By our economics editors
Nov 9, 2023 at 10:35 AM Update: 32 minutes ago
Major clothing brands such as H&M must pay more for clothing from factories in Bangladesh. The government in the country has significantly increased the minimum wage and clothing factories will pass this on to international clothing brands.
The minimum wage for the millions of workers who work in the clothing industry rose for the first time in five years, from around 68 euros to almost 106 euros per month. This increase was preceded by violent protests.
The wage increase will mean that clothing brands will have to pay more, says the American clothing brand umbrella organization American Apparel & Footwear Association (AAFA), which represents more than a thousand clothing brands.
Bangladesh is the world’s second largest clothing exporter after China. The textile industry employs approximately four million people in Bangladesh. Even after raising the minimum wage, the country remains far behind other major clothing producers such as Vietnam and Cambodia in terms of wages.
Several members of the AAFA, including Abercrombie & Fitch and Lululemon, had already urged Bangladesh Prime Minister Sheikh Hasina Wajed to increase the minimum wage last month.
Dutch brands purchasing in Bangladesh have been quiet so far, says a spokesperson for the Clean Clothes Campaign. This concerns, for example, C&A, HEMA and Zeeman.
Image: EPA
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2023-11-09 13:49:08
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