Global garment industry calls for support for manufacturers

MADRID, April 22 (Reuters) - A group of employers'
organisations, unions and major brands in the garment industry
are working with the International Labour Organisation (ILO) to
support manufacturers affected by the coronavirus outbreak, the
ILO said on Wednesday.

Under the agreement, brands and retailers commit to paying
manufacturers for finished goods and goods in production, the
organisation said in a statement. They will also commit to
maintaining open lines of communication with supply chain
partners about the status of business operations and future
planning, it added.

The group called on governments and financial institutions
to accelerate access to credit and income support.

"This is an unprecedented crisis that can only be solved
through global solidarity," said ILO Director-General Guy Ryder.
"The priority must be to sustain businesses and protect
workers."

Brands and retailers who have signed up to the call to
action include Adidas, C&A, H&M,
Inditex, M&S, Primark, Under Armour
and PVH, the ILO said.

An international working group will be set up within the
next two weeks to elaborate the steps to deliver on the
commitments, it added.

The garment industry employs millions of workers worldwide,
producing goods for international brands in countries from
Vietnam to India.

Brands reeling from slumping demand as stores close to
control the coronavirus outbreak have cancelled an estimated $3
billion worth of orders in Bangladesh alone, where some 4,000
factories employ around 4 million.
(Reporting By Sonya Dowsett; Editing by Kirsten Donovan)