British firm faces criticism over low wages in India

A British designer handbag brand, Modalu, made famous

by British celebrities such as Pippa Middleton, Prince William’s sister-in-law, and owned by TLG brands, is facing criticism over outsourcing production from two facilities in Tamil Nadu that pay very low wages to its workers.

Media reports suggest, these bags with a price tag of around 195 pounds in the UK are being manufactured by a firm in India where workers are paid as little as Rs 121.9 (1.39 pounds) for an eight-hour shift. Its tannery in India is located in an industrial estate in Chennai. The factory, described as clean and not running under “sweatshop” conditions, had higher paid workers who could earn Rs 30,000 to Rs 35,000 a month (350-405 pounds), while skilled cutters could earn Rs 20,000 a month (231 pounds).

According to a study last year by the Asian Floor Wage Alliance, the minimum living wage, or the amount needed to live a basic existence in India, was calculated as Rs 12,096 rupees a month, or 138 pounds. The handbag manufacturer on the other hand has claimed that difficulty in finding a factory which had the capacity to meet its demand limited the company’s options in terms of outsourcing to India.