H&M may raise prices to increase Cambodian workers’ wages

Clothing giant H&M is considering raising retail prices and passing the buck onto the consumer to help pay higher wages to garment workers in poor countries.hnm

There won’t be any price increases in the short-term, but it “might be a possibility” in the future, Helena Helmersson, head of sustainability at the Swedish clothing maker, told Agence France-Presse earlier in December 2013 in Stockholm, where the company was meeting with advocacy groups.

Ken Loo, Garment Manufacturers Association in Cambodia secretary-general, welcomed the announcement as a “natural response” from one of Cambodia’s most prominent sourcing brands.

“Someone has to absorb this price hike, so either it has to come out of the pocket of the retailers or the brands or the consumers have to pay more. In most likelihood, it would be a combination of the two,” he said.

H&M’s Helmersson said the company would use its clout with suppliers and governments to improve working conditions and lobby for minimum wages to be raised.

The talk about raising garment wages, which are at a monthly base of $75 in Cambodia, would be the latest in H&M’s attempt to position itself as a do-gooder among global brands.

Read more: Phnom Penh Post

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