H&M Renews Global Framework Agreement for Worker Rights

In a significant reaffirmation of its commitment to ethical manufacturing, H&M Group has renewed its Global Framework Agreement (GFA) with IndustriALL Global Union and the Swedish trade union IF Metall.

This partnership, first established in 2015, is pivotal in ensuring improved working conditions and labour rights for over a million workers across more than 1,000 factories globally.

Meanwhile, H&M is pursuing a target to slash greenhouse gas emissions by 56% by 2030, guided by science-based objectives. By the same year, the retailer is committed to sourcing materials that are 100% recycled or sustainably sourced - currently, the company has hit an impressive 85%.

The renewed GFA not only strengthens traditional labour rights but also broadens its scope to encompass industry-wide collaborations that address the overarching working conditions within the garment industry.

This includes supporting initiatives like ACT (Action, Collaboration, Transformation), the Accord on Fire and Building Safety in Bangladesh and other significant frameworks like Bangladesh's Ready-made Garment Sustainability Council (RSC) and Employment Injury Scheme (EIS).

The timing of this renewed agreement is crucial, as the global garment industry continues to navigate challenges around workers' rights, fair wages, and safe working conditions - issues that have been exacerbated by the COVID-19 pandemic.

H&M Group's CEO, Daniel Ervér, elaborated on the enhancements within the updated agreement, emphasizing a more robust governance structure and a commitment to collaborative due diligence aligned with Organisation for Economic Co-operation and Development (OECD) guidelines.

He notes, "Well-functioning industrial relations, including collective bargaining, are key to achieving good working conditions and improved wages in our supply chain.

"This contributes to a more sustainable fashion industry through functioning labour markets in the countries where we source our products."

Looking ahead, H&M aims to achieve net-zero emissions across its entire value chain by 2040. In managing its supply chain, H&M not only embraces renewable energy but also employs blockchain technology via its "TextileGenesis" program, ensuring the traceability of approximately 44 million textile items.

Despite these commendable efforts, the brand faces inherent challenges associated with the fast fashion model, notably the significant volumes of clothing produced and the accumulation of about US$4.1bn in unsold apparel as of 2019. Furthermore, while there have been strides in improving labour conditions, concerns linger over worker treatment and pay.

In an effort to bolster transparency, H&M regularly publishes comprehensive sustainability reports and has achieved a 71% score on the Fashion Transparency Index.

IndustriALL's General Secretary, Atle Høie, stressed the significance of the renewed agreement, stating, "The GFA includes important elements such as neutrality in union organising and a dispute resolution mechanism bound by the decision of an independent mediator. These provide a solid foundation for functional industrial relations necessary for a sustainable textile and garment industry."

Atle reiterated the importance of the agreement's structure for sustaining industry improvements, saying, "The national monitoring committees, global steering committee, joint industrial relations development committee, and dispute resolution mechanism provide a solid ground for functional industrial relations needed for a sustainable textile and garment industry."

Key provisions of the agreement focus on promoting collective agreements at factory, company and industrial levels, emphasizing the right of workers to refuse unsafe work, and enhancing training for management and union representatives on various aspects of industrial relations.

Meanwhile, H&M Group has also committed to leveraging its influence to ensure its direct suppliers uphold human and trade union rights.

IF Metall President Marie Nilsson highlighted the transition from policy to practical application, stating, "Now the important part begins, ensuring that we move from policy to practice. We are excited to continue this important partnership."

The implementation of the GFA will be overseen by national monitoring committees in critical sourcing countries such as Cambodia, Bangladesh, Myanmar and Turkey.

These committees are essential in ensuring the agreement's efficacy from the factory floor upwards and in facilitating effective dialogue between labour market parties.

The GFA is part of a broader movement within the fashion industry toward greater accountability and transparency in supply chains, reflecting growing consumer and stakeholder pressure on brands to take responsibility for the working conditions in their supplier factories.

As the industry faces ongoing sustainability and ethical production challenges, this agreement serves as a critical marker of progress. It showcases the potential for meaningful collaboration between global brands, trade unions and workers to foster positive change.

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