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Have you adjusted your prices to factor in the updated minimum wages across your suppliers in Bangladesh?

- Yes. Prices are negotiated between our brand representatives and suppliers, all of whom are aware of the new wages. We require all suppliers to respect the legal wage and monitor payment of wages at factories to ensure the updated minimum wage is being received by workers.

How have you undertaken or plan to undertake due diligence to ensure that workers receive their entitled wage allowance? How have you supported your suppliers in the country to ensure that the updated minimum wage is being paid to workers?

The two questions are interlinked, so we are answering them together. Since autumn of last year, BESTSELLER has worked proactively to address wage concerns arising out of the renegotiation and implementation of a new minimum wage for the industry...

...BESTSELLER supported the tripartite negotiations and advocated for a fair and sustainable wage structure, one that aligns with the needs and rights of the workers, while also considering the economic realities of the employers and the legislative framework of the government.

Considering the violence, we urged all parties to find a balanced resolution that addresses the workers' legitimate demands. BESTSELLER signed a public statement from ACT, which we are a proactive member of, underlining and articulating our concerns and commitments.

Dialogue with suppliers:

BESTSELLER committed to reflecting the increase in wage costs in our negotiations with suppliers to ensure that our prices would not and do not compromise on the suppliers’ ability to pay the increased labour costs. We communicated regularly with our suppliers to ensure they were prepared for the increased wages and encouraged them to get in touch and discuss any concerns they had about their ability to pay the increased wages.

All order prices agreed after the new wage agreement accounted for the increased cost of labour. For orders whose prices were agreed prior to the new wage agreement, brands representatives were open to enter dialogue with affected suppliers on price adjustments to account for any new wage-related costs.

Monitoring:

BESTSELLER’s in-country team of 60 colleagues, which includes six human rights specialists, continues to monitor payment of wages at our supplier's factories. Our routine factory assessments include verifying wage slips and interviewing random samples of workers, without the presence of factory management. Failure to pay due wages is a Code of Conduct violation and will be resolved as per BESTSELLER's established escalation procedures, which are publicly available on our website. In addition to that, due diligence is a multistakeholder process, and BESTSELLER continues to be open to dialogue with any stakeholders that have wage-related grievances. We encourage rightsholders to contact us with any concerns they have regarding payment of wages and any other potential code of conduct violations through the numerous available avenues (worker representatives, RSC complaints mechanisms, ACT Dispute Resolution Mechanisms, etc)

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

BESTSELLER regularly engages with trade unions through the Accord/RSC and ACT, which have union members. Additionally, we regularly receive notifications of concerns from unions who contact

our head office and local teams with their concerns. We see such stakeholders as key partners in our excision of due diligence. Any allegation constituting a CoC violation is investigated as per our best practice as articulated in the UNGPs for Business and Human Rights and OECD Guidance.

How do 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?

BESTSELLER is an ACT member and commits to achieving living wages for workers in the garment industry through collective bargaining and responsible purchasing practices. We are committed to improving our own purchasing practices to support the transformation of the industry to support better wages. This includes but is not limited to pricing wages as itemised costs, fair terms of payment, robust planning and order forecasting, training buyers in responsible sourcing practices, and practicing responsible exit strategies.

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