At the end of 2022, Indonesia lost more than 25,000 jobs in the footwear sector

The Economist finds that the rate of workplace automation has actually slowed since the start of the pandemic, a surprising finding given the health and economic forces that should have encouraged factories to have more robots and fewer humans.

2023 February, 14th update

At the end of 2022, Indonesia lost more than 25,000 jobs in the footwear sector. Indonesia posts 5.31% GDP growth in 2022, – reports the CNA news agency – , the highest in almost a decade. In contrast, thousands of workers in the footwear industry in Tangerang, Banten, were laid off in the last quarter of last year. The president general of the Indonesian Footwear Association (Aprisindo) Eddy Widjanarko had already declared in November that the number of workers laid off in the footwear sector had reached 25,700. [Ribuan Pekerja of Industri Sepatu Tangerang Kena PHK … –]. (Read more)

2023 February, 10th update

Among the various problems facing the fashion industry, the issue of wages is among the most controversial. Garment workers, particularly those who work hard in the Global South, do not have living wages, but they are chronically underpaid, meaning they are almost always struggling to pay for food, housing, medicine and other necessities. When Covid-19 hit, hundreds of thousands who were laid off or had their hours truncated teetered on the brink of starvation and destitution. [What to Know About Vietnam’s Living Wage Experiment –]. (Read more)

Imported clothing and footwear: Canada could have a new forced labor law on the books as soon as this summer. The bill, known as S-211, would require most companies operating in the country to publicly disclose what they are doing to prevent and reduce the risk of forced and child labor in their supply chains. It zipped past the country’s Senate in November and is currently awaiting approval in the House of Commons. If passed, it will go into force in 2024. [Canada Looks Poised to Pass Law on Forced Labor – Wall Street Journal]. (Read more)

2023 January, 10th update

Bangladesh, Dissemination workshop on “institutional policy framework in the Tannery Workers Union”. Trade union leaders and economists on Thursday (December 29, 2022) urged the tannery owners to implement social and environmental compliances for the welfare of the industry and the workers. They said the European Union (EU) and the US are not buying leather from Bangladesh as most of the tanneries are yet to obtain certificates from Leather Working Group. [Experts for social, environmental compliance programs in …-]. (Read more)

2023 January, 5th update

LVMH to build new workshop making Louis Vuitton bags in Italy. LVMH (LVMH.PA), the world’s largest luxury goods group, plans a new factory in Italy producing Louis Vuitton bags and other leather accessories, the Tuscany region said on Friday. (Source: Reuters). (Read more)

2022 December, 16th update

A model for financial inclusion of SMEs in Kenya. Relocation and OEMs have not been an engine of development in Africa. In Kenya, the focus has been placed on SMEs. President Ruto launched microloans for small and medium-sized enterprises (SMEs) and seed loans, through the Hustler Fund. $23,7 million: the amount (2.9 billion Kenyan shillings) that had been borrowed by Kenyans from President William Ruto’s Hustler Fund since it went live on Nov. 30. (Read more)

2022 December, 2nd update

US inflation is reflected in the value chain. Reduced shopping during the holiday season in the United States and supply chains “returning to normal” have led to overstocked American stores with worldwide implications.  This is forcing suppliers in places like Vietnam to face a severe order crisis, especially in the textile, clothing, footwear and furniture sectors. (Read more)

2022 October, 28th update

Social Contract under pressure. Four billion people have no social protection, according to the International Labor Organization. The ILO’s director-general, Gilbert Houngbo, told panelists at an IMF seminar that four times as many jobs were lost during the COVID-19 pandemic as the global financial crisis, “placing additional pressures on already stretched and indebted households.” (Read more)

2022 October, 10th update

Fashion Checker for the social responsibility of fashion brands. New data and a new facility checker have been added to the fashion supply chain transparency tool. Fashion Checker is vital tool for journalists reporting on wages and conditions in the global garment and footwear industry, presenting up-to-date information on transparency in fashion brands supply chain. (Read more)

2022 September, 23th update

“Quiet Quitting”: global economy loses trillions of dollars due to Low Worker Engagement. A less maniacal approach to one’s profession and a greater regard for life   outside of work is emerging under the name of “quiet quitting”. The Guardian wrote that quiet quitting advocates reject the culture of the lust for work and limit themselves to performing only the tasks required of them. The trend is confirmed by a  Gallup report.   [here the report]. (Read more)

