID-19, because of which, ECGC has not withdrawn cover given to exporters, against expectations, export credit insurance agencies all over the world have witnessed only average levels of claim ratios, not high ratios.
Enhanced Cover to Banks
• The enhanced cover shall be available for manufacturer- exporters availing fundbased export credit working capital limit up to ₹ 20 crore (i.e., total Packaging Credit and Post Shipment limit per exporter/exporter-group) excluding the Gems, Jewellery & Diamond sector and merchant exporters/traders.
• This new scheme will enable the banks holding ECGC’s WT-ECIB cover to explore the possibility of reducing interest rates further so that all the stakeholders are benefitted. The enhanced cover percentage shall be made available to State Bank of India as per the previous year’s premium rate in view of its favourable claim premium ratio. However, for other Banks there may be a moderate increase in the prevailing premium rates. ECGC had extended support to exports amounting to Rs.6.18 lakh crore in the last FY 2021-22. As on 31/03/2022, more than 6,700 distinct exporters were benefitted by the direct cover issued to exporters and more than 9,000 distinct exporters benefitted under the Export Credit Insurance for Banks (ECIB). Notably, around 96% of these are small exporters.
Source: PIB
A skill development centre near the upcoming Noida International Airport in Jewar has received a green signal from Chief Minister Yogi Adityanath. The decision to setup the skill centre aligns with the state governments views of making Noida region as a global investment hub in the future by building the proposed Jewar international airport to develop connectivity. The state government has allotted 8,700 sqm of land for the proposed centre in Sector 31 of the Yamuna Expressway Authority area. The department of vocational and skill development is responsible for building the centre. The approval for the centre comes days after Jewar got its first co-ed degree college, while another degree college, exclusively for women, is going to be ready by July 2023. The primary objective of yogi administration is to provide vocational training related to aviation, apparel and upcoming industries in the region and also to help facilitate startups. “I had been raising the demand for a proper skill development centre in the Jewar area since 2020 for training the local youth. But the state skill development department did not take it forward due to the pandemic. I took up the matter with CM Yogi on Saturday and he immediately agreed,” Jewar MLA Dhirendra Singh told TOI. While plans are to have different vocational training at the centre for the local youth, the final details of the same will be prepared once the centre is ready to cater to the specific requirements of the industry in the region.
Source: KNN India
The Centre’s decision to change the Flag Code and launch the Har Ghar Tiranga campaign is an attempt to bring the national flag inside homes rather than just being in offices and unfurled on occasions, sources said Tuesday. The Har Ghar Tiranga campaign, a part of the 75th anniversary celebrations of independence, seeks to encourage Indians to exhibit the national flag with almost no restrictions. All kinds of materials can be used for making flags — polyester, cotton, wool, silk and Khadi bunting material. Previously, machine-made and polyester flags were not allowed to be used. There is also no size restriction. There is also no restriction on timing of flag display. Earlier, the national flag was allowed to be flown from sunrise to sunset, irrespective of the prevailing weather conditions. A member of public, a private organisation or an educational institution may hoist/display the national flag on all days and occasions, the source said. The culture ministry said states have been mobilised to use self help groups (SHGs) for production of flags. Local tailoring units and MSMEs have also been roped in. The Ministry of Textiles has identified flag producers who are supplying flags in large quantities. All 1.6 lakh post offices in the country shall also make available flag for sale at the last mile, the source said. As part of this celebration, the ‘Har Ghar Tiranga’ programme has been launched to motivate citizens to hoist the tricolour in their homes for three days that is from August 13 to 15. According to the official statement, over 20 crore tricolours would be hoisted atop houses for three days.
