New York: Garment factories around the world that have committed to implementing UN-backed labour standards may halt investments in improving working conditions due to growing uncertainty over tariff levels, according to the International Labour Organization (ILO). The concern arises as tariff increases, primarily targeting imports into the United States, threaten to make products from factories outside the country more expensive, potentially decreasing demand.
According to EMM, the ILO's Better Work programme, in partnership with the International Finance Corporation (IFC), has been instrumental in supporting garment factories, many of which export to the United States. The initiative promotes social dialogue, fair wages, and safe working conditions, while also enhancing productivity in the sector. Despite its success, the programme faces challenges due to recent changes in global development funding and tariff uncertainties.
Sara Park, an expert from the ILO, highlighted that the organization collaborates closely with governments, employers, and unions to promote responsible business practices in the garment industry. The Better Work programme has reportedly made significant impacts at the factory level, such as increasing wages and supporting gender equality. However, Sara noted that freedom of association remains a challenge, and improvements in the industry will take time.
The programme's success has not only benefitted factory workers but has also been advantageous for business and productivity. Governments have expressed that the initiative boosts confidence and growth of the industry in participating countries. However, recent cuts in US Government funding have affected programmes in Haiti and Jordan, which were heavily reliant on such support.
The ongoing uncertainty about tariffs is causing concern among governments, employers, and unions, as it hinders factories' ability to plan for the future. If factories close due to these uncertainties, jobs may shift to the informal sector, where workers lack protections. This is particularly concerning in countries like Jordan, where a significant portion of the workforce consists of migrants from South and Southeast Asia.
Investment in the global garment industry often stalls during times of crisis or uncertainty, which poses a risk to occupational safety and health improvements. For instance, addressing issues like heat stress, particularly in regions experiencing extreme temperatures, could be compromised if investment dwindles.
Despite these challenges, the ILO remains committed to protecting workers and improving conditions across various sectors. The organization continues to promote social dialogue as a means of achieving progress at the factory, sectoral, and national levels.