Volume 11, Issue 3, 20220

Thee Unpreceden
nted Pandem
mic “COVID--19” Effect on
o the Apparrel Workers by
b shivering
the Appaarel Supply Chain
C

Sh
huvro Sen, Shhusmita Sen,
Researrch Associatee, Departtment of Finannce,
BRAC C University,, Thee University of
o Chittagongg, Bangladeshh
Dhakaa, Bangladeshh
Sunnny Chowdhurry,
Neeel Antara, Departmentt of Business Studies,
World Heritage
H Studiies, Interrnational Islamic University Chittagongg,
niversity of Technology,
Braandenburg Un B
Bangladesh
Cottb
bus, Germanyy

AB
BSTRACT

COVIID-19, known n as a pandem mic, affects the global econnomy. ILO deeclared this viirus as a laboor
markeet and econo omic crisis. This
T study has been conducted for understanding
u g the effect ofo
COVIID-19 on thee apparel inndustry and the apparel manufacturiing workers. The relevannt
informmation has beenb collecteed from the current acaademic literaature, newspaapers, reporrts
publiccations, and relevant
r web pages. An onnline interview w with the maanufacturers, policymakerrs,
trade unions, researchers, annd academiciians has beeen conductedd for primarry informatioon
collecction. This stuudy has found that the appparel industrry is one of the t most affeccted industriees
amongg the other in ndustries by COVID-19.
C T retailers’ shops are beiing closed wiith having zerro
The
turnovvers which leads
l to ordeering cancelaation to the manufacturing factories. Bangladeshh's
apparrel manufactu uring industryy is also drasttically affecteed due to COVID-19. The factories
f cann’t
pay thhe workers’ salaries
s in thiis critical situuation. Thereffore, millionss of workers have
h been sennt
home without theirr wages. Som metimes, it haas predicted that
t the workkers would loose jobs due to t
factorry closure. The
Th Governmeent took lots of initiatives i.e. tax rebaates, reduce VAT, financiaal
suppoort to the own ners to pay the workers’ wages, loan insstallment resccheduling, etcc. Albeit, thesse
initiattives were takken for the welfare of the factory
f owneers and the woorkers remainn oppressed. A
propeer policy stra ategy is indeeed an emerggency to suppport the desttitute workforrce during thhe
COVIID-19 as welll as in futuree financial criises that can happen due to this kind of o epidemic oro
any reeason. This study will be supportive
s to the stakeholdders of this seector to learnn the impact of
o
COVIID-19 on the workers
w and make
m the necessary adjusttment for the future
f betterm
ment.

Keywords: COVID
D-19; Econom
mic Impact; Apparel
A Indusstry; Supply Chain
C Disruption; Workerss;
Banglladesh

Introduction transsmit from "pperson to perrson”. Coronna

Coronna virus diseaase (COVID--19) is a new w viruss or COVIDD-19 was first detected in i
infecttious disease caused by a new virus. Deceember 2019 by health authorities in i
This virus
v can conttaminate peopple easily andd Wuhhan City in the People’ss Republic of o

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Volumee 11, Issue 3, 20220
Chinaa (Macksoud d, Schrag, Richards, & convveyance 1 (Rattcliffe & Fonnbuena, 20200).
0F

Alberrts, 2020). Th
he US Centerrs for Diseasee Acrooss the worldd, COVID-199 has broughht
Contrrol and Prevention (CDC C) called thiss shoppping for anything but b necessitty
virus as an “eepidemic” (“Coronaviruss comm modities to a halt (Bain, 2020).
Diseaase 2019 (CO OVID-19),” 2020) whilee
Worldd Health Orgaanization (WHHO) named itt Just because of thhis disease, thhe Internationaal
“panddemic” (Hugh hes, 2020). Laboour Organizzation (ILO), the Uniteed
Nations’ labor aggency, estimattes that arounnd
The impact of thiss virus is nott limited in a 24.7 million jobbs will be disappeared
d i
in
particcular countryy or area – it becomess contrrast to about 22 million loost jobs arounnd
globaal (Cernanskyy, 2020). The whole worldd the world
w duringg the global financial
f crisis
is now w in unweavving. This virrus is not thee in 2008-9 (M McKeever, 2020). ILO O
only effect
e on heaalth, but also on the globall conssidered that this is the worst-case,
w o
or
econoomy. Guy Ryder,
R directoor-general off “highh,” scenario of global unemploymen
u nt.
the ILLO (Internatioonal Labour Organization)
O ) Albeeit this estimaation is “highhly uncertain,”
said: “corona viruus outbreak wasw no longerr it predicts a “substantiial rise in i
only a global healtth crisis, it iss also a majorr unemmployment.” (McKeever, 2020). 2
labor market and a econom mic crisis.””
(McK Keever, 2020 0). Investors predict thatt Due to COVID--19, the Chiinese officials
COVIID-19 may create anothher financiall instrructed factoryy shutdowns across
a most of
o
crisis like 2008 which
w was nam med ‘Child’ss the country’s
c proovinces from January 20220
Play’ (“Coronavirrus Cases,” 2020; 2 Farrer,, to sttanch transmission of thee corona viruus.
2020)). This is verry clear from m a speech byy As a result, the whole supplyy chain of thhe
Guy Ryder which h is “In 20008, the worldd induustries, whichh are relateed to China,
presennted a uniteed front to address thee disruupted. The bigggest apparell producers i.e.
conseequences of the
t global finnancial crisis,, Chinna, Bangladeesh, Vietnam m, Sri Lanka,
and the
t worst waas averted. We W need thatt Cammbodia, etc. have
h to stop production
p duue
kind of leadersh hip and reesolve now”” to laack of raw materials
m whicch was mainlly
(McK Keever, 2020). come from Chinaa (Bain, 2020; Kelly, 20200).
Onlyy in Bangladeesh, more thann 50 percent of o
Not a single eco onomic sectoor has beenn appaarel raw mateerials and aboout 40 percennt
affectted by this epidemic
e diseease, while itt of thhe machineryy and spare parts for this
makess shut down the
t whole global economicc induustry come frrom China (P Perera, 20200).
sectorrs i.e. minin
ng, transportaation, leisuree The same situatioon is in Sri Laanka also. Thhe
and hospitality
h ch
hains, airliness, the luxuryy Jointt Apparel Asssociation Forrum Sri Lankka
goodss sector, etc. (Macksoud et al., 2020;; (JAAAFSL) Secreetary M.P.T.. Cooray haas
Muro, Maxim, & Whiton,
W 2020). utterred: “At the moment,
m theree is a shortagge
of 1 to 1.5 tons of raw materrials per weeek
Amonng the mosst pretentiouus economicc and there is a reduction which coulld
sectorrs, the apparrel industry is
i one of thee increease rates andd cost of operrations is goinng
highest vulnerably y affected seectors (Bain,, to bee very high.” (Adittiya, 20020). Similarlyy,
2020)). The primarry reason cann be the firstt Myaanmar, anotther hub for appareel
infectted country by COVID D-19, China,, manuufacturing, dependent
d on mainly Chinna
knowwn as the main n source destiination of thee for about 90 percent
p of raw
r materials
apparrel industry. The
T secondarry reason cann (Cerrnansky, 20220). Aung Min, M the vicee-
be thee spread of COVID-19
C in almost all off chairrman of the Myanm mar Garmennt
the countries
c andd territories around thee Mannufacturers Association,
A h said: "This
has
worldd including the USA, Italy, Spain,, is kind of scary – the situationn is uncertainn."
Germmany, etc. and one internationall
1
Thee Diamond Prrincess Cruise ship
harbbored in Yokoohama, Japan..

