Payment of a living wage is a key point in the FWF Code of Labour practices – and one of the most difficult elements to implement.
Wages are linked to the prices brands negotiate with factories, however several complex questions need to be addressed to ensure that workers see actual improvements.
The Fair Wear Foundation-European Outdoor Group Living Wage Study is designed to address one of the main questions – What is the relationship between product pricing and wage levels. The study will examine what happens to prices of typical products when wages are increased to meet a variety of living wage benchmarks.
The participation of seven FWF members from the outdoor industry, who will provide actual cost data on a variety of products to FWF for analysis, is a significant milestone. The ability to forecast the impact of wage increases on the costs of real products will provide clear guidance to the entire outdoor industry on the actual effects of moving towards living wage benchmarks. Important elements of the study will also be applicable to other apparel markets. FWF believes that the willingness of the participating brands to share such sensitive information indicates a serious level of commitment to the issue.
In early 2013, a report will be published that will summarise the study’s findings, and will make use of the FWF Wage Ladder Tool to illustrate the results. Read more…