21 Jan '13, 1am

British firm under fire over low Indian wages: British designer handbag manufacturer Modalu has come under fire

work to an Indian firm that pays extremely low wages to some of its workers. The Hampshire-based firm is best known for designer handbags sported by British celebrities such as Pippa Middleton, Prince William's sister-in-law. The Daily Mail now claims 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 17p an hour, or Rs 122 (1.39 pounds) for an eight-hour shift. Modalu is owned by TLG Brands , which has outsourced production to two facilities in Tamil Nadu, the hub of India's leather industry. Its tannery in India, which is located in an industrial estate in Chennai, employs mostly Dalit workers, according to the newspaper report. 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 pou...

Full article: http://timesofindia.indiatimes.com/business/india-busines...

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