The Fair Work Agency (FWA), a new U.K. government executive agency sponsored by the Department for Business and Trade, launches on Tuesday.

FWA will serve as a single point of contact for workers and employees seeking support to investigate breaches, issue civil penalties and act against labor exploitation.

However, a new policy brief by Labour Behind the Label, the U.K.-based campaign group focused on improving conditions and empower workers in the global garment industry, has expressed skepticism that the new agency will be adequately resourced to address the full scale of the sector’s labor challenges.

“A single enforcement body on labor exploitation could be a game changer in the fight for worker justice and comprehensive labor rights. But the scale of the problem requires a well-resourced solution. Low paid and marginalized workers, such as garment workers in the U.K. textiles industry, require accessible and trustworthy reporting mechanisms that help rather than hinder,” said Dominique Muller, U.K. policy lead for Labour Behind the Label.

Citing a 2023 survey by Resolution Foundation, the brief notes that 32 percent of low-paid workers underpaid the minimum wage, 900,000 workers received no paid holiday despite being entitled and 1.8 million workers did not get paystubs, limiting their ability to check pay. The same survey found that one in five workers report experiencing work-related discrimination and workers in small firms are more likely to face unlawful treatment.

Part of the challenge is to convince low-paid workers that taking action against their employer is worth their effort. Workers are fearful of losing jobs, retaliation or action against their immigration status if they speak out. Many also face language barriers. The brief states effective enforcement requires the active participation of workers and their representatives, adding that “worker voice must therefore be central to the enforcement framework.”

The brief casts doubt on the agency’s effectiveness due to a lack of partnerships between the FWA, local authorities, unions, enforcement agencies and community organizations. The brief emphasizes the importance of FWA formally recognizing trade unions and embedding them within its enforcement and monitoring structures.

“We want workers and their representatives to be at the heart of designing solutions and delivering real change in their lives and their communities. We need a body that proactively reaches out to workers and breaks down barriers, rather than waiting for signals to come to them,” Muller said.

Extremal stakeholders may help fill information gaps. The brief states it is not clear what budget the FWA will have and how many staff it will have. “Without financial and logistical capacity, the FWA’s potential may fall at the first hurdle. Currently the U.K. has just 0.29 labor market inspectors per 10,000 workers which leaves us in the bottom third of similar OECD countries,” the brief states.

Without proper resourcing to bring the U.K. to actionable levels of labor enforcement, Labour Behind the Label states that the government’s reform agenda “may fall short of its ambition to strengthen vulnerable workers’ ability to report abuses and enforce their rights.”

“In order to build a sustainable and ethical garment industry in the U.K., we need to urgently ensure effective action can be taken against those who create and benefit from the exploitation and illegal activity in the industry—at home and abroad—including suppliers, brands forcing low prices onto their supply chain and unscrupulous factory owners. Without this, exploitation and environmental degradation linked to the fashion industry will continue,” Muller said.