Skip to content
Search

Latest Stories

Indian suppliers to top UK brands refuse to pay minimum wage, report

Indian suppliers to top UK brands refuse to pay minimum wage, report

MORE than 400,000 garment workers in India's Karnataka have not been paid the state’s legal minimum wage since April 2020, according to an international labour rights organisation that monitors working conditions in factories, reported The Guardian

The Worker Rights Consortium (WRC) estimates the total amount of unpaid wages so far to be more than £41m.


One worker said she only earned about half of what she needed to cover basic living costs, such as food and rent.

“If we had got the wage increase last year, we could have at least eaten vegetables a few times a month. Throughout this year I have only fed my family rice and chutney sauce,” she told The Guardian.

“I tried to talk to the factory management about it,” she added, “but they said, ‘this is what we pay to work here. If you don’t like it, you can leave.’”

Scott Nova, executive director of the WRC, said: “In terms of number of workers affected and total money stolen, this is the most egregious act of wage theft we’ve ever seen. The children of garment workers are going hungry so brands can make a buck.”

Karnataka is one of India’s garment-industry heartlands, with thousands of factories and hundreds of thousands of workers producing clothing for international brands including Puma, Nike, Zara, Tesco, C&A, Gap, Marks & Spencer and H&M.

Nova said the “indifference and inaction” of all the brands sourcing clothing from the region about the situation facing its mostly poor, female workforce was “shameful and cruel”.

According to him, despite persistent demands from the WRC for the past two years, western brands had either refused to intervene or had not acted to ensure that workers making their clothes were paid in line with Indian law.

“It has been almost two years since apparel suppliers have been refusing to pay the legal minimum wage and brands have been letting this continue when they know they are the only ones with the power to stop this widespread wage theft,” he told the newspaper.

The annual cost of living increase to the minimum wage, the “variable dearness allowance” (VDA), was increased to Rs 417 (£4.10) a month in April 2020. The WRC said that as this supplement for low-paid workers, which amounts to 16p a day, had gone unpaid for 20 months, each employee had been underpaid by Rs 8,351 (£83).

Garment suppliers argue that the Ministry of Labour & Employment issued a proclamation suspending the minimum wage increase shortly after it was implemented in April 2020 and that a legal complaint relating to the requirement to pay the increase was still progressing through the courts in Karnataka.

However, in September 2020, the Karnataka high court ruled that the labour ministry’s proclamation was illegal and that the minimum wage, including all arrears, must be paid to workers regardless of any other court proceedings.

According to the WRC, apparel suppliers make up the only industrial sector across Karnataka refusing to comply with this court order.

Workers in Karnataka told The Guardian that not receiving their pay rise, in the face of steeply rising living costs, had had a devastating effect on their own lives and those of their families, especially their children.

Another woman, who works at a factory making clothing for UK high street brands, said that she had been forced to leave her home and was now living with a relative because she could no longer pay the rent.

Puma, Nike, Gap, Tesco, C&A, Marks & Spencer and H&M, which are among the brands sourcing clothing from Karnataka, all said the newspaper that they were committed to paying the legal minimum wage and expected their suppliers to comply with the high court order.

More For You

Deliveroo posts first annual profit after 12 years

A Deliveroo rider near Victoria station in London, England. (Photo by Dan Kitwood/Getty Images)

Deliveroo posts first annual profit after 12 years

FOOD DELIVERY app Deliveroo announced on Thursday (13) its first annual profit as orders and revenue rose, while the 12-year old company sees further growth despite exiting Hong Kong.

The milestone follows sizeable full-year losses owing to high investment costs since American Will Shu founded the company in 2013 and made Deliveroo's first delivery in London.

Keep ReadingShow less
JLR-Tata-Getty

JLR had initially planned to manufacture more than 70,000 electric vehicles at the facility. (Photo: Getty Images)

JLR halts plan to build EVs at Tata’s India plant: Report

JAGUAR LAND ROVER (JLR) has put on hold plans to manufacture electric vehicles at Tata Motors’ upcoming £775 million factory in southern India, according to a news report.

The decision was influenced by challenges in balancing price and quality for locally sourced EV components, three of the sources said. They added that slowing demand for electric vehicles was also a factor.

Keep ReadingShow less
Government to abolish payments regulator to boost growth

Keir Starmer (R) and Rachel Reeves host an investment roundtable discussion with members of the BlackRock executive board at 10 Downing Street on November 21, 2024 in London, England. (Photo by Frank Augstein - WPA Pool/Getty Images)

Government to abolish payments regulator to boost growth

PAYMENTS REGULATOR will be abolished and its remit absorbed by another financial regulator, the government said on Tuesday (11), as it aims to cut red tape in favour of growth.

The Payment Systems Regulator (PSR), which oversees systems including MasterCard and bank transfers, tackles problems such as fraud, excessive fees and lack of competition among banks and payment providers.

Keep ReadingShow less
Boohoo

Boohoo’s shares, which have fallen by about 20 per cent this year, dropped 4 per cent on Tuesday. (Photo: Getty Images)

Boohoo rebrands as Debenhams after 21 per cent sales drop

BOOHOO has rebranded itself as Debenhams Group after sales from its young fashion brands, including Boohoo, MAN, and PrettyLittleThing, declined by 21 per cent to £947 million.

The move comes amid strong competition from Shein and a shift towards second-hand clothing among younger shoppers, The Guardian reported.

Keep ReadingShow less