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Thursday, September 16, 2010

high prices - low wages

Clothing and footwear prices rose at their fastest monthly rate for an August since 2001. Debenhams said that the entire UK clothes retail industry faced higher prices, thanks to the rising cost of cotton and the weak pound. The warning was echoed comments by retailer Primark on Monday that rising costs may eat into its profit margins over the coming year.

However, clothes retailers today came under fire from the charity War on Want over their warnings that rising costs of cotton will increase prices as campaigners signal that stores continue to exploit overseas garment workers struggling to survive on poverty pay.

War on Want pointed to its research which revealed that workers making Primark clothes in three Bangladeshi factories earned well below a living wage - as little as 7p an hour for up to 80-hour weeks. Another Primark factory in Bangladesh where workers toil up to 84 hours a week and earn as little as £19 a month – less than half a living wage.

Nor were they alone.

Last month the Observer claimed Indian workers faced hardship toiling up to 16 hours a day for 26p an hour making clothes for Next and Gap and 25p an hour producing Marks & Spencer clothes. The Sunday Times in January cited Sri Lanka workers toiling six days a week, producing M&S and Next garments for take home basic pay of less than £50 a month.

War on Want senior campaigns officer Simon McRae said: "Clothes retailers will continue to pile up big profits, despite hikes in cotton prices. Yet the workers making their clothes will remain trapped in dire poverty..."

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