Story of Change
How STITCH adapted to disruption in the garment sector
In the early years of STITCH, the global garment sector was shaken by two major crises: the COVID-19 pandemic and the military coup in Myanmar. Each exposed deep-rooted vulnerabilities in supply chains and demanded swift, coordinated responses.
For garment workers, the consequences were immediate—lost jobs, rising insecurity, and collapsing labour protections. For STITCH partners, the challenge was to act fast, support local partners, and guide brands through uncertainty, all while upholding workers’ rights.
These Stories of Change show how STITCH responded in two very different contexts, offering practical lessons in crisis response, responsible disengagement, and the power of worker representation—even in the most difficult circumstances.
When COVID-19 hit in early 2020, it revealed the deep vulnerabilities within the global garment industry. Retail closures, supply chain breakdowns, and mass layoffs severely impacted workers—especially women, who dominate the workforce in low-wage, low-power positions. With many brands instantly cancelling orders and delaying payments, factories closed or cut jobs, leaving millions of workers without income or protection.
The pandemic hit in March 2020, around the time that the STITCH members were discussing their collaboration. “We had to kind of cease all the ongoing work and then respond to the crisis that was unfolding,” recalls Cividep India’s Pradeepan Ravi.
Crisis management during the COVID-19 pandemic
Responding to unprecedented disruption in the garment sector
Guiding brands through crisis
Ethical Trading Initiative (ETI) and Fair Wear quickly mobilised to support member brands. “Member brands were turning to us for information and guidance,” says Elisa Shepherd of ETI.
Together, the MSIs aligned their approach towards their member brands, to promote consistency. They offered briefings from the ground, guidance on responsible sourcing, and clear expectations for how brands should respond. These ‘Enhanced Expectations’ included covering full wages, not cancelling orders, supporting health and safety measures, and ensuring transparency.
“Our member brands want us to be strong and firm. They look to us as respected organisations that protect human rights, so they turn to us to help guide their internal sustainability and HRDD agendas forward.”
– Amelia Cherry, ETI
A joint statement released with 14 other organisations in June 2020 urged brands to act responsibly, cover full wages, and support stronger social protection systems. “Having a shared messaging comes across a lot stronger,” noted Fair Wear’s Mariette van Amstel.
India: From relief to strategy shift
India’s garment sector faced severe disruption due to COVID-19: factories closed, labour laws were relaxed, and millions of migrant workers were stranded. STITCH partners responded swiftly yet diversely.
For example, ETI challenged the suspension of labour protections, advocating for supplier voices to be heard in brand guidance. Fair Wear focused on rapidly escalating grievance handling and immediately guided their member brands. Cividep India provided immediate relief through food kits and digital health services, while continuing research to support advocacy. They also launched internal support for staff dealing with anxiety. Mondiaal FNV (M-FNV) backed Indian trade unions protesting against regressive labour law reforms.
The experience reshaped STITCH’s strategy in India. With space for legal advocacy shrinking, the programme pivoted to building Multi-Stakeholder Structures (MSS) like the Tirupur Stakeholder Forum, to collectively discuss and align on key industry issues with other stakeholders.
Vietnam: Crisis spurs cooperation
In Vietnam, STITCH partners CDI, CNV Internationaal (CNV-I) and Fair Wear rapidly adjusted their activities. They co-designed a COVID-19 impact assessment via the Public-Private Platform and organised four-party dialogues involving over 250 participants, including government, brands, unions, and business associations. This led to a historic joint statement from key Vietnamese industry players, unprecedented before the pandemic.
The crisis also deepened engagement with brands. Fair Wear conducted several studies together with other STITCH partners and organised a series of online meetings with brands and suppliers to exchange insights on the situation and trends during COVID. CNV-I began working with companies on multi-company collective bargaining agreements to formalise terms and conditions of employment with sourcing factories. CDI provided essential grassroots support—online counselling, legal advice, and clear COVID guidance—while adapting all activities to remote formats.
Relationships built during this period laid the groundwork for continued collaboration on wage negotiations and labour rights in Vietnam.
“Before the pandemic, we did not work much with brands, but after COVID, social dialogue became truly tripartite—including worker representatives, brands, suppliers, and local government.”
– Yen Nguyen, CNV-I
Lessons for the future
COVID-19 starkly revealed the systemic inequities in global supply chains and the fragility of worker protections. In response, STITCH partners agreed to devote more attention to these structural issues and used the momentum of the crisis to build stronger alliances for change.
STITCH partners learnt vital lessons, including:
Act fast. Crisis response must be immediate and coordinated.
Information matters. Real-time, ground-level insights were crucial for brands navigating restrictions.
Clarity helps. Enhanced expectations gave brands actionable standards.
Grievance systems must be nimble. Speed was essential to address urgent worker needs.
Health beyond OSH. The crisis highlighted broader health issues, including mental health.
Prepare for the next crisis. COVID-19 made the threat of climate-related disruption more tangible for companies and workers.
Industry alignment is crucial. This was reflected in collaborative efforts such as The Industry We Want initiative, the advocacy for the CSDDD, and the development of the Common Framework for Responsible Purchasing Practices.
“The trade unions started working underground and had to find new ways to do their core work. Organising workers became a challenge as the martial law dictated that gatherings with more than five people were forbidden at risk of being arrested.”
– Wulan Dari, M-FNV
Initial efforts focused on staff safety and supporting trade unions to continue their work covertly. Fair Wear, ETI and seven other organisations issued a joint statement just a month after the coup, urging brands to exercise heightened due diligence and cut any links to military-owned businesses. This later became official policy.
