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A living wage for workers | Ethical Trading Initiative

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A wage you can afford to live on - still elusive for many workers.

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In a unionized workplace, employment contracts are negotiated through the collective bargaining process. Individuals selected to represent the unionized employees come together with representatives of the employer to carve out an agreement on issues such as wages, overtime, training, health care, vacation time, retirement, and other benefits and workplace standards. Whether you are a small business owner or the member of an employee union, to negotiate a union contract requires bargaining skills as well as knowledge of applicable labor laws.

1. Choose your representatives. Both the employer and the union must have designated representatives to negotiate on behalf of the entire group.

Representatives should be trustworthy and authoritative, with assertive personalities and knowledge of labor law and regulatory standards.

Your representatives also should have a basic understanding of the employment terms and benefits available for similar groups of employees in your industry.

Union employees typically vote to determine who will represent them in collective bargaining negotiations.

2. Have a preliminary meeting with your team. Before you meet with the other side, your representatives should have an understanding of their negotiating authority.

If you are a union representative, your priorities and authority typically will be set by your union members. Whether through voting or through an open meeting, employees set the boundaries of the representative's negotiating authority.

Review the existing collective bargaining agreement, if you have one, and determine which parts of it are working already and where there is room for improvement.

You also should go over previous negotiations by looking at notes or minutes from those meetings. Analysis can help you determine which argument or negotiation styles are most effective, as well as understanding the strategies used by the other side.

If there are people on your negotiating team who weren't present in the previous rounds, a review of those negotiations also provides them with a better understanding of the process and the people they will be working with.

If you're a union representative, you also want to generate analysis of your industry and the employees you are representing. This data will help you prioritize negotiation issues to best represent the employees and ensure their needs are met.

3. Meet with the other side. During the first meeting, you will meet the people with whom you'll be negotiating and set procedures and deadlines for the collective bargaining process.

Federal law requires negotiations be held at reasonable times, and there must be adequate time for proposals to be reviewed by each side.

If the union requires additional information, such as documentation of the company's financial situation, the employer must provide adequate information and time for the union to evaluate it.

4. Determine what issues are on the table. You won't necessarily bargain over every term of the employment contract in each session, and only issues central to the employment relationship are mandatory.

Central issues typically include wages, hours, layoff procedures, production quotas, and key benefits such as health insurance.

If the union requests it, the employer must provide advance notice of any changes it proposes to make to terms such as wages, hours, and layoff procedures.

Whether an issue is mandatory to the bargaining process may depend on the reason for the employer's proposed change. For example, if the employer wants to close a plant because there are too few customers in the area for the plant to remain profitable, this has nothing to do with the union and typically wouldn't be considered up for negotiation.

If there is already a collective bargaining agreement in place, there may be other issues on the table that arose as a result of the implementation of that agreement and need to be adjusted.

1. Compare options and proposed alternatives. Depending on the issue at hand, each side likely has several scenarios it would find acceptable.

Since union representatives are at an inherent disadvantage regarding some aspects of the employment contract, they have the right to request documentation from the employer to support the employer's proposals.

For example, if the employer claims a wage increase isn't possible because the company can't afford it, the employer's representatives would have to provide profit and balance sheets as evidence to back up this argument.

Watch the behavior and body language of the other side's representatives. This can give you clues as to which proposals are going to be harder sells.

2. Bargain with an eye toward compromise. Evaluate how the proposals can be implemented in a way that is most mutually beneficial.

Federal law requires the union and the employer to meet at reasonable times and bargain in good faith, which means the parties must fairly assess each others' proposals and attempt to work towards a compromise.

Keep in mind that you aren't legally required to make unappealing concessions, or to agree to something that would be disastrous to implement. If you cannot reach an agreement, you can declare an impasse and turn the situation over to the National Labor Relations Board (NLRB) for review.

Don't begin negotiations with your bottom line - make sure each offer you make leaves you room to continue to negotiate if it is refused by the other side.

Search for common ground and weed out issues upon which there is basic agreement first. That way you have more time (and energy) to devote to issues that might be more contentious.