Source: The Print
Haryana deputy chief minister Dushyant Chautala said the Atamnirbhar Textile Policy will soon be rolled out in the state. Haryana deputy chief minister Dushyant Chautala on Tuesday said the Atamnirbhar Textile Policy will soon be rolled out in the state. The deputy CM, who was in Delhi, discussed the draft with the cabinet sub-committee, which has been constituted to frame the proposed policy, said an official spokesperson. Agriculture and farmers’ welfare minister Jai Prakash Dalal and labour and employment minister Anoop Dhanak were also present during the meeting. Asserting that the draft will soon be placed before the Cabinet for approval, Chautala said the policy, which aims to attract ₹4,000 crore investment and provide employment to around 20,000 youngsters, will remain in force till 2025. “We discussed different goals such as entrepreneurship expansion, investment, employment generation, grants, textile parks, and the national technical textiles mission at the meeting,” Chautala said, adding under this policy, technical textiles will be specially encouraged and expanded. He said the government will also promote the textile industry through MSMEs. Among others present in this meeting were additional chief secretary (finance and planning) TVSN Prasad, principal secretary (industries and commerce) Vijayendra Kumar; and micro, small and medium enterprises department director general Amneet P Kumar, besides other senior officers.
Source: Hindustan Times
Buoyed by higher demand for crude oil and imported coal, Indian ports recorded a growth of 11 per cent in traffic during the April-June quarter of 2022-23. This shows that the economy is opening up, a report by DAM Capital said. The volume increase assumes significance since both prices of crude oil and imported coal have been soaring this year. Indian coal companies were pressed for supply amid a thermal coal crisis earlier in the year. Between major and non-major ports, 366 million tonnes (mt) of traffic saw movement in the first three months of the fiscal year. Of this, major ports, which are owned by the central government, accounted for over 197 mt. Both coal and crude oil grew 16 per cent year-on-year (YoY), accounting for 105 mt and 65 mt of traffic in the first quarter, even on the back of record high prices. A larger share of crude oil was moved by private and other ports, with major ports accounting for 41 mt of crude traffic during the quarter. However, YoY crude oil traffic growth at major ports is over 20 per cent during this period. “While the container volume is dependent on export volumes, coal and crude are driven by domestic consumption. We expect volume for FY23 to grow at 8-9 per cent,” the report said. Recent reports and government data suggest that India’s crude oil imports from Russia saw a significant leap ever since the Ukraine invasion. India’s cumulative crude oil imports rose by 21 per cent in June. The considerable surge in coal traffic comes on the back of several power companies opting for the much-costlier imported coal during the peak demand season. This was because of a shortage in domestic supplies. Moreover, the shortage also forced the coal ministry and railways to curtail coal supply to unregulated/non-power sectors. This ensured adequate stocks at thermal power plants. The ministry of power had also asked power companies to place orders for imported coal for blending in case of a shortfall during the peak season. Union minister RK Singh recently informed Parliament that these power companies have so far placed imported coal orders of over 9.2 mt. Meanwhile, the Centre has also been trying to push for coastal shipping of thermal coal to ease pressure off the Indian Railways. The railways transports most of the power sector’s coal, and had to cancel over a 1,000 passenger trains in May to prioritise coal supply. In iron ore, both the railways and ports have seen a decline in the movement. Data shows that YoY, iron ore traffic fell 17 per cent in the first quarter of 2022-23.
Source: Business Standard
The Uttar Pradesh government has decided to support the listing of MSMEs on domestic stock exchanges which the firms have been eyeing on to expand their businesses. With an aim to compete both nationally and internationally, MSMEs in the state are showing interest in listing on stock exchanges. To help the firms with listing the state government is also facilitating the process. To give priority to the MSMEs incorporated in the last 5 years for listing the state government has identified key sectors, including logistics, food processing, manufacturing, IT, plastics, leather, textiles etc. Having a combined market cap of about Rs 230 crore about 20 MSMEs from UP have listed on the BSE and the National Stock Exchange (NSE) in the last 12 months, as per Business Standard. The government has also asked the stock exchanges to mentor the businesses and proactively facilitate the listing of UP firms so that the state MSME sector is better equipped to face the growing challenges in the market, said Additional Chief Secretary (MSME & export promotion) Navneet Sehgal. He said that for creating awareness among the state MSMEs about the process and benefits of listing on the stock exchanges the MSME department will hold workshops and knowledge sessions across the state.
