In a bid to curb labor exploitation, H&M will be introducing democratically elected worker committees and proper payment structures throughout all of its major supply factories by 2018.
The Swedish behemoth is one of many fast-fashion retailers that has come under fire for failing to clean up its supply chain after the deadly Rana Plaza factory collapse in 2013. Since then, the company – and the factories it contracts with – have been accused of everything from poor health and safety standards, to withholding pay, to barring the assembly of trade unions. More recently, a report from the Asia Floor Wage Alliance (AFWA) found that H&M workers in Delhi and Phnom Penh face fixed-term contracts, forced overtime, and automatic termination if they become pregnant.
Elin Astrom, head of H&M’s Sustainability Program in India, told Reuters that the company has set goals with its main suppliers to more regularly listen to their workers, and offer a pay scale that provides adequate wages based on skill and experience. “Every garment worker should earn enough to make a decent living and we want to ensure this across the industry,” she said.
However, given that cheap, exploitive labor is an integral part of the fast-fashion business model, it will be interesting to see if the company can equitably provide for the 1.6 million employees under its manufacturing umbrella and still remain profitable.
You can can read more about it at Reuters.
