Need for annual salary revisions in Bangladesh
In an interview with the Financial Times CEO Karl-Johan Persson once again stresses the need for higher wages and annual revisions in Bangladesh. The interview comes in the wake of his visit with Bangladeshi Prime Minister Sheikh Hasina in Dhaka, September 2012.
Already in 2006 and 2010 H&M sent letters urging the Bangladeshi government to agree on fair salary and establish mechanism to review the minimum salaries on annual basis. Since 2010 the minimum wages in Bangladesh raised by up to 81 percent. Still, systems for annual reviews of the minimum wages adjusting them to increasing living costs are missing. H&M believes that higher wages and annual reviews are both in the interest of the Bangladeshi textile industry and H&M. The mutual interest serves to ensure that the textile industry continues to develop into an advanced and mature industry.
H&M is committed to its long term supplier relations in Bangladesh and remains committed to the relationships even with increased wages. H&M believes that everyone in the garment industry should earn enough to live on. For several years now, H&M demands from supplier factories to comply with applicable minimum wages or collective bargaining agreements, which is monitored through extensive audit programs. H&M’s Code of Conduct also expresses a clear intent that the salary must enable for the workers to support themselves and their families.
Still, further systemic change is needed and the challenges are complex and diverse. Besides influencing governments, H&M work to strengthen the social dialogue in our supplier factories and reward those that have trade union representation and functioning worker committees in place.
In 2011 H&M joined Fair Wage Network. In order to help set best practice examples on factory level the aim is to implement the fair wage concept in selected model factories.
Both, empowered workers and best practice examples from individual can promote systemic change to countries and sectors.