An international minimum wage, if based on a percentage of the median wage or country on a rate established by international committees, could be destructive for emerging economies (a way to begin healing the wound left Savar, May 13). Not only this initiative would be expensive to administer, but increased costs resulting from a higher minimum wage and the corresponding incentive among producers to reduce costs through automation, reduce overall labor demand in emerging economies. Not surprisingly, in the context of macroeconomic conditions and pent-up demand for low-cost production, the prospect of black-market maquiladoras becomes all too real.
The problem may be addressed to the other end of the supply chain. Western retailers should be required to display the details of their complete supply chain to consumers and invest in monitoring conditions at all stages. The concept of "fair trade" so it could be applied to all types of industries, allowing consumers the choice to pay a small premium on products produced in acceptable working conditions.
Piers Sanders, Vanina El-Khoury, David Faye, Whose Hailiang and Samsoo Oh
Cambridge Judge Business School
‧ Your article (fashion chains sign agreement for the safety of workers, May 14), related to a binding agreement in Bangladesh, is encouraging. However, it is shameful that famous resellers with enormous purchasing power are not insisting on fair wages and conditions for a workforce of course exploited, some of whom are paid as little as ￡ 25 per month. Assuming that a machinist sews about 10 items a day, which would be less than 10 p per unit. If the minimum wages have been tripled to ￡ 75 per month (say 37 p/hour), we would have to pay an extra 50 p for clothing, including a healthy margin. Ultimately, blame retailers who do not establish rules with their vendors, who seem to care more about tax havens and the shareholders with little thought for their hardworking employees.
Peter Connolly
Nottingham
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