New York: Garment factories around the world which have signed up to implement UN-backed labour standards may simply stop investing in improving working conditions, due to widespread uncertainty over tariff levels, according to the International Labour Organization (ILO).

According to EMM, threatened or actual tariff increases are largely focused on taxing imports into the United States and will make the products made by factories outside the country more expensive – a situation which may drive down demand. The ILO’s Better Work programme, a partnership with the International Finance Corporation (IFC), has supported garment factories, many of which export their products to the United States.

There are other elements that support the sector to promote social dialogue, safe and decent work which includes fair wages and working hours. The programme has also helped build productivity in those sectors. The ILO, being a tripartite organization, collaborates with governments, employers, and unions to promote responsible business practices alongside major brands from the US, UK, Europe, and Japan.

The success of this programme is evident as studies show significant impacts at the factory level, such as increased wages, support for gender-equality issues, and empowerment of women in supervisory roles. Over its 25-year existence, Better Work has lifted millions out of poverty and reduced the environmental impact of the apparel sector by fostering decent work in sustainable enterprises.

Despite improvements, challenges such as freedom of association for unions persist. Better Work-enrolled factories have reported an increase in orders, indicating a positive business impact. Governments acknowledge that the programme boosts confidence and growth in the industry. However, recent global changes, like the US Government cutting funding, have affected programmes in Haiti and Jordan.

The ongoing support from the ILO is crucial for monitoring compliance with international labour standards and eliminating risks from the buyers’ perspective. The Better Work programme aids factories by conducting assessments, advisory and learning sessions, and building capacity among governments, workers, and employers.

The current tariff uncertainty presents challenges for the garment sector, with factories unable to plan for the short term. This situation threatens jobs in the formal sector, potentially pushing them into the informal sector where protections are minimal. In countries like Jordan, with a significant migrant workforce, this is a pressing concern.

Investment in the global garment industry is also impacted by this uncertainty, as factories may halt improvements in working conditions, risking occupational safety and health. Issues like heat stress, particularly in high-temperature regions like Pakistan, require urgent attention, which may be neglected if investments cease.

For garment workers worried about job security, the ILO remains committed to protecting workers and improving conditions across different sectors. The organization continues to promote social dialogue to drive improvements at all levels.