The second-largest fashion retailer in the world, H&M, said in a statement to Reuters on Thursday that it has chosen to progressively halt sourcing from Myanmar due to an uptick in complaints of labour violations in the nation’s garment factories.
Following Inditex, the owner of Zara, Primark, Marks & Spencer, and other companies, H&M was the most recent company to sever connections with local suppliers. According to some experts, the tendency may ultimately worsen the situation of employees in the nation.
In an email to Reuters, H&M stated, “After careful consideration, we have now taken the decision to gradually phase out our operations in Myanmar.”
“We have been closely following the most recent events in Myanmar, and we now face greater difficulties carrying out our operations in accordance with our standards and requirements.”
The reported departure of H&M was not immediately followed by a response from Myanmar government spokesman Zaw Min Tun.
In response to allegations of forced overtime and salary theft made by a UK-based NGO, H&M announced on Wednesday that it was looking into 20 alleged examples of labor exploitation at Myanmar clothing factories that supply it. These allegations have grown since a military takeover in February 2021.
Myanmar is still experiencing a political and humanitarian catastrophe as a result of the coup.
In this Southeast Asian nation, more than 500 factories make clothing and shoes for well-known brands, with the majority of the workers being women.
“I regret H&M’s announcement, as it will have a negative impact on thousands of women workers in Myanmar,” said Vicky Bowman, director of the Myanmar Centre for Responsible Business and a former British ambassador to that country.
H&M stated that it would leave the country in accordance with a “responsible exit framework” created by IndustriALL, a worldwide labor organization that has been pushing for brands to avoid doing business in the nation. Inditex highlighted this as the basis for its withdrawal.
Large firms from other industries have also left Myanmar, including oil giants TotalEnergies and Chevron, who announced their departure in January of last year.
