H&M pledges living wage for textile workers in Bangladesh and Cambodia

H&M has pledged to pay a living wage to 850,000 textile workers after expressing frustration over a lack of action by governments to address working conditions in Asian factories in the wake of the Rana Plaza disaster. The world’s second-biggest clothing retailer said it would support factory owners at two factories in Bangladesh and one in Cambodia to adopt a fair living wage next year. The Swedish company, which has more than 200 stores in the UK, will then expand the programme to cover the 750 factories that supply its clothes by 2018. H&M said: “We believe that the wage development in production countries, which is often driven by governments, is taking too long. H&M wants to take further action and encourage the whole industry to follow.” … The company said it would use the Fair Wage Method, an established process for achieving a living wage. After identifying workers’ basic needs, a wage is agreed and is then reviewed regularly with better dialogue between workers and employers. H&M said: “We are willing to pay more so that the supplier can pay higher wages. It is a collaboration between H&M and our suppliers.” …

Sean Farrell