H&M's Pledge to Improve Supply Chain Working Conditions

H&M Group is a business committed to caring for both people and the planet.

Renewal of its Global Framework Agreement (GFA), alongside IndustriALL Global Union and Swedish trade union IF Metall, is further proof of this. 

The updated agreement, which builds upon eight years of partnership, represents a significant step towards enhancing labour rights and working conditions in H&M's global supply chain. 

It underscores the fashion retailer's commitment to improving conditions for over one million workers across more than 1,000 factories worldwide.

Evolving standards in supply chain management

The renewed GFA, initially signed in 2015 and updated in 2016, reflects recent advancements in labour standards and industry best practices.

It introduces several new features that are set to reshape H&M's approach to supply chain management and worker relations.

Atle Høie, General Secretary at IndustriALL, highlights key elements of the agreement: "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."

The updated agreement introduces an enhanced governance structure and strengthens H&M's commitment to collaborating on due diligence in alignment with Organisation for Economic Co-operation and Development (OECD) guidelines.

Additionally, it reinforces language around preventing and providing remedy for gender-based violence and harassment, addressing critical issues in the garment industry's workforce.

Driving sustainable fashion through industrial relations

Ultimately, one of the main aims of the GFA is to foster a more sustainable fashion industry across the board. 

"Well-functioning industrial relations, including collective bargaining, are key to achieving good working conditions and improved wages in our supply chain," explains Daniel Ervér, CEO at H&M Group. 

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

The scope of the agreement extends beyond traditional labour rights, acknowledging the significance of industry-wide collaborations in improving working conditions.

It references initiatives such as ACT (Action, Collaboration, Transformation) and the Accord on Fire and Building Safety in Bangladesh, as well as the country's Ready-made Garment Sustainability Council (RSC) and Employment Injury Scheme (EIS).

Comprehensive approach to worker protections

The renewed GFA arrives at a critical juncture for the global garment industry, which continues to face challenges related to workers' rights, fair wages and safe working conditions – issues further exacerbated by the COVID-19 pandemic.

Key provisions of the agreement include promoting collective agreements at various levels, ensuring the right of workers to refuse unsafe work and providing training for both management and union representatives on various aspects of industrial relations.

Crucially, H&M Group has committed to leveraging its influence to ensure that its direct suppliers respect human and trade union rights in the workplace.

Marie Nilsson, President at IF Metall, adds: "Now, the important part begins, ensuring that we move from policy to practice. We're excited to continue this important partnership."

Setting new industry standards

The renewed GFA is part of a broader trend in the fashion industry towards greater accountability and transparency in supply chains, reflecting growing pressure from consumers and stakeholders for brands to take responsibility for working conditions in their supplier factories.

Implementation of the agreement will be overseen by national monitoring committees in key sourcing countries such as Cambodia, Bangladesh, Myanmar and Turkey.

These committees will play a vital role in safeguarding the agreement's implementation from the factory floor upwards and facilitating dialogue between labour market parties.

Highlighting the comprehensive nature of the agreement's mechanisms, Atle concludes: "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."

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