WageIndicator Living Wage-approach nominated for Innovative Justice Award - September 2014
One global standard for Living Wages in the Ready Made Garment and Textile industry is both desirable and possible. It is a realistic proposition given the WageIndicator system in place. Once applied to a particular supply chain it can be simply made suited to serve any other global supply chain. This multiplier promise is what the system holds that has been developed by WageIndicator. Today it is operational in 80 countries worldwide.
In these 80 countries WageIndicator works according to one system, i.e. national websites with identical back-end operations. Each national websites features surveys to generate internationally comparable data, including a cost of living survey per country, sectors and/or regions within countries. The data generated in this way is used to calculate current Living Wages. In these calculations account is taken of basic food requirements and calorie intake, costs of housing, transportation, health insurance and family type. The current price levels are updated every month. Moreover the calculations take into account international standards, so that the results may be comparable across countries.
This application of one system means that supply chains involving several countries can be tracked all the way. In this way lack of transparency where it may occur can be located and addressed.
Application of the WageIndicator system therefore may help to boost corporate cultures involving both workers and the management. Moreover it may generate good publicity.
In addition WageIndicator presents these Living Wages in their national incomes context. It is simply more telling to be able to compare their levels with the statutory minimum wage, the wage levels for low and high skilled labour – often laid down in collective agreements - the World Bank and national poverty lines. Such a presentation gives users of the websites more insight in their labour market situation and the performance of the supply chains they are working in. These wage indications are updated every month, reflecting the changing levels of the basic commodities and services workers need. These operations are integrated in the work of the specialized WageIndicator teams. Furthermore scaling up is a real possibility, given the identical operations in all participating WageIndicator countries. Also continuity is guaranteed in the 80 countries where it has operations already.
The WageIndiiator Living Wages are a fact based tool that brings realistic wage negotiations within easy reach and may help to avoid labour unrest. Its collection, elaboration and presentation of wage data is disruptively innovative. The system may be applied in all countries with a sizeable Ready Made Garment and Textile industry, such as El Salvador, Honduras, Bangladesh, Cambodia, India and Pakistan. Besides extension to other supply chains is easy and cost efficient.
