In September 2019, brands who are members of the ACT living wage initiative adopted a joint due diligence framework to ensure their purchasing practices facilitate the payment of a living wage, as set out in the ACT Memorandum of Understanding.

According to ACT, this marks the first time that international brands have collectively agreed to be held accountable by a global union federation for changing their purchasing practices. ACT has adopted global commitments of all member brands to change their purchasing practices in five areas that it has identified - based on consultations with suppliers, trade unions and experts - as essential for providing suppliers with the economic space to pay for negotiated wage increases and improvement of working conditions.

This includes the adoption of a labour costing protocol for ensuring that all direct and indirect labour costs are included in costing calculations for negotiating the purchasing price. The protocol specifies, among other things, that brands will conduct labour costings in line with predicted wage increases as soon as the information becomes available, and that when other cost inputs such as the cost of fabric, energy costs, and the size of order remain equal, wage increases will be covered through higher purchasing prices.

IndustriALL says that the ACT accountability and monitoring framework offers a tool for brands to meet international due diligence requirements and become industry leaders on responsible purchasing practices. 

Relevant articles are linked below, including an analysis by Asia Floor Wage Alliance (AFWA) of the ACT, which offers AFWA's assessment of the limitations of the initiative in truly delivering on its aim of achieving living wages.