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Friday 10 February RNW - NEWS AND ANALYSIS FROM THE NETHERLANDS IN 10 LANGUAGES, WORLDWIDE 24/7 ON RADIO, TV AND ONLINE
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Chennai, India
Chennai, India

C&A: turning a blind eye to the cost of cheap clothes?

Published on : 7 September 2010 - 9:06pm | By Johan van der Tol (Photo: ANP)
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Dutch clothing chain C&A has always traded on its bargain prices. But the bargains come at a hidden cost: the risk of appalling working conditions for the people who make the clothes.

Worldwide clothing chain C&A is still in the hands of the Dutch Brenninkmeijer family, nearly 140 years after the Brenninkmeijer brothers – Clemens & August – first set up shop. The multinational says it operates strict ethical standards in contracting its manufacturers in country’s like India and Bangladesh. C&A claims its products aren’t tainted by child labour or other forms of exploitation. But it seems it’s easier said than done for the company to keep its hands clean. Recent reports in Dutch daily de Volksrant reveal abuses in an Indian factory that makes clothes for C&A.

Own criteria
In the mid-1990s C&A set up the company SOCAM to monitor its suppliers’ working conditions. But C&A’s watchdog isn’t up to the job, say organisations like the Clean Clothes Campaign and Fair Wear Foundation. They’re pressing for an international system of controls. Currently there’s a myriad of mainly commercial monitors, each applying its own auditing criteria.

Marieke Eyskoot of the Clean Clothes Campaign says the system is flawed. “It makes you wonder about how independent it is if the company that carries out the audit stands to gain from a positive result.”

But C&A stresses that SOCAM is strictly independent. There’s no need for any other inspectors, the chain says, because SOCAM’s monitoring system is extremely thorough. Even sub-sub-contractors get regular checks, says C&A spokesman Jochen Overmeyer: “It delivers the best results for us with regard to auditing our supply chains. With SOCAM, we are able to reach deep into our supply chain with our unannounced visits. We do about a thousand audits of this kind a year.” The visits are unannounced, says C&A, so factories can’t hide abuses from the inspectors.

Trust
But there’s still a big disadvantage to inspectors with links to their client, according to Marieke Eyskoot of the Clean Clothes Campaign: “The key thing is that the inspectors often don’t enjoy the workers’ trust. So they don’t know much about the crucial matters, like wages, and how long you have to work, and how much overtime you do. Whether you have to hand in your passport or if there’s sexual intimidation. They don’t find out these kinds of things.”

According to de Volkskrant, C&A has been selling stock made by a subsidiary of KPR Mill in the South Indian state of Tamil Nadu. At the factory, 9000 textile workers are kept under lock and key in a walled plant, the paper reports, citing its own investigation. A quarter of their wages are withheld as compulsory ‘bottom drawer’ savings, which they are only allowed to access after three years. And the women have no employment contract or trade union representation.

Cheap
The Swedish clothing chain H&M was also found to be doing business with KPR Mill. H&M has said it will investigate the claims and sever any links with the Indian company. C&A also swiftly denied doing business either with KPR Mill or its subsidiary.

Western consumers are hooked on cheap clothing. If textile workers are to get decent working conditions, cost prices will need to rise by 20 percent, a figure which is eventually quadrupled in the retail price. In other words, C&A could afford to bear the cost of the price hike itself.

 

Discussion

Anonymous 6 November 2010 - 6:17pm / India

C&A... this cut thraot retailer's aim is to source cheap clothing. C&A do not bother if the prices are workable to producers during its negotitation to its vendors. C&A's sourcing divison Mondial push its employees to get cheap prices. Obviously garment suppliers look for innovative ways to 'cheat the work force'. 'Sumangali scheme' is one of the way, where it is quiet popular in spinning mills in India. I don't blame the garment producers but the retailers like C&A, who indirectly push the industry to abuse the work force.
Recently C&A sacked several senior level employees at Bangladesh and India. They were kicked out without paying any compensation. So if C&A do not know how to treat its owm employees, no wonder rather C&A or its so called independent organisation 'SOCAM' behaves against worker welfare.
In the recent price war scenario, there were several ethical suppliers went bankrupt supplying merchandise to C&A. It is the fact 'Sumangali scheme' was existing in textile industry and it is another form bonded work force. Due high demand on skilled work force, this scheme targets only innocent rural girls who are poor and below poverty line.

Anonymous 6 November 2010 - 6:17pm / India

C&A... this cut thraot retailer's aim is to source cheap clothing. C&A do not bother if the prices are workable to producers during its negotitation to its vendors. C&A's sourcing divison Mondial push its employees to get cheap prices. Obviously garment suppliers look for innovative ways to 'cheat the work force'. 'Sumangali scheme' is one of the way, where it is quiet popular in spinning mills in India. I don't blame the garment producers but the retailers like C&A, who indirectly push the industry to abuse the work force.
Recently C&A sacked several senior level employees at Bangladesh and India. They were kicked out without paying any compensation. So if C&A do not know how to treat its owm employees, no wonder rather C&A or its so called independent organisation 'SOCAM' behaves against worker welfare.
In the recent price war scenario, there were several ethical suppliers went bankrupt supplying merchandise to C&A. It is the fact 'Sumangali scheme' was existing in textile industry and it is another form bonded work force. Due high demand on skilled work force, this scheme targets only innocent rural girls who are poor and below poverty line.

