H&M Australia has issued a statement against claims of ethical misconduct against factory workers across India and South East Asia.
A report released by Asia Floor Wage investigated the Swedish retailer's efforts to implement a Fair Living Wage system for production workers among other issues pertaining to labour rights, working conditions and sustainability.
Similar allegations made against Australian retailers such as General Pants, Seed Heritage and Just Group by Baptist World Aid caused a stir earlier in the year.
Interestingly, H&M's Australian arm scored among the highest for retailers audited by Baptist World Aid with its living wage system graded a B+.
Through interviews conducted with 251 garment workers in Phnom Penh, Cambodia and Delhi, issues brought to light include alleged sexual harassment in factories and wage related abuses.
The report founded that the average take home pay per month for workers in Cambodia totalled $187.97 when the minimum required for basic living standards is $230.
It also alleges that Cambodian women have had their employment terminated upon falling pregnant.
The Coalition of Cambodian Apparel Workers Democratic Union (C.CADWU) VP Athit Kong believes that H&M is operating based on a superficial system of ethical and sustainable practices.
“H&M’s PR rings hollow to workers who are struggling everyday to feed their families.
“A sustainability model that is put forth and wholly controlled by H&M but is not founded on genuine respect for organized workers and trade unions on executive summary the ground is never going to result in real change for H&M production workers.
“Instead, it serves as a public relations facade to cover up systemic abuse.”
H&M has refuted the allegations detailed in the report and believes that all efforts are being made by the company to improve working conditions in its overseas factories and that the issues raised pertain to the garment industry at large.
“The report raises important issues and we are dedicated to contribute to positive long-term development for the people working in the textile industry in our sourcing markets.
“The issues addressed in the report are industry wide problems.
“They are often difficult to address as an individual company and we firmly believe that collaboration is key.
“That is why partnerships with organizations such as the ILO, Better Work, SIDA as well as global and local trade unions are important.
“In November 2015, H&M signed a unique General Framework Agreement with the global union IndustriALL Global Union and the Swedish trade union IF Metall.
“We share the belief that collaboration and a well-functioning dialogue between the parties on the labour market is necessary for lasting improvements for the garment workers in all areas of working conditions.
“H&M has been working actively for many years to help strengthen the textile workers‘ situation.
The long-term process of improving the textile industry continues step by step.
“The continued presence of long-term, responsible buyers is vital to the future development of countries such as Cambodia and India, and we want to continue to contribute to increased improvements in these markets."