FAQ

1. What is the MADE project?

The Multistakeholder Alliance for Decent Employment in Myanmar (‘MADE in Myanmar’) is a four-year project (December 2022- December 2026), formally launched in March 2023, which is primarily funded by the European Union with the objective of strengthening responsible business practices in the textile, clothing and footwear sector, achieving critical industry improvements and protecting livelihoods of hundreds of thousands of families. Specifically, it aims to:

  • strengthen economic resilience and transparency practices across the Myanmar apparel industry.

  • support worker access to functional and credible grievance mechanisms at both factory and, eventually,

    industry level.

  • promote industry best practices with regards to occupational safety and health, social compliance, and

    environmental management.

  • facilitate and nurture dialogue between employers, workers, and international stakeholders.

  • provide enhanced support to women workers to advance their positions and standing in the workforce.

    MADE has three components:

    1. The SMART Factories Programme, a series of enterprise advisory modules and workshops continuing

      from prior phases of the SMART Myanmar project (2013-2022). The SMART Factories Programme focuses on social compliance and environmental performance in the Myanmar textile, clothing and footwear industries, especially occupational safety and health, conformance with UN Guiding Principles on Business and Human Rights, and international retailer codes of conduct.

    2. The Forum on Supply Chain Conduct – This is intended to promote and nurture cross-sectoral dialogue between business associations, trade union federations and labour rights groups and international retailers for the benefit of workers in the industry and more responsible industrial development.

    3. The Centres for Women’s Advancement – This will support two Women’s Community Centers to provide special outreach and educational and social support to women workers, in particular young migrants.

2. Who funds the MADE project?

Core funding of 3 million euro is provided by the European Union. Larger private sector apparel retailers (brands, buyers) which join the Alliance are expected to co-fund with additional contributions ranging from 10,000 to 50,000 EUR annually, based on company size and size of operation in Myanmar. Companies with smaller volumes in production (e.g. sourcing from 3 or fewer factories in Myanmar or own manufacturers) can participate vis-à-vis their membership in EuroCham. Retailer contributions are used to co-fund the entire project and, eventually, to expand the scope of enterprise advisory services, training workshops and services on offer by the project’s women’s centres.

3. Who are the implementing partners?

Implementing partners are sequa gGmbH and EuroCham Myanmar.

MADE has a Steering Committee chaired by the EU Delegation in Myanmar with membership from sequa, EuroCham and the Myanmar Centre for Responsible Business, and a Secretariat provided by the MADE team. Additional independent members may be invited to join the Steering Committee.

4. What is the relationship between MADE in Myanmar and SMART Myanmar?

MADE continues and expands on the earlier SMART projects, incorporating ‘SMART 3’, the Factories Programme. However, it introduces two new components (the Forum on Supply Chain Conduct, and the Women’s Centres), and a new ‘Alliance’ between the project and participating brands. This is based on feedback from stakeholders and intended to address the current situation in Myanmar since the 1 February 2021 coup.

5. Does the 'EU Myan Ku Fund' still exist?

The European Union provided 10 million EUR in support to workers who lost their jobs during COVID. This ‘Myan Ku’ Fund ran from April 2020 to December 2022 and was administered by UNOPS utilizing staff capacities and networks within the SMART project.

Myan Ku supported approximately 90,000 garment, textile and footwear sector workers with direct cash assistance through mobile money disbursements, as well as 400,000 EUR in food vouchers and direct food aid funded by private sector retailers.

About a third of Myan Ku’s cash and voucher assistance went to around 3,000 young mothers from the sector, many of whom received cash assistance for half a year or more during their pregnancy and/or after delivery. Doctors and nutritionists from Myan Ku provided nutritional counseling support to the women, and several other smaller programmes were also administered on vocational training and alternative skilling for unemployed factory workers.

Some of the capacities developed under Myan Ku are now continued within MADE under the Centres for Women’s Advancement. One of the nutritionists runs a nutrition help-desk and provides in-factory technical assessments focused on enhancing worker nutrition and medical provision (clinic capacity assessments, canteen review, support to develop breastfeeding rooms for young mothers and related activities). Civil society partners also continue to administer psycho-social counseling and sexual and reproductive health counseling to interested current and former garment workers.

6. Does MADE cooperate with or provide funds to the military regime?

The European Union’s cooperation work in Myanmar is solely conducted by means of Special Measures for the direct benefit of the Myanmar population and civil society, without collaboration and engagement with State authorities/governmental structures.

The EU does not foresee the MADE project will involve any policy discussion with, and/or direct financial contributions to, State authorities/governmental structures.

7. Does MADE recognize that there are severe constraints on freedom of association, particularly since February 2021?

Yes, partners in the MADE project believe that there are very severe constraints to freedom of association, and to the operation of trade unions and non-governmental organizations (NGOs) and civil society in Myanmar. It was this which prompted the Governing Body of the International Labour Organization (ILO) in 2022 to establish a Commission of Inquiry in respect of the non-observance of International Labour Standards in Myanmar, in particular Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) and the Forced Labour Convention, 1930 (No. 29) .

