C&A's Response
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Since we were made aware of the current situation in the state of Karnataka (India), we have been in constant dialogue with the three (3) suppliers we have in the region to understand their position in this case and to formally asking them to amicably resolve this issue with the workers.
So far, all our suppliers have paid Basic wages of 8891.34 R per month. Financial year refers to the period from April to March every year. All suppliers have also paid the VDA for all years expect 2020- 21 as this is on dispute. The remaining years have all been paid. 2 out of 3 suppliers have confirmed they will pay the increased minimum wage going forward.
At the same time all three suppliers have confirmed to pay the VDA under dispute once the High Court has made its decision. As the high court decision will have an impact on the whole industry, the suppliers argue that they need to wait.
Although we respect suppliers’ position, at C&A we strive for a more proactive engagement and problem solving. Therefore, and since our leverage with these three suppliers is rather small, we have teamed up with other likeminded brands to jointly address the suppliers with a single message to make them aware of the potential consequences of not resolving this case in an appropriate fashion.
Our talks with our suppliers, the local stakeholders and other brands continue and we are confident that in the following weeks we will be able to provide an appropriate resolution to this case.
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[The full response is attached]
