Uzbekistan’s textile and garment industry is celebrating the first anniversary of an important agreement aimed at improving working conditions and labor rights. This landmark Memorandum of Understanding (MOU), signed by the Better Work program, the Federation of Trade Unions of Uzbekistan (FTUU), and the Uzbek government, represents a pivotal step in Uzbekistan’s strategy to enhance its cotton industry and position itself as a competitive global sourcing destination for apparel production. The Better Work program is a collaboration between the International Labour Organization (ILO) and the International Finance Corporation (IFC).
With the support of Better Work, Uzbekistan's textile industry is attracting international interest. Recently, The Walt Disney Company included Uzbekistan in its list of approved sourcing countries, provided
that the sourcing factories are enrolled in the Better Work program. “If progress on labor standards continues, Uzbekistan is well placed to become an important supplier to global markets, especially Europe,” said Yousuf Abu, head of the country program for Better Work.
He highlighted that the country is already in a strong position with short lead times and competitive prices, particularly after the lifting of the cotton ban.
Uzbekistan now enjoys tariff-free access to the European market for cotton garments. An IFC study recently found Uzbekistan to be the most competitive among Europe’s garment suppliers in terms of freight costs and import duties, a benefit partly attributed to the Uzbek government’s policy of subsidizing transport costs.
The anniversary of the MOU coincides with a busy period for the Better Work program, financially supported by the World Bank and the European Bank for Reconstruction and Development (EBRD). The Programme Advisory Committee (PAC), which includes representatives from the Ministry of Employment and Poverty Reduction, FTUU, and the Confederation of Employers of Uzbekistan (CEU), held its inaugural meeting on May 14. This meeting provided an opportunity to discuss current challenges and opportunities within the industry.
“The past year has been important for our industry. Our partnership with Better Work is not only improving working conditions in enrolled factories but also strengthening our union’s ability to organize and represent all workers,” said Bakhtiyor Makhmadaliev, Deputy Chairman of the FTUU.
Ilkhom Khaydayrov, CEU Board Chair, echoed these sentiments, emphasizing Better Work’s ambitions for the industry:
“Our goal is to organize not just decent work, but the best possible working conditions.”
Mirmukhsin Sultanov, acting Chairman of the Association Uztextileprom, acknowledged the broader impact of constructive dialogue and respect for labor rights:
“The move towards sustainability has expanded to the entire value chain. Many of our companies are keen to comply with ESG requirements, obtaining relevant certifications, and adopting decent work practices to ensure that Uzbekistan meets global guidelines for sustainability and ethical production.”
The Committee was presented with a report summarizing the program’s progress since its launch in June 2023. Highlights included a fast-tracked feasibility study, new factory enrollments exceeding targets, and increased interest from international buyers.
Additionally, in May, the first set of assessments from participating factories was published. Five enterprises completed their first reviews, providing a detailed snapshot of current non-compliance rates. The findings highlighted existing problems in the industry, such as a lack of health and safety protections and issues with contracts and fair pay, underscoring the need for targeted interventions to elevate safety standards and ensure fair treatment and remuneration of workers.
“As we move into the second year of the MOU, the focus will shift towards the sustainable integration of these industry practices and further enhancements of productive dialogue. With the right approach, we are optimistic that Uzbekistan can take its place among key supplier nations for textiles and apparel,” added Yousuf Abu, who leads Better Work Uzbekistan.
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