Oxfam Australia is calling out major Australian fashion brands that it claims are underpaying garment workers despite raking in billions of dollars in revenue for FY24.
According to Oxfam's analysis, Kmart Group, Big W, Cotton On, Rip Curl and Kathmandu owner KMD, Myer, and Bonds parent company Hanes all made over $1 billion in 2022-2023, all while reportedly not paying living wages to the women working in their supply chains. In some cases, Oxfam believes wages are as low as $6 per day.
For FY24, Kmart Group earned $10.6 billion in revenue last year, with a profit of $958 million, while Big W recorded 4.8 billion in sales - the fourth consecutive year surpassing $4 billion. Meanwhile, Cotton On has consistently made over $1.5 billion in sales annually since 2015.
As for KMD Brands, the owner of Kathmandu, Rip Curl and Oboz Footwear is navigating revenue falls across their subsidiaries amid a tough economic climate in Australia. The group's revenue for FY24 fell below $1 billion to $979.4 million, with earnings and profit getting dragged down with it.
Meanwhile, Myer sales fell 2.9 per cent in FY24 to $3.26 billion, with net profit after tax (NPAT) down 26 per cent to $52.6 million.
Oxfam confirmed it is intensifying its demand for these businesses, and others on their 'Company Tracker', to expediate paying workers a living wage. Despite seven years of Oxfam’s advocacy through its What She Makes campaign, Oxfam claimed many brands still fail to pay workers enough to live on.
“Inequality is stark in the fashion industry," Oxfam Australia CEO Lyn Morgain said. "Oxfam’s analysis reveals a profound injustice - while brands sales soar, the women who make their clothes often live in poverty, many being paid as little as $6 a day."
Morgain added that the fashion industry is "built on entrenched exploitation".
"With Black Friday and the holiday season approaching, brands have a critical opportunity to start paying workers a living wage for their labour. This is a vital step in addressing the systemic inequalities that perpetuate poverty.
“The women who make our clothes have waited long enough. Consumers have the right to know their money supports brands that treat workers fairly."
Last month, Oxfam congratulated Lorna Jane for being the first brand in the history of its What She Makes campaign to pay a living wage to all garment workers at their one apparel factory.
Ragtrader has reached out to some of brands mentioned for comment.
According to Oxfam, its Company Tracker reflects brands’ policies and practices in relation to third-party suppliers only. It does not apply to manufacturing facilities owned by brands.
The NGO added that its statements are based on company data available from IBISWorld, which collects their Australian data from publicly available sources, such as company annual reports, the Australian Bureau of Statistics, sector-level data from industry federations and regulators, as well as real-world advice, feedback and updates on operating conditions from contacts in relevant industries.