Additionally, starting the negotiations with quick agreements sets the stage for more agreements. You may be able to find a mutually beneficial compromise on controversial proposals more easily if a pattern of agreement is established.

1. Create a draft agreement. The draft agreement reflects the outcome of the first collective bargaining session and is not legally binding.

Previous agreements may serve as guides to the format and structure of the agreement. Typically the two sides have an attorney - or group of attorneys - who work together to draft the agreement so it complies with all applicable laws.

2. Circulate the draft agreement for comments. Typically you'll have time after the draft agreement is created to evaluate how its provisions would be implemented and the effect it would have in practice.

Typically the draft agreement will be presented to union members, who will have the opportunity either to accept or reject it.

3. Execute the final agreement. Representatives of both sides must sign the collective bargaining agreement before it can be put into effect.

The final agreement will be in effect for a set period of time, typically three years. At that point, collective bargaining will resume to address any changing circumstances since the agreement was entered.

Doctor of Law, Indiana University

This article was written by Jennifer Mueller, JD. Jennifer Mueller is an in-house legal expert at wikiHow. Jennifer reviews, fact-checks, and evaluates wikiHow's legal content to ensure thoroughness and accuracy. She received her JD from Indiana University Maurer School of Law in 2006. This article has been viewed 55,337 times.

Updated: February 23, 2023

Negotiating a union contract is important for ensuring you and other employees get the wages, training, and benefits you deserve. If you've been chosen as a representative for your union, you'll want to meet with members ahead of time to make sure you understand everyone's priorities and needs. When you meet with your employer, typically each side will have a chance to present their opening statement. This should include an overview of what your top priorities are for the union. For instance, maybe you want to preserve the seniority system and introduce more raises. After your employer presents their statement, you'll have some time to compare options for the company and negotiate. If your employer claims they don't have enough money for something, you're allowed to ask for documentation to back it up. Keep in mind that if you're not able to come to a compromise, you can turn the situation over to the National Labor Relations Board for review. To learn how to write a draft of a final agreement, read on!

Thanks to all authors for creating a page that has been read 55,337 times.

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How to Negotiate a Union Contract: 13 Steps (with Pictures)

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In a unionized workplace, employment contracts are negotiated through the collective bargaining process. Individuals selected to represent the unionized employees come together with representatives of the employer to carve out an agreement...

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Working poverty is a reality worldwide. For many workers, a job does not provide a way out of poverty for them and their families . The COVID-19 pandemic has thrown into stark relief the vulnerability of low-paid workers and made clear the consequences of economic fragility on human capital development, making the provision of living wages all the more urgent. While a great deal of progress has been made to ensure living wages for all workers, more needs to be done to ensure we leave no one behind.

The UN Global Compact encourages companies to promote and provide a living wage as an essential aspect of decent work to ensure all workers, families and communities can live in dignity.

While there is no universally agreed definition of a living wage as a concept and no universally accepted monetary amount that defines such remuneration, a lack of consensus is no excuse for inaction. Importantly, there broad consensus around what constitutes a living wage - it is a wage that enables workers and their families to meet their basic needs.

Governments have an important role to play in supporting wage-fixing mechanisms at a sectoral level. More than 170 countries have one or more minimum wages set through legislation or binding collective agreements. In many countries, however, companies must go beyond existing wage legislation as minimum wages do not always allow for a decent living. By going beyond legal compliance, businesses can ensure that all their employees have the income to support their needs and those of their dependents, raising standards of health and well-being.

As part of the corporate responsibility to protect and respect human rights outlined in the UN Guiding Principles on Business and Human Rights (UNGPs), working poverty caused by low wages in the workplace and supply chains should be reflected in the human rights due diligence approaches businesses conduct.

There is an increasing pressure on Governments and companies to address low wages and take action to ensure a living wage for all worker s:

I n 2021, various industry platforms, such as UN Global Compact , Business for Inclusive Growth and Aim Progress published statements in support of living wage and living income economies.

In February 2022, the EU published a legislative proposal on the Corporate Sustainability Due Diligence Directive (CSDDD) ( European Commission, 2022 ). Later that year, a collective of 60 companies and organizations advocating for living wages issued a public letter in support of the inclusion of living wage and income in the CSDDD as a human right, and to not compromise on the definitions of living wage and income.

