Legal Article Analysis: “Major Apparel Brands Delay and Cancel Orders in Response to Pandemic, Risking Livelihoods of Millions of Garment Workers in Their Supply Chain”
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Legal Article Analysis: “Major Apparel Brands Delay and Cancel Orders in Response to Pandemic, Risking Livelihoods of Millions of Garment Workers in Their Supply Chain”
Introduction
The emergence of the Covid-19 crisis has generated a series of negative impacts on various industries around the globe. The fashion industry serves as a critical example of industries whose operations got affected. In relation, the apparel industry oversees a decline in demand for cloth products owing to the financial crisis related to workers’ layoffs and losses incurred following business restrictions enforced to ensure safety. The regulation of fashion products in return affects the operations of garment producing companies upon which they seek to reduce production in line with the low demand for their products. To regulate their manufacture, various companies have adopted unethical measures that undermine stakeholders within the industry supply chain. The paper develops a study on the legal issues that emerge based on the different actions undertaken to mitigate the losses related to the Coronavirus pandemic.
Legal Issues within the Apparel Industry Related to Covid-19
The apparel industry has witnessed a market decline for cloth products about Covid-19 economic effects on product consumers. In return, cloth producing companies have adopted measures to mitigate the financial impacts generated within their companies more so to reduce the chances of incurring losses. Among the key strategies adopted include the cancellation of clothing orders made to various suppliers. The move generates losses among the suppliers since some had already produced ordered products. Furthermore, some fashion companies have withheld payments for supplied products, which, in return, affect the performance of suppliers forcing them to shut down their companies and layoff employees. Under this strategy, companies jeopardize the ability of suppliers to carry on business activities owing to the enormous financial burdens incurred (Business and Human Rights Resource Centre, 2020). The move facilitates the demand for justice upon which suppliers file lawsuits seeking compensation from the various companies to mitigate the impact of Covid-19 on stakeholders within the supply sector more so among employees.
Based on the plight subjected to suppliers and other stakeholders within the fashion industry, market regulators have developed measures to protect affected groups. In particular, they protect supply chain workers by calling for companies to take responsibility for the changing market trends and minimize the impact of Covid-19 on garment workers. The Labor Behind the Label organizations serves as an example of a market regulator that seeks to attain justice for garment product suppliers. The organization has forced retailers within the UK to honor agreements made between them and other stakeholders (Business and Human Rights Resource Centre, 2020). The move has overseen the payment of canceled orders and adequate compensation for company employees upon layoff.
Conclusion
Clothing companies have adopted measures that undermine the contracts developed between them and the suppliers. The various measures seek to acquire profits at the expense of losses incurred by suppliers. Regarding the greedy nature adopted by companies, suppliers should file lawsuits and demand justice to regulate the impact of Coronavirus pandemic on their businesses. Also, courts should call for textile companies to abide by the contract since their companies are still running through online selling platforms.
References
Business and Human Rights Resource Centre. (2020). Major Apparel Brands Delay and Cancel Orders in Response to Pandemic, Risking Livelihoods of Millions of Garment Workers in Their Supply Chain. Retrieved from www.business- humanrights.org/en/major-apparel-brands-delay-cancel-orders-in-response-to- pandemic-risking-livelihoods-of-millions-of-garment-workers-in-their-supply-chains