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Ethiopia Pays Too Little to Clothing-Factory Workers

  • State assured customers its workforce would accept low wages
  • Nation’s factories supply retailers including H&M and PVH
Inside A Gap Inc. Store Ahead Of Consumer Comfort Figures
Photographer: Mark Kauzlarich/Bloomberg
Updated on

Ethiopia should gradually increase base wages for workers in its nascent clothing-making industry and address ethnic unrest in a region housing its flagship industrial park, according to a study by New York University.

The entry-level pay for those producing for retailers including Hennes & Mauritz AB and PVH Corp. at Hawassa Industrial Park is 750 Ethiopian birr ($26) a month, according to the report by the Stern School of Business’ Center for Business and Human Rights. The annual wages are 40 percent below the average Ethiopian per capita income of $783, according to the study.