Fair Living Wage

It has always been our vision that all textile workers should be able to live on their wage. As a first step, our goal is for H&M's strategic suppliers to have pay structures in place to pay a fair living wage by 2018.  

We believe that wage development in production countries, which is often driven by governments, is taking too long. H&M wants to take further action and encourage the whole industry to follow. With size comes responsibility and we have the ability to contribute to a positive change.

Taking it to the next level

Our new roadmap is based on our vision that a fair living wage covering workers’ basic needs should be paid by all our commercial goods suppliers. This will become possible through:

  • H&M’s purchasing practices
  • A skilled workforce
  • Wages that are annually negotiated and reviewed by democratically elected trade unions or worker representatives

With our holistic approach covering H&M, factory owners, factory employees and governments, we are taking the wage issue to the next level within the fashion industry. H&M encourages other brands to take the same approach.

Reporting results

“Well-functioning industrial relations including collective bargaining are keys to achieving fair living wages and improved working conditions in our supply chain."

Karl-Johan Persson, CEO of H&M

H&M will transparently report on our efforts towards achieving a fair living wage in our annual Conscious Actions Sustainability Report.

An investment in our customer offering

We don't see that our roadmap on the fair living wage will have a negative impact on the price of our products. It is an investment in our customer offer and will benefit H&M in the long term. Wages are only one of several factors that influence sourcing costs and prices in our stores.

We are willing to pay more so that suppliers can pay higher wages. It is a collaboration between H&M and our suppliers. We believe that our purchasing practices will lead to better efficiency and productivity. Long term this will be beneficial for both us and our suppliers.

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