NEW DELHI: Global fashion retailers including H&M and Gap are committed to raising purchase prices for Bangladesh-made clothing to help factories there offset higher workers' wages, a U.S.-based association representing more than 1,000 brands said.
Bangladesh is the world's biggest garments exporter after China. This week, after deadly protests between police and factory workers, the government mandated an almost 60% raise to the minimum monthly wage to 12,500 taka ($113) from December, the first increase in five years.
Factory owners had said the wage hike, which comes ahead of a January general election, would eat into their profit margins by increasing costs 5-6%. Labour accounts for 10-13% of total manufacturing costs, industry estimates show.
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