On the Line is a weekly roundup of sourcing and labor quick hits in the apparel and footwear industry, from worker protests to boardroom maneuvering, tracking the developments shaping conditions on the factory floor and beyond.
REI Union blackballs anniversary sale
REI Union workers have launched a 10-day boycott of REI Co-op’s Anniversary Sale, which runs through May 25, to protest what they call the outdoor retailer’s “bad faith bargaining” after negotiations in Chicago ended April 30 without a contract.
Employees at REI’s 11 unionized stores will continue working as usual, but they are urging shoppers to skip the sale in solidarity. REI’s final offer, which the union rejected, included a moratorium on organizing activity, a non-disparagement agreement barring workers from speaking out about conditions, and a mandatory $1 million annual donation to an REI-selected charity.
“For the last four years, REI workers have been committed to reaching an agreement with the co-op, only to be met with ludicrous proposals like bans on speaking out against the company and organizing additional stores,” said Jacob Lish, a REI worker at the co-op’s Maple Grove, Minn., store. “Since REI won’t listen to us workers at the bargaining table, we think they’ll hear us loud and clear with the support of thousands of REI members and shoppers. REI cannot afford to ignore all of us.”
In a statement, REI called the move “disappointing,” saying it stands ready to negotiate, but not on social media or in response to pressure campaigns.
“It seems the union’s focus is on harming the financial well-being of the business, instead of advancing negotiations,” it said. “The union’s dedication to undermining the business, puts jobs, wages, benefits, and future opportunity at risk, and pulls everyone further from the progress our employees deserve. Every day spent escalating a public conflict is a day not spent at the bargaining table.”
Fire in Vietnam leaves livelihoods in jeopardy
Uniwin Vietnam Co., a vertical manufacturer of throws, blankets, decorative pillows, craft yarn and bedding products, suspended operations after a massive fire at Nhon Trach 6 Industrial Park in Dong Nai Province last Sunday tore through 9,000 square meters of factory space, destroying machinery and other equipment.
Fueled by large quantities of textiles, the conflagration was so intense that some structures collapsed, local media reported. The Chinese-owned supplier told local media it plans to salvage what it can, including transferring as many employees as possible to surviving units elsewhere, though a significant portion of its 1,350-strong workforce could face layoffs if it cannot find roles for them.
It took a day for 47 fire trucks, a firefighting robot and 280 personnel from the Dong Nai fire department to extinguish the flames, which burned fiercely enough that plumes of smoke were visible several kilometers away.
Mai Xuan Tan, deputy director of the Dong Nai Department of Home Affairs, urged the company to compile a list of affected workers so authorities could arrange for support, including unemployment allowance.
Bangladesh snags development deal
The Bangladesh Garment Manufacturers and Exporters Association and the German international cooperation agency GIZ have inked a memorandum of understanding aimed at boosting the global competitiveness of Bangladesh’s garment industry by promoting “green” industrialization.
Under the terms of the agreement—the first MOU of its kind signed by the two parties—the BGMEA and GIZ will work together to prepare factories to meet emerging European Union market mandates such as supply chain due diligence, traceability, circularity and decarbonization. This includes providing factories with technical guidance on advanced chemical management, pollution reduction schemes and maintaining international environmental standards.
Other measures will include improving energy efficiency, conducting regular energy audits and providing technical training to build a skilled renewable energy workforce, with a focus on increasing women’s participation in engineering and management roles.
Reevaluating U.K.’s modern slavery regulations
Anti-Slavery International said this week it was time for the British government to “reprioritize” modern slavery or risk the problem growing in the United Kingdom and around the world.
The world’s oldest human rights organization objected to the framing of a briefing ahead of King Charles III’s speech setting out the government’s priorities for the year on Wednesday. In it, the House of Lords said new legislation on modern slavery should “clarify obligations” and “address potential misuse while maintaining essential protections.”
“The National Referral Mechanism consists of a two-stage decision-making process that places safeguards on alleged misuse and places an exceptionally high evidence burden on survivors,” Anti-Slavery International said in a statement. “Restricting access to the system and weakening protections would only punish those the system is intended to support.”
It also pointed to “clear and growing” evidence that the current framework set out in the Modern Slavery Act 2015 has failed to prevent modern slavery and exploitation in global supply chains. The government, Anti-Slavery International, said, must push forward the introduction of a Business, Human Rights and Environment Act that creates a legal duty on businesses to identify, prevent and address human rights and environmental harms.
“This must be accompanied by import controls to prevent goods made with forced labor from entering the U.K. market and to ensure the U.K. keeps pace with international developments,” the organization added.
