Predatory purchasing practices in global apparel supply chains and the employment relations squeeze in the Indian garment export industry

Abstract

While the literature has long acknowledged worker rights abuses in global apparel supply chains, less attention has been paid to the recent worsening of certain decent work deficits and its causes, which this article links to predatory purchasing practices arising from growing power asymmetries. These practices, illustrated here by the garment export industry in India, exert downward pressure on wages and incite non‐standard forms of employment and greater verbal and physical abuse as productivity demands rise. They can be addressed through pricing mechanisms that cover the cost of decent work, appropriate State regulation and worker involvement.

Uneven Development, Uneven Response: The Relentless Search for Meaningful Regulation of GVCs

“…Examples of transgressions are legion and appear in tier one firms with relatively close connections to the lead firm just as much as in second and third tier workplaces further down the supply chain (e.g. Anner 2019; Hammer and Plugor 2019; Jenkins 2020a,b; Jenkins and Blyton 2017; Kuruvilla et al . 2020; Mezzadri 2014).…”

“…In this topsy‐turvy ‘fissured’ world (Weil 2014) of the lead firms’ creation, they themselves cause and police the problems that good supply chain governance might overcome. For example, in the case of the garment supply chain in Bangladesh, Reinecke and Donaghey (2020) highlight that while the CSR activities of MNCs did activate workplace representation on worker participation committees, many of the problems raised by workers in these forums originated in what have been termed the ‘predatory purchasing practices’ of those same lead firms (see also Anner 2019). Thus, MNCs are creating governance structures to deal with problems which they themselves generate, thereby privileging themselves as judge and jury in cases of their own violations.…”

“…2001) and if suppliers to international brands are to be able to survive (let alone upgrade) in highly competitive markets, then research shows that the terms of conditions for labour may have to be down graded (e.g. Anner 2019; Hammer and Plugor 2019; Selwyn 2017). With labour's situation not substantially improved and persisting inequality both within and between states, there are a number of major questions to be addressed in relation to the rules that govern work and employment in GVCs.…”

The Ineffectiveness of CSR: Understanding Garment Company Commitments to Living Wages in Global Supply Chains

“…Multi-national garment corporations have long faced criticism over labour rights violations in their supply chains. In recent decades, endemic worker rights violations have been documented including wage theft and violations (Anner et al 2013, Anner 2019, gender-based violence (Evans 2017, Selwyn et al 2019, unsafe working conditions and dangerous levels of productivity (Merk 2011b, Mezzadri 2017, and infringements on freedom of association (Egels-Zandén and Merk 2014, Anner 2017. For over two decades, civil society, unions, workers, and policymakers have exerted sustained pressure on the multi-national corporations (MNCs) leading fashion supply chains to address these infringements improve labour standards (cf.…”

Struggle in the garment sector

“…The 'predatory purchasing practices' of international brands and retailers have been identified as a prime cause of the worsening of labour conditions at workplace level. They provide a powerful 'downward pressure on wages and [an incitement for employers to use] non-standard forms of employment and greater verbal and physical abuse' (Anner, 2019).…”