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Volumee 11, Issue 3, 20220
(Cernnansky, 2020)). Gary Adelm man, CFO off Reseearch Objecttives
Texass-based Men nswear Comppany, Trybuss The primary objeective of the study
s is to finnd
statedd: “But if you
u don’t have the
t fabric youu out the impact of COVID-119 on appareel
can’t make a coatt in Vietnam.. Roughly 300 manuufacturing woorkers.
percennt of the company’s
c suupply comess
from China” (Schw wab, 2020). These
T are thee The secondary objectives
o of this study arre
scenaario of the scarcity of raw materials.
m the following:
f
1. To
T identify the t conditionn of the globaal
Besiddes these, China
C as prooducers alsoo a
apparel indusstry.
affectts the appareel industry. In America,, 2. To
T discuss the condiition of thhe
aboutt 40 percent of the clothees come fromm B
Bangladesh a
apparel industtry.
Chinaa (Schwab, 20 020). Moreovver, around 388 3. To
T find outt the initiatiives taken by b
percennt of custom
mers of the global fashionn d
different staakeholders att the appareel
industtry is com mprised of the Chinesee m
manufacturin ng countries to protect thhe
consuumer, in conttrast to only 8 percent inn w
workers' livess and rights.
2003, which is still growing (Ru
Russon, 2020). 4. To
T write dow wn a few recommendationns
Accorrding to Jefferies,
J ann Americann b
based on analyzing
a thhe impact ofo
multinnational indeependent inveestment bankk C
COVID-19 o the worrkers and thhe
on
and financial
f serrvices compaany, Chinesee i
initiatives thhat have beeen taken by b
consuumers framed d about 80 percent of thee d
different stakkeholders so far.
fa
growtth in the apparel
a markket (Russon,,
2020)). Reseearch Questiions
The study had been
b done too find out thhe
So, overall, thee apparel industry iss answ
wers to the folllowing questtions:
particcularly vulnerrable in the whole
w world.
All the
t stakeholdders of the industry i.e. 1. W
What is the immpact of COV VID-19 on thhe
Goverrnment, Customers, Workers,, a
apparel manuufacturing couuntries?
Manuufacturers, Su uppliers, Retaiilers, Fashionn 2. What
W is the im
mpact of COV VID-19 on thhe
designners, Advertising andd Marketingg w
workers, the most vulnerablle
companies, and Trransportation as well as thee s
stakeholders??
other associated in ndustry i.e. Electricity
E andd 3. What
W types of initiativess have alreaddy
Gas suppliers, Sho opping mall, etc.
e have seenn t
taken by diffferent stakehholders at thhe
troublle brewingg. Among all thee a
apparel mannufacturing countries to t
stakehholders, the workers arre the mostt p
protect the woorkers' lives and
a rights?
vulnerable stakeho olders (Cernaansky, 2020).
It is still
s not calculated exactlly how muchh Literature Revieew
the COVID-19
C will impact onn the fashionn
industtry and whatt is the perceentage on thee The Indication of o the Impacct of COVID D-
workeers. But, it is possible to prredict that thee 19 on the Globall Economy:
apparrel workers willw be the most m affectedd Worrld Health Orgganization (W WHO) declareed
stakehholders. The ILO noted that t the totall “COOVID-19” as thet official naame of the new w
value added of industrial ennterprises inn diseaase (previoussly known ass “2019 noveel
Chinaa decreased by b 13.5 percennt in the firstt coroona virus”) onn 11 Februaryy 2020 (Worlld
two months
m of 202
20 as well ass workers aree Heallth Organizattion, 2020). Some peoplle
expeccted to collecctively lose between
b $8600 havee started to call this virrus as “Chinna
billionn and $3.4 trrillion in laboor due to thee viruss”, “Chinesee corona virrus”, “Wuhaan
increaased unem
mployment (McKeever,, coroona virus”, “W
Wuhan virus”, or the “Kunng
2020)). Flu”” etc. (Kozloowska, 20200) though thhe
viruss belongs to the earth. This
T epidemiic
doessn’t confine to a specific nation or o
counntry, it now afffects the whoole world. Thhe

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Volumee 11, Issue 3, 20220
wheell of the econnomy has already almostt Deveelopment, 20020). It is exppected that duue
stoppeed. The follo
owing speechh can supportt to COVID-19,
C gllobal growth could be sunnk
the staatement. by around ½ percent pooint in 20220
comppared to the t expectaation in thhe
Chinaa’s Presidentt Xi Jinpingg, speech onn November 2019 Economic
E Ouutlook (OECD D,
television Februaary 23, 20020: “It iss 20200).
unavooidable that the novel corona viruss
epidemmic will havee a considerabble impact onn Besiides these, the annual global GD DP
the ecconomy and society” (Unnited Nationss growwth is estim mated to deccrease to 2..4
Confeerence on Trade
T and Development,
D , percent in 2020 as a whole which
w was 2..9
2020)). percent in 2019 (OECD,
( 20200). The globaal
econnomy is noow interconnnected wherre
At G220 gathering in Riyadh, Saudi
S Arabia,, Chinna plays a vital role in i almost all a
dated on Februaary 24, 20220, Japanesee econnomic sectorss i.e. producction, tourism
m,
Finannce Minister Taro Aso uttered:
u “Thee tradee, etc. (OECD
D, 2020).
spreadd of the new w corona viruus is a publicc
healthh crisis that could pose a serious
s risk too The Governmennt declared restriction to t
the macro
m economy through the halt inn mobility and trravel as well w as beinng
produuction activ vities, interrruptions off quarrantined resullts an explicit dropdown in i
people's movemen nt and cut-ooff of supplyy manyy economic sectors. These T adversse
chains” (United Nations Coonference onn conssequences im mpact on the global supplly
Tradee and Develop pment, 2020).. chainn (OECD, 2020). Thiss interruptioon
affeccts the produuction capacitty for most of o
Guy Ryder, direcctor-general of the ILO,, the countries
c thaat are mainly dependent ono
acknoowledged: “T The corona viirus outbreakk Chinna for the raw materiaals. Here, thhe
was no
n longer onlly a global heealth crisis, itt induustries got ham mpered mosttly who follow w
is alsoo a major lab
bor market and
a economicc the inventories brrought by a leean and just-inn-
crisis..” (McKeeverr, 2020). So,, the COVID-- timee manufacturring process, for instance,
19 doesn’t
d onlyy impact the t Chinesee Euroopean automobile m
manufacturerrs,
econoomy, but also on the globall economy. Japaanese camera produces annd automobille
induustry, the Reppublic of Koreean machinerry
The Reasons forr which CO OVID-19 willl and communication equipmennt industry, etc.
hamp per the Globa
al Economy: Simiilar to thesee developed countries, thhe
Still, there is noo calculationn to tell thee otherr developing countries likke Bangladeshh,
econoomic damage to occur duee to COVID-- Myaanmar, Indiaa, Pakistan, Sri Lanka,
19, thhe economistt agreed that it will havee Vietnnam, Ethiopia, etc. are nott economicallly
severee negative impacts on the globall injurred due to the apparel supply chaiin
econoomy (Duffin, 2020). interrruption for COVID-19
C at China.

The main reason n behind it that China,, The Impact of COVID-19

C onn the Global
knowwn as ‘the worlds’ facttory’ is thee Appparel Industrry:
manuufacturing hub b for much global businesss Thiss impact of COVID-19
C o the appareel
on
i.e. energy, auttomobile, teextile, steel,, induustry has seenn as an epidemmic crisis. Thhe
agricuulture, coal, and electroonic devicess prim
mary reason is i that the main
m source ofo
includding mobile, etc.
e China hass become onee raw materials for f the appparel industryy,
of thee major supp pliers for the intermediatee Chinna, has beenn infected att first by thhe
produuct to the final
fi produceers. China iss COV VID-19. Imm mediate after the lockdow wn
accouunted for 20 0 percent off the globall declaared in Chinaa, the whole supply
s chain of
o
manuufacturing inteermediate prooducts solely,, thosee industriess, which is completelly
albeitt it was only 4 percent in 2002 (Unitedd depeendent on Chiina, got disruupted. The leaad
Nations Confereence on Trade andd appaarel manufactturing countrries’ industriees

