New Delhi, November 9 ( Reuters )- H&M ( HMb) and other international fashion retailers. Gap ( GPS) and ST. According to a U.S.-based association representing more than 1, 000 brands, N ) are committed to raising purchase prices for clothing made in Bangladesh to help factories there offset higher workers ‘ wages.
After China, Bangladesh is the nation’s largest producer of clothing. The government ordered a nearly 60 % increase to the minimum monthly wage from December to 12, 500 taka ($ 113 ), the first increase in five years, following deadly protests between police and factory workers.
Shop owners had claimed that the income increase, which comes before a general election in January, would reduce their profit margins by raising costs by 5 to 6 %. According to industry estimates, labor makes up 10 to 13 % of all developing costs.
When asked if they would increase purchase prices by the 5 to 6 % that costs will increase, American Apparel & Footwear Association ( AAFA ) CEO Stephen Lamar responded,” Absolutely.”
Lamar wrote in an message,” We are committed to responsible buying practices to help the wage rises, as we and our people have repeatedly stated.”
On August 17, 2021, workers at The Civil Engineering Limited garment factory in Dhaka, Bangladesh, work between polythene sheets as a safety measure to stop the spread of coronavirus disease ( COVID-19 ). Mohammad Ponir Hossain/File pictures Acquire Licensing Rights
In order to prevent Bangladeshi workers from being disadvantaged by shifting economic conditions, we also reiterate our requests for the implementation of an monthly minimum wage review mechanism.
Bangladesh’s cloth sector, which employs about 4 million people, has grown thanks to low income. Nearly 16 % of GDP is made up of ready-made clothing, which is a majorstay of the market.
According to data from the International Labour Organization, Bangladesh still lags other regional garment manufacturing hubs, such as Vietnam, where the average monthly wage is$ 275, and Cambodia, which it is$ 250, even after the increase in minimum wage. Some workers claimed that this increase was too little.
Several AAFA members, including Abercrombie & Fitch ( ANF), were present last month. N ) and Lululemon ( LULU), respectively. O ), stated to Bangladeshi Prime Minister Sheikh Hasina that they wanted worker pay to increase and to account for the country’s current 9 % inflation rate. Lamar wrote Hasina a letter in July.
The major consumers of Bangladesh-made clothing are shops in the United States and Europe. Clothing companies, like the majority of consumer goods retailers, are dealing with large inventories and a slowing world economy, which is causing consumers in important markets to buy less as they feel the squeeze.
( 1 x 110.0000 taka )
Reporting by N. Krishna, further monitoring by Ruma Paul in Dhaka, and Miral Fahmy’s processing
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