The clothing retail giant H&M is working with firms in its supply chain to improve the wage management systems in their textile factories. The organisation has stated that the system is founded on revamped criteria to that deliver a “fairer wage-setting.”

In a press release, the company stated that this will improve working environments and lead to fairer wages. Before the system was redesigned, employers with different skills and experience could end up with identical wages. The knock-on effect of this recalibration will be a more motivated workforce which is essential to commercial success in the textile industry.

Suppliers in ten countries are being helped to use the new system, including Bangladesh, Cambodia, China, Ethiopia, India, Indonesia, Myanmar, Pakistan, Turkey and Vietnam.

Approximately 500 textile factories will benefit from the implementation of this new system. One, Epsen Tekstil, has been working with H&M’s local Turkey-based team to enhance its wage management system. Its owner, Ahmet Yavuçehre, said: “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.”

He went on to say that it provided more opportunities for workers and helped deepen their trust in the firm, as well as improving their productivity and contributing to a happier work environment.

As senior procurement jobs go, H&M’s Sustainability Manager in Turkey, Julia Bakutis, clearly has her work cut out for her in overseeing the new system, which she said was fundamentally about enabling textile factories to be good employers.

Commending the actions taken by Epsen Tekstil to introduce the new wage management system as a “win-win situation for everyone”, Ms Bakutis explained that the initiative took full account of each employee’s individual experience, education and skills and rewarded them accordingly.

Professionals holding supply chain jobs in the H&M group are going to be rather busy working alongside 500 textile factories. But the reward is better is definitely worth it, with more ethical supply relationship management and more satisfied workers.

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