Towards Redistribution of Profits and Regulation of Garment GSCs
The Asian garment labour movement has identified urgent structural shifts within garment GSCs
that can address unequal and exploitative relationships between corporations in the global North
and Asian garment workers and production countries. These structural shifts demand a redistribution of profits down the supply chains and this can be implemented with the following tools:
Guaranteed, protected, adequate living wages: The Asian labour movement has long
demanded the redistribution of profits in GSCs through a guaranteed and protected living wage.
Whereas Asian suppliers are responsible for statutory and legal minimum wages within
the country, brands must contribute, through legally binding mechanisms, to closing the
growing gap between living wage and minimum wage. This requires strong labor market
institutions which promote union driven and monitored processes for payment of living wages,
such as the Wage Forward Campaign for Enforceable and Binding Agreements on Living Wages.
Moving towards higher product pricing to adequately compensate workers: Fashion brands
ensure their competitiveness within the fast fashion market by transferring the costs of
manufacturing low-cost garments to Asian garment workers in the form of low, insecure and
stagnant wages. To ensure fair redistribution of profits, a global readjustment towards
higher prices by consumer markets and brands through a pricing model that enables
adequate compensation is needed.
Taxation of transnational corporations: In lower income countries tax revenue is more urgently
needed due to lower per capita national incomes and a smaller percentage of national incomes
converted to government revenue compared with developed countries. Despite this, TNCs drive
developing economies to compete for investment by offering tax incentives, accelerating the race
to the bottom. This harmful tax competition diverts potential revenue from where it is urgently
needed, leaves developing countries more vulnerable in times of crisis, and belies sustainable
recovery. To mitigate this, fashion brands must contribute to public spending on workers’
welfare and social security in production countries.
Legal Paradigm for Brand Accountability: Asian garment workers and their trade unions
are attempting to build a legal paradigm within garment GSCs that places the highest form
of accountability on fashion brands, as joint employers of workers. Through these litigation
efforts, the Asian garment labour movement demonstrates that brands set the terms and
conditions of their employment, including access to work, secure contracts and adequate wages,