Hennes and Mauritz (H&M) is scaling up its fair living wage efforts with plans to add all of its strategic suppliers by 2018. The Swedish apparel giant is updating its purchasing practices to support those suppliers. H&M launched its fair wage method in 2013, with pilots in a few role model factories. The initiative is aimed at driving wage improvements through a sustainable pay structure, wage levels and wage adjustments, and through enhanced communication and social dialogue with suppliers. The strategy is showing progress and will now be scaled up to more markets and suppliers.
As a part of this strategy, H&M is updating its purchasing practices to support its suppliers in implementing fair living wages. The overall goal is to make it easier for suppliers to plan their capacity and thereby reduce production peaks and overtime. The company feels its purchasing practices should always provide reasonable lead times, fair pricing, timely payments and transparent communication. H&M is finalising tailor-made projects for industrial relations projects in Myanmar and Ethiopia.
In Bangladesh, H&M is hoping to get all of its supplier factories covered by its social dialogue program by the close of 2018. At present 88 factories are participating, 43 have elected participation committees, and the 580 committee worker representatives who have received training are now representing 108,303 workers.