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Volumee 11, Issue 3, 20220
in thhe global world i.e. Bangladesh,, supppliers. Somettimes, buyerrs snubbed to t
Myannmar, Sri Lanka, Pakisttan, etc. aree pay the supplierss’ cut and maake productioon
mainlly dependent on China forr their apparell costss (Anner, 20220).
raw materials.
m For instance, Bangladesh
B iss
depenndent on Chin na alone for more
m than 500 Anotther impact ofo COVID-19 on the appareel
percennt of apparell raw materiaals, and aboutt induustry is the deferred payyment by thhe
40 peercent of the machinery
m annd spare partss retaiilers. Due to the lockdow wn because of o
for thhis industry (Perera,
( 20200). Similarly,, COV VID-19, the sales of thee retailers annd
Myannmar is also dependent
d on mainly
m Chinaa brannds go to zero. Besiddes these, no n
for about
a 90 peercent of raaw materialss transsportation is available in this pandemiic
(Cernnansky, 2020)). According to t a survey, itt for the shipmentt of the gooods and otheer
has been found d that 93 percent off associated tasks also
a stuck. As
A a result, thhe
Banglladesh supplliers reporteed that theyy brannds and retaiilers informeed the factorry
faced a delay in raw material shipmentss owners about thee delayed payyment (Karim m,
duringg this pandemmic (Anner, 20020). Besidess 20200). A surveyy report shoows that 10..9
these,, due to these delays, thee price of thee percent of Banglaadeshi manuffacturers faceed
raw material
m has increased.
i In Myanmar, itt the delays
d of payyment for 1 to
t 10 days annd
is prredicted thatt about 10 percent off 68.8 percent of them
t experiennced delays of
o
factorries in the Yaangon region of Myanmarr moree than 10 days; while som me
are allready closed while at leasst 20 factoriess manuufacturers coonfronted forr the deferreed
acrosss the whole Myanmar
M havve seen closedd paymment over the 30 days (Annner, 2020).
due too the shortagee of raw-mateerials (Perera,,
2020)). The Impact of COVID-19
C on
n the Apparel
Worrkers:
The second impaact is order cancellationn The impact of COVID-19
C o the appareel
on
from the retailerss and brandds' end. Thee induustry is ruinouus. The brandds and retailerrs
buyerrs of this induustry plan to postpone thee havee no income as a well as theey have to beaar
futuree orders as well
w as the current
c orderss otherr associated costs.
c They canceled orderrs
that are
a in processsing. A surveey, conductedd from
m the m
manufacturers. Only i
in
on thhe Bangladesh h perspectivee, found thatt Banggladesh, it iss predicted thhat around $6$
arounnd 23.4 percent of supplieers signpostedd billioon in export revenue will be lost durinng
that “a
“ lot” of current
c orders had beenn this financial yeaar amid canccellations from m
canceeled. Around d 22.3 perccent of thee somee of the woorld’s largesst brands annd
suppliiers said: “most” of their recent orderss retaiilers (Paul, 2020). Annd, now thhe
canceeled while 5.9 9 percent hadd all of theirr manuufacturers couldn’t pay thhe wages to thhe
in-proocess orders canceled (A Anner, 2020). workkers as theyy didn’t get any financiaal
The retailers are using a foorce majeuree suppport from the buyers. Moreover,
M theey
clausee in their conntracts. Thouggh the use off havee already invested lots off investment in i
this cllause has beccome unjustifi
fied accordingg purcchasing raw materials foor productionn,
to Arrticle 7.1.1 of
o the Viennaa Conventionn whicch is now cloosed. So, theey are not in a
for International
I Commerciaal Contractss capaable situationn to provide wages to thhe
(“Artiicle 7.1.7 (F Force Majeuure),” 2013). workkers.
Accorrding to Sourcing Journal: “Technicallyy
brandds cannot can ncel orders att factories ass Withh having limited income and
a no savinggs,
they are
a considereed a binding contract andd the workers faceed a huge financial
f crisis
quotes specialists that
t urge brannds to get outt durinng this panndemic. The workers arre
of pannic mode and d work out solutions withh grannted leaves without
w paym
ment. A recennt
factorries that worrk for the brrand and thee survey has foundd that about 72.4
7 percent of
o
factorry.” (Clean Clothes
C Camppaign, 2020). manuufacturers in Bangladesh were
w unable to
t
Buyerrs declined to o pay for thee cost of raw
w provvide their woorkers with some incom me
materrial that was already procured by thee whenn furloughedd, while 80.4 percent of o

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Volumee 11, Issue 3, 20220
them stated that they were incapable too A siimilar situatiion in India also. Prabhhu
providde compensation w
when orderr Dham modaran, Coonvenor, Coim mbatore-baseed
canceellations resullted in workker dismissalss Indiaan Texpreneurs Federatioon (ITF), haas
(Anneer, 2020). However,
H theere is still a vocaalized: “Buyeers from Euurope and thhe
challeenge for tho ose factories,, whose stilll Unitted States are
a either postponing
p o
or
receivving orders frrom the brandds, ensuring a cancceling orders.. Apart fromm that, there is
safe transportation
t n system for the workerss a woorking capitall shortage duue to liquiditty
while all kinds of transpoortation banss issuees in the maarket due too the currennt
(Anneer, 2020). crisis,” (“Indian Apparel Firm ms Gear up to t
Facee COVID-19 Impact,”
I 2020).
Mr. Mostafiz
M Uddin, the Managging Directorr
of Deenim Expert Limited, alsoo predicts thee Due to this type of
o order canccellation by thhe
job losses in the t Bangladdesh apparell retaiilers, workerrs are facing tremendouus
industtry due to the COVID D-19 (Uddin,, probblems rather thhan any otherr stakeholderrs.
2020)). Albeit therre is no actuaal calculationn “Twwo or three order
o cancellaations and thhe
on how
h much workers
w in the apparell factoory goes buust. With the t delay of
o
industtry will losee their jobs due to thiss shipm ment, how are
a they goinng to pay thhe
pandeemic. Thousaands of workkers may losee salarry?” says Syed
S Hasibudddin Hussainn,
their jobs, partiicularly in the apparell projeect manaager for Mapped
M i
in
industtry, which iss the highest employmentt Banggladesh at BRACB Uniiversity sayys
sectorr in Ban
ngladesh. The Asiann (Cerrnansky, 20200).
Devellopment Ban nk (ADB) predicted
p thatt
894,930 workers would be unnemployed inn Evenn, a few retaailers respondded with theeir
Banglladesh if th he virus sprread (Perera,, employee practicces, not about the supplly
2020)). Accordin ng to the Bangladeshh chainn partners, when
w someonne asked whaat
Garm ment Manufaacturers andd Exporterss they’re doing to support the supply chaiin
Assocciation (BGM MEA), above 70 factoriess workkers. Forr examplle, Voguue
were closed during g the last yearr and 1,200 inn Busiiness asked thist questionn to nearly a
the past
p four yeaars which accounted forr dozeen brands — includingg Nordstrom m,
firing more than 50,000 worrkers (Perera,, Ameerican Eaglee, VF Corporation, PVH H
2020)). A similar situation is in i Cambodia. Corpp, Levi’s andd Target, etc. and didn’t geet
Due tot the shortag
ge of raw mateerials, tens off any satisfactory answer. Soometimes, thhe
thousaands of app parel workerss could losee retaiilers responded to the crrisis by takinng
their jobs
j in Cambodia. diffeerent initiativves limited too the nationaal
bounndary. For innstance, LVM MH, a Frencch
The brands
b and retailers not onnly cancel thee orgaanization, toook an initiativve to producce
buyinng orders bu ut also refuused to takee handd sanitizer at the cosmeticcs factory. Buut,
responnsibility for garments. The T workerss they did not respond to the question of o
didn’tt get their sallaries (Kelly, 2020). Scottt whetther the prodduct will be madem availablle
Nova has said: “M Many of these workers livee to itss suppliers or not (Cernanssky, 2020).
in countries
c where
w labor laws andd
protecctions are no ot upheld,” (K Kelly, 2020). So, preliminary,
p i very clearr that COVID
it’s D-
In Cambodia,
C th
here is a law l to seekk 19 has
h injured the economy of o China whicch
Goverrnment perm mission beffore sackingg also hampered thhe whole suppply chain for a
workeers along witth paying them m 40 percentt few economic sectors. The appparel industrry
of thee $190 (£161)) monthly miinimum wagee is one
o of the most vulnerrably infecteed
for upp to six mon nths (Kelly, 2020).
2 Albeit,, sectoors. And, thhe apparel manufacturinng
some factories have h alreadyy suspendedd workkers have faceed the great economic
e crisis
workeers without paying norrmal salariess due to
t this COVID D-19.
whichh may lead theem to the deffaulter.

