Hennes & Mauritz AB, based in Stockholm, has committed to counteracting the surge in worker wages in Bangladesh by increasing the prices it pays to suppliers for clothing manufactured in the country.
As revealed in a letter obtained by Bloomberg News, the company conveyed to its garment providers in Bangladesh that it would “absorb the increase of the wages in our product prices” following the Government’s decision to raise the minimum monthly wage by 56 per cent to Taka 12,500 (US $ 113) starting from December.
Expressing a dedication to fostering fair and competitive wages within its supply chain, the retailer stated in the letter, “We support the development of fair and competitive wages in our supply chain and are working toward improving working conditions.”
The adjustment in Bangladesh’s pay agreement transpired after weeks of intense protests, with thousands of garment workers rallying for a higher wage increase than initially proposed by the industry group.
Manufacturers in the country had expressed concerns that the salary hike might erode their profit margins, as fashion retailers continued to pay the same prices for orders.