Glassons introduces a whistleblower app for factory workers
Tuesday, 29 October 2019
Workers in Glassons fast fashion factories will be able to report ethical breaches without fear of reprisal with a whistleblower app.
Hallenstein Glasson Holdings, the NZX-listed parent company for Glassons and Hallenstein Brothers, announced a successful pilot of its whistleblower app in the company's annual results.
The app provided workers with an anonymous communication channel to communicate concerns related to working conditions in the global factories.
Production teams also made regular visits to manufacturers in China, India and Bangladesh, the company said.
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In 2019, it conducted 84 audits across its supply base, including second tier factories and textile mills.
Despite a difficult retail climate, Hallenstein Glasson Holdings reported a $29 million net profit after tax for the year ended August 1, a six per cent increase on the previous year.
Glassons has 37 stores in New Zealand while Hallensteins had 43 stores nationwide.
Glassons in Australia performed particularly well for the group with a 13.89 per cent increase in sales on the previous year.
However, Hallenstein Brothers struggled with sales increasing less than 0.2 per cent.
Shareholders will receive a final dividend of 24 cents.
Fast fashion has come under increased scrutiny for its labour practices after the collapse of Rana Plaza, in Bangladesh.
Among the garment makers in the building were Phantom Apparels, Phantom Tac, Ether Tex, New Wave Style and New Wave Bottoms.
Altogether, they produced several million shirts, pants and other garments a year. The New Wave companies, according to their website, make clothing for several major North American and European retailers.
The final death toll for the incident was 1,130.
About four million people work in Bangladesh's garment industry, some earning as little as $38 (52 NZD) a month, conditions Pope Francis has compared to 'slave labour'.