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News Report Page 6 of 16
Publication Date:-
2024-07-15
 
News reports located on this page = 2.

Digital technology can confront modern slavery in garment making and:- 'fast fashion'

HOW to harness the potential of digital technology to help tackle modern slavery and labour exploitation in UK garment manufacturing and:- 'fast fashion' should be a policy priority for the incoming Government, according to a newly published article by University of Manchester academics.

Based on knowledge gained from their own interdisciplinary research project which included:- interviews with stakeholders, Dr Jon Davies, Professor Rose Broad and Dr Amy Benstead identify poor working conditions, underpayment, long hours without proper breaks and a lack of job security as key challenges in these sectors which lead to the improper treatment of employees.

The explain that:- "In severe cases, workers may face threats and coercion, making it difficult to identify and stop exploitation. Additionally, complex supply chains and subcontracting obscure accountability, which can allow unethical practices to develop. Efforts to enforce legislation and ensure ethical standards are often insufficient or inadequately enforced, which contributes to the overall problem."

The authors reveal that many of the businesses they examined were found to have a limited awareness of how digital technology can be used to assist in preventing modern slavery and exploitation from developing in garment manufacturing supply networks.

They go on to add that:- "Commonly asserted benefits of tools such as Blockchain include:- a real time ledger that all parties in a network / supply chain can access, which includes:- transaction details and contracts. Importantly, stakeholders cannot retroactively change this information without the consent of all parties in the network, which in theory improves accountability and trust among stakeholders. Nevertheless, most participants in our research were not familiar with Blockchain in dayto day business usage."

In businesses which were aware of tools such as Blockchain, Davies, Rose and Benstead discovered that these:- "tended to be seen as a:- 'gimmick' that did not address underlying explanations for modern slavery such as extensive use of subcontracting and pressure to minimise labour and product costs. Related to this, smaller businesses may lack the resources and / or expertise to implement Blockchain, whereas larger fashion brands were perceived as unwilling to implement it due to reputational concerns if cases of exploitation came to light as a result."

From their findings, The University of Manchester academics make a series of policy recommendations to address the issues highlighted in their article.

These propose the launch of a Government consultation or inquiry:- "that crosscuts policymakers, industry, regulators/enforcement and academia on the relative merits and drawbacks of implementing tools such as 'Blockchain' in garment manufacturing and the fashion industry more widely."

Further to this, they advocate placing a requirement on businesses:- "to avoid'tech washing' and associated human rights abuses by being clear about their actions and to what extent they use digital technology." They describe the Commercial Organisations and Public Authorities Duty (Human Rights and Environment) Bill, Private Members' legislation proposed by Baroness Young of Hornsey in the last Parliament, as having the potential to provide:- "a positive framework for this recommendation to take shape" if adopted by the new UK Government.

The authors also advance the case for creating a:- "Single Enforcement Body (SEB) to merge key regulatory agencies such as the Gangmasters and Labour Abuse Authority, Employment Standards Agency Inspectorate and HMRC National Minimum Wage Team." And they point out that:- "a renewed commitment to establish a SEB" was included:- in the 2024 Labour Party Manifesto.

Modern Slavery and Digital Technology in:- 'Fast Fashion' The Transparency Dividend by Dr Jon Davies, Professor Rose Broad and Dr Amy Benstead is available to read on the website.


Property investors focus on rate cuts ahead of politics

PROPERTY investors are cautiously optimistic and focusing on the prospect of base rate cuts ahead of UK and global political issues, according to a new study.

Handelsbanken's latest:- 'Property Investor Report,' based on exclusive insights from UK property investors with an average of 35 properties each, found that 52% say the prospect of a rate cut in August and potentially a further cut before the end of the year makes them more optimistic about the market.

That is partly reflected in the easing of signs of tenant stress; around 53% of those questioned reported issues of rental deferral / contract negotiations, compared with 60% in Handelsbanken's 2023 report. The number experiencing overdue or late payments fell to 34% this year compared with 41% in the previous year.

Despite the drop in reported tenant stress, void periods have increased. 60% of the panel reported an increase in voids, up from 54% in the previous year although Handelsbanken believes this may be partly driven by tenant demand for quality and EPC ratings.

Polled ahead of the general election, the panel reflected wider market sentiment on the impact of a change in Government, with the majority (51%) saying it would not affect plans for their business. 40% said geopolitical uncertainty made them more positive about the UK property market while 44% said it had no impact.

Simon Bradley, Chief Credit Officer at Handelsbanken said:- "There is cautious optimism around the property market and activity amongst existing investors is picking up. It may be that many have decided the economy has potentially reached the top of the interest rate cycle and that the time is right to engage in new deals. We are seeing many of our Handelsbanken property professionals already looking to increase their credit lines in anticipation of potential acquisitions as market rates soften and property values stabilise over the coming months. The report also shows signs of tentative improvements in the stress factors affecting tenants, which have been driven in recent times by the cost of living and energy crises. However, most respondents appear unaffected by potential political uncertainty and don't believe that a change in the party in Government will lead to significant changes in the market."

Read the 2024 Handelsbanken Property Investor Report. You can also view previous reports on this link.

 
      
 
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