Almost no fashion brand owns factories any more. The business model is one of contracting out: a brand places an order at a supplier, who then often subcontracts this out even further.
Yet, when garment workers face problems, it is often the garment brands that can (and should) use their influence. Brands also recognize this; they have elaborate Codes of Conduct that should, in theory, make sure that no human rights violations occur. As we all know, this is far from the case. From poverty wages to unsafe factories to union busting, all kinds of violations are endemic within the global garment industry.
Therefore it is vital that workers, worker rights advocates and others have accurate information on what brand produces where.
Of course, transparency alone does not resolve in improved working conditions, higher wages or accountability. But transparency is a necessary precondition to effectively campaign for those other goals.
Consumers are also demanding answers; in a world that is ever more connected, they deserve an answer when they ask #WhoMadeMyClothes
The garment and sportswear industries rely on production networks that utilize global outsourcing and subcontracting arrangements. Retailers and brands outsource the cut, make and trim (CMT) part of the garment manufacturing to trading companies or to employers. These in turn (sub)contract to other units or to home-based wage or own-account workers (also referred to as ‘bogus self-employment’ schemes). Increasingly this includes the use of labour contractors.
Governments are either 'modernizing' current labour laws, consciously refraining from implementing and enforcing them, or failing to protect private sector workers under the assumption that cheap labour is the only possible advantage in the current global economy, under pressure from international trade negotiations or because of corruption. Where legislation protecting the employment relationship is in place, implementation is often weak.
In sum, flexibilisation and precariousness of production have gone hand in hand with flexibilisation and precariousness of employment relationships, leading to what has become known as precarious work arrangements.