H&M will introduce a fair wage method in 20 garment factories of Bangladesh this year to help improve productivity and factory conditions and combat unrest in the plants that make apparel for the Swedish retail giant. The move by Europe’s second largest clothing retailer comes as a part of a program for three of its Asian suppliers: Bangladesh, China and Cambodia.

H&M, which has 3,649 stores across 59 markets, is introducing the system to a total 68 factories in China, Cambodia and Bangladesh this year, a plan that seeks to boost workers’ pay, provide some discretionary income, and allow representation through trade unions. The retailer buys about 80 per cent of its products from Asia.

The method will ensure higher prices for the garment items the retailer buys from the factories -- a measure that will raise wages for workers. H&M has a plan to introduce the method for all of its sourcing factories by the end of 2018, which will focus on a well-functioning dialogue between employers and employees for settling disputes.

Implementation of the method will contribute to sustainable pay structures, more regular wage adjustments and enhanced communication and social dialogue between the management and workers’ representatives.

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