H&M to implement Fair Wage Method at more factories

By

Cajsa Lykke Carlson

Published
Apr 5, 2016

H&M, the Swedish fast-fashion giant, says work within its Fair Living Wage strategy is progressing according to plan.

The retailer is continuing to implement the Fair Wage Method, developed by the independent Fair Wage Network, and has increased the number of factories covered. 68 factories were added during 2015 and an additional 78 during 2016. By year-end, the Fair Wage Method will cover factories in Bangladesh, Cambodia, Indonesia, India, China and Turkey. The aim is to contribute to pay structures enabling fair living wages, and to improve the dialogue between factory employers and employees.

H&M also said more than 40% of factories producing for the retailer in Bangladesh are now covered by its H&M Social Dialogue program, which aims for democratically elected and effective employee committees at factories.

In addition, H&M said its partnership with the ILO within the Industrial Relations project "has resulted in positive changes in attitudes as well as regular meetings between management and trade unions in the participating factories in Cambodia." H&M recently launched the project in Ethiopia and Myanmar is up next.

The Fair Wage Method will be rolled out to all of H&M’s strategic suppliers by 2018.