To compensate for higher wages in Bangladesh, H&M will pay its local suppliers higher prices. The Swedish retailer will pass those higher costs on to its consumers.
“Fair and competitive wages”
H&M will pay its suppliers in Bangladesh better and absorb the increase in minimum wages in its product prices, according to a letter that the Bloomberg news agency was able to access. The Swedish fashion retailer says it supports “fair and competitive wages” in its supply chain and works to improve working conditions.
For now, H&M’s price increases only support the wage increase proposed by the government in Bangladesh: from December onwards, minimum wages for textile workers there will go from around 70 euros to 100 euros, but that is still not nearly enough to cover rising living costs, according to local unions. Strikes and demonstrations in early November led to deadly violence and mass arrests.