In a pivotal move towards equitable labor practices, Hennes Mauritz AB (H&M) has announced plans to offset increased worker wages in Bangladesh by recalibrating prices for clothing manufactured in the country. This commitment was disclosed in a letter obtained by Bloomberg News.
The Stockholm-based company conveyed to its Bangladesh garment suppliers its intention to «absorb the increase of the wages in our product prices,» responding to the government’s decision to implement a 56% hike in the minimum monthly wage to 12,500 taka ($113) starting December.
In the letter, H&M expressed its support for fostering fair and competitive wages within its supply chain while actively striving to enhance working conditions. The company stated, «We support the development of fair and competitive wages in our supply chain and are working toward improving working conditions.»
This move follows weeks of protests in Bangladesh, where thousands of garment workers advocated for a higher wage increase than initially proposed by the industry group. Manufacturers were apprehensive about the potential impact on profit margins, as fashion retailers continued to pay the same prices for their orders.
Mostafiz Uddin, Managing Director at Denim Expert Ltd., welcomed the news, stating, «I was very worried about the increased wages. It’s a great relief for me, and it will help me ensure fair wages for the workers.» Uddin anticipates that other brands are likely to follow suit.
As of now, there has been no immediate response from an H&M spokesperson regarding this development.
Bangladesh, now the world’s second-largest ready-made garment exporter after China, has enticed the textile industry with its low-wage workforce. Employing around 4 million people, the sector significantly contributed to the country’s gross domestic product in 2022.
