April 20, 2024
Industry

H&M To Hike Rates Of Garments Sourced From Bangladesh

H&M which is amongst the top garment retailers in the world will pay a higher price for the apparels it sources from Bangladesh suppliers to offset the hike in minimum wages of clothing industry workers.

The Swedish retailer announced that it will absorb the hike in garment worker’s wages which were increased by 56 percent to Taka 12,500 or US $113 per month.

“We support the development of fair and competitive wages in our supply chain and are working toward improving working conditions,” the retailer said in a letter accessed by Bloomberg.

There were violent protests after the government raised the minimum wages to a level not acceptable to the workers.

Bangladeshi garment exporters were worried that the wage increase would eat into their profit margins as global fashion retailers would continue to pay the same prices.

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