In April 2022, members of ShareAction's Good Work Coalition - a coalition of 10 institutional investors worth GBP2.2 trillion and 108 individual investors, have filled a living wage resolution calling for Sainsbury's to accredit as a living wage employer and is aiming to target other supermarkets as well ( ShareAction, 2022 ).

At the June 2022 International Labour Conference, the International Labour Organization (ILO) adopted a resolution acknowledging the concept of a living wage and calling for ILO's assistance to member states ( ILO, 2022, article 45b ).

A growing number of companies are committing to pay a living wage to their employees, and some are committing to work with their suppliers to achieve living wages in their supply chains. Change starts within the business, and firms seeking to promote living wages in supply chains need to have their own house in order. Companies can leverage their experience of achieving their commitment of paying all their direct employees - regardless of employment status - a living wage. Efforts on both fronts - ensuring a living wage for a company's own workforce and efforts to achieve a living wage for all workers in their supply chain - can go hand-in-hand.

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Working poverty is a reality worldwide. For many workers, a job does not provide a way out of poverty for them and their families . The COVID-19 pandemic has thrown into stark relief the vulnerability of low-paid workers and made clear the consequences of economic fragility on human capital development, making the provision of living wages all the more urgent.

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Example Nepal, but you can find other countries too!

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Example Nepal, but you can find other countries too!

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https://www.ilo.org/global/standards/subjects-covered-by-international-labour-standards/wages/lang--en/index.htm

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With working time, wages are among conditions of work that have the most direct and tangible effect on the everyday life of workers. Although wages are necessary for the maintenance of workers and their families, in many parts of the world access to adequate and regular wages is not guaranteed.

Indeed, in certain countries, wage arrears continue to be a problem. In some cases, workers who have not received their wages are never paid due to the bankruptcy of the enterprise. Problems can also arise in cases where part of wages, and sometimes a large part, are paid in kind. Such situations push the workers concerned into poverty. In certain cases, these practices may even expose them to the risk of debt bondage or forced labour.

The principle of the provision of an adequate living wage was already set out in the Treaty of Versailles. Following the erosion of purchasing power as a result of the 2008 economic crisis, the ILO considered it important to emphasize the link between minimum wage-fixing and action to combat poverty. Accordingly, the Global Jobs Pact, adopted by the International Labour Conference in 2009, makes several references to minimum wages as one of the means of responding to the international economic crisis. The regular adjustment of wages, in consultation with the social partners, is identified in the Pact as one of means of reducing inequality, increasing demand and contributing to economic stability.

ILO standards on wages address all of these issues. They provide for the regular payment of wages, the protection of wages in the event of the insolvency of the employer and the fixing of minimum wage levels.

Selected relevant ILO instruments

Further information

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With working time, wages are among conditions of work that have the most direct and tangible effect on the everyday life of workers. Although wages are necessary for the maintenance of workers and their families, in many parts of the world access to adequate and regular wages is not guaranteed.

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https://kb.bimpactassessment.net/support/solutions/articles/43000671646-answering-living-wage-questions-in-the-b-impact-assessment

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1. What is a living wage?

In short, a living wage allows someone to afford a decent standard of living for them and their family. The Global Living Wage Coalition offers a more elaborate definition:

The remuneration received for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing, and other essential needs including provision for unexpected events. ( Global Living Wage Coalition )

A living wage is a human right and different to a minimum wage, although they have similar intentions. Whereas minimum wages are set by governments, living wages are usually researched by specialist organizations. In most countries around the world, the minimum wage is not actually enough to afford a decent standard of living, which gave rise to the living wage movement.

Related terms:

Living income is the same as a living wage but then for self-employed people as opposed to employees (e.g. smallholder farmers).

Market wage refers to what is commonly paid in the market. It does not reflect what a person actually needs and is therefore not the same as a living wage.

