New minimum wage in Cambodia
We support higher wages for garments workers and are positive to the recent raise that will be implemented 1 January 2016. While we don’t believe that buyers, such as H&M, should determine wage levels for textile workers, we are positive to the peaceful consultations that have taken place over the past months between the parties on the labor market as well as to wages having been revised annually for the second year running. This is an important step forward towards fair living wages.
H&M has, on several occasions, pushed for higher wages in the garment industry in Cambodia. In 2014, we sent a joint letter with several other brands urging the Cambodian government to ensure fair collective bargaining processes. We also expressed our support for increased wages in the country, including our willingness to incorporate higher wage costs in our sourcing prices where needed. H&M’s CEO has also met with the Cambodian Prime Minister to discuss the importance of annual minimum wage revisions and fair industrial relations.
We are the first fashion company to have developed a pioneering global strategy for a fair living wage, our Fair Living Wage Roadmap. The strategy involves not only buyers such as us but also suppliers, factory employees and governments. It has been drawn up in consultation with Global trade union, suppliers and non-profit organizations. On industrial level we continue our important dialogue with governments as well as our collaboration with other stakeholders in the textile industry. H&M is also part of the ACT group whose purpose is to push the development forward when it comes to living wages in garment producing countries. The ACT brands are working together with IndustriALL global union on a shared vision and strategy to improve wages in the garment industry through industry level collective bargaining, supported by world class manufacturing standards and responsible buying practices.
On the enterprise level we are working according to the Fair Wage Method by promoting a well-functioning dialogue between the employer and employees at the supplier factories, giving them the tools to create well-functioning pay structures in the factories. Here, the initial goal is that all our strategic suppliers should have pay structures allowing fair living wages in place by 2018.