Source: KNN India
The Indian rupee has strengthened against the British Pound in 2022 though it has depreciated against the US dollar, Finance Minister Nirmala Sitharaman said on Tuesday. Global factors -- such as the Russia-Ukraine conflict, soaring crude oil prices and tightening of global financial conditions -- are the major reasons for the weakening of the Indian Rupee against the US Dollar, she said in a written reply to the Rajya Sabha. "The British Pound has weakened more than the Indian rupee against the US dollar and therefore, the Indian rupee has strengthened against the Pound in 2022," she noted. The nominal exchange rate is only one of the factors that impact an economy, the minister said. The depreciation of a currency is likely to enhance the export competitiveness, which in turn impacts the economy positively while it is also likely to impact the imports by making them costlier. In reply to another question, Sitharaman said GST rates or rate slabs applicable on goods and services are prescribed on the recommendations of the GST Council. GST Council has not made any recommendation for change in the existing GST rate slabs so far, she said, adding that a Group of Ministers (GoM) has been constituted by the council in its 45th meeting held on September 17, 2021. One of the terms of reference of the GoM is to review the current rate slab structure of GST, including special rates, and recommend rationalisation measures, including a merger of tax rate slabs, required for a simpler rate structure in GST. Regarding Centrally Sponsored Schemes (CSS), she said a new procedure for the flow of funds to the state governments was introduced with effect from July 1, 2021. As per the revised procedure, each state has to notify a Single Nodal Agency (SNA) for each CSS and open a bank account of each SNA, she said in another reply. The CSS funds flow from the Centre to the consolidated fund of the respective state and further to the bank account of SNA, she said. The new procedure has brought more transparency to the availability of CSS funds in state treasuries and bank account of SNAs, and this has led to better monitoring of the utilisation of funds and availability of funds with SNAs for CSS implementation.
Source: Business Standard
Leading exporters of textile and garments industry, including Shahi Exports, Richa Global, Texport Industries, Pearl Global and Poppys are keen to invest in Bihar, state industry minister Syed Shahnawaz Hussain said on Tuesday. After Hyderabad and Ludhiana, the third consecutive Bihar Investors’ Meet was organised by the Apparel Export Promotion Council (AEPC) in New Delhi on Tuesday. Addressing the meet, Shahnawaz said it is better to invest in Bihar than in Bangladesh. “This will not only benefit the country, but Bihar will also be able to play its part in strengthening the country's economy,” he said. Shahnawaz appealed to the industrialists to come to Bihar and see the reality and said resources, infrastructure and any policy level or other help from the government for the success of the industry, will be provided to them. As per statement issued by the industries department, representatives of most of the 32 companies gathered in the investors’ meet and praised the policy of Bihar. Leading industrialists of textile and garments described the recently launched textile and leather policy of Bihar as “the best in the country as compared to the policies brought by many other states.” Naredra Goenka, chairman, AEPC, said that not only Bihar’s textile and leather policy is very good, but the benefit of subsidy given under the policy should be provided immediately. In response to this, industry minister Shahnawaz said: “All industries set up in Bihar are being paid subsidy without any delay." Shahi Exports’s MD Harish Ahuja and Richa Global’s CMD Virender Uppal asked questions about the availability of land and rates of industrial land, in response to which principal secretary (industries) Sandeep Poundrik said: “Recently, we have purchased land in 54 industrial areas. The price has been reduced from 20% to 80%. Besides, the availability of land for industry is also sufficient. We have a land bank of 2900 acres, so that there will neither be any delay in land allotment nor there will be any shortage of land.” In his address, principal secretary Poundrik said: “Infrastructure is being developed rapidly in Bihar with plug and facility and these facilities are being developed in those areas where textiles, garments and related facilities are being developed. Sufficient workforce is available." A question and answer (Q&A) session was also held in the meet, in which industrialists got detailed information on the policy of Bihar and the status of infrastructure in the state, and also gave some important suggestions.