Michael Michael 16 September 2010 - 5:11pm / France

Wrong news by NGOs & Good factories are effected!

Hi all,

I am Michael from France. & doing busines with India, China & Bangladesh.

I came to know the recent news about KPR Mill, C&A, H&M. I have made an extensive research on this matter & consulted with sources from third party auditor firms, NGOs & many persons familiar with the factory & the NGOs. The out come is as below.

1) In India (Gurgaon) a factory was having same problem by an NGO (similar to this) & M&S was the buyer. M&S cancelled the order & placed in Turkey. Then M&S audited the factory & found everything is perfect & the NGO news is totally wrong. ! This issue pushed the supplier to depression & think about quitting the Garment Industry & go to some other industry. So the NGOs wrong news is damaging the lives of those workers employed!! Many are loosing the jobs because of this. (Source : news in Indian Express Newspaper - Financial edition. Link: http://in.biz.yahoo.com/100914/50/baw8zs.html )

2) The same source revealed that 150 NGOs were thrown out of Bangladesh soil due to their wrong activities. As I have visited Many fareast /Indian Factories. In China NGO activities are NOT allowed. But the Indian Factories allowing the NGOs in good faith & the wrong attitude of the NGOs creating problems to the

Factories & workers.

3) These NGOs are funded by many foreign companies & these NGOs need to show the donators that they are functioning & they are creating drama that they work for the welfare of the workers (Ofcourse they are the real reasons for many unemployment of them & keep them starving !!) All their stunts are to attract the donators. The Journals are supporting to create news to increase their sales. Its like shown in the James Bond movie " Tomorrow Never dies". This is NOT ethical. I was shocked to see porno type of images in the journal De Volskrant in the front page under heading Movies. I can understand the Journal will do anything to increase their sales.

4) I have been speaking to many of the third party auditors who audited KPR factory many times for many buyers. Their response was just simple. "We have audited the KPR Facility many times. KPR meets all the local government laws, customer code of conduct / ethical requirements. KPR hostel is built only because of the parents & workers request. Its a mandatory requirement by the parents & workers to protect the workers.. The journal team first asked KPR permission for their visit & after KPR granted the same there is NO response from the Journals. KPR voluntarily reminded the journal team to visit them. Its because of the transparancy of the KPR model. KPR is not in a remote village. Its just 7 kilometres near by the Airport. Many Government officials, foreign delegates / ministers & media have visited the facility many times. They had spoken with many workers & found happy & they vouch for KPR facility for its workers care"

5) In this matter C&A has done a full audit thru their auditing firm SOCAM & passed & then only approved for production. At the time of audit SOCAM has all document evidence that Quantum is the fully owned subsidary of KPR. Also SOCAM has visited the same factory previously in the name of KPR. So it is evident that C&A know that this is KPR factory & done proper audit & passed. But when Journals published the wrong news by the NGO, C&A didn't believe his own audit. Also H&M. They also completely audited the factory & personally interviewed many workers & then only passed it. Now after the wrong news H&M is also putting pressure on the factory.

6) I would like to recall the issue created by the same NGO person Esther in a bangalore factory. He has totally give a wrong news & tried to esclate labour problem in that factory. When the court ordered him to present, he didn't do so. So he was issued an International arrest warrant. This kind of activities shows that the intention of this NGO is to esclate wrong news & create mass. May be he can benifited by getting more donation. But this will spoil the life of workers.

7) When I agree everybody should follow the ethical / social responsibilities, we shouldnot allow such practice to demotivate the good factories & create bad image. Finally the good factory will stop & the workers will be left without any job!! Is this the NGOs wanting?

8) Creating a bad image is very easy. Building a trust & good image is very challenging. We people only can support good factories by NOT accepting such wrong news.

9) I have seen many news websites / blogs using some fake photos (Which are NOT even taken at KPR factory / NOT KPR workers ) to create wrong image on KPR.

Jack Welch 9 September 2010 - 8:53am

Hi all,

First of all, the news is totally fake.

I have visited the company KPR Mill few times & I am sure about what I am saying.

The factory was audited by many of the trade organisations.
Moreover many retailers like C&A, H&M & a lot more have their own audit. (Some audits conducted for 3 days!!)
Further the company is a Public Limited company & listed in Indian Share markets. Also there are lot of Government labour welfare inspections, Inspector of factories act & a lot more. Is the SOMO person who has visited factory has any special eye or some superior vision? He has not broken into the factory for investigation. The factory management has accepted his request & shown him the factory. They didn't hide or protest to show anything. Its the behaviour of the SOMO person to create a wrong news & get popular in overnight. The same SOMO person was issued an INTERNATIONAL ARREST warrent for his such wrong activities.

I know KPR is not the company focused on money. They are focused on the values.

I'm sure in few days KPR will make us all realise about the fake news.

Best Regards,

Jack

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