Gap to manufacture in Burma

As the first US retailer, clothing giant Gap Inc. has announced plans to produce clothes in Burma (Myanmar). Though the country has been on the road to democracy for three years already since its almost 50-year military dictatorship and the accompanying economic sanctions for western countries ended

in 2011, no American retailer had so far entered the country while Burma’s neighbors and other Asian nations have long had a strong presence in the country.

First

"Made in Burma" articles available in summer

This will change now as Gap has already started producing articles like vests and jackets at two factories in Rangoon for its brands Old Navy and Banana Republic according to a statement released on Saturday. Both factories, owned by a South Korean company, have already ramped up their staff by about 700, bringing the total number of employees to around 2,000 at each site, as the “Made in Burma” articles are scheduled to be on sale in US stores this summer already.

“This is a historic moment for Myanmar. By entering Myanmar, we hope to help accelerate economic and social growth in the country, and build on our track record of improving working conditions and building local capacity in garment factories around the world,” said Gap vice president Wilma Wallace.

Gap will be working with the US Agency for International Development (USAID), CARE International and its PACE program to focus on the empowerment of its workers, especially women.

“I applaud Gap Inc. for their decision to enter the market in Burma and the company's ongoing commitment to the well-being and empowerment of their workers, particularly through its P.A.C.E. (Personal Advancement & Career Enhancement) program, which aims to promote the advancement of female garment workers by providing life skills education and technical training. Economic indicators show that the garment industry has provided the majority of jobs in some developing countries during their growth stage. For many women, it is their first sustainable income”, commented Melanne Verveer, former ambassador-at-large for global women’s issues at the U.S. State Department.

Though Burma has always had an established garment industry, many obstacles like frequent electricity shortages and poor infrastructure remain. This is countered by a cheap and abundant labor force that despite its need for training makes Burma attractive for retailers.

Asked

about Gap’s concrete involvement in Burma, Dotti Hatcher, executive director, Gap Inc. P.A.C.E. Global Initiatives, explains: “Our social investments in Myanmar range from working with local and international NGOs and trade unions to make sure that our vendors provide their employees with a safe, healthy and fair workplace to focusing on the advancement, both personally and professionally, of women throughout Myanmar.”

Gap has already implemented the P.A.C.E. program in seven countries, resulting in the participation of more than 25,000 female garment workers, many earning a sustainable income for the first time in their lives.

In terms of workplace safety, Gap will make sure that its supplier factories work in accordance with their code of conduct for vendors. In addition, the company entrusted an independent NGO with performing regular assessments of working conditions as well as structural safety engineers and fire safety experts with ensuring a safe working environment.

Photos: PACE/Gap