Source: Times of India
IMF cites less favourable external conditions and rapid policy tightening by RBI as reasons for lowering India's growth outlook The International Monetary Fund (IMF) on Tuesday slashed India’s growth forecast for 2022-23 (FY23) by 80 basis points to 7.4 per cent, citing less favourable external conditions and rapid policy tightening by the central bank. In its update to the April World Economic Outlook, the IMF said that though a global recession in 2022 was ruled out with a growth estimate of 3.2 per cent, the balance of risks was squarely to the downside, driven by a wide range of factors that could adversely affect the global economic performance. “The risk of recession is particularly prominent in 2023, when in several economies growth is expected to bottom out, household savings accumulated during the pandemic will have declined, and even small shocks could cause economies to stall. For example, according to the latest forecasts, the United States will have real GDP growth of only 0.6 per cent in the fourth quarter of 2023 on a year-over-year basis, which will make it increasingly challenging to avoid a recession,” it said. Pierre-Olivier Gourinchas, chief economist of the IMF, said that in a plausible alternative scenario where risks materialise and inflation rises further, global growth could decline to about 2.6 per cent in 2022. “The risks to the outlook are overwhelmingly tilted to the downside. The war in Ukraine could lead to a sudden stop of European gas imports from Russia; inflation could be harder to bring down than anticipated either if labour markets are tighter than expected or inflation expectations unanchor; tighter global financial conditions could induce debt distress in emerging market and developing economies; renewed Covid-19 outbreaks and lockdowns as well as a further escalation of the property sector crisis might further suppress Chinese growth; and geopolitical fragmentation could impede global trade and cooperation,” he added. The downward revision of India’s growth forecast by the IMF came days after the Asian Development Bank pared down its growth projection for India to 7.2 per cent for FY23, from 7.5 per cent, citing higher-thananticipated inflation since April and subsequent monetary tightening by the Reserve Bank of India (RBI). India’s inflation remained above the RBI’s upper tolerance limit for a sixth straight month in June. On June 8, the six-member Monetary Policy Committee (MPC) of the RBI raised the repo rate by 50 basis points following an off-cycle rate hike of 40 basis points in May, making it a 90 bps rate hike in just over a month. Analysts expect another rate hike in the MPC meeting on August 5. The IMF said that in China, further lockdowns and the deepening real estate crisis had led the growth forecast to be revised down by 1.1 percentage points to 3.3 per cent for 2022, with major global spillovers. “Downgrades for China and the United States, as well as for India, are driving the downward revisions to global growth during 2022–23, which reflect the materialization of downside risks highlighted in the April 2022 World Economic Outlook,” it added. The multilateral lender said global trade growth in 2022 and 2023 would likely slow to 4.1 per cent in 2022 from 10.1 per cent in 2021, reflecting the decline in global demand and supply chain problems. “The dollar’s appreciation in 2022 — by about 5 per cent in nominal effective terms as of June compared with December 2021 –– is also likely to have slowed world trade growth, considering the dollar’s dominant role in trade invoicing as well as negative financial balance sheet effects on demand and imports in countries with dollar-denominated liabilities,” it added. As advanced economy central banks raise interest rates to fight inflation, the IMF said widespread capital flight from emerging markets and developing economies could amplify this risk. On policy priorities for economies, the IMF said that at this juncture, focus should be to bring inflation under control, as price stability was a precondition for durable growth in economic well-being and financial stability. “Economies in which underlying inflation and inflation expectations have risen persistently and significantly above target levels need to take decisive action to tighten monetary policy, with central banks shrinking their balance sheets and raising real interest rates. In the near term, such policies reduce inflation at the cost of lower real activity, higher unemployment, and lower wages,” it added.
Source: Business Standard
The two-way Brazil-Bangladesh textile-apparel trade is likely to get a boost after the recent signing of memorandum of understanding (MoU) between Rio de Janeiro Chamber of Commerce and the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI). While Brazil is a major cotton exporter, Bangladesh is the second largest garments exporter. Bangladesh is an import dependent country, and gets is supply of cotton from several countries, including Brazil, which annually produces 12.7 million bales of 480 pounds each. On the other hand, the South American country imports readymade garments from Bangladesh. With the signing of the MoU, Bangladesh can explore deeper penetration in Brazil for its textile products, while it can increase import of cotton from Brazil. However, Brazil’s import of apparel is showing declining trend since March 2022. The import decreased to $8.15 million in June from $10.379 million of May 2022. The import was $11.806 million in April and $16.534 million in March 2022, as per Fibre2Fashion’s market insight tool TexPro. Annually, Brazilian import of apparel from Bangladesh decreased to $99.700 million in 2021 from 111. 984 million in 2022. The import peaked at $193.407 million in 2018. However, home textiles import of Brazil from Bangladesh was negligible at $1.125 million in 2021. On the other hand, Brazil’s export of cotton to Bangladesh was $44.633 million in June, which was down from $46.387 of May 2022. The export was $41.502 million in April, $54.175 million in March and $32.664 million in March 2022. Brazilian export of cotton to Bangladesh increased to $437.492 million in 2021 from $323.441 million in 2020. The export was noted at $309.232 million in 2019 and $163.348 million in 2018, as per TexPro.
