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17 Apr 2024

Tesco's response to Bangladesh minimum wage outreach

[...]

  • The prices we negotiate with our suppliers include a number of different components, of which wages are one. All prices agreed with our Bangladesh suppliers are based on fair and competitive market pricing at the time of purchasing and incorporate the new minimum wage.
  • The nature of our supplier partnerships allowed us to collaborate openly and transparently together and ensure that all new costings incorporate the new wage structure and all workers benefit from the increase.
  • So far, we’ve seen a smooth implementation of the new wage. We’ve been able to verify this through visits to factories by our own team and by audits by independent auditors. We have also engaged with worker participation committees and trade union members, and emphasized to all our suppliers the importance of ensuring freedom of association is respected.
  • We have also conducted a webinar on freedom of association in collaboration with the Ethical Trading Initiative, which all our suppliers in Bangladesh, as well as those in other countries attended.
  • As a member of ACT, we continue to collaborate with the industry to support collective bargaining between employers and workers to achieve living wage.

[The full response is attached]

Timeline

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