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How have you adjusted your prices to factor in the updated minimum wage across your suppliers in Bangladesh/How have you supported your suppliers in the country to ensure that the updated minimum wage is paid to workers.

Our participation in the ACT (Action, Collaboration, Transformation) initiative established clear commitments in terms of ensuring that purchasing prices include wages as itemized costs, fair terms of payments, better planning and forecasting, training on responsible sourcing and buying and responsible exit strategies...Key aspects of the framework are a confidential communication channel for manufacturers and employers' associations to raise complaints and to provide access to remedy...

Inditex maintains open lines of communication with our suppliers and our supply chain partners about the status of current and future operations and also maintains financial support tools through which suppliers can benefit from obtaining shorter periods of time for payment of orders.

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.

Inditex signed a GFA with lndustriALL Global Union...

Respect for the rights of Freedom of Association and collective bargaining are at the core of the agreement as it stipulated the set of International Labor Conventions and other instruments...that both parties agreed to work together on in order to ensure a more effective enforcement of international labour standards...

...Inditex would like to highlight the "ACT Bangladesh Interim Dispute Resolution Mechanism (DRM) on workers' rights to Freedom of Association and due payment of wages and benefits", a mechanism...agreed by BGMEA (Bangladesh Garment Manufacturers and Exporters Association), IndustriALL Global Union, their affiliates in Bangladesh and ACT Brands sourcing from Bangladesh.

The Interim DRM has played a vital role in addressing grievances related to workers' rights, particularly pertaining to freedom of association, retrenchment and due payment of wages and benefits...

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

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The Inditex Code of Conduct for Manufacturers and Suppliers...states our mandatory standards in the areas of human and labour rights, health, product safety and the environment. In its section 7 "Wages are Paid", it is stated that "Manufacturers and suppliers shall ensure that wages paid meet at least the minimum legal or collective bargain agreement, should this latter be higher. In any event, wages should always be enough to meet at least the basic needs of workers and their families and any other which might be considered as reasonable additional needs."

This policy is verified on the ground through lnditex's compliance programme, which included more than 2,200 audits in Bangladesh during 2023. This was complemented by effective Corrective Action Plans carried out by our teams' support and collaboration with suppliers to correct and prevent any potential non-compliance that could be identified. Another compliance tool is based in the grievance mechanism implemented through our Ethics Line and the communication channel under our Global Framework Agreement (GFA) with lndustriALL Global Union through which any worker or affiliate may escalate any type of concern regarding the compliance of the GFA and in consequence our Code of Conduct for Manufacturers and Suppliers.

In this sense, and as part of our continuous due diligence we engage with other initiatives like ACT (Action, Collaboration, Transformation) and the Accord on Fire and Building Safety in Bangladesh. As reflected above, each of these programmes contains a Dispute Resolution Mechanism or Complaint Mechanism that allows Inditex to intervene whenever it is required.

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.

As an ACT member, Inditex actively engages in dialogue to develop a country specific strategy on collective bargaining, dispute resolution, purchasing practices and wages.

This included the support to the minimum wage negotiation process as reflected in...Inditex's public communication supporting efforts for a higher minimum wage in Bangladesh where it was clearly expressed that "Inditex has always condemned any attempts to undermine the right of freedom of association and in consequence any type of retaliation against workers and their legitimate representatives."

This is supported by our joint agenda under the ACT...They have successfully implemented the ACT Bangladesh Interim Dispute Resolution Mechanism on workers' rights to Freedom of Association and due payment of wages and benefits and the continuous work under the platform of dialogue among national constituents to address the respect of the rights of Freedom of Association, Collective Bargaining rights along with the active commitment to include wages as itemized costs in purchasing prices.

Our Global Framework Agreement is also playing an important role to ensure the respect of the rights of Freedom of Association and Collective Bargaining...

Factories mentioned by BHRRC

Firstly, we would like emphasise that the payment of the minimum wage agreed is a key part of our Code of Conduct, mandatory for all our suppliers. To ensure this point, we have visited or maintain an open dialogue with the following suppliers mentioned in your letter: Garment Export Village, Bravo Apparel Manufacturer LTD, Moonlight Garments, Ehsan Garments, Queen South Textile Mills, MNC Apparels LTD, Crowdon Kowloon Designs, FCI, Denim Asia Limited and Doreen Garments. Through these visits or open dialogue, it has been confirmed to us that all of them are paying all the salaries and allowances as per Government Minimum wage Gazette published on 20th December 2023 and BEPZA minimum wage gazette published on 7th February 2024, both implemented since December 2023.

As per our information regarding requests for a higher salary in some of these factories, we have been informed that these cases were managed through an open dialogue between workers, factory management and other relevant parties.

The rest of the factories - Newtex Group, Khan Garments, Denim Processing Plant, Meigo Bangladesh, Gunze United, Experience Clothing, Ring Shine, Bengal Plastic, Paddock's Jeans, Redpoint Jackets, Styrax Fashion, Shanta Denim, Talisman, Epic Group, Irish Fashions and Hamco Leathers - are not part of our supply chain.

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