Collectively-bargained wages are those negotiated by a union. They come from collective bargaining agreements, which are legally binding and can apply to a single employer or a whole sector. They are an important means for workers to negotiate better wages and working conditions. In some countries, collective bargaining agreements set legal minimum wages. Ideally a collectively-bargained wage represents a living wage, but in practice this does not always happen.

Fair wage is a more loosely used term, however it usually refers to the payment of a living wage, fair wage governance, collectively-bargained wages, and/or equitable pay outcomes (e.g. equal pay for equal work). Fair Wage is therefore broader in definition than living wage.

2. Answering the living wage questions in the B Impact Assessment

To answer the questions, companies must calculate if they are paying their workers a living wage. There are two sides to this calculation: what should workers be paid ('benchmark') and what are workers paid ('prevailing wage')?

2.1 Accepted living wage accreditations

There are external organizations that accredit companies for paying a living wage. If a company has one of the following accreditations then they will receive points for one or both living wage questions. We refer to this as an 'equivalence'. In such cases, B Lab will verify the authenticity of the accreditation, rather than verifying the implementation of living wages.

All accreditations are optional; none are mandatory for B Corp certification.

Note that most accreditations are location-specific, meaning the equivalence is also location-specific. Companies with workers in multiple locations will either need multiple accreditations or demonstrate the implementation of living wages in countries that are not covered by the accreditations.

Equivalences are subject to change should there be any material change to the methodology of an accreditation body.

If companies have a living wage accreditation that is not listed above and they would like B Lab to consider its equivalence, then they can request this via their B Lab contact person.

2.2 Using living wage benchmarks

2.2.1 What is a benchmark?

A living wage benchmark is a figure that represents what a living wage is in a particular location at a particular time. They are usually expressed as a monetary rate, such as USD per month. There are various organizations researching and publishing living wage benchmarks. Whilst offering vital information to companies, it can be confusing to understand how they vary and which one to choose. Here are some ways in which the benchmark providers vary:

B Lab's approach is to accept benchmarks that meet a minimum threshold. It is important that they are created by credible and independent organizations with rigorous methodologies. To this aim, we accept benchmarks that have been recognized by the IDH Recognition Process For Living Wage Benchmark Methodologies . However, because some benchmark providers have not applied for recognition by IDH, there remain some useful ones that we accept in addition. As of March 2022, IDH has recognized five benchmarks: Anker Full-Fledged, WageIndicator Typical Family, Anker Reference Value, Fair Wage Network Typical Family and Living Wage for US Monthly (listed in order of when they were recognized).

Whilst we advocate for benchmarks to be free and publicly available, we recognize that researching and calculating benchmarks is costly and global coverage is difficult to achieve with publicly-funded benchmarks alone. We also recognize that not all (aspiring) B Corps have (free) benchmarks for their locations, or that some may find it difficult to pay for benchmarks. Therefore, companies will not be required to purchase benchmark data.

2.2.2 How do I choose a benchmark?

Given the variance among the benchmarks listed above, B Lab has developed location-specific guidance. Table 2 shows the accepted benchmarks, split into primary and secondary. Primary benchmarks should be used by default. Secondary benchmarks are available for special situations. For example, larger companies with workers in many countries may prefer a single living wage benchmark provider. Further considerations on choosing a benchmark are listed in 2.2.6. In any case, secondary benchmarks should not be used as a means to pay lower living wages.

Some benchmarks offer their data in multiple formats, where only some are accepted by B Lab. These are specified below in table 3, see right-hand column 'Limitations to what B Lab accepts'.

Note, in both tables, benchmarks within one cell are listed in alphabetical order. The vertical order does not signify a hierarchy or preference.

Whereas the table above shows the accepted benchmarks, the table below shows any limitations within each benchmark that apply.

Table 3: Limitations to what B Lab accepts

Use individual for the 'living wage for individual' question

Use two, three or four children, and two adults, for the 'living wage for family' question

For the family benchmark figure, companies may choose between the low or high end of the range, though B Lab recommends the higher figure as a way to demonstrate leadership.

Use one adult and zero children for the 'living wage for individual' question

Use two or three children, and use two adults (both working) or two adults (one working), for the 'living wage for family' question

Use individual figure for the 'living wage for individual' question

Use 'typical family' figure for the 'living wage for family' question. This entails using the adjusted 'FR' (fertility rate) and 'IE' (income earners) figure.

