"Scaling Up Living Wages in Global Supply Chains"

Author: Roel Nieuwenkamp, Chair of the OECD Working Party on Responsible Business Conduct and Marjoleine Hennis, Senior Advisor Permanent Representation of the Netherlands to OECD, Published on: 2 May 2016

Original publication date: 28 April 2016

Meet Ei Yin Mon, a factory worker in Myanmar. She came to Yangon after cyclone Nargis hit the country in 2008. The base wage she earns is extremely low, so she has to work many hours of overtime to compensate. “We are always being told to work faster. They think that we are like animals. I know I have no rights to make a complaint, so I have to bear it”...

The challenges for individual companies are numerous, especially in situations where, in the supply chain, payment of below living wages is pervasive and perceived as necessary to maintain competitiveness.  In such a context, how should enterprises apply leverage and take appropriate steps that are expected by internationally recognized standards?...

First, a good understanding of responsibilities at the company level is needed...

Second, business and governments would gain from more coherence and fine-tuning of the methodologies and definitions concerning living wage...

Third and most importantly, a sector-wide comprehensive approach is needed...

Read the full post here