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Volumee 11, Issue 3, 20220
Conceptual Fram mework fram
mework in connsideration off the impact of
o
After reviewing the differeent literaturee COV VID-19 on thet global apparel
a supplly
review
w related to the research objectives, a chainn, apparel manufactures
m a well as thhe
as
theoreetical framew
work has been
b formedd workkers, the mosst abandoned stakeholder in
i
(Figurre 1). Thiis study designed
d thee the apparel
a supplyy chain.

COVID
D-19

China Gloobal

Shortaage of Raw Maaterials Brandds’ sales goes to

t Zero
turnover

Affect Globbal Apparel

Induustry

Steeer to
Leads to increease
aa. Order can
ncelation  
the
t production cost b Payment deferred  
b.

Affect the Apparel

A Impaact on Workerss
Manufactturing 1) Don’’t get wages  
Countries
2) Job lloss 

Figgure 1: Conceptual Fram

mework

The study has tried

d to integrate a conceptuall raw materials was w the maain reason to t
frameework for stu
udying the acctual scenarioo increease the cost of productionn as well as thhe
of thee impact of COVID-19 on o the wholee factoory closure at the manufacturinng
apparrel supply chaain. At first, the COVID-- counntries. Againn, when thhe COVID-119
w found in China whicch led to thee
19 was spreaad to the otheer countries i.e. Europe, thhe
shortaage of raaw materiaals to thee US, the USA, ettc., the brandds’ showroom m
manuufacturing couuntries. Thiss shortage off closeed. The gloobal apparel industry waas

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Volumee 11, Issue 3, 20220
affectted due to COOVID-19. Ass a result, thee donee primarily inn Western meedia outlets viia
buyerrs and retaillers canceledd orders andd Google News seearches, as well as locaal
inform
med the manufacturers
m about thee searcches of Prothhom Alo, Finaancial Express,
deferrred payment. These two thhings affectedd Dhakka Tribune, etc. Relevannt stories werre
the apparel
a manu ufacturing coountries. Thee colleected by saviing PDFs of the stories. A
factorry owners co ouldn’t pay the workers’’ totall of 96 news items have appeared.
a Eacch
wagess. As a resultt of the lockdown declaredd newsspaper was oppened, read at a a glance annd
by thee Governmen nt of the partiicular apparell the researchers tried to unnderstand thhe
manuufacturing countries,
c thhe workerss adapptability to thee research objjectives. Therre
becamme helpless. They
T didn’t get
g their legall weree a few news items which are not relateed
wagess as well as having
h fear of
o losing theirr to thhe research obbjectives, for example, Parris
job peermanently. Menn’s and Coutture Fashion Weeks Havve
Beenn Canceled amida COVID D-19 Concerns;
hods and Matterials
Meth Globbal Fashion Groups Holld Confab on o
COV VID-19; Sprring Copenhhagen Fashioon
Reseaarch Approa ach:
Summmit Postponned amid Corona viruus
This study
s followeed the inducttive approachh
Conccerns; Appaarel-Industry Trade-Show w
to undderstand the effect
e of COVVID-19 on thee
Orgaanizers Realign Dates Duue to COVID D-
apparrel manufactu uring countries. Qualitativee
19; etc.
e This news was curtaileed at the initiaal
data was
w used to reealize the oveerall situationn
screeening. After the initial scrreening, a totaal
of thee apparel indu
ustry.
of 700 news items (local & Inteernational) waas
seleccted for data analysis.
a
Data Collection Strategies:
Secon ndary data: Primmary data:
To unnderstand thee impact of COVID-19
C onn To formulate
f the recommendaations, primarry
the gllobal apparel industry, thee Bangladeshh inforrmation was used.
u Due to the lockdownn,
apparrel manufactu uring industryy as well ass the primary
p inforrmation collecction has beeen
the workers,
w all secondary infformation hass difficult througgh the face to facce
been used. The previous
p literaature review,, interrviewing session. So, the Trade
T unionisst,
newsppapers, and in ndustry reporrts have beenn Policcymakers, Researchers,
R Academiciann,
used tot compile th his study. The majority off and Manufactureers were conntacted for an a
the seecondary data have been collected byy onlinne interview. An online semi-structureed
the following newspaper event dataa interrview was been b arrangeed with eacch
collecction strategyy. The primarry reason forr respoondent. Eachh interview wasw conducteed
using the newspap per informatioon is that stilll in thhe Bengali lannguage and laater it has beeen
no suuch informatio on available for the RMG G transslated with thhe expert persoons.
industtry during the t COVID--19. Anotherr
reasonn is that this t methodoology, usingg Dataa Analysis:
newsppaper inform mation for datta collection,, For the
t data analyysis, NVivo qualitative
q datta
has been
b used too develop thhe theoreticall analyysis softwaree was used to t collate annd
postullates (Barrancco & Wisler, 1999). It hass codee the data. Thhe first round of coding waas
happeened becausee newspaper data are thee comppletely ‘induuctive’. In thhis stage, thhe
combination of results shared by thee desccriptive codes were selectedd and assigneed
journaalist and the expert
e from that
t particularr levell. The descripptive codes i.ee. “The impacct
area. of COVID-19”;
C “
“Initiatives are taken”; etc.
requuire no or a very few interpretation
i ns.
For the
t data collection, onlinne media hass Afteer that, the seecond stage of coding haas
been searched reg gularly for stoories relatingg started. Now, the coding moved intto
to thhe COVID-19 9 effect on the apparell “inteerpretive” codes. Thesee interpretivve
industtry. The data collection tim
meframe wass codees indicate thhe presence ofo the findinggs
from January 2020 0 to March 20020. This wass (Leittheiser, 20199). It also suupports writinng

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Volumee 11, Issue 3, 20220
downn the section headers
h i.e. the
t impact onn is ass high as 80--100 percent." (Shashidhaar,
the apparel ind dustry, the impact onn a a nightmare,
20200). Pointing thhis situation as
manuufacturing couuntries or thhe impact onn Mr. Flavio Ceredda, a managiing director at a
workss, etc. All the collectedd newspaperr Jeffrries, stated thhat: "We've never seen a
inform
mation and the
t interview w informationn situaation like this, where salees go to zeroo.
have been
b used forr analyzing. And it affects evverybody, whhether you're a
big or
o small brannd," (Russon,, 2020). “Eveen
Analyysis and Find
dings someetimes, 70-800 percent discount on thhe
prodduct can’t attrract customerrs to purchasse
The Impact
I of COOVID-19 on the
t Global
the product.”
p according to retaail expert Katte
Appaarel Industry y:
Harddcastle (Russoon, 2020).
“We are the fashiion industry, so once wee
miss the
t season, wew will not be able to selll
Somme retailers closed
c the shop
s for twwo
the saame products.. We do not know
k whetherr
weekks which mayy continue loonger. There is
the buuyers are go oing to cut or
o reduce ourr
no estimated information abouut how long thhe
orderss, but so faar, we have not got thatt
COV VID-19 willl sustain, but it is
feelinng.” (Adittiya,, 2020)
apprroximations that
t it couldd be anythinng
- M.PP.T. Cooray, Secretary,
S JA
AAFSL
untill June 2020 or
o up to the next
n 18 monthhs
(Udddin, 2020). As retaileers have to t
From this statem ment, it may be easy too
emolument the rents on their stores,
underrstand the efffect of COVIID-19 on thee
employees’ salaaries, businesss rates, annd
apparrel industry. This
T disease does d not onlyy
insurrance fees ass well as othher associateed
force the world'ss largest retaailers’ shopss
costss with haviing zero turrnovers, som me
acrosss Europe, thee US, the US SA, to close,,
retaiilers have too struggle more
m (Uddinn,
but also
a hitches the
t whole appparel supplyy
20200). Lots of fashion
f shows, conferencees
chain as the brand ds and retaileers cancel orr
relatted to the apparel
a induustry, differennt
postpooning orderr as well as deferredd
tradee fairs are being canceeled (Hughees,
paymments (Cernansky, 2020). It I is predictedd
20200).
that over
o €30 billioon sales havee decreased inn
the luxury
l fashioon industry (Cernansky,,
As retailers
r shutt down the shops,
s appareel
2020)). Bernstein, a US-basedd investmentt
factoories are closing down at a an alarminng
firm, declared thiis situation as a the worstt
rate. Temporary factory closuure may affecct
condition in modern m histoory (Voguee
Asiaa’s $290 billiion textile inndustry, whicch
Businness Team, 20 020). Consum mers remain att
has accounted
a for 60 percent of the worldd's
home as per the instruction of o their homee
appaarel industry (Cernansky, 2020). This is
Goverrnment which h leads to a reduction inn
the only result of dependinng heavily on o
the appparel sales compared to the last few w
Chinna for raw materials.
m It iss expected thaat
years (Uddin, 202 20). Internatiional touristss
arouund 200 apparrel productionn factories wiill
are mainly
m attracted by luxxury fashionn
be affected by thee COVID-19 where arounnd
brandds. In the US alone, the tourists spendd
100 million workkers employeed (Cernanskyy,
arounnd $200 billiion in a yeaar on luxuryy
20200). The workeers are expectted to get theeir
goodss (Macksoud et al., 2020) which
w slowedd
salarry for the clothes
c they have alreaddy
downn nowadayss. Preeta Sukhtankar,,
made (IndustriALL Global Union, U 20200).
Foundder of Label Life, expecteed that in thee
Unfoortunately, theey do not get it.
first quarter
q of the financial year
y 2020-21,,
the saales of the ap pparel compaanies will goo
The Impact on Bangladesh
B A
Apparel
downn anywhere between 500-60 percentt
ustry:
Indu
(Shashidhar, 2020 0). Besides this, Rishavv
The value of thee global appaarel industry is
Jain, Senior Direector and Coonsumer andd
$3,000 billion ($$3 trillion). This industrry
Retaill sector leaad, Alvarez & Marsal,,
contrributes to 2 percent
p of the world’s Grosss
pointeed out that in some cases thet sales dropp
Dommestic Producct (GDP) (“G Global Fashioon

