FAQ

11. Does MADE recognize that there are severe constraints on freedom of association, particularly since February 2021?

Yes, partners in the MADE project believe that there are very severe constraints to freedom of association, and to the operation of trade unions and non-governmental organizations (NGOs) and civil society in Myanmar. It was this which prompted the Governing Body of the International Labour Organization (ILO) in 2022 to establish a Commission of Inquiry in respect of the non-observance of International Labour Standards in"Myanmar, in particular Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87)" " and the" Forced Labour Convention, 1930 (No. 29)". 

However, despite the severe challenges to freedom of association, trade unions still legally exist at factory level, and at federation level.  Organisations and individuals committed to supporting workers rights continue to operate, despite the difficult circumstances. MADE aims to support their resilience, and their ability to engage with business to resolve grievances. 

12. Does participating in MADE satisfy a company’s expected Human Rights Due Diligence obligations?

No. Participating in MADE should contribute to a company’s heightened due diligence of their Myanmar supply chain by helping them better engage with rights holders and understand human rights risks and how to mitigate them, individually and collectively.  But each retailer needs to examine their own supply chain and its unique risks. 

Participating in MADE is not intended to fulfil any ‘safe harbour’ requirements currently being discussed related to company participation in multi-stakeholder initiatives (MSI).  

 

13. How many factories can participate in MADE?

It is expected that a minimum of 50 factories per year will participate in MADE’s on-site advisory modules, which require substantial engagement, involving corrective action plans, on-site training, follow-up assessments and other support. Up to 200 factories per year might join off-site workshops and seminars. The project will seek to expand programmes to cover more than this if and when a critical mass of retailers have formally joined the project. 

As of early 2023, the MADE project has 18 full-time, experienced trainers, engineers and factory assessors, many of whom have a decade of experience advising factories in the garment industry. The project also works with several part-time trainers and consultants. Implementing partners sequa and EuroCham also have several other staff who support the project but are not full-time dedicated for project activities.  While there is already a strong team, further expansion will likely be needed. 

Managers and workers from approx. 70 factories have already participated in MADE factory assessment and/or training programmes during the first quarter of 2023. In previous years, SMART worked with approximately 400 factories in various programmes between 2013 and 2022. 

Last updated May 10th, 2023.  
The views expressed in this publication are the sole responsibility of the authors and do not necessarily reflect the views of the European Union or any other donors. 

14. How does MADE engage with the Myanmar Garment Manufacturers Association (MGMA) and foreign garment associations in Myanmar?

MADE recognizes the essential role that factories play in ensuring decent labour conditions and adherence to international standards.  It will continue to engage with MGMA and foreign garment associations active in Myanmar with the aim of improving industry standards and practices. 

15. What is the ‘Alliance’?

The ‘Alliance’ is a new element of the MADE programme which is intended to promote cooperation and joint commitments by the project and participating private sector companies. These address: heightened human rights due diligence; communication and transparency; industry-level and bipartite cooperation and collective action including on issues such as wages and take-home pay, grievance handling, freedom of association and environmental performance. 

 

16. Can non-European companies join the Alliance?

Yes, provided they make the same commitments and financial contribution.  

17. What happens if retailers who join the Alliance do not meet the commitments they have made?

Where a Member Company fails to live up to their commitments, they will be suspended from the Alliance through a process overseen by the MADE Steering Commitee.  The process and timeline for suspension will depend on how serious and/or persistent the failings are. 

18. How does MADE work with other initiatives (e.g. Fairwear Foundation, Ethical Trading Initiative)?

MADE and partners will engage with all organisations with an interest in the Myanmar apparel sector.  It will also make use of previous experience and guidelines from other initiatives such as FWF, ETI and Clean Clothes Campaign.   

19. Why are exports from Myanmar increasing?

Apparel exports from Myanmar in 2022 were estimated at approximately USD 9.3 billion. While this is the highest level to date, cumulative sector exports would have been expected to have reached over USD 14 billion by 2022, based on prior growth trends, and the total stock of existing manufacturing investments. The disruption caused by the pandemic and political crisis has therefore significantly reduced the expected growth of the sector, by around 35%. 

What growth has taken place in 2022 appears to be due to significant latent industrial capacity which was started pre-pandemic. During 2019 and 2020 alone, 220 new apparel manufacturers registered investments with the Directorate of Investment and Companies Administration in Myanmar. These ranged from small to very large factories,  the majority of which had planned to employ a thousand or more workers at full capacity. It takes several years to bring a large manufacturing enterprise into full operation. The increase in exports seen in 2022 is therefore likely to be due to some of these pre-2021 investment decisions coming on-stream. 

Whether or not the growth of the sector continues, MADE intends to support existing and new brands and their suppliers to undertake heightened human rights due diligence and establish effective HR management and workplace relations, and improve social and environmental performance, including decent wages.  

20. Does MADE contradict those calling for withdrawal of all foreign investment from Myanmar?

Yes. The EU and MADE partners believe that the interests of workers in Myanmar are best served by ongoing sourcing from Myanmar, provided that this is pursued responsibly and creates decent jobs.  The objective of MADE is to support the hundreds of thousands of factory workers who would be left unemployed by a major withdrawal of investment in the sector, and the family members they support. Roughly 380,000 jobs across Myanmar’s apparel sector are directly reliant on EU trade and would be at acute risk if European trade and buyer engagement in the sector reduces. 

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