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H&M Expands Program to Boost Pay for Asian Factory Workers



Jason Alden/Bloomberg
Updated on

Hennes & Mauritz AB, Europe’s second-largest clothing retailer, is rolling out a more generous compensation program for its Asian suppliers to improve factory conditions and combat unrest in the countries that produce the majority of its apparel.

The Swedish retailer, which has 3,649 stores across 59 markets, is introducing a “fair wage method” to 68 factories in China, Cambodia and Bangladesh this year, a plan that seeks to boost workers’ pay, provide some discretionary income, and allow representation through trade unions.