H&M urges govt to ensure benefit for RMG workers, makers out of enhanced wages

A European retail giant, H&M, urged the government Tuesday to adopt an effective system so that both workers and producers benefit from enhanced wages.
"We see that costs in society are negating many of the positive effects of increased wages. This is due to the absence of efficient systems of cost control leaving both workers and business owners in a difficult situation,"  Karl-Johan Persson, CEO of the company said during his meeting with Commerce Minister Tofail Ahmed at the latter's Secretariat office.
He, however, stressed Bangladesh's capacity building, especially infrastructure development, to bag more export orders and highlighted the need for continued wage development through annual revisions.
The textile industry of Bangladesh was continuously developing, he said. To ensure needs of workers as well as the continued competitiveness of the Bangladeshi textile industry, further actions were required, he added.
Therefore, a continued wage development through annual revisions based on cost price index is necessary. H&M also encourages the government to address the issue of cost regulation, for example, on rent and basic commodities.
Explaining the developments in the garment sector, the minister sought cooperation from the H&M top executive to face the challenges and requested to import more and invest in the country.
During the meeting, Mr Persson highlighted the importance of establishing a structure for compensation in case of workplace accidents and a greater government attention to the shortage of clean water, which could lead to major health issues as well as a halt to development of the Bangladeshi textile industry.
For H&M it is important that the Bangladeshi garment industry is further stabilised, since foreign trade in general and specifically garment production plays a major role in the industrial development of emerging markets, he added.
Finding a job in the textile industry is an effective and important way to leave poverty for many people.
"Bangladesh is an important buying market for H&M and we are committed to grow our business there," he said.
H&M's  production in Bangladesh has grown faster than in other markets, and today it sources products from around 300 factories employing over 600,000 workers.
"H&M does not own any factories, but we want to use our size and influence to promote long-term change and make sure that the communities in Bangladesh benefit from our presence," he added.
Replying to a question, he said H&M is happy with the development so far made in the country's readymade garment industry.
H&M is the largest buyer of Bangladeshi apparel products.

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