By Reena Kumar
HIGH street brands Esprit, Mango and The North Face have been exposed as among the worst in paying a fair wage
to factory staff, a new report has revealed. The global garment industry, where workers survive on measly wages, is
reaching a “critical breaking point”, the damning study has highlighted.
None of the 50 companies surveyed in the Tailored Wages investigation into the sector is paying employees a living
salary in developing countries.
The report, published on Monday (31), marks the upcoming first anniversary of the Rana Plaza disaster where the
building collapsed killing more than 1,100 people in Dhaka, Bangladesh.
Just four out of the 50 companies contacted demonstrated work which suggested that it would lead to an increase
in wages in a significant way over time.
These were Inditex, responsible for brands Zara and Bershka among others, Marks & Spencer, Switcher, which produces
garments under the Switcher and Whale brands, and Tchibo, which creates TCM (Tchibo Certified Merchandise) clothing.
The report stated: “A living wage is a human right. Yet the scandalous truth is the majority of workers in the
global fashion industry cannot afford to live with dignity, and earn no more than €6 (£3.61) a day in an industry
worth over €34 billion across Europe.
“Overall, change is not happening fast enough and the wage situation is reaching a critical breaking point.”
Workers in garment-producing countries around the world were fighting back against economic oppressions,
the investigation revealed.
Living wage levels are, on average, 3 times the minimum wage a garment worker receives in garment-producing
countries such as India, Sri Lanka and Cambodia, according to Asia Floor Wage, an alliance of trade unions and
labour rights activists that contributed to the report.
Whilst in Bangladesh, the minimum wage is 9 times the living wage.
Budget high street chain Primark which sells cheap garments agreed to pay out a further £6m in compensation to
victims of the Rana Plaza catastophe. Its supplier New Wave Bottoms was based on the second floor of the 8 floor
factory.
It is believed at least three otherbrands linked to the high rise building have now paid into the compensation fund
including Dutch retailer C&A, KiK, the German discount retailer, and Polish brand Cropp.
VF Corporation, which is responsible The North Face as well as several other brands said:“We have
defined our approach to support and facilitate sustainable living by addressing the environment that workers live
within rather than focus on wages alone.”
Esprit said it had a team of 11 people based in China, Hong Kong, Bangladesh, India and Turkey that performed
internal audits, and developed corrective action plans for supplier factories.
Whilst Mango’s code of conduct stated: “Most of our suppliers have their own remuneration policies that follow the
minimum wage… but that they also give allowances for accommodation, food, skill productivity etc. We support and
push these kinds of policies.”
