[lbo-talk] Wal-Mart, other global retailers ask for sweatshop pay hikes, shocker!

Fernando Cassia fcassia at gmail.com
Fri Feb 5 05:50:56 PST 2010


http://www.thefinancialexpress-bd.com/more.php?news_id=91597

Top global retailers have demanded 'swift action' from the prime minister to raise minimum wages of the country's two million plus garment workers, saying depressing salaries are fuelling 'unrest' in the key sector.

Eleven top retailers including the world's biggest Walmart and Europe's largest H&M wrote a letter to Sheikh Hasina and urged her to treat the issue with "high priority" as wages for the garment workers have now dipped below the poverty line of the country.

"All signatories to this letter are socially responsible companies expecting that workers producing our products are properly compensated by their employers," the letter said.

"We request the Government of Bangladesh urgently form a review board and address the minimum wage issue in the garment sector with a built in mechanism of a yearly review," it said.

Other signatories to the letter are the world's second largest retailer Group Carrefour, high street American retailer Gap Inc, clothing and home appliance giant Ikea, Number one British retailer Tesco, Levi Strauss, B&C Collection, KappAhl and Tchibe.

Together, the retailers bought more than 40 percent of the US$12.3 billion garment products Bangladesh exported last year, with Walmart alone purchasing one-tenth of the shipment.

The retailers said a series of violent unrest linked to dismal wages in the main textile manufacturing zones in recent months prompted them to write to the PM, expressing their concern over the deteriorating situation.

"Unrest among the workers in this sector is seen as a risk among our companies and could cause damage to the reputation of Bangladesh as a reliable sourcing market," it said.

"We do not support the violent protests nor do we believe that is the correct way forward but we recognise and do understand that the unrest among workers has become a reality," it added.



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