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Disclosure

16 May 2024

C&A's response to Bangladesh minimum wage outreach

How you have adjusted your prices to factor in the updated minimum wage across your suppliers in Bangladesh.

We have monitored the discussion on minimum wages, as a committed ACT member. Within this process we engaged closely with our suppliers and as soon as the new wage was finalized we revisited the negotiated prices, aligning with suppliers on potential upcharges and adjusted where needed.

How you have undertaken or plan to undertake due diligence to ensure that workers receive their entitled wage allowance.

We are constantly monitoring our supply chain and are in close exchange with our suppliers and factories. As part of this comprehensive process, we regularly conduct unannounced visits, audits and spot checks to assess the correct payment of wages. As a member of Better Work we are in close contact with their advisors on the ground to understand and remediate any issues, especially but not only related to wages. C&A has also established an improved Fairness Channel, which allows also an anonymous grievance mechanism for workers.

Information on how to contact the Fairness Channel has been shared with workers within the factories of our suppliers, so that workers can easily and anonymously reach out to the C&A Compliance team. As a member in the Accord, workers can also reach out directly to the RSC in case of any complaints.

How you have supported your suppliers in the country to ensure that the updated minimum wage is being paid to workers.

Our local Social Sustainability team is in close contact with suppliers to understand any challenges on the minimum wage implementation.

How you are engaging with workers and their trade union representatives in ensuring that minimum wages are paid and workers’ rights to organise and protest are protected.

When we are contacted by workers or trade union representatives, we support initiating a social dialogue between the workers and trade unions and the factory management. We monitor the discussions closely and support the remediation with a view to uphold the right to freedom of association.

How you currently implement or plan to implement support for suppliers, workers and their trade union representatives in Bangladesh to ensure living wages are paid, in line with good practice

C&A is a member of ACT on Living Wage. ACT members continue to support higher minimum wage in Bangladesh. Within ACT we work closely together with IndustriALL Global Union and brands to implement negotiated wages within Bangladesh. ACT published several statements...in close collaboration with its members regarding the minimum wage negotiations, indicating clear support for wage increases supported by responsible purchasing practices, expressing our profound concern on violence against workers, and urging national authorities to respect freedom of association.

[The full response is attached]

Timeline

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