Source: Fibre 2 Fashion
Vietnam exported goods to Laos worth more than $309.4 million, while its imports to the country were valued at $514.6 million in the first half of 2022. Two-way trade between Vietnam and Laos during the period rose by 20.6 per cent year-on-year to $824 million, according to the Vietnam Trade Office in Laos. Vietnam exported textiles and garments that cost $5.43 million to Laos, while its main export products were petrol valued at nearly $30.2 million and vegetables and fruits worth almost $22.4 million. In the month of June 2022, two-way trade between the countries was $134 million, which is an increase of 29.9 per cent compared to the same period last year. Of this, Vietnam’s export turnover touched $54.6 million, which a rise of 11 per cent, according to data. It is anticipated that Vietnam’s export to Laos will continue to increase in July as Lao economy has temporarily stabilised after the government approved a credit package to buy 200 million litres of petrol, and further restricting trade in foreign currency.
Source: Fibre 2 Fashion
Computational design employed to develop new classes of synthetic proteins. Insempra, a Munich-headquartered team of biologists, technologists and entrepreneurs focused on new regenerative materials, is making a strategic investment in Solena Materials, a spin-out from Imperial College London developing synthetic proteins for high-performance clothing fibres. The investment will allow Insempra, formerly Origin.Bio, to accelerate its strategy of harnessing new technologies to advance biological production processes, creating naturally superior products to drive the regenerative revolution. Solena will be a major part of Insempra’s platform to deliver high-performance, intrinsically sustainable ingredients for a broad array of industries. Solena is using computational design to develop new classes of synthetic proteins to produce high-performance clothing fibres which can absorb large amounts of kinetic energy. Insempra will accelerate the development and production of these synthetic proteins on an industrial scale, offering better, biobased solutions to the petrochemically sourced, non-biodegradable materials or fibres extracted from nature or animals such as silk. The technology also reduces other environmental impacts such as microplastics in water bodies from washing petrochemically-sourced textiles. “We are hugely excited by this investment in Solena, which will help to accelerate our market-first approach to develop superior, intrinsically sustainable ingredients,” said Jens Klein, founder and CEO of Insempra and CEO of Solena Materials. “We look forward to fast-tracking Solena’s development and the production of its unique synthetic proteins to develop customised, high-performance fibres for a variety of applications.” “This investment from Insempra recognizes the potential of our technology to revolutionise high-performance fabrics and their supply chains,” added Professor Paul Freemont of Imperial College London. “Together, we can harness our synthetic biology capabilities to develop, produce and manufacture a new class of superior, more sustainable fibres.”
Source: Innovation in Textiles
A new UK Government Low Pay Commission report suggests that despite some positive recent progress, Leicester garment workers continue to accept underpayment due to job insecurity and fear. A UK Government report released yesterday (25 July) titled ‘Compliance and enforcement of the National Minimum Wage: The case of the Leicester textiles sector,’ has gathered evidence to explain why garment workers in Leicester’s apparel sector have experienced underpayment and not reported it. The research suggests fear and low expectations are the main reasons for Leicester garment workers’ reluctance to report underpayment. It explains that workers are afraid of losing their hours and incomes, worried about moving jobs and are often grateful just to have employment. There is also a deep distrust of enforcement bodies and a lack of faith that complaining will make any difference, other than to put their livelihoods at risk.
