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H&M urges Bangladesh govt to raise garment workers' pay
Oct '14
Tofail Ahmed (L) and Karl-Johan Persson
Tofail Ahmed (L) and Karl-Johan Persson
Hennes & Mauritz AB (H&M), a Swedish multi-national retail-clothing company, has requested the Government of Bangladesh for continued increase in the wages of workers in the garment industry through annual revisions.

At a meeting with Bangladesh’s Minister of Commerce Tofail Ahmed in Dhaka, Karl-Johan Perrson, CEO of H&M, urged for developing effective systems that regulate costs and prices in Bangladesh.

Karl said the absence of efficient systems of cost control is leaving both workers and business owners in a difficult situation.

With the textile and apparel industry of Bangladesh developing continuously, the needs of workers as well as the continued competitiveness of the Bangladeshi textile and clothing industry are also increasing. Therefore, a continued wage development through annual revisions based on cost price index is necessary, according to Karl.

H&M also encouraged the Government of Bangladesh to address the issue of cost regulation, on for example rent and basic commodities, the company said in a statement.

Karl-Johan Persson highlighted the importance of establishing a structure for compensation in case of workplace accidents and a greater government attention on the shortage of clean water, which could lead to major health issues as well as a halt to the development of the Bangladeshi textile and garment industry.

Karl said that Bangladesh is an important buying market for H&M and they are committed to grow their business there.

H&M’s sourcing in Bangladesh has grown faster than in other markets, and today the company sources its products from around 300 factories employing over 600,000 workers.

Although H&M does not own any factories in Bangladesh, the company plans to use its influence to promote long-term change and make sure that the communities in Bangladesh benefit from H&M, Karl added.

For H&M, it is important that the Bangladeshi garment industry is further stabilized, since foreign trade in general and specifically garment production plays a major role in the industrial development of emerging markets.

H & M comprises six independent brands that include H&M, COS, Monki, Weekday, Cheap Monday, and & Other Stories. (GK)

Fibre2fashion News Desk - India

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