MP in calls for fashion watchdog after expose
A CITY MP is calling for a “fashion watchdog” following a Panorama expose alleged online brand Boohoo failed to stick to promises to overhaul its processes to ensure garment workers were being treated fairly.
Claudia Webbe, independent MP for Leicester East, has demanded a new statutory regime, including penalties and criminal sanctions to force brands and retailers to behave ethically and sustainably – after the BBC documentary revealed ongoing sharp practice and exploitation at Boohoo, one of the UK’s biggest online fast fashion clothing retailers.
It purported to show Boohoo engaged in price cutting among its suppliers in a race to the bottom and the practice of amending prices and discounting further after the stock had already been made.
It also alleged a breach of the reforms Boohoo promised through its Agenda for Change, after its agreement to implement recommendations arising from the Alison Levitt KC’s investigation into unethical and dangerous practices in its supply chain
The company was shown imposing cuts to agreed prices when its suppliers were just about to deliver and penalising its supply chain of factories for failing to meet arbitrary and unachievable deadlines, with consequences for garment workers.
Boohoo last year made a reported £1.7 billion worth of sales.
Claudia said: “The new BBC Panorama revelations about Boohoo are appalling but not surprising. Exploiand unethical practice are built into the global garment industry, and it is always the workers, usually women from racialised groups, who suffer most. The company’s silence and abandonment of the promises it made in 2020 when its unethical supply chain was exposed is deeply concerning.
“In Leicester’s garment industry, workers, overwhelmingly women, suffer poverty pay, long hours and unsafe working conditions fuelled by the greed of brands, who cut prices unilaterally to fatten profits at the expense of those least able to afford it. Suppliers and garment factories rather than being left out of pocket are passing the price cuts on to workers with further reduced pay, loss of work and rights.
“This race to the bottom leads to suppliers and manufacturers underpaying their workers and demandtation ing uncontracted and unpaid overtime, as well as shortcuts on safety and working conditions.”
A BBC reporter who spent 10 weeks working undercover at Boohoo’s head office, in Manchester, alleged she had learned just 1 per cent of Boohoo orders were being made at the company’s new Leicester factory – which Boohoo had said would be a “centre of excellence”.
Claudia said: “The documentary appears to show Boohoo’s ‘flagship’ production facility in Leicester East on Thurmaston Lane is little more than a front for more cheap imports from countries where workers are even easier to abuse and exploit. Garment workers tell me all they do is falsely change the label to ‘made in Britain.’
“Boohoo’s repeated disregard of its ethical pledge shows brands and retailers cannot be trusted to police themselves. New legislation is needed urgently to force companies to behave ethically, sustainably, with severe financial and even criminal penalties for those who do not.
“And the government needs to properly fund and conduct enforcement of laws already in place to protect workers from wage exploitation and dangerous working conditions. At the moment enforcement is a sham: over a three-year period in Leicester, only 60 health and safety inspections and 28 fire safety inspections have taken place among more than 1,000 Leicester garment factories.
“During the same period, HMRC made just 36 investigations into failures to pay the legally required national minimum wage. I have called in Parliament for urgent new legislation to introduce a garment trade adjudicator or fashion watchdog to hold brands to proper ethical and sustainable standards.”
About the BBC’s allegations, a Boohoo spokeman said: “Alison Levitt KC conducted an independent review and made a number of recommendations to improve working conditions and transparency. We have implemented every one of these recommendations including improving corporate governance, strengthening the ethical and compliance obligations on those wishing to supply Boohoo, regularly publishing our full list of approved global manufacturers, and more.
“We will continue to deliver on the commitments we’ve made.”
Claudia Webbe MP is the member of Parliament for Leicester East. You can follow her at www.facebook.com/claudiaforLE and twitter.com/ClaudiaWebbe