H&M says it will 'phase out' sourcing from Burmese suppliers

The world's second largest fashion retailer, H&M, has announced it has decided to phase out sourcing from Burma amid reports of labor abuses. work in the country's garment factories is on the rise.

< p class="dcr-1jv7e0x">The company is the latest to cut ties with suppliers in the country, following similar measures taken by the owner of Zara, Inditex, Primark, Marks & Spencer and others.

"After careful consideration, we have now made the decision to phase out our operations in Myanmar" , H&M told Reuters on Thursday.

"We have been monitoring the latest developments in Myanmar very closely and are seeing increased challenges in conducting our operations to our standards and demands of labor abuse at the Myanmar garment factories that supplied it, as a UK-based campaign group said cases of alleged abuse, including wage theft and forced overtime, had multiplied since a military coup in February 2021.

The junta's takeover has plunged Myanmar into a political crisis and humanitarian. The apparel sector is a key employer in the Southeast Asian country, where most female workers produce clothing and footwear for major brands in more than 500 factories.

Some experts have suggested the tendency of multinational companies to withdraw could ultimately worsen the situation for workers.

Vicky Bowman, director of the Myanmar Center for Responsible Business and former British Ambassador to the country, said: "I regret H&M's announcement as it will negatively impact thousands of working women in Myanmar."

H&M said its withdrawal would follow a "responsible exit framework" developed by IndustriALL, a global union that campaigns for brands to stop doing business in Myanmar.

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Large companies other sectors have also withdrawn from Myanmar, with oil companies TotalEnergies and Chevron announcing their departure in January last year.

The Myanmar government has been approached for comments.