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H&M has improved its purchasing practices by excluding labor costs

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In July, H&M implemented a new wage management system, aimed at better work environments and fair wages at 500 supplier factories representing 50 per cent of its product volume. H&M is the world’s second-largest apparel retailer has improved its purchasing practices by excluding labor costs from price negotiations in support of fair wages.
H&M plans to create a new mind-set both at its supplier factories and within its own operations. In 2013, the company determined that its strategic suppliers should have pay structures in place to pay a fair living wage by 2018. This was expected to reach around 8,50,000 textile workers in 750 factories, or about 60 per cent of its global garment workforce.

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