Labor: Well-Known Clothing Labor In Bangladesh

Bangladesh is a country that produces many products of well-known clothing brands. This is because the state of Bangladesh was known by many labor of the workers employed at a bargain price. The Bangladesh government has recently planned to raise the minimum wage of $ 38 or about Rp 400 thousand per month, while the amount is considered only a quarter of the minimum wage in China. Recently, the tragic incident happened to one factory in Bangladesh. The incident killed 1,100 workers who work in one of the garment factory that collapsed. This proves that the safety of the workers was assessed as minimal, although the products are sold to well-known clothing brands company.

H&M is one of the world’s leading clothing retailers. On December 1, 2013

On the demand of the wage increases, the labor protest. The protest is also caused by rising inflation and prices of goods also increased. These circumstances make the labor decreased consumption due limitation costs, which in this case is wages. Knowing the source of labor conflicts that occur, then H & M actions demand a wage increase because if the situation is left so, then consumption will decrease and if there is a decline in consumption then indicates the velocity of money decreased in number and there are no significant economic movements. In fact, consumption is directly related with business. Besides, the protests and conflicts cause labor to leave their jobs. It is obviously harm H & M because they have lost the numbers of production per day if labor continue to conflict. It will be relevant if later H & M want the Bangladesh government to increasing labor costs. Moreover, H & M has also stated that H & M wants to add value to export H & M that got from Bangladesh because of a good quality. H & M also do not require high educational premises labor so that consideration of the increase in labor costs could be an option. The actions demand wage increases conducted by H & M is not company behavior that deviates from the logic of multinational company that put profits in an important position. Their action is motivated by several factors that have been described. Factors that background for the action, if left continuously will actually cause harm befall the company. As a company, of course, the loss is not desired. To avoid possible losses that struck the company, the company will take action to recover such losses and turned losses into profit for company which will be obtained on the run long. In the end, compared with H & M who suffered losses due to competition placements manufacturing locations with other corporations, a conflict that continues to roll that lowers production plant as well