Consequence is a possible price hike
H&M will insist on suppliers using the Fair Wage Method, which takes basic needs into
account and then decides the wage level based on that. The wage then
gets reviewed at specific moments in time. In total, 850,000 employees may get increased wages thanks to this
H&M rule. “We can set goals to make sure the right pay structures
are in place with our suppliers”, head of sustainability at H&M Helena
Helmersson said.
H&M will also try to convince governments to increase minimum wages. “It is going to take years to get to a
living wage in Bangladesh but I’m more hopeful now they have opened up to
involving all the stakeholders — the unions, the workers the suppliers and the government”, Helmersson told AFP. She has admitted that the increased wages may lead to price hikes for the customers in the long run, but nobody
should worry at this point, she concluded.
The ‘Labour Behind The Label’ campaign applauds the initiative, but remains
watchful of the actual results. “It is good companies commit to these promises,
but we will have to see how it actually
turns out, especially as the chain has not shown how high a living wage
should be”, a spokesperson has told The Guardian.
(translated by Gary Peeters)
