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The FLA Fair Compensation strategy includes a commitment on the part of FLA-affiliated companies to immediately remediate any legal pay violations found within their supply chains, and also includes a commitment by the FLA and company affiliates to engage with governments in support of inclusive minimum-wage-setting procedures.  This page organizes guidance for companies on emerging compensation issues detected by FLA factory assessors around the world, as well as a record of actions taken by the FLA and affiliated companies to engage governments to help improve the compensation environment for workers in countries where FLA affiliates source their products.

Latest Updates

FLA and FWF support workers' rights and inclusive wage-setting in Bangladesh

Publication date: 
Friday, January 13, 2017
Report type: 
Fair CompensationNews and Action
On, January 13, 2017, the Fair Labor Association (FLA) and Fair Wear Foundation (FWF) sent a letter to the prime minister of Bangladesh, expressing concern over government and employer reaction to recent garment worker protests in the Ashulia area of Dhaka, including the arrest or firing of protesting workers and the detention of union leaders and workers’ rights advocates.

Monetary Penalties Used as Discipline in Vietnam

Publication date: 
Tuesday, June 28, 2016
Report type: 
Fair CompensationNews and Action
During the 2015 factory assessment cycle in Vietnam, FLA assessors identified a number of instances of monetary penalties used as discipline. Because of how these deductions were designed and implemented, they may not appear to brands to violate the FLA Workplace Code of Conduct as obviously as a direct salary deduction would. However, any disciplinary penalty that reduces a worker’s pay constitutes a violation of the FLA Code (benchmark 2, “Monetary Fines and Penalties” under “Harassment or Abuse”).

Unpaid overtime violation common in Egypt's free trade zones

Publication date: 
Wednesday, May 4, 2016
Report type: 
Fair CompensationNews and Action
Factory assessors have found that local authorities often will not enforce the overtime regulations in the free trade zones, and consequently factories will often ignore them, planning their production for a 48-hour workweek, though a regular workweek in the free trade zones is limited to 42 hours. Any hours worked over the 42-hour limit must be paid at the local legal overtime premium rate of 135 percent for daytime work and 170 percent for nighttime work.

Beyond Minimum Wages in Corporate Codes of Conduct

Publication date: 
Friday, October 2, 2015
Report type: 
Fair CompensationNews and Action
At the beginning of September, FLA Vice President of Programs Jason Judd participated in the "Squaring Higher Wages and Competitiveness" conference in Ankara, co-hosted by the Just Jobs Network and the International Monetary Fund (IMF). In preparation for this conference, the FLA prepared a chapter of material describing its latest work on fair compensation, which was distributed to all conference participants, as part of the publication "Global Wage Debates: Politics or Economics?".

Oxfam Report Cites FLA Fair Compensation Effort in Myanmar

Publication date: 
Thursday, October 1, 2015
Report type: 
Fair CompensationNews and Action
A new Oxfam International report summarizing living wage progress in five countries cites the FLA's leadership -- along with the Ethical Trading Initiative -- to organize US and European brands to express strong support for meaningful and inclusive minimum wage negotiations in Myanmar, in pursuit of fair compensation for garment workers.

The FLA and Four Affiliated Companies Call for Meaningful Minimum Wage in Georgia

Publication date: 
Wednesday, September 23, 2015
Report type: 
Fair CompensationNews and Action
The Fair Labor Association and four of its company affiliates that are sourcing (or considering sourcing) from Georgia wrote a letter to the Georigan Minister of Labor, expressing strong support for the setting of a fair minimum wage for workers in Georgia’s growing apparel sector. Signatories to the letter included representatives from adidas Group, New Balance, Nike, and Puma.

17 FLA Affiliates Oppose Unfair Minimum Wage Exemption for Myanmar Garment Workers

Publication date: 
Wednesday, July 15, 2015
Report type: 
Fair CompensationNews and Action
On Tuesday, July 14, 2015, the Fair Labor Association sent a letter to the Ministry of Labor in Myanmar standing against efforts to exempt the fast-growing garment sector from paying their workers the country's new minimum wage. The letter was signed by the FLA Vice President of Programs and 17 FLA affiliates