Keeping Workers in the Loop is a report from BSR, to explore if a circular fashion transition could be leveraged to re-establish a system that works for everyone, most importantly those who are exploited by the existing imbalance of power within global fashion supply chains. BSR worked with a range of stakeholders, including established brands, worker representatives, new circular businesses, sustainable fashion experts, and international institutes to create an assessment of the potential threat of perpetuating existing exploitation. The report proposes three recommendations for intentional action that makes job quality the focus of the circular shift. 

While it is both economically viable and environmentally critical that growth is decoupled from resource use, the implications of this transition for people and society are not fully understood. BSR’s findings highlight how there are several risks to perpetuating existing structural imbalances. 

Firstly, the research found workers in already circular aspects of the fashion supply chain, such as waste picking for recycling or sorting for resale, have some of the worst labour conditions. As the value chains expand into new areas, there are risks in terms of job quality for society’s most vulnerable. 

Moreover, the changing business models of circularity offer entrepreneurial opportunities, but the soft skills and technical competencies are lacking for the existing workforce to start new businesses or advance into better positions. Critically, there is insufficient training being provided by employers. 

Finally, the shift is taking place at a time of increasing instability, with automation and macroeconomic factors expected to further disrupt the industry by 2030. This is predicted to result in a decline in wages for low-skilled workers across all geographies. 

Yet, the transition can also provide an opportunity to design a fairer structure than what exists today, creating a just and inclusive circular fashion future with dignified, inclusive, and resilient jobs for the most marginalized. However, this requires intentional action. BSR provides three recommendations :

1. Develop and disseminate information about the impacts of changing industry dynamics on workers, including a shift to circularity.

The industry must deepen its knowledge of the impacts that the shift to circularity will have on workers and subsequently assess and prioritise the business model pathways that enable prosperity and worker well-being.

2. Prepare and equip workers and organisations for the transition.

Circular roles are likely to be more multifunctional and technological, so businesses and governments need to map out future requirements, collaboratively upskilling and reskilling workers through disruption.

3. Adapt industry processes and relationships to fit a changing context.

Responsible sourcing must be at the core of the expansion to new value segments where established industry norms can be rewritten, putting people at the centre to deliver holistic sustainability objectives that meet both environmental and social goals.

The report highlights how the industry is at an inflection point and, without deliberate steps, existing imbalances will be further exacerbated. Collaboration is required in order to identify and mitigate the risks of replicating an unjust system, instead putting workers at the centre of the transition. 

Image from ILO Asia-Pacific via Flickr - https://flic.kr/p/BZoZYq