H&M has just opened its first store in Sydney - but it's 1.6 million workers that are making headlines.
The international giant has signed a global framework agreement to protect the interests of 1.6 million garment workers.
The agreement is between world trade union organisation IndustriALL Global Union and Swedish trade union IF Metall.
The move comes after damning analysis of data from the Accord on Fire and Building Safety in Bangladesh, which H&M was the first signatory.
Labour groups blasted the retailer for being "dramatically" behind schedule in factory safety overhauls.
Over 60% of key factories still did not have fire exits, placing 79,000 workers at risk.
The new agreement covers 1.6 million garment workers employed at around 1,900 factories.
H&M CEO Karl-Johan Persson said it marks an important new chapter for the retailer.
"Well-functioning industrial relations including collective bargaining are keys to achieving fair living wages and improved working conditions in our supply chain.
"We believe that the collaboration with IndustriALL and IF Metall will contribute to our already ongoing work within this field as well as help to create stable sourcing markets."
The agreement includes setting up national monitoring committees, initially planned for countries such as Cambodia, Bangladesh, Myanmar and Turkey.
The committees will safeguard the implementation of the agreement from the factory floor upwards, and to facilitate a dialogue between the parties on the labour market.
The collaboration also aims to promote a well-functioning dialogue between employers and employees in order to solve conflicts peacefully, and primarily at the factory level where they arise.
The agreement establishes that:
- The parties will jointly promote signing of collective agreements both at factory, company and industrial level between relevant social partners.
- Workers have the right to refuse unsafe work as part of their health and safety rights.
- The parties will provide training for both management and union representatives on employers’ responsibilities, workers’ rights and obligations, industrial relations, collective bargaining agreements and peaceful conflict resolution.
- H&M will actively use all its possible leverage to ensure that its direct suppliers respect human and trade union rights in the workplace.
- Workers’ representatives are not discriminated against and have access to carry out their representative functions in the workplace.