H&M: We'll Pay Living Wage to Bangladesh Workers
Clothing company announces new plan
By Evann Gastaldo, Newser Staff
Posted Nov 25, 2013 2:15 PM CST
Elaine Pasquini leaves an H&M store on the Thirrd Street Promenade in Santa Monica, Calif., on Monday, July 13, 2009.   (AP Photo/Damian Dovarganes)

(Newser) – H&M is doing something to combat the terrible conditions that so many garment workers in Bangladesh and Cambodia endure: The cheap clothing giant will make sure the workers making its products in those countries receive a living wage, the Wall Street Journal reports. The Swedish company (fun fact: Its name is short for Hennes & Mauritz) is working with three factories and their workers to figure out how much workers need to live on; within five years, a living wage should be in place at 750 of its biggest suppliers, covering 60% of H&M merchandise. A rep for the company says prices aren't expected to increase as a result.

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Ezekiel 25:17
Nov 29, 2013 5:44 PM CST
This works. Kenya worked out a deal for the world's best coffee to be priced where it would benefit residents of the farming towns the most. It only worked though getting the British out of the equation. Now whole towns thrive on the production of coffee. It has had setbacks when warlords tried to take it over cut the shipments with spoiled beans. But then the coffee jobbers saw it and threatened to ban Kenyan coffee from the international auction market. That caused no so good things to happen to warlords.
Nov 26, 2013 11:31 PM CST
"A rep for the company says prices aren't expected to increase as a result." The reason prices won't go up is because by manufacturing in these countries they are able to have huge margins and they will just trim the margin slightly. It's the same thing when American companies close US factories and go off shore. The prices usually don't go down because they went off shore to increase their profit margins. I call it the Win-Win-Lose business model. The manufacturer's stockholders win, The off shore country (usually China) wins and the American worker loses.
Nov 26, 2013 9:48 PM CST
What is the living wage in these countries? $5.00 a day. Maybe?