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Living Wage: what does it really mean?

Are the farmers and factory workers at the end of retail chains being paid a living wage?

Are the farmers and factory workers at the end of retail chains being paid a living wage? This might sound simple, but it’s a complex challgence for retailers. Many supply chains have mutiple intermediaries, making it hard to track wages. A living wage means workers earn enough to live decently and support their families.

The challenge isn’t about lack of will but rather the absence of comprehensive, reliable data to ensure that workers receive a wage that truly supports their basic needs.

The data challenge

The problem isn’t a lack of willingness – it’s the lack of reliable data. Without solid data, companies can’t be sure workers actually earn enough to meet basic needs.

Changing realities impact wages

Data isn’t fixed; it changes with the world around us. Take coffee industry, for example. Climate change causes smaller harvests, pushing many farmers below to poverty lines. These changes highlight the needs for ongoing, local data. Retailers committed to fair trade and regulations like the CSRD must keep up with these shifts.

Bridging the gap between promise and reality

There is still al big gap between fair wage promises and what workers actually receive. At ImpactBuying, we focus on closing this gap using real, accurate date – not estimates. We gather detailed information to verify if workers truly get a living wage. This ensures our commitments lead improvements in wages and working conditions.

Learn and act

Understanding what a living wage is and how to measure the gap in the frist step to closing it. Visit our webpage on Living Wage & Living Income Training to learn more. By verifying this gap, we can create lasting change in supply chains.

Join us for a fairer future

Our goal is to make a proven positive impact. We want to turn commitments into reality and ensure every worker is fairly paid. Join us in building a future where fair wages are not just a goal but a guaranteed right.

To see how we tackle these challenges, watch our latest video featuring Roos Vergeldt, our Consultancy & Academy Manager.