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H&M working with supply chain to implement improved wage management system

H&M working with supply chain to implement improved wage management system

H&M is working with companies in its supply chain to implement improved wage management systems in its textile factories.

The company said that the new wage management system is based on different parameters which create “a fairer wage-setting”.

“This leads to better work environment as well as fairer wages – and in turn more motivated employees, which many employers within the textile industry realize is key to business success,” it said in a release.

Previously the employees at a factory could receive the same basic wage even if their individual skills and experience differed.

H&M is working to train suppliers in ten production countries; Turkey, Bangladesh, Cambodia, Indonesia, India, China, Myanmar, Vietnam, Ethiopia and Pakistan, on how parameters such as skills, experience and responsibility should be included in wage management systems.

Ekpen Tekstil is one of around 500 textile factories implementing a new wage management system. The factory has worked together with H&M group’s local team in Turkey for two years to improve their wage management system.


“I believe this system makes the workers aware of their contribution to the company through their work, but also of that they can have a career plan and develop through vocational training,” said Ahmet Yavuçehre, owner of Ekpen Tekstil.

“It gives workers more opportunities and increase their trust in the company. It also contributes to a happier work environment as well as improved productivity.”

Julia Bakutis, Sustainability Manager at the H&M group production office in Turkey, commented: “Our work is about making it possible for textile factories to be good employers.

“The steps taken by Ekpen Tekstil to implement wage management systems taking employees’ individual skills, education and experience into account, supported by open and constructive communication, contribute to a more positive work environment. It’s a win-win situation for everyone.”


Supply Chain Digital Weekly