Does the company commit to living-wage benchmarks?
Companies must commit to living-wage benchmarks for many reasons. By putting a figure on the living wage, the labour cost can be calculated and embedded into pricing breakdowns, and companies can use this to be sure that suppliers are receiving enough to pay a living wage. If enough companies do this, production-country governments are given a clear signal that putting up the minimum wage to a living-wage level will not risk loss of business. The commitment to a real living-wage benchmark from companies also opens up space in wage negotiations between workers and factory owners. Currently, these negotiations often achieve very little because factory owners say they cannot pay more, due to low prices paid by buyers. But if unions or worker groups know that brands being produced in their factory have committed to a specified living-wage figure, these negotiations are opened up and a living wage becomes a possibility.
The campaign defines Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. (See p.98 of the report)
In this report, fifty of the most influential or strategic companies retailing in Europe were approached to take part in the study. These represent a mixture of fashion, sportswear, budget and supermarket retailers, as well as luxury fashion brands. Check whether the company you would like answers to this metric has participated in the Campaign’s search and add the score the campaign has determined in relation to whether the company reports on living-wage benchmark?