UK garment workers with job insecurity accept underpayment The Low Pay Commission (LPC)’s chair, Bryan Sanderson says: “The evidence we heard from workers in Leicester was striking. Despite some positive recent progress, job insecurity, a poisonous workplace culture and low expectations leave workers trapped in poor-quality jobs and vulnerable to exploitation. These same factors mean they are unlikely to report abuses, which undermines efforts to enforce workers’ rights.” He also points out the case of Leicester is not unique. He says: “Across the UK, workers in precarious positions face the same obstacles, with the same consequences for enforcement. The problem demands comprehensive action, including to give these workers greater security over their hours and incomes.” The LPC does highlight that recent changes within the apparel industry mean some evidence of underpayment may be historic and so less reflective of the current situation. However, the vulnerability of workers means they may be reluctant to provide information. Plus, there remains potential for employers to conceal underpayment from investigating bodies. The research focuses on Leicester’s apparel sector because of the frequent reports of minimum wage underpayment within it, and because it has been the target of sustained enforcement activity by several agencies since 2020. The report explains Leicester is the UK’s largest hub for apparel manufacturing and has long been characterised by its large number of manufacturers. It states: “There are several factors which have brought substantial change to the Leicester textile industry, contributing to a turbulent few years, with businesses closing and a degree of consolidation. The Covid pandemic, lockdowns and an increase in enforcement activity have all had an effect. Demand for garments shifted during the pandemic, affecting the business models of retailers and the manufacturers they source from.” Plus, it notes that at the height of the pandemic’s first wave, Leicester and its apparel manufacturers became a focus of media attention following reports that poor working conditions were enabling transmission of the virus. This attention led to labour market enforcement bodies increasing their activity in Leicester, initiating Operation Tacit, which is a significant joint undertaking that features visits to and investigations of hundreds of factories. The LPC suggests retailers are now taking greater control of their supply chains. The report says: “Rigorous auditing and restrictions on complicated chains of subcontracting have narrowed the space for non-compliance. This consolidation has created opportunities for better jobs but also brought risks of a narrower manufacturing and employment base.” The LPC believes the Leicester apparel sector is a useful frame for thinking more widely about the challenges of dealing with serious and persistent non-compliance. The evidence it has gathered is focused on Leicester, but the LPC sees the conclusions and recommendations as relevant for labour market enforcement across the UK. It points out that despite the fact the sector has changed substantially since the pandemic as what it describes as ‘rogue employers’ having since closed, non-compliance remains a risk in the area. The report states: “A vital asset in detecting what non-compliance remains is evidence from workers themselves, but there are barriers to be overcome here too.” The report explains: “Workers question how they would prove underpayment when it’s just “your word against theirs” and talk of being “coached” by bosses in what to say if an enforcement officer speaks to them. Language and cultural barriers also play a role, as does uncertainty over where to make a report.” The LPC says the UK’s HM Revenue and Customs has recognised the challenges in Leicester and is taking innovative approaches to overcome deep-seated mistrust. It states: “In general, the reluctance of workers to make a complaint or provide intelligence to enforcement officers is a problem for enforcement activity. Low levels of reporting stymie enforcement activity and make it harder to challenge rogue employers. In turn, this increases workers’ negative expectations. If they do not see enforcement as making a difference, they will be less likely to report it in the future.”
Fashion-workers Advice Bureau Leicester welcomes the findings Fashion-workers Advice Bureau Leicester’s (FAB-L) tells Just Style exclusively it welcomes the LPC’s findings on the Leicester apparel sector. Tarek Islam, who is FAB-L’s senior community engagement and outreach worker explains: “We applaud the report’s starting point question of: ‘Why have concerted efforts by enforcement bodies found relatively modest non-compliance in Leicester, when other bodies and individuals we spoke to believe it to be widespread and flagrant?’ and their recognition of the ‘reluctance of workers to make a complaint or provide intelligence to enforcement officers is a problem for enforcement activity’.” He adds: “We also support the finding that ‘bodies that workers trust – such as trade unions and charities – have an important part to play in identifying and reporting abuses’.” FAB-L is delighted the report praises its work. In fact, the report states: “The most tangible outcome of this work to date has been investment in a team of dedicated community workers offering advice and support to textiles workers, the Fashion Workers Advice Bureau Leicester (FAB-L).” Islam is also keen to highlight the concluding statement in the report, which says: ‘‘It is clear that the reporting process as currently constituted does not work for low-paid workers such as those we met in Leicester. There is a fundamental lack of confidence in the process.” He says: “It is imperative to ensure the positive developments affected in Leicester (including the setting up of FAB-L) are not just maintained but built upon, so more fashion workers can access this highly valued service.”
