Global Monopsony, Contracting Practices and Employment Outcomes: A Human Rights Due Diligence (HRDD) Framework for Garment GVCs

Cividep India has released an important new study developed under STITCH, offering a grounded look at how purchasing practices shape working conditions in India’s garment industry, and how a worker-centred HRDD framework can drive better outcomes.

The study finds that monopsony capitalism, where a few brands control production terms, is associated with wage suppression, high overtime, informality, and harassment. Practices such as open-costing, refusal to adjust prices for wage increases, shortened lead times, and penalties for delayed orders all play a role.

The HRDD framework—developed with workers, unions, and civil society—recommends living wage-based pricing, fair sharing of environmental compliance costs, and stronger workplace dialogue to support long-term, systemic improvements in line with global standards.

Download the full report here.