H&M accused of underpaying Cambodian workers

High street giant H&M has disputed claims that it is failing to ensure workers in Asia who make its garments are being paid a sufficient wage.

Swedish documentary Kalla Fakta last week claimed that garment factory workers in Cambodia - where H&M produces its clothing - struggle to live on their $61-a-month (£38) salary. Although the sum meets legal minimum wage regulations in the country, it represents less than 25 per cent of a living wage.

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The Swedish retailer has denied the accusations, saying the documentary contained a number of inaccuracies - namely the insinuation that "H&M's competitors are far ahead of H&M when it comes to implementation of a so-called living wage," when, in fact, they have "the same level of ambition when it comes to the wage issue as other companies' Codes of Conduct; the legal minimum wage is the basic requirement, and with the ambition that one should be able to live off the salary."

"We want a permanent change, negotiated between workers and employers. This should be done by collective agreement that all workers in a country could benefit from," H&M told WWD following the program.

The retailer has reportedly since held a number of high-profile meetings with Cambodian officials to call for a higher minimum wage. However, the Clean Clothes Campaign, the garment inudstry's largest alliance of labour unions and non-governmental organisations, says it is not a sufficient response. They are now calling for H&M to support the Cambodian trade union's $131 (£81.50) minimum wage goal by issuing a public statement of support and engaging in building an action plan for paying this figure with suppliers.

Via: H&M accused of underpaying Cambodian workers