HAMBURG – German retailer Tchibo has called for Europe-wide regulations to improve working conditions and wages in textile supply chains. The business claims voluntary initiatives are not enough, and lead to a situation where businesses are competing on an unlevel playing field, with some taking sustainable actions while others lag behind. The business has also called on national governments and the global textile sector to put their weight behind ACT, the first global framework on living wages in the garment sector which is underpinned by collective bargaining between brands, employee groups and factory owners.

The 3rd Tchibo Stakeholder Discussion Sustainability emphasised the need for government regulations on industrial due diligence. Tchibo CEO Thomas Linemayr made clear these duties, “must apply across Europe and to all market participants.”

Nanda Bergstein, sustainability director (corporate responsibility) at Tchibo added: “We want and we will continue to invest in sustainability, but today we are at a threshold where we can no longer significantly increase our investments without jeopardising our competitiveness. It is becoming increasingly clear that global and very complex problems can only be solved jointly by all those involved, ie industry, trade unions, NGOs and governments.

Illustrating the need for universal involvement, Bergstein cited the example of ACT, which she suggested is currently the only initiative in the world with the potential to tackle the topic of living wages in the textile industry in the long term.

But she added: “But we threaten to fail because not enough partners from the textile industry join in. In Cambodia, 21 textile brands are currently negotiating with the government and employers for the introduction of nationwide collective bargaining with the aim of raising wages to a level of living. The companies involved represent around 50 per cent of Cambodian textile production. The government is worried, however, that the other half will leave the market at higher wages, weakening Cambodia’s competitiveness.”

Bergstein said the example demonstrates the importance of public and unambiguous support from the respective governments of the distribution markets.

Bergstein added: “A regulation that creates the same conditions for all market players in Europe is urgently needed. For with voluntary initiatives of individual companies alone, we will not move fast enough and ‘fair fashion’ will remain an illusion.”