Leicester East MP suggests legislation to regulate brands UK Member of Parliament for Leicester East, Claudia Webbe believes unregulated brands and UK retailers continue to drive a race to the bottom on prices leaving unscrupulous bosses to find new ways of underreporting workers hours. She says: “Many appalling sweatshop contracts prohibit workers from unionising; require eight weeks’ notice while giving workers only two days’ notice for termination of employment; offer insulting overtime pay of an additional 10p per hour, no sick pay and no recourse against inadequate and dangerous working conditions; and mandate that workers opt out of the Working Time Regulations 1998, which limit weeks to 48 hours.” Webbe explains that when workers contact her, they do so on the guarantee of their anonymity because they fear reprisals and losing their job altogether and says the government’s system of enforcement is a failure. The fast fashion billionaire brands exist because of the exploitation of the working class. Webbe suggests legislation should be introduced to regulate brands, starting with a Garment Trade Adjudicator. However, she points out that just last week the government once again rejected her suggestion for this. She says: “Zero-hour contracts must be eradicated, and hours should be protected so that each worker gets a guaranteed pay for a working week. Trade union rights must be reinstated and extended. We have a duty to ensure that every job is a good job, providing security, dignity and a fair wage.”
How to tackle the underpayment of Leicester’s garment workers. The report includes a number of conclusions and recommendations. It states: “Encouraging greater numbers of workers to report underpayment and other abuses is important for the success of enforcement and points out that the UK Government Department for Business, Energy and Industrial Strategy (BEIS) and HMRC recognise this problem, and there is research ongoing to understand the barriers to worker complaints.” The report indicates this should be at the centre of the Government’s strategy and there should be a specific policy aim to increase complaint volumes. Plus, the authors of the report believe bodies that workers trust – such as trade unions and charities – have an important part to play in identifying and reporting abuses. There are important rules which restrict the information HMRC can share with third party complainants, but there is more to be done to keep these groups engaged. The commissioners at the LPC are keen to note the process for reporting abuses does not work for the most vulnerable low-paid workers. Plus, it also fails to engage the third party bodies that workers may trust, or wider industry networks. The HMRC is being advised to look at ways to address these problems. There is also an ‘information gap’ between what industry and civil society groups think they have reported to official bodies, and what those official bodies are able to share and act on. A forthcoming official review of enforcement operations in Leicester should take into account evidence from both sides of this gap. Finally, insecure work and uncertainty over hours and incomes are described as central to the vulnerability of workers to exploitation. Low Pay Commissioners urge the UK Government to take action on the measures recommended by the commission previously to address these issues. Last week Leicester’s new Apparel and Textile Manufacturers Federation (ATMF) was unveiled, which hopes to provide a voice for what it describes as the important “second tier” of the UK garment industry supply chain.
Source: Fibre2fashion
Bahrain has now joined the UAE, Egypt, and Jordan to become the fourth member of the Industrial Partnership for Sustainable Economic Development at its second Higher Committee meeting held in Cairo, Egypt. Bahrain will boost the partnership’s total industrial manufacturing value from $106.26 billion to $112.5 billion. The Partnership will focus on textiles and clothing among other sectors in the next phase. Bahrain possesses a strong industrial sector with more than 9,500 companies and 55,000 employees as well as industrial foreign direct investments worth $4.3 billion. The UAE, Egypt, Jordan, and Bahrain represented 30 per cent of the Middle East and North Africa’s industrial contribution to the GDP, adding up to industrial exports worth $65 billion in 2019. The combined population of the countries is 122 million, which is 27 per cent of the Middle East and North Africa and 49 per cent of the region’s youth population under 24. In May 2022, the UAE, Egypt, and Jordan had launched the Industrial Partnership for Sustainable Economic Development in Abu Dhabi. The initiative aims to establish integrated industries that contribute to diversifying the economy, promoting its growth and providing specialized job opportunities. In the first phase, the Partnership has shortlisted 12 projects costing $3.4 billion of the 87 proposals it received for setting up industrial projects in fertilisers, agriculture and food sectors. Along with textiles and clothing, the Partnership will focus on chemicals, plastics, and metals in the next phase. Foreign direct investment in the UAE, Egypt, and Jordan touched $151 billion between 2016-2020, which is about 42 per cent of the new foreign direct investment in the Middle East. In 2019, the countries exported goods valued at $433 billion in total, while the imports added up to around $399 billion.
Source: Fibre 2 Fashion
