Workers Rights Consortium (WRC): Compliance From Brands On Minimum Wages In India Still A Concern
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08 February 2022, Mumbai:
Reputed brands Puma, Nike, Zara, C&A and GAP have not complied to all labor laws, reveals Workers Rights Consortium (WRC). A report by the independent organization overseeing labor rights says, over 400,000 workers in Karnataka, India have been paid less than the state’s legal minimum wage since 2020. The total amount of unpaid wages in the state exceeds £41 million.
Each worker earns around £83 a month. Scott Nova, Executive Director, WRC calls this the biggest wage theft ever in the fashion industry. Western brands have failed to ensure due payment to workers despite persistent demands from the consortium, he opines.
Supplier’s defense
Suppliers on the other hand defend their stance stating the Ministry of Labor had issued a decree suspending minimum wage increase shortly after its implementation in April 2020.
The Karnataka High Court is yet to give its final decision on the issue, they add. However, the HC has already said the Ministry of Labor’s decree as illegal in September last year and suppliers need to pay the minimum wage, including all arrears to workers, argues WRC.
Meanwhile brands Puma, Nike, Zara, C&A and GAP say they are committed to pay legal minimum wage to workers. However, it depends on their suppliers, who also need to comply with the court order. Nike for example expects suppliers to comply with local legal requirements and also the brand’s code of conduct.
C&A has directed suppliers comply with the court order and is awaiting a written confirmation from factories. Zara-owner Inditex has introduced a strict code of conduct for suppliers to ensure factories pay legal minimum wages.
These wages need to be sufficient to meet the basic needs of workers and their families, Nova adds.
WRC also encourages suppliers to pay variable dearest allowance, the local equivalent to half-yearly salary adjustment granted by the government, adds Nova.
In this regards, C&A continuously undertakes a series of initiatives and processes to guarantee respect for its employees and the law at all its stores, distribution centers and other administrative areas. Meanwhile Puma states, despite having limited influence over Karnataka’s suppliers, they are encouraging them to pay due minimum wages.
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