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10 Feb 2019

Oliver Pechter, Business Insider Nordic

Bangladesh: How little H&M would have to raise t-shirt prices to pay its Bangladesh factory workers a living wage

"Here’s how little H&M would have to raise t-shirt prices to pay its Bangladesh factory workers a living wage", 1 June 2017

The factory workers producing Swedish clothing retailer H&M’s clothes make on average SEK 750 krona ($86) per month. Meanwhile, a living wage in Bangladesh is more than double, SEK 2083 ($239). 

This according to Sasja Beslik, Head of Sustainable Finance at Nordea Wealth Management, whose team has crunched the numbers behind H&M's supply chain vs. its retail prices. Beslik concludes that a fairly small hike in clothing prices could help pay living wages to the company's Bangladeshi workers...

If shirt prices were to go up 2,88 krona [$0.33] in stores, H&M could pay double salaries to factory workers. If prices then would rise a further 2,18 krona [$0.25], H&M could pay out living wages to the workers in Bangladesh...If the factory workers received a living wage, the shirt would cost 179 krona ($20,50) – that is, 5 krona [$0.55] more than the current price...