Watch this space! There will be announcements next week during UNGA about ways that the particular barrier of varying data and lack of standardized approach will be addressed. However, the key thing is to get started. Start in your own company, in one country, or one supply chain. There is a lot to be learned through engaging and understanding and the lessons can then be helpful for working on Living Wage elsewhere in your organization/supply chain.
Agree - lots of improvement that can always be made but shouldnāt be a barrier to starting to take action.
**Where should we be looking out for these announcements @Francesca_New1
Thanks Claire! Also happy to share this community-built resource that helps provide tips and case studies on all living wage interventions. More tips and ideas always welocome: https://livingwageguide.idhtrade.org/
Hi Azfar. This is such an important point! Living wages should not be seen as optional, every company should be checking they are paying living wages and if not, working to close gaps as soon as possible. Living wages are also mentioned in the preamble of the ILOās 1919 Constitution: āconditions of labour exist involving such injustice, hardship and privation to large numbers of people as to produce unrest so great that the peace and harmony of the world are imperilled; and an improvement of those conditions is urgently required; as, for example, by [inter alia] the provision of an adequate living wageā
Over a century later, this is no less true.
I agree with Francescaās point that the presence of different benchmark estimates creates some confusion, but the point is also about the robustness of the estimates. The differences are entirely because of the methodologies employed. And who is to say which is better. Perhaps, as the ILO had promised to do an evaluation of the different methodologiesā¦this may provide an answer or at least, a semblance of a solution
I think Malawi 2020 that I referenced earlier is included as a case study in the Action Guide but agree it is always great to build up the repository of case studies and learn from others successes and challenges
Purchasing practices are really important. In addition to volumes, ensuring prompt payments to suppliers and ringfencing wages during price negotiations can also help. Companies may need to work creatively with suppliers to help cushion the ājumpā between what is currently paid to workers and the living wage.
As we reach the final 5 minutes of the live portion of this discussion - what are your top recommendations to continue pushing living wages forward, to make it viral, a movement and standard practice?
Collaboration - it has really come through in the conversation today from so many angles. Listen to producers and what their needs are rather than implementing any action to them and being willing to start the journey and share learnings, successes and failures, with others.
A reminder that this written discussion stays up here - so you can contribute and reflect on it at any time.
I will take a snapshot tomorrow evening and form the summary paper from this, so if you do want to be included in the paper and name checked, please do get your comments in before then.
- Bringing together companies to discuss ways in which implementation can be pursuedā¦a unified agenda.
- Involving workers groups and civil society in sketching out a timetable for implementation of a living wage/income. The larger platform would get greater acceptance.
- Companies need to be more circumspect in their contractual relations with suppliers
One of the most important things I believe companies can do is to make a public commitment to paying living wages in their value chains, with a date that is realistic for the transition but also not so far ahead that no action is taken.
The World Benchmarking Allianceās 2022 Social Transformation Baseline Assessment (2022 Social Transformation Baseline Assessment | World Benchmarking Alliance) showed that only 4% of the top 1000 companies surveyed paid, or had a commitment to pay, living wages. Anecdotally, a lot more companies are working towards living wages, but are not yet ready to make a public commitment because of the uncertainty about how they will achieve it.
Primark, Unilever and Patagonia stand out as some of the companies that have made these public commitments. Patagonia is also transparent about its progress, and honest that in 2022 10 out of its 30 apparel factories paid living wages. More companies taking this honest and transparent approach would be wonderful. Living Wage - Patagonia
Thanks everybody. A good session, indeed.
My recommendation is to ensure that Living Wage is integrated within multiple business functions across the company, for example: Procurement (supplier contracts), Rewards (pay and benefits), Finance (new acquisitions, investments and partnerships). To implement LW across the entire supply chain is a big challenge
that needs tackling on multiple fronts.
That brings us to the end of the live session, thank you thank you for all your amazing inputs and insights. As mentioned this written discussion stays up here - so you can contribute and reflect on it at any time.
I will take a snapshot tomorrow evening and form the summary paper from this, so if you do want to be included in the paper and name checked, please do get your comments in before then.
Two more important points for companies working with suppliers:
- Living wages must be coupled with progress on decent work, to make sure that living wages donāt have negative consequences such as layoffs, increased working hours or pressure on workers.
- Itās very much about trust and relationships, listening to suppliers and why they are struggling to pay living wages, and celebrating the progress of suppliers who are taking action.
*** And if you havenāt already - make sure you have registered for the Global Goals Summit.
To get your online front row seat, all you need to do is register here: Global Goals Summit 2023: Building an Equitable and Resilient Future - Business Fights Poverty and utilise this reusable promo code to get your free ticket: BFPGG23
It looks set to be an important one. I look forward to see you there. And do pass this invite on to your colleagues and networks.***
Thanks everyone for sharing your perspectives, experiences and useful LW materials.
Working within sectors is crucial. Initiatives such as Act on Living Wages https://actonlivingwages.com/ are bringing together the garments and textiles sectors; AIM Progress has released a playbook for the FMCG sector: AIM-PROGRESS - Launch of the AIM-Progress Living Wage Playbook for the Fast-Moving Consumer Goods Sector (FMCG)