Meeting between the CEO of H&M, Karl-Johan Persson, and the Prime Minister of Bangladesh

- H&M seeks an increased minimum wage and annual wage reviews in Bangladesh

On Monday evening, the CEO of H&M, Karl-Johan Persson, met the Prime Minister of
Bangladesh, Sheikh Hasina, in Dhaka, Bangladesh. During the meeting, Karl-Johan
Persson presented H&M’s request for an increased minimum wage and annual wage
reviews for workers in the Bangladeshi textile industry.
“Since foreign trade plays a major role in the development of countries as a
source of economic growth, we believe that it is in the interest of the
Bangladeshi textile industry, as well as in our interest, that the industry
continues to develop into an advanced and mature textile industry. Stable
markets in which people are treated with respect, and where the workers are
properly compensated by their employers, are of the utmost importance,” says
Karl-Johan Persson, CEO of H&M.

H&M urges the Bangladeshi government to consider an annual review of the local
minimum wage that takes national inflation and the consumer price index into
consideration. Since the minimum wage for textile workers was first set in 1994,
it has only been revised twice, in 2006 and 2010. Since 2010, there has been an
increase in the inflation rate that has been recorded by World Bank data in 2011
and 2012. If a proper review system is created and enforced, these revisions
will help address the basic needs of the workers and bring greater stability to
the market. This in turn will help employers and buyers to work together and
focus on productivity as well as on developing a constructive framework to
improve resource efficiency in the textile and garment sector.
Bangladesh is an important buying market for H&M. H&M has been buying from
suppliers in Bangladesh since 1982 and opened a production office in Dhaka in
1983. H&M does not own any factories or make decisions on wages, but like all
companies buying products from Bangladesh, H&M has a responsibility towards
everyone contributing to the success. The Bangladeshi government is the only
body with the power to increase the minimum wage.
As a company with a clear commitment to workers’ rights and to doing business in
Bangladesh, H&M looks forward to prompt action regarding the minimum wage issue
and the question of annual wage reviews for workers in the Bangladeshi textile
industry.
For more information, please contact:
Media Relations, +46 8 796 53 00, mediarelations@hm.com
Camilla Emilsson-Falk, Head of Media Relations
Email: camilla.emilsson-falk@hm.com
Phone: +46 707 96 96 15
H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on
NASDAQ OMX Stockholm. The company’s business concept is to offer fashion and
quality at the best price. In addition to H&M, the group includes the brands
COS, Monki, Weekday and Cheap Monday as well as H&M Home. The H&M Group has
approximately 2,600 stores in 44 markets, including franchise markets. In 2011,
sales including VAT were SEK 128,810 million and the number of employees is more
than 94,000. For further information, visit www.hm.com.