Use individual figure for the 'living wage for individual' question

Use 'typical family' figure for the 'living wage for family' question

Companies may choose between 'lower' or 'higher bound', though B Lab recommends 'higher bound' as a way to demonstrate leadership.

If companies know or use a benchmark that is not listed above and they would like B Lab to consider it, then they can request this via their B Lab contact person.

2.2.3 Individual and family living wage

In the B Impact Assessment, companies can get points for paying a 'living wage for individuals'. Whilst B Lab recognizes that a living wage is for an individual and their family, this question remains in the B Impact Assessment to maintain consistency over time, and more importantly, continue differentiating company performance on wages.

Some benchmarks only provide figures based on a family. In such cases, and where a company pays below this benchmark, they have two options:

1. Pay a family living wage and earn points for both questions (individual and family).

2. Select N/A for the 'living wage for individuals' question and <75% for the 'living wage for families' question.

2.2.4 Family size assumptions

Family sizes vary. The number of dependents varies as does the number of wage earners, all of which affects living wage calculations. The benchmark providers listed above have different approaches to this. Some (e.g. MIT), provide the user with options, whereas others make assumptions on what a family looks like. Living Wage for US, for example, assumes 1.7565 wage earners per family, based on the national employment rate, and assumes two children and two adults in a family.

Any limitations to what companies may use for the B Impact Assessment are listed in table 3 above under the column 'Limitations to what B Lab accepts'. Note that where benchmark providers provide options, companies are expected to select the appropriate one(s).

2.2.5 Using the IDH Living Wage Identifier Tool

This online tool shows which methodologies offer benchmarks for your location. These benchmarks meet a methodological threshold ( see here for more info ). As of March 2022, IDH has recognized five benchmark methodologies, so only those are included. The order in which they are presented within the tool does not signify any preference or priority from IDH's perspective. Other benchmarks may not be included because they did not apply for recognition.

Use of this tool is optional.

2.2.6 Additional considerations for choosing benchmarks

Alongside the guidance in 2.2.2, companies may take the following into consideration when choosing benchmarks:

Use location-specific benchmarks (or as precise location as possible)

Nearest location to where workers are located

Most comparable location to where workers are located (e.g. similarly rural or similar city size)

Age of benchmark research (more recent is likely to be more accurate)

Methodological preference - as mentioned above there are differences between the benchmarks. Companies and sectors may therefore prefer one benchmark over another.

2.2.7 Putting benchmarks into context

Human needs are complex, both in theory and practice. So whilst it is valuable to translate this human right into concrete numbers, we must remember that they are based on many assumptions and there will always be an inherent complexity. Also, most benchmark providers regularly update their methodologies to become more accurate and to integrate evolving ideas of what constitutes a decent standard of living. So we must not treat living wage benchmarks as perfect. With this in mind, companies should sense-check living wage benchmark data with their workers.

In addition, unions should play an active role in implementing living wages. In addition to sense-checking the benchmarks, unions can use them in their negotiations. Benchmarks can serve as external validation of living wage gaps. Under no circumstance should implementing living wages hinder or disable unions to negotiate their wages. In sum, benchmarks should be used together with unions and not instead of unions.

2.3 Calculating prevailing wages

'Prevailing wages' describes the complete 'package' that an employer gives a worker. It can also be called remuneration. They include the base wage and other components, such as in-kind benefits, bonuses and allowances. Not all components are used for calculating prevailing wages. It is important that both the prevailing wage and benchmark are accurate as this ensures the calculated gap is as close to reality as possible. In other words, only through accurate calculations can employers confidently determine if workers are paid a living wage.

B Lab's guidance on calculating prevailing wages builds on the Anker methodology .

2.3.1 How to calculate prevailing wages

When calculating prevailing wages it is important to be consistent across workers and with your chosen living wage benchmark. Usually, calculations are based on gross wages per month. The currency will depend on the country. Ensure consistency in the following ways:

Below are two ways to simplify the calculation process.

