The Centre for Research on Multinational Corporations (SOMO) is publishing this paper in the context of the Together for Decent Leather programme, drawing on earlier publications by the Decent Leather consortium. The paper includes results and conclusions from new research. This paper also summarises the main findings of the report “Employment and Working Conditions in Bangladesh’s Leather Industry,” published by the Bangladesh Labour Foundation (BLF) and RAPID.

Research & Study

Leather from Bangladesh: Indecent work and hidden supply

chains

December, 2022

The Centre for Research on Multinational Corporations (SOMO) is publishing this paper in the context of the Together for Decent Leather programme, drawing on earlier publications by the Decent Leather consortium. The paper includes results and conclusions from new research. This paper also summarises the main findings of the report “Employment and Working Conditions in Bangladesh’s Leather Industry,” published by the Bangladesh Labour Foundation (BLF) and RAPID. Key Words: Indecent Work, Hidden Supply Chain, Finished Leather, OCED

Background

Leather is a major export earner for Bangladesh. The country exports finished and semi-finished leather and leather goods to China, Hong Kong, the EU, the UK, and the US. Behind the scenes and away from the scrutiny of buyers, brands, and inspectors, the rights of tannery workers are extremely violated due to the indecent work environment and hidden supply chain. Bangladesh’s tannery workers toil for long hours in strenuous and unhealthy conditions where there is a high risk of health damage. Their wages are often below the legal minimum, and they don’t have any formal contracts, leaving them vulnerable to exploitation. Employers generally display a hostile attitude towards trade unions. Moreover, disclosure of supply chain data is still in its infancy in this segment of the global leather industry. Brands and retailers hide behind complex supply chains. The lack of transparency makes it impossible to trace Bangladeshi leather used in end-products back to its origins. When labour rights violations occur, or when there is a risk of this happening, workers, trade unions, and workers’ support organizations need to know which corporate actors bear responsibility to address and remediate these violations and risks. Without such information, workers and the organizations representing or supporting them are left empty-handed when they seek to hold the relevant corporate actors accountable for rights violations and risks in their supply chains. Bangladeshi leather workers experience multiple vulnerabilities in employment, including migrant status, low educational background, poverty, and debt. Adding to this vulnerability are the absence of formal employment relationships and the lack of trade union representation, leaving workers with no other option than to accept poor wages and substandard conditions.

Objectives

Key Findings

Recommendations

According to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, 44 companies have a responsibility to respect human rights, including labour rights, throughout their supply chains. However, due to a lack of supply chain transparency it is not currently possible to determine conclusively which brands and retailers use leather produced in Bangladesh. It is therefore not possible to directly call on such companies to take responsibility to address the labour rights and environmental concerns raised in this publication.

Publication Details

Date: December, 2022

Contact

Bangladesh Labour Foundation (BLF)

F Haque Tower; Level – 7

107 Bir Uttam C.R. Datta Road
Dhaka – 1205
Bangladesh

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