Home / Knowledge / News / Apparel/Garments / Buyers' should comply with legal wage requirements: FWF

Buyers' should comply with legal wage requirements: FWF

Apr '19
Buyers are responsible for complying with legal wage requirements, Klaus Hohenegger of Amsterdam-based Fair Wear Foundation (FWF) recently told a seminar in Dhaka. The seminar on ‘Labour Minute Costing and Price Negotiations with Buyers’ was organised by FWF and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

FWF is a European multi-stakeholder initiative working to improve workplace conditions in the garment and textile industry. Governed by labour unions, non-governmental organisations and business associations, FWF verifies that its member companies implement the FWF Code of Labour Practices in their supply chains.

From December 1 last year, the legal minimum wages in Bangladesh went up by 51 per cent, which brought about a responsibility for brands to revisit their price levels.

In anticipation of this, FWF undertook a research with suppliers in Bangladesh to help develop a labour costing tool that could assist suppliers and buyers in determining a factory’s cost of one minute of labour—and with that identify the actual increase that would need to be applied to the manufacturing price to cover the increase in labour costs, Bangla media reported.

FWF found that many buyers were not willing to pay more, said Hohenegger, adding that brands accept to increase prices when fabric costs increase or currency fluctuates, but start bargaining when the minimum wage goes up, making the argument that factories simply need to increase their efficiency.

FWF feels it is the buyer’s responsibility to comply with legal wage requirements, but this starts with transparency, with knowing the labour component as part of an Free on Board price, he said.

Unless buyers cover the additional labour costs, the wage increase can work against, rather than in favour of, workers, speakers at the seminar said.

Struggling to cover production costs, factories may reduce their workforce, force production staff to work longer hours, or set higher production targets, and the same is happening now, Hohenegger claimed.

Participants urged for greater transparency in cost price negotiations between apparel buyers and their suppliers in order for wage compliance to be achieved and for wages to improve. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 26th Sep 2020

Global economic forecast not as dark as earlier guess: IMF

Though the global economic outlook is not quite as dark as expected...

Pic: Edinburgh Woollen Mill

Fashion | On 26th Sep 2020

FRP appointed to value Peacocks, Edinburgh Woollen Mill

Edinburgh Woollen Mill Group CEO Philip Day has started the...

Pic: Shutterstock

Retail | On 26th Sep 2020

India plans retail trade policy, settling logistics policy

India plans to formulate a retail trade policy for which stakeholder...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The foremost issue is bridging the skill gap

Pinkesh Jain, Everflow Petrofils Ltd

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Cindy McNaull, Cordura

Cindy McNaull

We have broad range of options in durable fabrics

Zennure Danisman,

Zennure Danisman

Since its inception in 1953, Orta Anadolu has been weaving a denim...

Simon Daplyn,

Simon Daplyn

Switzerland-based Sensient Imaging Technologies is a pioneer with a global ...

Fan Liyuan,

Fan Liyuan

Chinese company Jiangsu Yingyang Nonwoven Machinery, established in 1993,...

Silverio Baranzano, Fitesa

Silverio Baranzano

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

September 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search