20 YEARS OF
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To not pay legally mandated minimum wages is a serious violation of our Sustainability Commitment. We have made it clear to our suppliers in Karnataka that they must pay the workers legally mandated minimum wages including all arrears. If they fail to do so, it will ultimately lead to serious business consequences. We will continue to closely monitor and follow up on this.
This is a response to
Shahi Exports, India’s largest garment manufacturer, announced it will immediately begin paying its 80,000 workers in Karnataka the correct minimum wage and will provide them with full back pay for the prior underpayment, which the WRC estimates to total $10 million for Shahi's workers alone.
Shahi Exports confirmed they will pay VDA arrears to workers, with the first instalment to be made on 10 February and the remainder paid on 10 May (with April wages).
On 19 January 2022, the American Apparel & Footwear Association wrote a letter to the Clothing Manufacturer's Association of India, urging its members to pay workers in Karnataka the legally mandated increases in the Variable Dearness Allowance (VDA) and any arrears owed to workers by March 2022.