FINANCIAL LITERACY FOR BEGINNERS

READING COMPREHENSION PASSAGE (CLASS 11 AND 12)

 SOLVED WORKSHEET - 22 

No laws were broken but brands failed to ensure workers were paid properly during the pandemic, says Clean Clothes Campaign

1.     Campaigners claim to have found evidence of “wage theft” in the supply chains of Primark, Nike and H&M in a report that outlines the devastating consequences of the pandemic on garment workers in Indonesia, Cambodia and Bangladesh.

2.     Research by the clean clothes campaign found that, while none of the brands had broken any laws, they had failed to ensure that their workers were properly paid throughout the pandemic. Interviews with dozens of garment workers in Indonesia, Cambodia and Bangladesh discovered many had experienced periods in the last year when they had not been paid their full wages. Of 49 workers interviewed, more than half said they were paid less than before the pandemic. The Clean Clothes Campaign said workers faced increasing production targets amid a trend of mass layoffs and lack of overtime pay.

3.     In 2020, global fashion brands cancelled billions of pounds of clothing orders placed with supplier factories as coronavirus lockdowns shuttered high streets across the world. There is a growing body of evidence that “wage theft” of poorly paid workers has occurred at a significant scale throughout the pandemic, linked to many of the world’s largest fashion brands. A Worker Rights Consortium report in April estimated that total severance theft during covid-19  across the supply chains of global brands and retailers, was $500m to $850m (£360m-£620m).

4.     “Brands have continued to profit and can afford to pay workers. They have the power and responsibility to make sure workers in their supply chains are being paid,” said Meg Lewis, lead author of the Clean Clothes Campaign’s report. “Wages in the garment industry are already set at poverty levels so any drop in pay is a huge factor in workers’ lives. It shouldn’t be the workers who are paying for this pandemic.”

5.     All the brands named in the report acknowledged that the pandemic had been devastating for the global fashion industry. H&M and Nike said that workers in their supply chains had all been compensated in accordance with local legal requirements on wages. Primark  said it was taking the findings of the report seriously and would welcome receiving any evidence of wage problems at the supplier factories named in the report. After suffering losses in the first half of 2020, Nike, H&M and Primark have all returned to making considerable profits. In November 2020, Primark’s owner, Associated British Foods, reported at a profit of 914million pound  profit before tax for 2020. H&M Group announced an operating profit of 3,099 m kronor  for 2020 and Nike’s net income for the year to 31 May 2021 was $5.7 .

6.     In the full of developing world most of country enacted legislation for the protection of health, salaries, and welfare for employees but due to many loopholes presents in system employee face a lot of problems and wage theft is one of the serious problems of developing nations.  Wage theft means when an employer failed to pay earned wages of employees. wage theft is occurring through different ways like paying less than minimum wage which is prescribed by law, unauthorized and illegal deduction of wages, not paying for overtime, and unnecessarily burden on employees. Most of the low wages, daily wages, and migrant workers suffer from wage theft in India as well as many countries in the world. Wage theft is the most challenging issue before the administrative and judicial body to stop such unlawful practice.

 

BASED ON THE ABOVE PASSAGE ANSWER THE FOLLOWING QUESTIONS:

1.     What are the findings of the clean clothes campaign?

The Clean Clothes Campaign said workers faced increasing production targets amid a trend of mass layoffs and lack of overtime pay. Workers were paid less during the pandemic  for the same job than normal times. 

2.     What type of industries practised wage theft predominantly?

Wage theft was predominant in fashion industries. H&M ,  Nike and Primark are a few examples who earned a huge profit but paid less wages.

3.     What does clean clothes campaign report say?

Brands have continued to profit and can afford to pay workers. They have the power and responsibility to make sure workers in their supply chains are being paid,” said Meg Lewis, lead author of the Clean Clothes Campaign’s report. “Wages in the garment industry are already set at poverty levels so any drop in pay is a huge factor in workers’ lives. It shouldn’t be the workers who are paying for this pandemic.”

4.     What exactly is wage theft?

Wage theft means when an employer failed to pay earned wages of employees. wage theft is occurring through different ways like paying less than minimum wage which is prescribed by law, unauthorized and illegal deduction of wages, not paying for overtime, and unnecessarily burden on employees. Most of the low wages, daily wages, and migrant workers suffer from wage theft in India as well as many countries in the world.

5.     In spite of various laws and legislations in the country how do companies exploit workers?

In the full of developing world most of country enacted legislation for the protection of health, salaries, and welfare for employees but due to many loopholes presents in system employee face a lot of problems and wage theft is one of the serious problems of developing nations.  Wage theft is the most challenging issue before the administrative and judicial body to stop such unlawful practice.

 



 

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