Fair wages for fashion workers get a push from Tommy Hilfiger parent PVH Group, H&M, and Asos as New York’s Fashion Workers Act could soon become law.
With the Fashion Workers Act moving closer to approval in New York, major fashion labels including Tommy Hilfiger, H&M, and Asos have pledged to enhance labor standards in their supply chains. This legislative push, coupled with commitments from leading brands, signals a significant shift in the industry toward better labor practices.
The Fashion Workers Act aims to regulate talent agencies and provide fashion workers with the same protections afforded to other industries. This includes measures against wage theft, harassment, and discrimination. The bill, which has already passed the Senate twice, is currently stalled in the Assembly but is expected to progress soon. Rafael Espinal, executive director of the Freelancers Union, emphasized the importance of the bill, stating, “For some reason, these management companies are not being held to the same standards as clients, or as employers, so it’s really about filling that loophole and ensuring that those people are being held accountable.”
The proposed legislation mandates timely payments to models and sets a cap on agency commissions at twenty percent of a model’s earnings. It also requires transparency in contract renewals and agreements. Sara Ziff, executive director of the Model Alliance, highlighted the vulnerability of the workforce, noting that it primarily consists of young immigrant women who often lack basic labor rights. Ziff shared an incident where a Taiwanese American model had her appearance altered using artificial intelligence without her consent, underscoring the need for such protections.
The fashion industry, generating approximately $2 billion annually in tax revenue for New York, is significant not only in economic terms but also in employment, with nearly 180,000 individuals working in the sector. The Assembly Labor Committee is expected to advance the Fashion Workers Act, with hopes of a floor vote before the legislative session ends.
In parallel, global fashion brands have taken legally binding steps to support fair wages in Cambodia, a critical sourcing hub. Companies like Tommy Hilfiger parent PVH, H&M, and Asos have announced agreements ensuring their purchasing practices support wage increases. These agreements are designed to protect labor costs and guarantee sourcing volumes, preventing companies from relocating production to evade higher wages.
Christina Hajagos-Clausen, director for the textile and garment industry at IndustriALL, told Business of Fashion that it’s a real shift in responsibility in the supply chain. “Here’s something that really says, ‘We have skin in the game.’” This initiative mirrors the Bangladesh Accord, which was established after the Rana Plaza collapse in 2013 to enforce health and safety standards in factories.
PVH’s senior vice president for corporate responsibility, Mick Bride, explained the significance of these agreements at the Copenhagen Fashion Summit, noting they represent a critical step towards securing a collective bargaining agreement on pay between manufacturers and trade unions. However, not all brands have signed on; for instance, Inditex prefers an industry-wide agreement but still supports higher wages through its purchasing practices.
Supporters believe these binding commitments could set a new standard for labor relations in the global supply chain, promoting significant improvements in wages and working conditions.
In a related move, jewelry giant Pandora has issued a €500 million sustainability-linked bond tied to both carbon emission and gender diversity targets. This bond, listed on Ireland’s main stock exchange, aims to achieve a 36 percent reduction in carbon emissions as well as seeing 44 percent of leadership roles going to women by 2028. Failure to meet these goals will result in a €5 million penalty, divided between the two targets.
Pandora’s chief financial officer, Anders Boyer, noted the progress made so far, stating, “[We’ve had] quite good traction so far but as [is the case] in many aspects of corporate life, it gets incrementally more difficult to reduce carbon emission and get to gender parity.”
Pandora’s initiative reflects a growing trend among companies to link financing to sustainability and diversity goals. However, these mechanisms have faced criticism for setting achievable targets that minimize actual risk. Currently, Pandora’s leadership is 34 percent female, and its emissions have decreased by twenty-seven percent since 2019, on track to meet its 2030 target.
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