On-the-ground efforts against the odds
With civic space rapidly shrinking, Fair Wear had to suspend factory trainings and assessments. But it maintained its factory-level complaints helpline and on-the-ground network, and guided brands remotely on how to respond.
M-FNV worked with partners, such as the Myanmar Industry Craft Service Trade Unions Federation (MICS-TUsF), to monitor rights violations, despite the dangers. Local unions gathered evidence regarding employers collaborating with the junta occurring at factories. Subsequently, the federation called upon the brands to address these issues and enhance their due diligence practices.
“There were many raids in the industrial zones. Some factories even employed military officers in their management.”
– Wulan Dari, M-FNV
These data-driven efforts led to two major reports, quarterly updates (Myanmar Workers’ Rights Violations - MWRV), and a Lawyers Network offering legal aid to arrested workers. In October 2023, MICS launched a grievance hotline. Over 400 complaints were received; 93% were settled—mostly through bipartite dialogue with factory management, without involving brands. “We managed to turn this around,” says Ruben Korevaar of M-FNV. “It’s going back to social dialogue, which is at the core of STITCH’s mission.”
Guiding brands through heightened due diligence
Fair Wear remained in close contact with member brands sourcing in Myanmar. In March 2022, it published Heightened HR Due Diligence - Brand Guidance Myanmar, encouraging members to reassess their sourcing, and for existing brands to conduct heightened human rights due diligence. ETI similarly advised its member brands on enhanced HRDD approaches for Myanmar.
Annet Baldus noted that many Fair Wear brands actively sought this advice. The guidance covered wages, overtime, military linkages and more. Six months later, Fair Wear called for responsible disengagement altogether.
M-FNV and its partner placed strong emphasis on protecting workers’ rights, regardless of whether brands chose to keep sourcing or exit responsibly. If a brand decided to leave, they called for transparent communication about exit plans and timelines, so they could support workers’ rights effectively.
“The circumstances were extraordinary. The coup demanded that we took due diligence to the next level.”
– Suhasini Singh, Fair Wear
Independent sectoral assessment: the turning point
To provide an independent and fact-based assessment of the business and human rights context in Myanmar, ETI commissioned Due Diligence Design to conduct an enhanced due diligence sectoral assessment in Myanmar. The report, published in September 2022, concluded that conducting human rights due diligence in Myanmar’s garment sector was extremely challenging, if not impossible. The report played an important role in shaping international stakeholders’ understanding of the deteriorating environment for human and worker rights and has since then been a critical reference point for discussions and HRDD.
As a result, Fair Wear and ETI updated their policy accordingly. In such context, both remaining and exiting may have complex implications that need to be carefully considered. Fair Wear required brands to exit responsibly —unless they could justify staying under strict conditions and could publicly show implementing heightened due diligence via their annual brand performance check. ETI recommended its members to reassess their sourcing and to ensure action is taken to mitigate adverse impacts on workers, and prioritise workers in their decision-making processes, as set out in the UN Guiding Principles on Business and Human Rights (UNGPs) and OHCHR recommendations. M-FNV chose to continue supporting workers on the ground independently.
Responsible disengagement: easier said than done
Research conducted by M-FNV’s partner, MICS-TUsF n 2023–24, revealed major gaps during the mass process of buyers disengaging from Myanmar. In many cases, workers weren’t informed of upcoming exits, and compensation processes lacked transparency. Some brands even shifted production to other factories in Myanmar. For brands continuing to source from Myanmar, expectations are high.
Fair Wear internally provided guidance for brands on responsible disengagement, requiring them to phase out gradually, consult suppliers and other local stakeholders, ensure severance payments, and support affected workers. ETI and Fair Wear also continued to engage with their company members and developed specific expectations and reporting requirement, in line with Fair Wear’s brand performance check policy, ETI’s sectoral assessment and the UNGPS. However, while some brands demonstrated the implementation of special measures for their heightened HRDD in Myanmar, Fair Wear staff remain cautious: “Many brands have a hard time providing the actual proof on improved working conditions or worker protections.”
This process has shown the need for further practical guidance and support to define the responsibilities of companies and stakeholders through a responsible exit process.
What did we learn?
The Myanmar crisis created an unprecedented situation for the STITCH members, their local partners and member brands. Some of the key lessons learned include:
Clear, aligned and fast guidance to brands from MSIs is vital in crisis. Ongoing engagement with specialist organisations, local stakeholders, brands, suppliers and workers is essential.
Enhanced due diligence frameworks, like those created for Myanmar, can be adapted for future crises. For example, when the situation between Israel and Lebanon escalated, Fair Wear referred brands operating in Lebanon to specific points in the Myanmar enhanced due diligence guidelines.
Bipartite dialogue between workers and management can improve industrial relations even in repressive environments.
An independent grievance mechanism can fill the gap in absence of MSIs and other instruments on the ground to ensure access to remedy, and to prevent and mitigate risks.
In a volatile environment, maintaining the dialogue between partners is essential to reassessing the context on an ongoing basis and ensuring that decisions are guided by the UNGP and OECD Guidelines.
Crisis triggers difficult internal debates. For example: how do MSIs weigh keeping brands on board versus upholding strict human rights standards?
The situation in Myanmar remains unresolved. But STITCH partners continue to find ways to support workers, provide guidance to ensure heightened due diligence to protect workers, learn from each other, and refine their approach for future crises, however politically complex they may be.