[Bangladesh] H&M agrees to pay garment suppliers more

H&M will pay more for its clothing items made in Bangladesh to cover higher worker wages. The move follows weeks of protests by garment workers in the country over government-mandated wage increases they say are insufficient, Forbes reports.

H&M told the garment factories it works with in Bangladesh that it will “absorb the increase of the wages in our product prices” after the government said it would raise garment workers' minimum monthly wage by 56 per cent to 12,500 taka ($113) from December, according to a letter seen by Bloomberg.

The fashion retailer reportedly said that it supports “the development of fair and competitive wages in our supply chain and are working toward improving working conditions.”

Thousands of garment workers in Bangladesh - who currently earn just $75 a month - have spent weeks protesting for wage increases greater than the $113 proposed by the government. The striking workers are demanding $208 a month instead, according to CNN reporting.

The garment workers’ protests have forced some factories to close and there have been outbreaks of violence, with police using tear gas and rubber bullets on protestors, the CNN report said.

An H&M spokesperson said the company is “committed to being a fair business partner and we can confirm that we have expressed our commitment to stand behind our responsible purchasing practices to our business partners in Bangladesh after the new minimum wage,” in a statement seen by Forbes.

According to Bloomberg, Bangladesh is the second-largest exporter of ready-made garments in the world after China.

Source: Forbes

(Links and quotes via original reporting)

H&M will pay more for its clothing items made in Bangladesh to cover higher worker wages. The move follows weeks of protests by garment workers in the country over government-mandated wage increases they say are insufficient, Forbes reports.

H&M told the garment factories it works with in Bangladesh that it will “absorb the increase of the wages in our product prices” after the government said it would raise garment workers' minimum monthly wage by 56 per cent to 12,500 taka ($113) from December, according to a letter seen by Bloomberg.

The fashion retailer reportedly said that it supports “the development of fair and competitive wages in our supply chain and are working toward improving working conditions.”

Thousands of garment workers in Bangladesh - who currently earn just $75 a month - have spent weeks protesting for wage increases greater than the $113 proposed by the government. The striking workers are demanding $208 a month instead, according to CNN reporting.

The garment workers’ protests have forced some factories to close and there have been outbreaks of violence, with police using tear gas and rubber bullets on protestors, the CNN report said.

An H&M spokesperson said the company is “committed to being a fair business partner and we can confirm that we have expressed our commitment to stand behind our responsible purchasing practices to our business partners in Bangladesh after the new minimum wage,” in a statement seen by Forbes.

According to Bloomberg, Bangladesh is the second-largest exporter of ready-made garments in the world after China.

Source: Forbes

(Links and quotes via original reporting)