H&M Group has hailed the recent move by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to support the digitized wage payment system of all the garments workers by 2020. To date, a large number of garment factories are still paying wages in cash.
On 20 November H&M participated in the Bangladesh digital wage summit co-organized by the Business for Social Responsibility (BSR).
The global leading retailer thinks that a transition towards digital wage payments could empower workers by improving their access to financial services, savings, credit and insurance, which would lead to additional economic opportunities and independence for garment workers.
“We will continue to support industry collaboration for scaling digital wages in Bangladesh. The move from cash to digital payments will help to empower the garment workers, especially women who represent the majority of the workforce,” said Kiran Gokathoti, Sustainability Manager Bangladesh, H&M Group.
The digitized wage payment system will bring more people in Bangladesh into the formal economy. It would enable the textile workers to receive their salary and other payments through a personal bank account, mobile money or payment card solution, instead of cash-based systems.
Both textile workers and employers will benefit from this transition; creating a faster, safer and more transparent wage payment.
“Through digitizing wages, we are pledging to further promote financial benefits, such as cashback, reward points and merchant discounts, to increase the value of wages,” said Rubana Huq, President of BGMEA.