The prevailing wage includes all wage components. However, it is worth checking if base wages by themselves already meet the living wage benchmark, because this means no further calculations are needed. Therefore this may save you time. If the base wage does not equate to a living wage, then add other wage components based on the principles below (2.3.2).

When calculating prevailing wages, start with the lowest paid workers. This is the quickest way to reveal whether there are workers or worker groups paid below a living wage.

2.3.2 Principles for including extra wage components

When calculating prevailing wages, an employer may include any component that is:

In addition:

For in-kind benefits, employers only include their contribution, not the retail value (e.g. cost to produce cafeteria lunch and not what the food retails for; special conditions apply for health insurance in the US, see 2.3.3).

Any single wage component (other than the base wage or tips), may not account for more than 20% of the total wage or remuneration. For example, if a housing allowance equals 30% of total remuneration, then only 20% of the allowance may be included for the calculation. This is to avoid one component distorting the calculations.

2.3.3 USA health insurance

For all countries, health insurance may be included when calculating the prevailing wage only if health insurance is included as a cost category in the chosen benchmark.

Healthcare in the USA is unique because it is relatively expensive and often tied to employment. As such, a special calculation applies. Employers may include the cost saving to the worker as part of the prevailing wage. This calculation assumes the worker has employer-provided health insurance and that a family plan is provided. The calculation still applies if the employer offers multiple plans with varying degrees of coverage (e.g. individual, individual plus partner, individual plus family).

B Lab is working on an approach for employer-provided individual health insurance plans. Whilst we work on this, these companies will not be able to include health insurance contributions in the prevailing wage calculation when completing the B Impact Assessment. One work-around for such companies is to obtain Living Wage for US accreditation, which B Lab accepts as per table 1 in section 2.1.

For companies that provide family health insurance plans, the calculation is (1) - (2) = (3)

(1) Cost of health insurance premiums as per living wage benchmark

- (2) Cost to worker for health insurance premiums

= (3) Cost saving that may be included in the prevailing wage calculation

Conditions and guidance for each calculation component:

(1) Cost of health insurance premiums as per living wage benchmark

Go to Living Wage for US, find your location and use the cost listed under 'Health Insurance Premiums' and not 'Healthcare (out of pocket)'. Note, 'Medical' costs listed in MIT's calculator aggregates premiums and out-of-pocket expenses, and therefore should not be used.

(2) Cost to worker for health insurance premiums

Use cost for a family plan covering four people, even if different plans are offered to employees (as the cost assumes a family of four as well)

Use the most advantageous plan for workers at the entry/lower level; and use cost for a silver plan or better

Use the same cost for all workers (i.e. there is no need to identify the specific cost per worker)

(3) Cost saving that may be included in the prevailing wage calculation

2.3.4 Examples

The table below is intended as guidance. Wage-related terminology varies per company, sector and country, so it is possible the terms below do not correspond with all companies' contexts.

Table 4: Examples of extra wage components

Linked to worker performance, not company performance (see below)

Formalized and therefore predictable (e.g. guided by policy or procedure as opposed to management discretion)

Earned in standard working hours

Include if the company guarantees a living wage (i.e. if the wage plus tips falls below a living wage, then the employer tops up the wage to reach a living wage).

Only include up to the living wage amount, not all tips received.

20% limit does not apply here

Medical insurance for worker and family

Include if the cost of health care is included in the chosen benchmark. Include only the cost to the employer and not the retail value.

For USA, special conditions apply, see 2.3.3

3. Special circumstances

3.1 Minimum wage higher than living wage

On rare occasions, the legal minimum wage is higher than the living wage; though this depends on which benchmark is used to define the living wage. B Lab does not provide a list of these countries because it inevitably changes over time as a result of macroeconomic changes in those countries. Living wage benchmark providers are in a better position to provide the most up-to-date information.

When contacting the global, paid benchmark providers (currently WageIndicator and Fair Wage Network) they will inform companies if the minimum wage meets the living wage benchmark. In such cases, companies can still obtain points for the two living wage questions in the B Impact Assessment.

