Would jumping on the wage ladder help?A living wage remains an elusive dream for millions of workers on production lines around the world. But is it one brands can turn into reality?
A living wage remains an elusive dream for millions of workers on production lines around the world. But is it one brands can turn into reality?
How much money does someone need to survive in Cambodia? A little over $2 a day, according to the government, which has set Cambodia’s minimum wage at $67 a month.
Cambodian textile workers, who make many of the clothes on sale in the US and Europe, say this wage is derisory. In a report released at a living wage conference in May, a confederation of four national unions asked garment factories and clothing brands to pay workers a “living wage” – a minimum of $93 a month, or $3 a day. Cambodia is a major sourcing destination for western brands, but H&M and Puma were the only big names present at the conference out of seven top brands invited.
The Garment Manufacturers Association of Cambodia promptly rejected the report, saying higher pay would threaten factories’ profitability. But the case is far from over. A union representative, who wished to remain anonymous, told Ethical Corporation that the group would use the $93-a-month benchmark in all upcoming collective bargaining negotiations. A new round of labour conflict seems likely.
Brands must be hoping Cambodia does not go the same way as another major garment exporter, Bangladesh. In 2007, a wave of riots swept the country as textile factory workers protested against a legal minimum wage that had remained unchanged for 12 years. Workers argued that they could not earn enough to support themselves or their families.
Fifteen years of corporate responsibility initiatives in global supply chains has made a significant improvement in working conditions in factories that make goods for multinational companies. But the lot of workers has barely improved according to living wage campaigners. Even after working long hours – at times up to 16 hours a day without a weekly day off – their wage is not enough for a decent living.
A living wage is one that is adequate for someone to support themselves and their family. Few, including global brands, disagree that workers should earn enough for a decent living. But no one can agree on whose responsibility it is to provide this wage – and how much it should be.
Brands, trade unions and NGOs differ in their definitions of how a living wage should be measured, what the size is of an average family, and what exactly constitutes a decent living. Dozens of definitions, approaches and methodologies have emerged over the decade. But none is broadly accepted.
As a result, brands’ supplier codes of conduct tend to stipulate that suppliers should pay workers the legal minimum wage, but not a living wage. The minimum wage is set by national governments and, as the Cambodian unions will testify, is often far below what would be a living wage.
No comments:
Post a Comment