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31 May 2019

Report finds global fashion brands are failing to deliver on living wage commitments to workers; Incl. co. comments

 In May 2019, a report by Sheffield Political Economy Research Institute, ‘Corporate Commitments to Living Wages in the Garment Industry', found that global fashion brands are failing to deliver on living wage commitments.

The report identified significant obstacles to the payment of living wages to workers in the global garment industry and makes a series of detailed recommendations for how more meaningful progress can be made.

Companies including Amazon.com Inc and France's Decathlon said that their suppliers respected local laws on pay and benefits - but did not mention a living wage.

Gap Inc: It is working with partners and other brands to engage governments and encourage wage-setting mechanisms as "we know there is more work to be done".

Puma: Wages should be negotiated locally - and involve workers, management and government - not mandated by global companies or international organisations. "It is not easy to define a 'fair' wage...A recent wage project conducted for PUMA in Bangladesh ... listed five different living wage figures."

Primark: “We have been working hard for many years to make sure our products are made with respect for workers’ rights and the environment...We are now putting more emphasis on communicating our work in this area to our customers.”

H&M: “We are working together with 21 other brands and the global union IndustriALL, that represents garment workers, towards this goal...This would be a true game-changer and turning point for the industry.”

Inditex: Insisted that wages should meet both the basic needs and discretionary income of workers and their families and that they must be earned in a standard working week. “Inditex is committed to support living wages across its supply chain.”