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Industry Statistics - Internationnal Apparel,”” Retaailers sent an email
e to the suppliers
s not to
t
2020)). ship the product.. And, gettinng this type of o
emaiil shakes the whole supplly chain of thhe
The effect
e of COOVID-19 hass not startedd appaarel industry. Mr. Mostafi fiz Uddin saidd:
simultaneously around
a the world. Forr “Donn’t ship the goods.
g That’ss the thing wew
instannce, when it was just sttarting to bee are hearing from m everybody,,” (Cernanskyy,
detectted in Banglladesh, the other
o apparell 20200). Only in Bangladeshh, about $2..4
competitors of Bangladesh
B i
i.e. Ethiopia,, billioon ordered was
w canceled by b the retailerrs
Cambbodia had already stooped theirr (Cerrnansky, 20200). The situaation becomees
produuction due to the lockdownn of any kindd worsse, when “M Most brands are a putting thhe
of touurism. Buyers and retaillers canceledd ordeers indefinitelly on hold annd canceling,”
orderss. Moreover, they did not want to takee said Dr. Rubaana Huq (Bain, ( 20200).
the reeady product. Furthhermore, thhe retailers asked thhe
supppliers not to cuut the fabricss and processees
Accorrding to Dr. Rubana
R Huq,, president off otherr imported or stored raw r materials
the Bangladesh Gaarment Manuufacturers andd (Pavvarini, 2020). Primark, onne the biggest
Exporrters Associiation (BGM MEA), “$100 globbal retailerss & impporters from m
millioon in orders were canceled across 200 Banggladesh, has canceled
c all supplier
s orderrs
factorries.”(Cernanssky, 2020) inn a single dayy that have yet to reeach its distribbution centerrs,
of thee 3rd week of o March 20220. This ratee usingg a force majjeure clause in i its contracts
changged just overr a few days later. “Untill (Siddders, 2020). Similar
S to Priimark, Arcadiia
Marchh 24, orders ofo 649.30 million pieces off Grouup has tempoorarily frozenn payments to t
RMG G products fro om 738 garm ment factoriess supppliers, M&S has ditched plans p to ordeer
worthh $2.4 billionn have been canceled”
c Dr. £1000 million woorth of produuct (Wood &
Rubanna Huq (K Kamruzzamann & Sakib,, Swenney, 2020). Moreover,
M H& &M stated thaat
2020)). This inform mation only came from thee due to the globall drop in dem mand, they haad
listed organizations under thhe BGMEA. to pause new orders (C Clean Clothees
Apartt from this apex boarrd of tradee Cammpaign, 2020)). This type of situation is
organnizations, theere are lots of garmentss not only
o in Banggladesh, but it i also spreadds
factorries as well as other suub-contractingg amonng most of thhe manufacturring countriess.
factorries that alsso are affeccted by thiss
COVIID-19. Thee apparel export off The Impact of Bangladesh
B A
Apparel
Banglladesh down ned to $26.224 billion inn Man nufacturing Workers:
W
Februuary 2020, com mpared to Juuly 2019. Thiss The apparel inddustry emplooys over 1005
decreaase is 4.8 percent,
p comp
mpared to thee milliion people (S
Sally, 2020). Among
A all thhe
corressponding months at the previous
p yearr stakeeholders o
of the inndustry, thhe
(Pererra, 2020). In February 20020, the totall manuufacturers’ workers,
w 40 million
m people,
exporrt fell to $3.32
2 billion, decreased by 1.88 are the most vuulnerable due to factoriees
percennt compared d to the sam me month inn closiing and orders drying up u during thhe
2019 (Perera, 2020 0). COV VID-19 (Kellly, 2020). Low wagees,
unsaafe, unhealthyy, and unsannitary workinng
So, COVID-19
C has
h a directt impact onn envirronment, ettc. makes the garmennt
fashioon, global fib
ber, textile, garment andd workkforce highlyy vulnerable. It’s not onlly
tanninng industry (Pavarini, 2020).
2 Alicee limitted to the recent crisiis caused by b
Tonelllo, marketinng/R&D, Toonello, Italy,, COV VID-19, butt also in almost everry
said: "Corona viirus is havinng a strongg catasstrophe (Pavaarini, 2020). In
I Bangladeshh,
impacct and the industry is expecting a fire at the Tazreeen Fashions in i 2012; Ranna
signifficant slowdoown. Duringg this periodd Plaza factory colllapse in 20133, a factory firre
consuumers, don’t consume. And this iss in Pakistan's Karrachi city in 2012, anotheer
happeening throughhout the worrld.”(Pavarini,, factoory fire at New
N Delhi, Inndia, in 20166,
2020)). etc. are the exxamples of the industriaal

