dieh briefing paper on living wage draft seminar 18 9 2009
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DIEH Briefing Paper on Living Wage DRAFT Seminar 18.9.2009. Introduction. NGOs. Companies. Business associations. Trade unions. Multi-stakeholder initiative Purpose Promote ethical trade and responsible sourcing Platform for knowledge sharing Resource centre

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introduction
Introduction

NGOs

Companies

Business associations

Trade unions

  • Multi-stakeholder initiative
  • Purpose
    • Promote ethical trade and responsible

sourcing

    • Platform for knowledge sharing
    • Resource centre
    • Guidance to members on carrying out their responsibility in practice
dieh briefing paper draft
DIEH Briefing Paper Draft
  • A theoretical foundation for DIEH position paper and recommendations
  • Should encompass:
    • An updated overview of the issue
    • Practical cases
    • Lessons learned
    • Best practices
slide4
DefinitionsLiving wage is commonly understood as a level of compensation that allows workers to meet basic needs including staple food, housing and health care and provides some discretionary income within a standard work week.
different challenges
Different Challenges
  • Governments: Fear that higher minimum wages have a negative effect on the economy and trade
  • Companies: Fear higher costs and poor competitiveness
  • Suppliers: Fear a rise in costs vs. falling retail prices
  • Trade unions: Mechanisms such as collective bargaining should be in place
company challenges
Company Challenges
  • How can smaller companies have any influence on the wage level as a small customer with the supplier?
  • How can companies ensure that the suppliers’ increased earnings will be transferred to the workers?
  • How can companies join forces with other buyers at the same facility when they do not know them?
  • What can companies do when their supplier fears raising salaries due to threats from neighbouring factories in a cluster?
how to implement
How to implement?
  • Multi-stakeholder collaboration: unless a company is the main customer, it cannot alone implement a living wage with the supplier (Miller & Williams, 2009)
  • Local input for estimating wage levels
    • Workers, trade unions, NGOs, academics etc.
  • Wage-ladder
  • Step 1: Fair wage?
  • Training of workers to promote collective bargaining
  • Companies should examine their own cost structure to identify how to cover the additional cost
discussion points
Discussion Points
  • Is the issue covered?
  • Business Cases?
  • Other…
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