E-commerce and fast fashion have led to an explosion in warehousing and logistics. Retail warehouses handle higher volumes and face greater efficiency demands than ever, and this rising activity has drawn the attention of industry regulators. New International Transport Workers’ Federation (ITF) standards may bring further changes to the sector as worries around staff well-being grow.
Understanding the New ITF Standards
On May 27, 2025, the ITF launched a series of standards dubbed the “Eight Principles for Decent Work.” The tenets are supposed to outline what warehousing and logistics businesses must ensure for their workers to protect them as supply chain demands rise. These are:
- Fundamental principles and rights at work
- Safe jobs
- Secure and decent jobs
- Harassment and violence-free workplaces
- Responsible technology use
- A just transition to climate-friendly warehouses
- Freedom of association and collective bargaining
- Effective grievance mechanisms
Many of these goals already play a role in retailer supply chain labour management, but the ITF codifying them may lead to higher pressure to administer these principles. While it is not a government organisation, it does represent hundreds of trade unions and millions of workers. Consequently, it’s safest for retail warehouse operations to abide by these principles rather than risk noncompliance.
How the 8 Principles for Decent Work Impact Warehouses
Fast fashion warehouses, in particular, will likely face higher scrutiny amid the new ITF standards. The sector accounts for a considerable portion of supply chain activity and often targets faster workflows to ensure quick deliveries, potentially raising labour concerns. Here is a closer look at how the ITF’s new principles might affect this industry.
Emphasis on Hazard Management
Greater attention to workplace safety is the most direct impact of the ITF standards. Transportation and storage has the third-highest nonfatal injury rate of any industry, and the second of the ITF’s eight principles directly deals with hazard recognition and planning.
Specifically, the standard calls for warehouses to provide a safe working environment, identify and address hazards, and ensure employee participation in safety planning. While these guidelines leave considerable room for interpretation, they do unveil an important trend. In addition to prioritising worker well-being, organisations must involve workers in it directly.
Surveys about current employees’ safety concerns are a good place to start. Common themes between responses may reveal where the biggest growth areas lie. Training should also ramp up, including regular refresher courses to remind employees of best practices within the workplace.
Greater Scrutiny on Technology
The note about “responsible use of technology” also demands attention. Avoiding displacing employees through automation is the most straightforward interpretation, but the ITF’s comments go further.
According to the ITF, retail warehouses must ensure transparency in any artificial intelligence (AI) algorithms. Limiting surveillance on workers and consulting more experts on tech adoption are also part of the call and increasingly relevant as digitalisation rises. Adhering to this step is a best practice for businesses, anyway, as rushed AI or Internet of Things (IoT) adoption can lead to unexpected losses.
While the ITF does not specifically mention cybersecurity, it should also play a role. Increased IoT endpoints make warehouses more vulnerable, and many facilities rely on outdated software, making them 3.4 times more likely to suffer an attack. Consulting security experts during tech selection and deployment is crucial.
Potential Labour Management Changes
Fast fashion warehouses may also need to adjust their approach to labour management. The call for fair wages, stable employment and reasonable scheduling may lead to higher workforce costs, but this is also an opportunity to optimise logistics operations.
Ensuring safe, fair working conditions could lead to higher productivity, counteracting wage growth to some degree. Leaders must also recognise that job security does not mean automation is off-limits. While robots can certainly replace workers, they can also fill labour gaps and drive productivity when working side-by-side with humans.
The key is to see automation and technology as a complement, not a one-to-one equivalent. Consider automating the most repetitive or hazardous aspects of the job while leaving more engaging or safer work to humans. Such collaboration will improve conditions for staff and enhance productivity to account for higher costs.
Higher Sustainability Standards
The new ITF standards also mention a transition to climate-friendly operations, which is particularly noteworthy for fast fashion brands. Clothes production alone accounts for 10% of global CO2 emissions, which does not include transport costs or waste in the supply chain.
Electrifying vehicle fleets is the most straightforward solution but is not always applicable. Another helpful solution is to transition to renewable energy. In some cases, renewables may not provide enough to power an entire warehouse, but any reduction in fossil fuel usage is a step in the right direction.
The eight principles also specify that any decarbonisation strategies must ensure job security. Consequently, reducing emissions by consolidating operations and laying off workers in the process is not an acceptable solution. Broader restructuring of supply chain partners may be a valuable alternative.
Retail Warehouses Must Prepare for New ITF Regulations
Complying with the new ITF standards may seem challenging initially. However, many of these steps are best practices for retail warehouses, regardless of their employees’ labour organisation status. The codification of these eight standards only reinforces what supply chains should already be targeting.