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accideents where alla the victim ms were thee due wages
w (Cleann Clothes Cam
mpaign, 20200).
workeers of those particular faactories. Thiss Thouugh there was
w a promisse to pay thhe
type of acciden nts or otheer industriall wagees (Perera, 20020).
accideents happen n just becaause of thee
manuufacturing facctories operaate on razor-- The vulnerabilityy rate may bee higher in thhe
thin margins
m (Cern
nansky, 2020)). Bangladeshh deveeloping countrries like Banggladesh havinng
is onee of the best examples
e of the
t minimum m 4.1 million
m workeers – mainly known
k as low
w-
profitt margin manu ufacturing couuntries. wagee workers, where
w there is limited accesss
to healthcare
h annd no sociaal safety neet
It hass already preedicted that the
t pandemicc (“Assia’s Garmennt Industry Sees
S Lay-Offfs,
COVIID-19 could be thee Factories Closingg Due to COV VID-19,” 20200;
cause of layoffs 2 an
nd job
1F suspensions. Cernnansky, 2020)).
Manuufacturers may y try to coverr the incurredd
lossess by droppingg the number of workers orr Mosst workers doon’t get paid sick leave annd
plumm meting the wo orking hours which wouldd can’tt access basicc medical carre. Sometimes,
resultt in income dropping
d (Paavarini, 2020;; the workers
w don’’t get their monthly
m salaryy.
Uddinn, 2020). Kosstas Mandilarris, the ownerr Occaasionally, thee basic salary has been paiid
of Misiu
M Academ my, has said: “I do caree withhout overtim me and otther bonusees
aboutt the people that
t get no salary
s or losee (Adiittiya, 2020)). Scott Nova, executivve
their job
j because of o this. Manyy families thatt direcctor at the Worker
W Rightts Consortiumm,
are thhe backboness of our comm munities willl part of the Clean Clothes Cam mpaign (CCC C),
sufferr the mosst, along with smalll said “The fashionn industry haas evolved in a
busineesses.” (Mand dilaris, 2020)). way that makes it i hard in norrmal times foor
the people
p who make
m the clothhes we all weaar
Mr. Mostafiz
M Udddin, Managingg Director off everyy day to survvive on the poverty
p wagees
Denim m export, staated, “Withouut having ann they are paid,” (Kelly, 2020). Even, thhe
incomme, factory owwners may bee forced to cutt overrall health care
c infrastruucture for thhe
jobs. Indeed,
I the ow
wner of the manufacturing
m g RMG G workers iss not highly good to deaal
companies doesn n’t do thee employeee withh the COVID--19. For exam mple, a total of
o
reduction intention nally. They are
a forced too 500 ICU beds arre available in Bangladessh
do it.”” (Cernansky, 2020). for nearly
n 170 million
m peopple. “Even thhe
mostt affluent peoople of Banglladesh will noot
This happens duee to the shorrtage of raw w be able to geet any treattment,” Syeed
materrials and the continnuous orderr Hasiibuddin Hussain (Cernanskyy,
canceellation by thee retailers (Baain, 2020). Inn 20200). With a limited incoome, it’s noot
Banglladesh, SS Leather
L Induustries in thee posssible to save money from m their salariees
Jessorre district; an
nd the other thhree factoriess for thhe future withh which they can survive in i
in Savver — Raquef Apparels WashingW andd a finnancial crisis.
Packaaging Industtry, Passion Jeans andd
Passioon Apparels and Ware; were shutt Kalppona Akter, executive diirector of thhe
downn. All of th he workers issued leavee Banggladesh Centter for Workker Solidarityy,
withoout pay an nd failed to t pay thee has said: “From here,
h we cann see there is a
outstaanding wagess. The CCC reeported that a hugee line in [Weestern] superrstores. Peoplle
groupp of workers is staging a sitt-in protest inn buyiing food, stocking up. While
W people in
i
front of an ownerr's house dem manding theirr the production
p countries, likee our countryy,
they don’t have money
m to stoock food.” Shhe
2
Lay--off means the failure or reefusal of an also has said: “If workers are laid off if theey
emplooyer for businness reasons i.e. account off don’’t get their fuull month’s wages
w that wiill
shortaage of coal, power, raw maaterial, break-- be a real crisis foor them.” Shhe also utteredd:
downn of machinery y, or downsizzing to give “I doon’t want to minimize whhat people arre
emplooyment to a worker.
w goinng through inn the US, butt… workers in i

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these factories arre going to suffer muchh
more than employ yees at the coompany level,, HSB BC Bank plc, p a gloobal financiaal
and thhat should be taken into coonsideration,”” instittution, extendded its support to beleagueer
(Cernnansky, 2020). the Bangladesh garment secttor. The bannk
will provide a shhort-term loann of up to onne
The non-paid
n wages was a short term issue,, year, with a prinncipal moratoorium for fouur
but thhe long term concerning topic
t was thee monnths (“HSBC C Extends Support to t
emplooyment of th he workers at a all. As thee Beleeaguered Garrment Sector,,” 2020). This
situatiion became worse,
w workerrs were beingg amouunt can be used to supporrt payroll bills
let go (Leitheiser et al., 20020). At thee and utility paym ments. The bank
b will alsso
beginnning of the April, 2020, it was moree ensuure to extend three monthhs' moratorium m
than one
o million which
w has likkely increasedd againnst the existinng term loanns belonging tot
(Ovi, 2020). the textile a
and garmeents sector’s
businnessman.
No one thinks thee workers ass well as thee
familyy members off them who mainly
m rely onn Banggladesh's Goovernment alsoa takes an
a
the RMG
R workerss. Now it hass become thee initiaative to resschedule deefaulted loanns
promiinent question n - who will support them
m amouunting to BDT502 billion b ($US
S6
duringg this type off crisis timing. billioon). Amonng all thee defaulterrs,
Banggladesh’s appparel businesssmen are thhe
The Initiatives
I Ta aken by Diffeerent top (Perera, 20200). So, it caan be assumeed
Stakeeholders at Different
D App parel that this type ofo initiative will suppoort
Manu ufacturing Countries:
C appaarel manufactuurers.
Durinng this emerg gency periodd of COVID--
19, different typess of initiativees have beenn In thhis crisis movement, it has been seen thaat
seen to take by y different stakeholders. the Government
G of the appareel importers to
t
Centrral banks from different countries aree suppport the mannufacturing countries.
c Foor
lowerring the interest
i ratee and thee instaance, Germaany ensuredd to suppoort
Goverrnment also o introduceed attractivee Banggladesh durinng COVID-19 in responsse
financcial packagess. The labor union of thee to thhe request of BGMEA preesident Rubanna
particcular countriees demanded support fromm Huq not to caancel orders and suppoort
the staakeholders in
n favor of the workers. factoories. It’s veery clear at the speech of o
Gerdd Müller, thee German feederal ministeer
In Baangladesh: for economic
e coooperation andd developmennt.
On 252 March 2020, 2 Banglaadesh Primee He said:
s "I greatlly hope that we
w will find ana
Minisster Sheikh Hasina
H declareed a stimuluss apprroach that willl safeguard thet survival ofo
packaage for exporrt-oriented inndustries. Thee the textile
t industtry in Germanny and also ini
total amount of th his package is BDT5,0000 Banggladesh, withh the millioons of peoplle
core (EUR 5.3 billion)
b for the
t exportingg workking in thatt sector. I therefore
t noww
industtries to mod derate the immpact of thee intennd to pass youry urgent request on to t
COVIID-19 (“PM Announces Tk 5,000crr repreesentatives of the Geerman textille
Stimuulus Packag ge for Expport-Orientedd induustry.”(“Germ many Assurres BD of o
Industries,” 2020)). The alloccated moneyy Safeeguarding Surrvival of Texxtile Industry,”
from the package could
c only bee disbursed inn 20200).
the form of saalaries and wages forr
emplooyees and workers
w of the export-- Otheer apparel manufacturin
m ng countries:
orientted industriees including the apparell Cammbodia also trries to supporrt the workerrs.
industtries. The needed
n amouunt can availl Thiss country haas publicizedd to pay 60 6
from the package at a 2 percent innterest to payy percent of the minimum wagee to the appareel
their workers’ saalaries for up to threee workkers if theirr factories closed.
c In thhe
monthhs. amouunt of 60 peercent, the factory
f ownerrs

