Fair labor practices
Fair labor practices, in the context of the fashion domain, refer to the ethical and responsible treatment of workers involved in the production and supply chain of fashion products. It encompasses various aspects such as ensuring safe working conditions, fair wages, reasonable working hours, and respect for workers’ rights.
Incorporating the ideology of Industry 5.0, fair labor practices go beyond mere compliance with legal requirements and strive to create an environment where workers are valued, respected, and empowered. This approach recognizes the importance of human capital in the fashion industry and emphasizes the need for collaboration and harmonious relationships between workers, management, and technology.
Fair labor practices in the fashion industry aim to address the challenges and negative impacts associated with traditional labor practices, such as exploitation, unsafe working conditions, and inadequate wages. It advocates for transparency and accountability throughout the supply chain, from raw material sourcing to the final product’s manufacturing and distribution.
Companies that uphold fair labor practices prioritize the well-being of their workers, ensuring that they receive fair compensation for their efforts and have access to social protections. They promote inclusivity and diversity, fostering an environment that is free from discrimination and harassment. Moreover, they provide opportunities for workers to voice their opinions, participate in decision-making processes, and contribute to continuous improvement initiatives.
By embracing fair labor practices, the fashion industry can contribute to the achievement of sustainable development goals, such as decent work and economic growth, reduced inequalities, and responsible consumption and production. It acknowledges the importance of balancing technological advancements and automation with the preservation of human dignity and well-being.
Overall, fair labor practices align with the ideology of Industry 5.0, which emphasizes the harmonious integration of technology and human workforce. It recognizes that the well-being and empowerment of workers are essential for the sustainable and responsible growth of the fashion industry.
Case studies
International Accord – Legally binding safety and labour agreement in garment supply chains
The International Accord for Health and Safety in the Textile and Garment Industry is a legally binding agreement between global brands and trade unions, created after the Rana Plaza collapse to enforce independent inspections, remediation, training, and complaints mechanisms in garment factories. It has expanded from Bangladesh to include programmes in Pakistan and sets a benchmark for enforceable workplace safety and worker participation in global textile value chains.
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ALDI SOUTH Group – Implementing the International Accord in discount fashion sourcing
The ALDI SOUTH Group is a signatory to the original Bangladesh Accord and the subsequent International Accord, committing its textile and garment suppliers to independent inspections and remediation. By joining and renewing these agreements, ALDI binds its private-label apparel sourcing to enforceable safety standards and shared governance with unions, using its purchasing power to improve factory-level conditions in key sourcing countries.
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Fair Trade USA – Factory Production Standard for apparel and home goods
Fair Trade USA’s Factory Production Standard (FPS) for apparel and home goods defines over 100 social, environmental, and economic requirements for certified factories, including legal wages, safe working conditions, worker representation, and community development funds. Brands sourcing from Fair Trade Certified factories pay a premium that goes into worker-controlled community projects, linking purchasing decisions to tangible improvements in workers’ livelihoods.
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Terra Thread – Fair Trade Certified cut-and-sew supply chain
Terra Thread is a bag and accessories company that manufactures in Fair Trade Certified factories, integrating the FPS requirements into its textile production. Its public communication emphasises legal wages, safe workplaces, gender equality, and prohibition of child and forced labour, showing how a small brand can use third-party certification to structure a fair labour strategy across its cotton and cut-and-sew value chain.
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Fair Trade Certified Factory programme – Community development and wage premiums
The broader Fair Trade Certified factory programme channels additional premiums from every certified product sold into worker-managed Community Development Funds. These funds are used for projects such as housing, healthcare, and education in producing communities, demonstrating how factory-level standards combined with financial redistribution can address structural underpayment and precarious working conditions in apparel supply chains.
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References
Fraser, V., & van der Ven, H. (2022). Increasing transparency in global supply chains: The case of the fast-fashion industry. Sustainability, 14(18), 11520. https://doi.org/10.3390/su141811520
Jung, S., von Wedel, O., Sigurdardottir, M. S., Egels-Zandén, N., & Lavallée, J.-P. (2024). Local understandings of decent work and the legitimacy of global labour standards: The case of the RMG industry in Bangladesh. Journal of Business Ethics. Advance online publication. https://doi.org/10.1007/s10551-023-05490-1
LeBaron, G., Edwards, R., Hunt, T., Sempéré, C., & Kyritsis, P. (2022). The ineffectiveness of CSR: Understanding garment company commitments to living wages in global supply chains. New Political Economy, 27(1), 99–115. https://doi.org/10.1080/13563467.2021.1926954
Holzberg, B. (2023). Vertical and horizontal diffusion of labour standards in global garment supply chains. The International Journal of Human Resource Management. Advance online publication. https://doi.org/10.1080/09585192.2022.2150980
Velluti, S. (2024). Labour standards in global garment supply chains and the proposed EU corporate sustainability due diligence directive. European Labour Law Journal. Advance online publication. https://doi.org/10.1177/20319525241239283