H&M To Phase Out Operations in Myanmar Following Worker Abuse Allegations — Retail Bum

Swedish company H&M plans to stop producing clothes in Myanmar following reports of widespread labor abuse at garment factories.

The company said it has been “monitoring the latest developments in Myanmar very closely, and we see increased challenges to conduct our operations according to our standards and requirements.”

“After careful consideration, we have now taken the decision to gradually phase out our operations in Myanmar,” a company spokesperson told CNN.

As the company moves its production out of Myanmar, tens of thousands of workers could potentially lose their jobs. As of March, H&M sourced products from 41 factories — owned and operated by independent suppliers — in the country that employ some 42,000 workers.

The news follows a recent report by the Business and Human Rights Resource Centre (BHRRC), which documented 212 cases of abuse between February 2021 and February 2023, impacting at least 108,000 workers. According to BHRRC, these workers were employed at 124 factories that produce clothing for at least 47 global fashion brands and retailers, including Inditex, Marks & Spencer, Primark, and H&M.

BHRRC’s analysis found that wage theft and reduction were two of the most significant…