Payment issues spark call for code

MELBOURNE: Perennial disputes over payments have triggered an industry call for guidelines to protect agents, designers and manufacturers.
All parties involved in bringing clothing and footwear to market would benefit a code of ethics, claimed Melbourne agent Karin Blomquist.
Agents frequently bore the brunt of prolonged payment terms that had not been enforced by suppliers in their dealings with retailers, she claimed.
"If an agent goes out and sells $1.5 million of a supplier's product and the supplier delivers only one item [to retail] then that's all the agent will be paid commission for. Also, the practice of payment on receipt [of goods by the retailer] is not practical or commercially viable," she said.
"We've become debt collectors as well as wholesale agents."
While agency agreements did exist, industry would benefit from a body to assist in clarifying payment issues between agents and designers in order to avoid costly court cases.
"It should be about bringing the two sides together, not reinforcing their differences."
The Melbourne-based National Council of Fashion Design -- scheduled for official launch later this year - hoped to assist in educating all parties on payment and related issues, said council general manager Zoe Edquist.
"[The system] is completely pear-shaped at the moment," she said.
"Many retailers have become pretty lawless in terms of pushing out their payment terms," she said.
Retailer, manufacturer and designer Ronnie Sansonetti - who owns Sydney womenswear label Andiamo - said it was customary for her company not to pay its agents until it had been paid.
"However, we're regarded as good payers," she said.
"I do think some guidelines would be fantastic. There really needs to be some way of vetting people."
"Often a young designer will get a huge order [from an agent] but what they don't realise is that the only reason they got it is because no-one else will touch them."
Melbourne agent Blomquist said young agents were equally at risk.
"It's important for the future of this industry that there is a code of ethics to protect younger agents against paying out large sums in legal fees to settle payment disputes" she said.