Netherlands urges Bangladesh apparel manufacturers to sometimes say ‘no’ to buyers for fair pricing

The Dutch Minister for Foreign Trade and Development Cooperation has called upon the Bangladesh garment producers to have the courage to sometimes say ‘no’ to buyers in an effort to ensure fair pricing.

Lilianne Ploumen, speaking at a media briefing in Dhaka on Thursday, said she found there was a lack of transparency in all of the supply chains.

“Buyers don’t want to share how much they pay and producers don’t share how much they do charge. That needs to be changed,” she said after the opening a ‘sustainable sourcing’ conference at a Dhaka hotel.

Speaking at the opening, earlier, she said transparent pricing can “also promote sustainability”.

“At present, brands sometimes scarcely pay the cost price. But I say to producers -- have the courage to sometimes say ‘no’. You are not powerless.

“You can share your experience of brands with the outside world. Make use of your online presence and the transparency it gives. Others can see this information. It gives you a power that brands really need to take seriously,” she suggested.

This is her fourth visit to Dhaka after the 2013 Rana Plaza building collapse that killed over 1,100 workers and evoked a worldwide factory safety concerns.

After the tragedy, development partners particularly the European Union countries and the US joined efforts to improve the factory safety conditions.

The Dutch minister acknowledged the progress, but said still a lot needs to be done to make the industry “truly safe and sustainable”.

“But things are now on the right track,” Ploumen observed, thanks to new inspection system that allowed all export factories to be inspected, and the most dangerous factories closed down.

“At the same time, new problems are emerging. Everyone wants corporate social responsibility, but that calls for considerable investment which is a problem,” she said in her inaugural speech.

The Dutch minister said consumers are becoming “more and more alert” as she found a growing awareness to pay more for clothing if it means you are not buying ‘blood garments’.

Citing ILO research, Ploumen said better working conditions do not increase costs. “On the contrary, they are a good investment and essential to success.”

She said “effective” cooperation between producers and buyers is hampered by “unreasonably” short delivery deadlines, the regular late cancellation of orders, and lack of transparency and lack of trust.

“To stop this race to the bottom and make the sector healthy again, producers and brands need to work together much more,” the minister said.