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    What Are The Chain Effects Of The Epidemic On The Supply Chain? The Latest Research Report Of The International Labor Organization

    2020/10/24 10:07:00 0

    EpidemicSupply ChainILO

    At 4:00 p.m. Beijing time on October 21, 2020, the International Labor Organization (ILO) made a report on the latest research in Bangkok, Thailand Chain reaction of supply chain: what is the impact of the new crown pneumonia epidemic on the garment industry workers and enterprises in the Asia Pacific region? 》 Hold a press conference, which will be held online. Christian viegelahn, senior economist for the Asia Pacific region of the International Labour Organization, Arianna Rossi, senior research and policy expert for the better work project, and Tara Rangarajan, director of communication They attended the conference and introduced the research results of the project and answered the questions raised by reporters on the core issues.

    The purpose of the ILO is to promote decent work, improve the living standards of all, strengthen social security, and protect the life and health of workers. The new crown pneumonia epidemic has an important impact on the clothing industry enterprises and employees in the Asia Pacific region. In 2019, the clothing industry in the Asia Pacific region employed 65 million employees, about 75% of the world's clothing industry employees, of which 35 million were women.

    Chain reaction of supply chain: what is the impact of the new crown pneumonia epidemic on the garment industry workers and enterprises in the Asia Pacific region? 》Medium This paper presents the profound impact of the new crown pneumonia epidemic on the garment industry workers and factories in 10 Asian Pacific countries including China from January to early September 2020.

    Chihoko Asada miyakawa, director, Asia Pacific, ILO "This study highlights the huge impact of covid-19 on all levels of the clothing industry," said Mr. Governments, workers, businesses and other industry stakeholders should work together to address these unprecedented challenges and create a more people-oriented future for the industry. "

    This research is clear The way of the influence of new crown pneumonia on clothing industry 。 According to the report, the new crown pneumonia epidemic has a serious impact on the clothing industry in the Asia Pacific region. These impacts not only include direct impacts, such as temporary shutdown or closure of garment factories in the Asia Pacific region, but also lead to unemployment and unemployment problems. At the same time, indirect forms, such as sharp drop in retail sales in export markets and blockade of raw material importing countries, will affect the entire supply chain The living conditions of garment factories in China.

    The study also revealed that Impact of new crown pneumonia on clothing trade and supply chain 。 In the first half of this year, clothing imports from Asia by major importers fell by 70%. In addition to Myanmar, China and other nine Asia Pacific countries generally experienced a year-on-year drop in exports to the EU, the United States and Japan. China has been affected since January, while Vietnam, Indonesia, India, Bangladesh and other countries have been affected since February. Compared with the decline of clothing trade volume, the export of protective products increased significantly. From January to June 2020, China's export of masks increased by 708% compared with the same period in 2019, accounting for 49% of the total value of clothing exports to the EU, Japan and the United States. The investigation also found that under the epidemic situation, the cancellation of international orders was very common, which caused serious economic losses to garment factories. A large number of international customers reduce or cancel orders, suspend delivery, or ask suppliers for discounts or extend payment time. A survey of 179 suppliers in 30 countries, including China, shows that 64% of garment factories have received requests for cancellation of orders, 18% of them say that cancellation of orders leads to total loss of accounts receivable, and 35% of factories are required to give more than 20% discount.

    In addition, the study also summarized Challenge of new crown pneumonia to garment industry employees in ten countries 。 Affected by the blockade policy and shutdown, a large number of employees are unemployed or unemployed, and the situation is different in different countries. According to the data of Indonesia's Ministry of industry, as of July 2020, 812254 workers in the footwear and clothing industry, or about 30% of the footwear and clothing workers, were laid off; in Myanmar, about 22000 garment factory workers were unemployed; in Cambodia, more than 150000 workers were unemployed; in Vietnam, about 80% of garment factories had laid off some workers. In addition, in Bangladesh, Cambodia, India and other countries, a considerable proportion of workers are delayed to pay wages or receive full wages, which increases the risk of disputes between employers and workers. The study also shows that female employees have been more impacted. Under the epidemic situation, female employees' wages are still lower than men's, but at the same time, due to the closure of a large number of nurseries, women have to balance their work and child care responsibilities. During the epidemic period, it was also found that pregnant women workers were fired by factories under operating pressure. At the same time, the blockade ban and family economic difficulties led to the rise of domestic violence.

    Finally, the report points out the development direction of the clothing industry in the future and calls for strengthening the support for enterprises and employees to cope with the crisis.

    Chain reaction of supply chain: what is the impact of the new crown pneumonia epidemic on the garment industry workers and enterprises in the Asia Pacific region? 》Based on extensive desktop research and open data analysis, as well as interviews with key stakeholders in the Asian industry. The research project is carried out by Cornell University and the International Labor Organization (ILO). The regional economic and social analysis department (RESA), better jobs and the decent work project in the Asian clothing supply chain of ilo-sida are involved in the project.


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