H&M to improve labour conditions in India, Cambodia

23 May '16

4 min read

These contracts facilitate arbitrary termination and deprive workers of job security, pension, healthcare, seniority benefits and gratuity, say activists.

Workers in both the Indian and Cambodian factories also reported discrimination in maternity benefits, said the study.

Cambodian workers from 11 of the 12 factories reported either witnessing or experiencing termination of employment during pregnancy, while Indians from all five factories said women were fired during their pregnancies.

"Permanent workers report being forced to take leave without pay for the period of their pregnancy," it said.

"Contract, piece rate and casual workers reported that although most of the time they are reinstated in their jobs after pregnancy, they receive completely new contracts that cause them to lose seniority."

H&M's Sundberg said solving all these issues was a long-term process which continues "step-by-step" and that the Swedish retailer was committed to improving labour rights in its supplying factories.

"The continued presence of long-term, responsible buyers is vital to the future development of countries such as Cambodia and India, and we want to continue to contribute to increased improvements in these markets," said Sundberg.

Last month, H&M had said it was continuing to implement the Fair Wage Method, developed by the independent Fair Wage Network, at an increasing number of factories; 68 during 2015 and an additional 78 during 2016. At the end of this year, supplier factories in Bangladesh, Cambodia, Indonesia, India, China and Turkey will be covered. The main focus is to contribute to pay structures enabling fair living wages as well as improve the dialogue between the employers and the factory employees – an important part of the H&M fair living wage strategy. (SH)

Fibre2Fashion News Desk – India

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