Primark has created a new fund which will pay the wages cost involved in the merchandise orders it has cancelled and which were due for delivery later this month. It had also paid for all stock which had been produced and was either in stock or in transit on its normal 30 day terms. This contrasts sharply with the actions of other large retailers who have, it seems, determined that they have no obligation whatever toward their suppliers wherever they are in the world.
Primark issued a statement to explain: “Primark is concerned about the impact of workers engaged in production on further orders that Primark will not now be taking – that is, goods in production that were due for shipment in the month following cancellation of orders. Accordingly, Primark is today announcing it will fund payment of the wages that relate to this product, taking into account adjustments for government support packages provided in each country. The action will cover orders from the following countries: Bangladesh, Cambodia, India, Myanmar, Pakistan, Sri Lanka and Vietnam. In consultation with key stakeholders, the Primark Ethical Trade team will explore mechanisms to ensure that this money reaches workers.”
Primark CEO Paul Marchant said: “Every one of our stores around the world is closed. With a backlog of stock in stores, in depots and in transit, we have had to make the very difficult decision to cancel orders for future stock. Finding a way to ensure that workers in our supply chain in these countries are paid has been a priority over the past two weeks and we are pleased that this fund will provide relief to these workers. Our focus is now to work with the suppliers, factories, trade unions and NGOs in these countries to make sure wages for the order we have cancelled are paid to the workers.”
Share