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will provide 40 percent andd another 200 (Sacctwu), the Appparel & Textiile Associatioon
percennt will be pro ovided by thee Governmentt of SA (Atasa), and the SA Appareel
(Bainn, 2020). At the very beeginning, thee Assoociation (Saaaa). The Nationnal
workeers were sentt home without being paidd
and thhis led to a prrotestation. Barggaining Couuncil for the Clothinng
Mannufacturing Inndustry in SA,
S being thhe
Myannmar Governm ment declareed to supportt headd of this innitiative, willl ensure thhe
the factory
f owneers to pay thet workers’’ workkers’ salaryy from the t workerrs'
salariees by providding loans (HHtwe, 2020). Unem mployment Insurance Fund (UIF F)
Turkeey's Governm ment also coonfirmed thee monnies and emplloyers’ fundss. Though theey
suppoort to the ap pparel industrry by takingg didnn’t announce the
t amount off payment, stiill
differrent initiativ
ves i.e. poostpone debtt tryinng to find out the acctual numberrs
paymments, reduce tax burdens, lessen value-- (Mkentane, 2020)).
addedd tax (VAT T) rate annd insurancee
premiium paymentts, etc. (“Turkkey Rolls outt Disccussion
TL 100B
1 Stimu
ulus Packagee to Protectt COV VID-19 is a pandemic. It’s attackeed
Econoomy, Busineesses from Coronaviruss almoost all countriies of the world so far. Thhe
Fallouut,” 2020). bigggest economicc countries inn Asia, Europe,
and America haave been inffected by this
Pakisttan Governm ment announcced PKR2000 diseaase. The globbal economy is now steadyy.
billionn as an aid tot the exportters but theree Almmost all the laargest econom mic sectors i.e.
was only
o PKR300 00 per month for workers. miniing, transpportation, leisure annd
Pakisttani CCC nettwork organizzation NTUF F hosppitality chainss, airlines, thee luxury goodds
reportted that this amount
a of commpensation iss sectoor, etc. Amonng all the economic sectorrs,
not suufficient to meet
m the minimmum need off the apparel induustry is one of the most
the faamily (Clean Clothes
C Camppaign, 2020). affeccted sectors. The
T retail shoops in differennt
In Srii Lanka, the Prime Minisster requestedd counntries are now w shut down.. Almost therre
to givve the workerss leave and cllose down thee are zero
z sales in the apparel stores
s (Russonn,
factorries. But, itt was reportted that thee 20200). All brandds, big or sm mall, have beeen
factorries were unaable to give workers paidd facedd with the saame situationn. The retailerrs
leave because brandsb are withdrawingg havee to strugglle with the payment of o
orderss. employees’ salaaries, businesss rates, annd
insurrance fees ass well as othher associateed
Anothher presidentt Bukele of El Salvadorr costss (Uddin, 2020).
2 ILO pointed thhe
ordereed to close down
d the facttory and said:: COV VID-19 as thhe major laboor market annd
“Prodducers have enough
e moneey to live 200 econnomic crisis when aroundd 24.7 millioon
lives, so they shouuldn’t be thinkking that theyy jobs will be disapppeared (McK Keever, 2020).
are gooing to lose 20 percent of their
t capital”.
In India, the apparel workerss sent homess The apparel inddustry is onee of the most
issuinng paid hollidays insteaad of beingg vulnnerable. Thouugh, it’s not yet
y calculatinng
granteed paid speciaal leave. how many empployees will lose the joob
durinng this epidem
mic or lost, as
a the COVID D-
Southh Africa (SA) Apparel Industry,, 19 has
h just startedd affecting thee industry.
consissted of 80,000 workers, toook a ground--
breakking agreemen nt to pay the workers’ fulll Thiss effect of COVID-19
C haas seen as an
a
salaryy for six weeeks during anda after thee epidemic crisis. The
T primary reason is thaat
lockddown (Mkeentane, 20020). Thiss the main source of raw matterials for thhe
agreem ment was siggned among the Nationall appaarel industry, China, has beeen infected at
a
Bargaaining Counciil for the Clotthing first by the COVID-19.
C The factoriees
Manuufacturing In ndustry in SA,S the SAA becaame closed ass per the Govvernment ordeer
Clothhing and Textile
T Workkers’ Unionn whicch leads to thhe shortage off raw materials

Articlee Designation: Sccholarly 13 JTATM

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Volumee 11, Issue 3, 20220
amonng the otherr apparel manufacturing
m g Ameerican Eaglee, VF Corporation, PVH H
counttries i.e. Baangladesh, Myanmar,
M Srii Corpp, Levi’s andd Target, etc. sent the emaail
Lankaa, Pakistan,, etc. Banngladesh iss to thhe suppliers not to ship thee ready producct
depenndent on Chin na alone for more
m than 500 whicch also leads to deferred payment.
p Onlly
percennt of apparell raw materiaals, and aboutt in Bangladesh,
B 7
738 factoriess received thhe
40 peercent of the machinery
m annd spare partss ordeer cancellationn email. As a result, $2..4
for thhis industry. Similarly,
S Myyanmar is alsoo billioon worth of products
p ordeered have beeen
depenndent on maainly China for f about 900 cancceled (Kamruuzzaman & Sakib, 20200).
percennt of raw maaterials. Not only has thee So, ultimately, the Banglaadesh appareel
lack ofo raw materrials but alsoo increase thee induustry has tremmendously afffected by thhe
price of the other production materials
m gonee COV VID-19.
up. These
T countrries could continue thee
produuction for a few more days d with thee All the stakehholders of the industryy,
invenntory that was w purchaseed & storedd espeecially workeers, have beeen affected by b
previoously. Albeitt, the production of thesee this epidemic (Ceernansky, 20220). Due to thhe
counttries are now stopped as thhese countriess COV VID-19, the workers havve to move to t
are also
a infected by the COV VID-19. Thee theirr origin. Agaain, the workkers didn’t geet
Goverrnment of th hese countriees declared a wagees because of factory clossure and ordeer
shutdoown for the next
n two or more
m than twoo canccellation fromm the retailerss. So, it neveer
weekss. It is predicted that abouut 200 apparell rainss but it pours! The ADB assumed
a that in
i
produuction factoriees will be aff
ffected by thee Banggladesh, being one of the largest appareel
COVIID-19 (Cernaansky, 2020).. Around 1000 prodducers, 894,930 workerrs would be b
millioon workers em mployed in thhese factoriess unem mployed (Peerera, 2020)). The sam me
whosee life is no ow in endannger. Due too situaation is in almost all the appareel
factorry closure, the manufaccturers don’tt manuufacturing countries
c i.ee. Cambodia,
have any income turnover
t whicch is the mainn Myaanmar, India, Pakistan, Sri Lanka, annd
cause of failure to pay the workkers’ salary. Soutth Africa, ettc. Sometimees, the factorry
owners don’t folloow the labor law – paying a
Besiddes these, Ch hina as a manufacturing
m g miniimum salary for a specifiic time durinng
counttry also affectts the apparel industry. Forr the suspension.
s T workers,, those luckilly
The
instannce, China iss the prime source
s for 400 could save the job,j get the paid holidayys
percennt of the clotthes in Amerrica (Schwab,, insteead of being granted paid special leave.
2020)). Chinese cuustomers are accounted
a forr Withh their limiteed income, thhey can’t savve
38 peercent of thee global fashhion industryy an amount
a of mooney for this type of crisis
(Russson, 2020) wh hen they frammed about 800 whenn they don’t have work or the factorry
percennt of this market grow wth (Russon,, can’tt pay the wages.
w Now, this criticaal
2020)). But, during g this epidemmic, the totall situaation forced them to jum mp out of thhe
value added of chiina has decreeased by 13.55 fryinng pan and intto the fire.
percennt in the firsst two monthhs of 2020 ass
well as
a workers arre expected too collectivelyy Duriing this pandeemic, differennt stakeholderrs
lose between
b $860 billion and $3.4
$ trillion inn tookk different typpes of initiativves in favor of
o
labor due to the increased unnemploymentt the workers annd overall, the appareel
(McKKeever, 2020)). So, the gllobal apparell induustry. Centraal banks frrom differennt
industtry has faced
d a shaken duue to COVID-- counntries are low
wering the interest rate. Thhe
19. Government alsso introducced attractivve
finanncial packagees i.e. reschedule defaulteed
For the manufa facturing coountries likee loans, provide financial suupport to thhe
Banglladesh, an email “Donn’t ship thee manuufacturers for f paying the workerss’
goodss” from Retailers has madee the situationn salarry, reduce tax burdens, lessen valuee-
as acrimonious. The
T retailers i.e. Primark,, addeed tax (VA AT) rate and a insurancce
Arcaddia Group, M&S,
M H&M, Nordstrom,, premmium paymeents, etc. Soometimes, thhe