However, despite the severe challenges to freedom of association, trade unions still legally exist at factory level, and at federation level. Organisations and individuals committed to supporting workers rights continue to operate, despite the difficult circumstances. MADE aims to support their resilience, and their ability to engage with business to resolve grievances.

8. How does MADE engage with the Myanmar Garment Manufacturers Association (MGMA) and foreign garment associations in Myanmar?

MADE recognizes the essential role that factories play in ensuring decent labour conditions and adherence to international standards. It will continue to engage with MGMA and foreign garment associations active in Myanmar with the aim of improving industry standards and practices.

9. What is the 'Alliance'?

The ‘Alliance’ is a new element of the MADE programme which is intended to promote cooperation and joint commitments by the project and participating private sector companies. These address: heightened human rights due diligence; communication and transparency; industry-level and bipartite cooperation and collective action including on issues such as wages and take-home pay, grievance handling, freedom of association and environmental performance.

'Alliance' members commit to...

1. Heightened Human Rights Due Diligence

  • Is the company committed to basing their approach to sourcing from Myanmar on the UN Guiding Principles on Business and Human Rights, including Principles 19 and 21, as well as international labour conventions and other internationally recognised human rights principles? Are they delivering on this commitment?
  • Has the company committed to undertaking ongoing heightened due diligence of their supply chains in Myanmar?  What evidence is there that they have done so?

2. Communication

  • Is the company communicating information about its sourcing from Myanmar, including a summary of their human rights due diligence and the salient human rights risks they have identified, and how they are mitigating these?
  • Is the company responding to requests for information from well-established third parties such as the Business and Human Rights Resource Centre (BHRRC) on reports of grievances linked to their suppliers and how they have addressed these?  

3. Transparency: Supplier data

  • Is the company sending their current Myanmar factory suppliers to the Secretariat at least every six months?  Are they additionally publishing their supplier data (both Myanmar, and global) on their own company website, and taking ownership of their entries on the Open Supply Hub?
  • Does the company keep the MADE Secretariat informed about significant changes to suppliers, and audit or other findings?
  • Does the company respond promptly to surveys and requests for information conducted by or on behalf of the MADE Secretariat?

4. Industry-level and Bipartite Cooperation and Collective Action

  • Is the company participating actively and constructively in discussions under the MADE programme, including collective public statements where relevant? 

5. Wages and take home pay

  • Is the company showing commitment to exploring all options for achieving higher wages for workers in the Myanmar apparel industry?  Has it undertaken and shared a self-assessment of the actions they are taking towards wage improvements, including wage surveys of their suppliers. 
  • Is the company engaging constructively with trade unions and labour organisations on their suggestions, and piloting practical steps to increase wages and take home pay?

6. Complaints and Grievance Handling

  • Has the company nominated a lead contact for complaints/grievance handling and do they acknowledge any approach from MADE within 48 hours?
  • Does the company engage constructively with all legitimate approaches from rights holders, and prioritise the safety of complainants? How rapidly do they respond? 
  • Can the company demonstrate that they require business partners to have effective grievance processes in place at factory level. Do they promote and monitor their effective functioning?
  • Does the company share its own practices for grievance handling and worker engagement? Do they act on viable suggestions to prevent and remediate complaints?

7. Freedom of Association

  • Does the company demonstrate its support for freedom of association, consistent with international labour conventions and the Guideline on Freedom of Association in Myanmar? Does it communicate to suppliers and other business partners that they expect compliance with the FoA Guideline?

8. Environmental Performance

  • Has the company committed to working towards a complete phase out of coal boiler fuel in Myanmar by 31 December 2025, including in their suppliers?  Are they delivering on this commitment?
  • Has the company committed to achieve full compliance among suppliers with the globally harmonized system (GHS) for chemical inventory management and labelling by 31 December 2023? Are they delivering on this commitment?

While full achievement of all the criteria is not essential for continued membership of the Alliance, companies will be expected to be actively delivering on a significant number of the commitments, and to have a plan to achieve those which are outstanding.

As of July 24th, 2023, member brands participating in the Multi-stakeholder Alliance for Decent Employment in the Myanmar apparel industry include:

  1. H&M
  2. Bestseller
  3. Adidas
  4. Deuter
  5. Hunkemöller
  6. Vaude
  7. Schöffel
  8. Bergans
  9. Barbour
  10. Regatta
  11. Takko
  12. Amer Sports
  13. Tendam
  14. MS Mode
  15. Oberalp/Salewa
  16. We Fashion
  17. O'Neill

The Myanmar supplier base of the above listed Alliance members is estimated to account for roughly 50% of all apparel product exports to the EU market, mostly garments, footwear and handbags, but also some backpacks, luggage and sporting equipment. The Myanmar suppliers of the above mentioned brands/retailers employ approximately 180,000 individuals, of which 88% are women workers.