Researchers are urging the UK government to create a Garment Trading Adjudicator, arguing that new survey evidence points to entrenched unfair purchasing behaviour by brands and retailers that is destabilising manufacturers and pushing risk onto workers.
The recommendation follows analysis of a survey conducted with garment manufacturers and reviewed by academics from the University of Nottingham and the University of Leicester in partnership with trade justice charity Transform Trade. The research highlights recurring issues such as late payments, last-minute revisions to confirmed orders without compensation, and price cuts imposed after contracts are agreed. Manufacturers told the researchers these practices transfer financial risk away from brands and onto suppliers impacts that are then felt most sharply on factory floors.
The survey results suggest the problems are widespread. Order cancellations were reported by 31% of respondents. A further 78% said brands did not cover the costs of late-stage changes to confirmed orders. Around 75% reported that pricing was not adjusted when minimum wages increased. In addition, 67% experienced reductions in order volumes without corresponding changes to unit costs, while 44% said they faced repeated requests to extend payment terms. Ten per cent reported payments arriving more than three months after the agreed deadline.
Manufacturers linked these commercial pressures directly to workforce outcomes. Seventy-three per cent said workers were pushed into overtime to handle sudden order spikes. Fifty-eight per cent reported reduced hours following cancellations, and 29% said jobs had been terminated as a result of volatility.
Confidence in formal routes to resolve disputes was low. Only 22% considered the legal system a realistic option for redress, and none viewed government or multi-stakeholder initiatives as effective. Respondents cited cost and legal complexity, saying it was often financially impossible to challenge brands.
Dr Sabina Lawreniuk of the University of Nottingham’s School of Geography said, “Our research shows that current brand purchasing practices directly impact workers, resulting in precarious and insecure work across UK factories. Voluntary codes have proven insufficient. If we are serious about protecting workers and supporting a sustainable UK fashion industry, we need a Garment Trading Adjudicator to enforce fair practices across the sector.”
She added that the findings point to a need to rebalance relationships between brands and UK manufacturers to support domestic production, sustainable business models, investment and stronger employment outcomes. Professor Nikolaus Hammer of the University of Leicester also emphasised the importance of rebalancing these relationships to support long-term UK manufacturing.
The researchers and Transform Trade argue that a sector regulator modelled on the Groceries Code Adjudicator could set clearer expectations, curb abusive practices and create accountability across fashion supply chains. They say a Garment Trading Adjudicator would provide enforcement power that voluntary commitments have failed to deliver.