Stanley/Stella - Sustainability Report 2020

Sustainability Report 2020

We choose to work with some of the most ethical and responsible factories in the country. Our partners not only guarantee the legal minimum wage and funda- mental legal requirements such as in-house childcare facilities, maternity leave and medical cover, but also offer additional benefits to their workers. These be- nefits include free transportation, performance and attendance bonuses and increasing pay scales. Other positivemeasures factories have taken are listed under “Notable achievements” on pages 43 to 48. On our side, we invest in projects such as the Fair- priced Grocery Shops *, which subsidise purchases of basic food items for garment workers with a view to increasing their buying power and disposable income. WE ARE WORKING ON CLOSING THE GAP TOWARDS A LIVING WAGE

Through experience, we have found these types of projects to be the best way of increasing worker spending power and improving livelihoods. Increa- sing the amount we pay per t-shirt does not necessa- rily translate to a direct wage increase for the factory workers, and often, when wages go up in an area, so do general costs like rent and food. Local government sets the minimum wage to ensure fair remuneration for garment workers, but also to maintain competitivity for Bangladesh. The last wage increase in Bangladesh was implemented in December 2018, increasing the minimum wage by over 40%. But we certainly won’t leave things there, and remain committed to finding new and innovative ways of paying workers a truly living wage.

Childcare structure

* See “The road ahead” section for more information

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