Geneva: Garment factories around the globe, which have committed to UN-backed labour standards, face a potential halt in their efforts to improve working conditions due to growing uncertainty about tariff levels, as reported by the International Labour Organization (ILO).
According to EMM, the looming and actual tariff hikes are primarily focused on taxing imports into the United States, which could make products manufactured by overseas factories more expensive. This situation is likely to decrease demand for these products. The ILO's Better Work programme, a collaboration with the International Finance Corporation (IFC), plays a crucial role in supporting garment factories, many of which export to the United States.
The Better Work programme is designed to promote social dialogue and ensure safe and decent work environments, which include fair wages and working hours. The initiative has successfully enhanced productivity in the garment sector. Sara Park from the ILO highlighted that the organization's tripartite structure involves close collaboration with governments, employers, and unions, as well as major global brands, to foster responsible business practices.
Park elaborated on the programme's achievements, noting significant impacts at the factory level, such as increased wages, support for gender equality, and women's empowerment. Over its 25-year existence, Better Work has lifted millions out of poverty and reduced the environmental impact of the apparel sector by fostering sustainable enterprises.
Despite successes, challenges remain, particularly regarding freedom of association for unions. Park emphasized that developing a competitive industry takes time, but improvements have been observed in participating factories. Better Work-enrolled factories have reported increased orders from buyers, indicating a positive impact on business and productivity.
However, recent global changes in development funding have affected the programme. The US Government's funding cuts have impacted initiatives in Haiti and Jordan, although other countries continue to benefit from diverse funding sources. Park underscored the ongoing need for ILO support to ensure compliance with international labour standards, which is crucial for buyers to eliminate risks.
The uncertainty surrounding tariffs has made it difficult for factories to plan for the short term, with potential threats to formal sector jobs. In countries like Jordan, where the majority of the garment workforce comprises migrants from South and Southeast Asia, the impact could be significant. Investment in the global garment industry tends to pause during crises, risking setbacks in improving working conditions, including occupational safety and health.
Park reassured garment workers of the ILO's commitment to protecting workers and improving conditions across various sectors. The organization remains dedicated to promoting social dialogue to drive improvements at multiple levels.