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Would you pay $1.50 more for a $27 T-shirt to double the worker’s wages?

A report released by the Copenhagen Fashion Summit today found that it would only cost about €1.35 ($1.50) to double the wages of those producing T-shirts that retail for €25 ($27) each. 

Right now, when fashion companies think about the increased cost price of a product, they tend to inflate the price throughout the supply chain, including retail and brand markups, which would increase the price of that t-shirt by €6.75 ($7.40). But the report makes the case that it should be possible to charge the consumer a small $1.50 premium that would be passed on to the worker in its entirety. “That model calls for truly innovative thinking and breaking business practices in place for decades,” the report says.