Cheap, cheerful and ethical? Primark says it can be done

Primark is a retailer that divides the nation. To many, it is a shoppers' paradise of amazing bargains. For others, the cut-price clothing chain represents fast fashion, exploitation and capitalism at its worst.

Embarrassed by a BBC exposé in January – detailing allegations that one of Primark's UK suppliers paid workers about half the minimum wage for a 12-hour day, seven days a week – the firm seems to have recognised the need for action by employing its first ever "ethical trading director". Tomorrow, Katherine Kirk will begin work at the firm's British headquarters in Reading, an appointment variously viewed with outright suspicion or as a welcome step forward by campaigners. A new computer system to monitor supply lines is also being introduced.

A request to interview Ms Kirk, formerly of Gap, also once the subject of sweatshop allegations, was declined, but Ray Ellis, a business analyst at parent company Associated British Foods, said hiring Ms Kirk was a significant development. "This is a demonstration of Primark's commitment to improve working conditions while maintaining competitive edge and quality in a fast-moving environment," he said.

In 2005, Ethical Consumer magazine rated Primark as the least ethical of the main clothing stores in the UK. An updated listing puts it in the upper half of the league table. But the retailer is still the subject of an ongoing investigation into the allegations in January by the Ethical Trading Initiative. Last year it was revealed that Primark used suppliers of goods that had been made by child labour in India.

Jim Cranshaw, a trade campaigner at People & Planet, was sceptical about how much would change following Ms Kirk's arrival. "Primark's appointment of a new ethical trading manager should be viewed with suspicion given their previous record," he said. "Primark is usually considered to be one of the worst brands on the high street and will have to show its commitment to ethics by actions and results, not just job appointments."

He added that while Primark had joined the Ethical Trading Initiative, its progress on the issue since then had been "terrible". But he also said that other stores had not "even made this first basic step towards ending human rights abuses and poverty wages in their supply chains". "They haven't shown any inclination towards even caring," he added.

Others were a little kinder to the store, which reported last month that sales were expected to rise by 5 per cent. Katy Brown, a researcher at Ethical Consumer, said Primark was responding in a logical way to protect its business from bad publicity. "It will be a financial decision. They won't want to be on the BBC being accused of child labour because people won't shop there," she said.

"I think ultimately these are profit-making companies, and to them workers are a resource to maximise their profits from. But when there is a public outcry and that starts to impact on their profits and reputation, then they will take it seriously."

Sam Maher, a campaigner at Labour Behind the Label, said: "It is a step forward to have appointed someone in the company with overall responsibility for that. It's definitely a sign they are taking it more seriously. But until we see who the woman is and what she does, it is too early to tell whether this represents a significant move forward or not."

A spokesman for the Ethical Trading Initiative, which includes companies, trade unions and other organisations, said of the new computer system and Ms Kirk's appointment: "They are obviously positive steps, but we are conducting an investigation into Primark's systems for implementing ethical trade and we cannot comment any further."

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