Retail Report: H&M Underpaying Cambodian Employees?

Posted Thursday November 1, 2012 5:08 PM GMT

It seems like big corporations are always under attack for one thing or another, and the latest retailer on the ropes is H&M.

The Swedish discount clothier is the subject of a new documentary called “Kalla Fakta,” that alleges that workers in the brand’s Cambodian factory are underpaid.

A rep from the retailer told WWD, "We want a permanent change, negotiated between workers and employers. This should be done by collective agreement that all workers in a country could benefit from."

H&M also stated that they don’t own the factories, and hence "cannot set or pay wages. It is the local government that sets a statutory minimum wage."

To help fix the issue, the Swedish company will begin in 2013 "to strengthen the dialogue between factory management and workers so that they reach agreement by negotiation and agreements rather than through confrontation."

Photo Credit: Getty Images

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