Filling the gap: Achieving Living Wages through improved transparency

India

A living wage

Problems Young girls, women and migrants – the vast majority of the workforce – are predominantly being paid wages that force them to live in poverty Lack of coherent information and knowledge on wages in specific supply chains prevents citizens/consumers, brands, retail companies and policymakers from making informed choices Much of the producer workforce as well as many other key stakeholders lack awareness of the gaps between their rights and the current situation On top of the lack of coherent, easily accessible information on wages here is the overall lack of transparency in the garment and footwear industry. Inability to trace which brands are producing which items and where While the garment and footwear industry generates huge profits, young girls, women and migrants – the vast majority of the workforce – are predominantly being paid wages that force them to live in poverty. In other words, they are deprived of the right to a living wage. Firstly, the lack of coherent information and knowledge on wages in specific supply chains prevents citizens/consumers, brands, retail companies and policymakers from making informed choices, changing their practices or developing effective policies. Secondly, much of the producer workforce as well as many other key stakeholders lack awareness of the international Human Rights frameworks, and the gaps between the rights these stipulate and the current situation. Addressing this knowledge and awareness gap can empower the workers and their organisations to make demands for improvement. Thirdly, the lack of coherent, easily accessible information on wages is but one aspect of the overall lack of transparency in the garment and footwear industry. This in turn gives rise to the fourth issue: the inability to trace which brands are producing which items and where. Without this it is not possible to build an accurate picture of the working conditions in each brand’s supply chain, nor is it possible for workers at different parts of the supply chain to jointly demand meaningful improvements. Academic research has found that addressing the “highly complex” problems in the garment and footwear sector requires “better information and communication” 4

Solutions Link the wage promises of brands to the actual real-world wages at factory level (Transparency Tool) This gives workers, trade unions and advocates much stronger arguments to demand and achieve concrete wage increases from brands. And allows consumers to judge if brands achieve their goals, thereby making more informed purchasing decisions. The Action will increase transparency in supply chains, particularly at the lower segments and will promote awareness on social conditions as part of the decent work agenda. This raised awareness will enable more responsible purchasing decisions. The Action will also support workers’ organisations and Trade Unions (TUs) in DCI and EU producer countries, and it will enhance their capacity to build a global LW advocacy campaign delivering concrete improvements in brands’ supply chains. 5

Objectives Reduced wage gaps in the garment and footwear supply chains (1) between wages paid and a LW, and (2) between wages paid to female and male workers. Increased use of information on supply chains, wages and working conditions at workplace level Active engagement of European citizens/consumers More brands publicly disclosing supply chain information and tangible improvements in wages at workplace level Better regulatory frameworks in Europe and internationally regarding LW and transparency Increased capacity and empowerment of workers, workers’ (rights) organisations and other CSOs and activists for evidence-based social dialogue and LW and supply chain transparency advocacy Reduced wage gaps in the garment and footwear supply chains (1) between wages paid and a LW, and (2) between wages paid to female and male workers. Reaching this specific objective is tied to 5 intermediary objectives: iOc1 – Increased use of information on supply chains, wages and working conditions in the garment and footwear industry at workplace level iOc2 – Active engagement of European citizens/consumers in the pursuit of human rights, decent work and transparency in the garment and footwear supply chains iOc3 – More brands publicly disclosing supply chain information (including production locations and S.M.A.R.T. data on wages) and implementing tangible improvements in wage payments at workplace level iOc4 – Better regulatory frameworks in Europe and internationally regarding LW and transparency, as a prerequisite for companies’ accountability on Human Rights due diligence iOc5 – Increased capacity and empowerment of workers, workers’ (rights) organisations and other CSOs and activists for evidence-based social dialogue and LW and supply chain transparency advocacy 6

Results Increased use of information. No. of Transparency Tool (TT) users: 1 million Active engagement of European consumers/citizens. No. of respondents to calls for action: 200,00 More brands publicly disclosing information and tangible improvements. No. of brands aligned w/ Transparency Pledge: 36. No. of brands providing S.M.A.R.T. data : 10. No. of brands taking measures and addressing gender pay gaps: 500% increase over baseline. Better regulatory frameworks in Europe and internationally. No. of EU and broader policy initiatives: 6 Increased capacity of workers, workers’ (rights) organizations and other CSOs and activists. No. of public advocacy initiatives referencing Transparency Tool data: 50 iOc1 – Increased use of information on supply chains, wages and working conditions in the garment and footwear industry at workplace level No. of Transparency Tool (TT) users: 1 million iOc2 – Active engagement of European consumers/citizens in the pursuit of human rights, decent work and transparency in the garment and footwear supply chains No. of respondents to calls for action: 200,00 iOc3 – More brands publicly disclosing supply chain information (including production locations and S.M.A.R.T. data on wages) and implementing tangible improvements in wage payments at workplace level No. of brands aligned w/ Transparency Pledge: 36 No. of brands providing S.M.A.R.T. data on wages at workplace level: 10 No. of brands implementing measures for concrete wage increases at workplace: 500% increase over baseline No. of brands explicitly addressing gender pay gaps in their policies and measures: 500% increase over baseline iOc4 – Better regulatory frameworks in Europe and internationally regarding LW and transparency, as a prerequisite for companies’ accountability on Human Rights due diligence No. of EU and broader policy initiatives requiring supply chain transparency and/or living wage: 6 iOc5 – Increased capacity and empowerment of workers, workers’ (rights) organizations and other CSOs and activists for evidence-based social dialogue and living wage and supply chain transparency advocacy No. of public advocacy initiatives by CSOs and workers’ organizations referencing Transparency Tool data: 50 7

Locations of action Europe The Netherlands, Belgium, Germany, Austria, Croatia, Finland, Italy, Poland, Czech Republic, , Hungary, Sweden. Asia Indonesia, China, India