2022 August, 25th update

Cambodia: attempts at dialogue on wages and social security. Cambodia’s garment, footwear and travel goods industry has kicked off negotiations over a new monthly minimum pay for 2023, though talks remain in the early stages, the Southeast Asian nation’s wage board revealed Monday. [Cambodia Starts New Minimum-Wage Talks – SJ]. (Read more)

2022 August, 2nd update

Sri Lanka crisis: clothing and footwear, is it time to invest or take flight? As Sri Lanka’s new parliament took control Friday in the capital city of Colombo, global investors have been scrambling to take stock of the island nation’s rapidly shifting landscape. @SourcingJournal reports that Sri Lanka’s garment sector has largely been holding its ground through months of turmoil, even as manufacturers field a crush of calls from jittery investors and buyers. How long will it last with inflation above 50%? A social bombshell that could overwhelm fashion OEMs. (Read more)

2022 July, 15th update

Sustainability puzzle: technological shift and widening skill gap in the context of a demand for skilled workers greater than supply. In @fibre2fashion’s analysis, the question of skilled labour is hard to pose to the global economy at a stage when there is a general mismatch in the labour market across the world. Although several sectors now have adequate or more workers than required, many sectors are in want of a larger supply. [Labour and Skills – Key Pieces in the Sustainability Puzzle – fibre2fashion]. (Read more)

2022 June, 8th update

2022 Supply Chain Compensation and Career Report. Sourcing Journal informs that the Association for Supply Chain Management (ASCM) released the findings of its 2022 Supply Chain Salary and Career Report that found the supply chain sector was minimally impacted by the Great Resignation. (Read more)

2022 May, 24th update

Gender Equality and No Discrimination is still a big issue in textile/leather worldwide. IndustriALL Union is launching a new chapter of the research on gender-based violence and harassment with a summary of the results from the garment sector, where women report that trade union presence in the workplace makes a difference in fighting gender-based violence. From Europe a positive example, where the social partners of the leather industry (IndustriALL and COTANCE) engage in a project on collective agreements. (Read more)

2022 April, 19th update

The #PayUp campaign was formed as a direct consequence of the Fashion Order Cancellation Crisis. The Pay Up campaign tells how, despite the return to profit in 2021 after the Covid-19 crisis, many brands are still refusing to pay wages. (Read more)

2022 April, 4th update

Indonesia, Islamic fashion asserts itself but neglects the precarious situation of female workers. Ecotextile descrive come sia difficile la situazione delle lavoratrici della moda in Indonesia, nonostante che un nuovo studio di settore condotto da Annisa Beta, docente presso l’Università di Melbourne in Australia, affermi che le designer e le imprenditrici indonesiane siano accreditate come la forza trainante dell’industria della moda islamica del paese. (Read more)

2022 March, 29th update

U.S. Blocks Li-Ning Shoes and T-Shirts in Port for Suspected Use of North Korean Slave Workers. Hong Kong’s Li-Ning goods (CNN Business) are being held by U.S. authorities after US Customs and Border Protection said an investigation indicated that the Chinese sportswear giant uses North Korean labor in its supply chain. (Read more)

2022 March, 8th update

European Union one step closer to corporate accountability. Clean Clothes Campaign appreciates the long awaited rules on corporate sustainable due diligence proposed by the European Commission: “Whereas the proposal falls short of our recommendations, the introduction of a binding obligation on companies to carry out human rights and environmental due diligence is a major step toward corporate accountability”. (Read more)

February 17th, 2022 update

Young Vietnamese turn fashion contractor closures into innovative startups. For young Vietnamese, the closure of textile and leather OEM factories can be an opportunity to open new businesses. A report by DanTRI on how young people returned to the countryside to create new jobs in the fashion industry. (Read more)

CLIA concentrates, for strengthening, the Chinese workers unions. The China Leather Industry Association (CLIA) recently revealed that progress has been made as a result of its joint campaign to create more grassroots unions for Chinese leather workers along with the China Alcoholic Drinks Association (CADA). Leatherbiz is reporting. Both bodies fall under the jurisdiction of the China National Light Industry Council, which operates as a kind of bridge between government and business. (Read more)