3.2 Collective bargaining agreements

Collective bargaining agreements (CBA, see 'related terms' under section 1 for the definition) represent people's fundamental right to bargain collectively. B Lab supports their use. However, CBAs sometimes derive from inequitable processes and do not always result in living wages. This variance in quality would entail assessing each CBA on a case-by-case basis, which B Lab is not in a position to do. Therefore, CBAs will currently not be accepted as living wage benchmarks.

The one exception for a CBA to be accepted by B Lab is to be recognized through the IDH Recognition Process For Living Wage Benchmark Methodologies (see 2.2.1).

Companies whose workers are subject to CBAs have three options:

1. Use a living wage benchmark accepted by B Lab (see 2.2.2)

2. Mark the living wage questions as N/A if there is no free benchmark

3. Encourage the CBA initiators to pursue recognition by IDH

3.3 Other special circumstances

4. Other questions referring to living wage in the B Impact Assessment

Beyond the two operational questions in the Worker impact area focusing on living wages, there are several other questions that refer to living wages in the B Impact Assessment. The updates in this article apply to those questions as well.

5. External resources

International standards and frameworks:

Defining a living wage:

Calculating prevailing wages:

Reporting on living wage:

Implementing living wages for workers:

Implementing living wages in the supply chain:

Membership or multi-stakeholder initiatives active on living wage globally:

Other resources:

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Answering Living Wage Questions in the B Impact Assessment

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TABLE OF CONTENTS 1. What is a living wage? 2. Answering the living wage questions in the B Impact Assessment 2.1 Accepted living wage accreditations 2.2 Using living wage benchmarks 2.2.1 What is a benchmark? 2.2.2 How do I choose a bench...

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https://kb.bimpactassessment.net/support/solutions/articles/43000671648--c%C3%B3mo-responder-a-las-preguntas-sobre-el-salario-digno-en-la-evaluaci%C3%B3n-de-impacto-b-

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¿Cómo responder a las preguntas sobre el Salario Digno en la Evaluación de impacto B?

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TABLE OF CONTENTS 1. ¿Qué es un salario digno? 2. Responder las preguntas sobre el salario digno de la Evaluación de Impacto B 2.1 Acreditaciones aceptadas de salario digno 2.2 Usar los salarios dignos de referencia 2.2.1 ¿Qué es un indicad...

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Mywage.org - find out about Jobs, Labour Laws, Leave, Maternity Leave, How to write CVs, How to Find Work and more at Mywage.org

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https://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---travail/documents/publication/wcms_862569.pdf

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https://globallivingwage.org/

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We're scientifically estimating living wages all over the world, so one day workers everywhere will afford a decent life for themselves and their families.

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https://wageindicator.org/

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Living Wages for 122 Countries. Minimum Wages for 196 Countries. Labour Law information for 115 Countries. Salary Benchmarks for 86 Countries.

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https://www.cnvinternationaal.nl/en/topics/special-topics/100-fair-work-monitor

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The 100% Fair Work Monitor was also used for the negotiations of the minimumwage in the textile industrie in Cambodja in 2022. Unfortunately this didn't lead to a living wage for the workers. Millions of people working in the textile industry still don't earn enough to pay for housing, food, school and medical care.

CNV Internationaal remains fully committed to the development and improvement of the tool. This way more local unions will be able to use the 100% Fair Work Monitor to achieve their goals: 100% Fair Work for everyone.

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Lokale vakbonden gebruiken digitale enquêtes om beter zicht te krijgen op de situatie van werknemers en gebruiken deze informatie tijdens onderhandelingen.

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https://www.youtube.com/watch?v=TilLRKlji8s

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https://www.youtube.com/watch?v=RLq8HXL73MI&t=1s

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Digital monitoring tool for smartphone in Cambodia

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https://www.youtube.com/watch?v=xdUnPQ6i14o

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What is Participatory Digital Monitoring?

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https://www.youtube.com/watch?v=JXEyqDDkdPA

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https://livingwageguide.idhtrade.org/

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Step 4: Living Wage Action Guide | IDH Roadmap on Living Wages

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We use cookies to make our website more user-friendly. All the data saved by those cookies is anonymised. We also use marketing cookies. By responding 'Yes, fine', you accept all our cookies.

