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Fair Compensation

The FLA’s Fair Compensation Strategy

The Fair Labor Association (FLA) and its stakeholders—buyers, suppliers, labor rights organizations, and universities—are part of a global effort to take action to improve workers’ compensation, especially where the purchasing power of workers’ pay is the lowest.

A first step for FLA-affiliated companies came in 2011, when the FLA enhanced the compensation element of its Workplace Code of Conduct, affirming workers’ right to wages that meet their “basic needs and provide some discretionary income.” Then, in 2015, the FLA Board of Directors unanimously approved the implementation of the FLA Fair Compensation Work Plan (available in “About This Work” below), as the organization’s formal strategy for helping stakeholders define and enact this commitment.
 
The strategy recognizes that increasing worker compensation—where the data indicates that compensation is low—is complex, and cannot be solved as easily or immediately as other compliance issues, such as locked emergency exits, or a broken fire extinguisher. Nonetheless, the need to provide fair compensation for workers is urgent. Low pay is at the root of chronic social compliance issues, such as excessive hours of work. And as the ILO has reported, the situation has been getting worse, with labor’s share of income in developing countries declining steadily over last twenty years.
 
The FLA Fair Compensation strategy charts a path forward on one of the biggest social responsibility challenges of our time. It was devised through a multi-stakeholder process, with important input from buyers, suppliers, labor rights organizations, universities, and others. Ongoing reporting on the strategy’s progress, tools for stakeholders, and other news and information are available at the links below.

ABOUT THIS WORK

 An explanation of the FLA’s Fair Compensation Strategy and Q&A on our goals and methods.

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NEWS & ACTION

 Compensation news from around the world, plus FLA and stakeholder action on fair wages.

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REPORTS

 Original FLA reporting on compensation levels in global supply chains, compensation risk analysis, and more.

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TOOLS

 Tools and guidance for fair compensation data collection.

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Latest Updates

FLA Releases New Compensation Data Collection Tools and Guidance Materials

Publication date: 
Thursday, March 3, 2016
Report type: 
Fair CompensationTools
The collecting and organizing of data on compensation paid to workers in global supply chains is vital due diligence work. To help FLA-affiliated companies begin to retrieve and analyze compensation data from their own supply chains, the FLA has released a new data-collection tool, and an accompanying guidance document.

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.

Discrepancies in Calculation of Minimum Wages in Bangladesh Export Processing Zones

Publication date: 
Thursday, September 24, 2015
Report type: 
Fair Compensation
An affiliate of the FLA sourcing from Bangladesh has alerted the organization to a discrepancy between how two different -- but similarly named -- organizations in Bangladesh are explaining how to calculate minimum wages in Bangladesh's Export Processing Zones (EPZs).

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

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