Articlee Designation: Sccholarly 14 JTATM

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Volumee 11, Issue 3, 20220
Goverrnment requeested the factoory owners too
pay thhe workers’ salary
s at due time. Abovee
all theese initiativess, there were no sufficientt
advanntageous steps that have been taken forr
the workers
w (Cllean Clothess Campaign,,
2020)). Labor unio ons in particuular countries,,
especially in So outh Africa (Mkentane,,
2020)), have been n played a vital role inn
demannding workeers’ rights, not in thatt
effecttive ways. On n the other haand, there wass
no neews from the Bangladeshi labor unions.
They could appearr at the televvision set, butt
no succh initiatives,, even no form mal demands,,
have taken for thee welfare of the workers.
The apparel facttories ownerrs show thee
eagernness to pay the workerss’ salary, butt
after getting thee subsidiariees from thee
Goverrnment. BGM MEA, being thhe peak tradee
boardd in Bangladessh, requested to the brandss
and retailers nott to cancel orders, justt
focusiing on the workers’ crisis. So, thee
workeers don’t gett outside of the cycle off
poverrty. But the good news is that thee
Goverrnment of diffferent retailers and buyerss
startedd to think about
a the weelfare of thee
workeers. Sometim mes, they promised
p too
suppoort the appaarel industryy by takingg
differrent initiativees. But, stiill, no suchh
initiattives are appaarent.
Recom mmendation ns:
Yes, it right that the whole buusiness cyclee
has been shaken by b the COVID D-19, but it’ss
the quuestion of thee survival off the workers.
That’s why Dr. Rubana Huqq, being thee
presiddent of the BGMEA,
B sayss: “For them,,
it’s a question of the survvival of thee
busineesses, for us it’s the survivval of our 4.11
millioon workers.” (Cernanskyy, 2020). So,,
it’s very
v emergency to thinnk about thee
currennt crisis as a collective prroblem whilee
thinkiing about workers, the moost vulnerablee
groupps.
Government:
The Government
G can
c continue support
s to thee
workeers through mobilizing the
t necessaryy
resourrces to thee manufacturrers (Anner,,
2020)). The Goverrnment can subsidize
s thee
manuufacturers on different kinds of taxess
and VATs
V and pro
ovide monetaary support too
Articlee Designation: Sccholarly
the manufacturrers during the crisiis.
Alonngside, the Government
G needs to ensurre
thosee following thhings:
 No factories can be cloosed/ laid off
N
w
without payinng the workerr’s dues.
 A apparel factories
All f havee to be closeed
d
down ensurinng the wages to the workerrs
u
until the situaation improvees.
 N workers can be term
No minated durinng
t critical siituation.
this
Bran nds and buyeers:
Ultimmately, it’s the brands' and retailerss’
respoonsibility as they get the highest chunnk
of thhe profit. Thhe brands andd retailers caan
folloow the best practices. They coulld
purcchase the product that was alreaddy
prodduced and payy the paymennt in due tim me
whicch will help the supplierrs to pay thhe
workkers’ salariess. It is a hope
h that this
epidemic will sloow down verry soon. Afteer
that, the wheel of o the econom mic circle wiill
start to move again like before. Thenn,
custoomers will reead those brannds name whho
posittively or neggatively engagged with theeir
businness during this pandem mic. And, no n
businness wants that its name will be b
remeembered neggatively to thhe customerrs.
So, brands
b and reetailers have to
t come first tot
suppport the workeers. So, brandds and retailerrs
can continue thee order and not n cancel thhe
prevvious orders. They can shares the losss
incurrred due to thhe order canceelation.
Banks and otherr financial institutions:
The RMG sectoor needs liquuid cash flow w
suppport to retain workers. So, the banks annd
otherr financial institutionss can movve
ward to suppoort the destituute workforce.
forw
The bank can deferment
d of LC paymennt,
reduuce the intereest rate for loan
l paymennt,
etc. Moreover, thhey can also reschedule thhe
loan installment.
A multi-stakehol
m lder approacch:
Besiides the brandds and retaileers, employerrs
and Governmentss must collaborate the worrk
withh trade unionns to find waays to suppoort
garmment workers during this unprecedenteed
periood as well as to ensuure the futurre
15 JTATM
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Volumee 11, Issue 3, 20220
feasibbility of the in
ndustry once the crisis hass policcymakers, ressearchers and academicianns,
passedd (IndustriAL LL Global Unnion, 2020). buyeers, etc. can be formed to make thhe
policcies for the fuuture to ensurre the workerrs'
So, understanding
u g the preseent situation,, life during this kind of emeergency crisiis.
adequuate protectiion for the enormouss Besiides this, it is suggested too crisscross thhe
numbbers of garmen nt workers, afffected by thee whole supply chaain of the appparel industryy,
crisis in Bangladeesh and across the globall to chheck whetherr it has changged or not duue
supplyy chain, enttails (Anner, 2020). Thee to thhe COVID-199.
policyymakers also need to com me forward too
think of how to ensure
e the woorkers’ rightss Reseearch Impliccation
duringg this kind of
o pandemic or the futuree The COVID-19 has h become thhe pandemic in i
financcial crisis. recennt days. Therre is no informmation on how w
longg it will last.. Undoubtedlly, the overaall
Conclusion econnomic structurre has alreadyy changed duue
The COVID-19 has shapedd the globall to thhe impact off this COVID D-19. It’s verry
econoomy as pandeemonium, whhere everyonee impoortant to knoww the actual impact
i of it on
o
is pannicked. The situation
s has become
b moree everyy particular economic
e secctor which wiill
difficuult just becauuse nobody haas the idea off help us to designn economic pllanning for thhe
the duuration of thee corona pandemic on thee upcooming years. Besides, it’s also importannt
globe. The impacct of this disease on thee to know
k whichh stakeholdeers hampereed
demannd and supp ply chain haas become a vulnnerably and how
h to save them
t from thhe
daily topic. Differrent economicc sectors likee next pandemic. No N one wantts this kind of o
textilee, manuffacturing, automobile,, panddemic which will be the reason for thhe
comm munication eq quipment and other sectorss deathh of thousands of people. So, it’s higgh
that are closely related to China havee timee to take neceessary steps for saving thhe
becom me the most prominennt topic forr workking group whow can’t surrvive alone in i
researrch. Another analysis topicc is the effectt this crisis.
c
of COVID-19
C on
n the peoples’ income,,
especially for the t workerss from thee Moreover, there are certainly a few lessonns
develooping countrries who donn’t have anyy that can suppport the business, b thhe
sociall or health security. The workers
w at thee Government to leearn and makee the necessarry
apparrel manufactu uring countriees are in thee adjustment for thee future betterrment.
most vulnerable
v poosition duringg the COVID--
19 ass well as the sector. Therre are lots off Refeerences
initiattives that havve been takenn by differentt Aditttiya, S. W. (2020,
( Marchh 10). Appareel
stakehholders i.e. Government,
G L
Labor Union,, kicks off COOVID-19 imppact evaluatioon
Tradee Associaation, Baanks, etc. process. Daily FT. Reetrieved from m
Unforrtunately, theere was no such effectivee http://www.ft.lk/top-storyy/Apparel-
measuurement taken n by any stakkeholders forr kicks-off-COOVID-19-imppact-
ensuriing the work kers’ lives annd rights. So,, evaluation-pprocess/26-6997199
the workers
w are noow facing a huge
h financiall Anner, M. S. (2020). Abaandoned? Thhe
crisis as well as in n health riskss. The brandss Impact of Covid-19
C on Workers annd
and retailers need to come forrward to savee Businesses at the Bottoom of Globaal
the workers’
w life by
b paying the payment andd Garment Supply
S Chains. Retrieveed
withddraw the ordeer cancelationn notice. Thee from
Goverrnment also needsn to keepp the pressuree https://wwww.researchgatee.net/publicatti
on thhe factory ow wners to pay the workers’’ on/340460592_Abandoned_The_Impaa
wagess on timee. A multti-stakeholderr ct_of_Covidd-
comm mittee includin ng all the staakeholders off 19_on_Worrkers_and_Buusinesses_at_tth
this industry lik ke Governm ment, factoryy e_Bottom_oof_Global_Gaarment_Suppll
ownerrs, trade associations, labor unions,, y_Chains

Articlee Designation: Sccholarly 16 JTATM

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Articlle 7.1.7 (F Force majeuure). (2013). Coroonavirus Dissease 2019 (COVID-199).
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v
virus/?utm_c ampaign=hom meAdvegas1 garment-secctor.html
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JEL Classifications
C s: J63, J71, J788, J81, J83.

Articlee Designation: Sccholarly 20 JTATM

TM
Volumee 11, Issue 3, 20220