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https://oxfamilibrary.openrepository.com/bitstream/handle/10546/336623/ib-steps-towards-living-wage-global-supply-chains-101214-en.pdf;jsessionid=78FA7A6C9472600F522BA5DF4CF02940?sequence=1

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https://unglobalcompact.org/what-is-gc/our-work/livingwages

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Working poverty is a reality worldwide. For many workers, a job does not provide a way out of poverty for them and their families . The COVID-19 pandemic has thrown into stark relief the vulnerability of low-paid workers and made clear the consequences of economic fragility on human capital development, making the provision of living wages all the more urgent. While a great deal of progress has been made to ensure living wages for all workers, more needs to be done to ensure we leave no one behind.

The UN Global Compact encourages companies to promote and provide a living wage as an essential aspect of decent work to ensure all workers, families and communities can live in dignity.

While there is no universally agreed definition of a living wage as a concept and no universally accepted monetary amount that defines such remuneration, a lack of consensus is no excuse for inaction. Importantly, there broad consensus around what constitutes a living wage - it is a wage that enables workers and their families to meet their basic needs.

Governments have an important role to play in supporting wage-fixing mechanisms at a sectoral level. More than 170 countries have one or more minimum wages set through legislation or binding collective agreements. In many countries, however, companies must go beyond existing wage legislation as minimum wages do not always allow for a decent living. By going beyond legal compliance, businesses can ensure that all their employees have the income to support their needs and those of their dependents, raising standards of health and well-being.

As part of the corporate responsibility to protect and respect human rights outlined in the UN Guiding Principles on Business and Human Rights (UNGPs), working poverty caused by low wages in the workplace and supply chains should be reflected in the human rights due diligence approaches businesses conduct.

There is an increasing pressure on Governments and companies to address low wages and take action to ensure a living wage for all worker s:

I n 2021, various industry platforms, such as UN Global Compact , Business for Inclusive Growth and Aim Progress published statements in support of living wage and living income economies.

In February 2022, the EU published a legislative proposal on the Corporate Sustainability Due Diligence Directive (CSDDD) ( European Commission, 2022 ). Later that year, a collective of 60 companies and organizations advocating for living wages issued a public letter in support of the inclusion of living wage and income in the CSDDD as a human right, and to not compromise on the definitions of living wage and income.

In April 2022, members of ShareAction's Good Work Coalition - a coalition of 10 institutional investors worth GBP2.2 trillion and 108 individual investors, have filled a living wage resolution calling for Sainsbury's to accredit as a living wage employer and is aiming to target other supermarkets as well ( ShareAction, 2022 ).

At the June 2022 International Labour Conference, the International Labour Organization (ILO) adopted a resolution acknowledging the concept of a living wage and calling for ILO's assistance to member states ( ILO, 2022, article 45b ).

A growing number of companies are committing to pay a living wage to their employees, and some are committing to work with their suppliers to achieve living wages in their supply chains. Change starts within the business, and firms seeking to promote living wages in supply chains need to have their own house in order. Companies can leverage their experience of achieving their commitment of paying all their direct employees - regardless of employment status - a living wage. Efforts on both fronts - ensuring a living wage for a company's own workforce and efforts to achieve a living wage for all workers in their supply chain - can go hand-in-hand.

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Working poverty is a reality worldwide. For many workers, a job does not provide a way out of poverty for them and their families . The COVID-19 pandemic has thrown into stark relief the vulnerability of low-paid workers and made clear the consequences of economic fragility on human capital development, making the provision of living wages all the more urgent.

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https://www.elgaronline.com/display/9781786431455/9781786431455.xml

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Elgar Online: The online content platform for Edward Elgar Publishing

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"Living Wages Around the World" published on 27 Jan 2017 by Edward Elgar Publishing.

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https://www.cnvinternationaal.nl/_Resources/Persistent/2/8/3/1/283180b0de5dc63679ce4fd176f3f9c15fafa329/CNVI-0316%20Position%20paper%20%26%20road%20map%20Living%20wage%20sugar%20supply%20chain%20DEF.pdf