Launch of Wage Date & Dialogue Probe - Fair Labor Association

This week, the Fair Labor Association (FLA), the WE Program (WE), Tchibo and Fenix Outdoor announced they would be piloting the deployment of FLA’s Fair Compensation Toolkit within selected factories to assess whether and how structured wage data collection and analysis can strengthen factory-level dialogue, with the long-term goal of contributing to improved wage outcomes.

Over an implementation period of approximately 18 months, wage data will be collected and analyzed from WE factories contracted by Tchibo and Fenix Outdoor through the Fair Compensation Toolkit. The resulting data will then be integrated into WE’s workplace dialogue processes in the participating factories, where it will be used to inform structured discussions on wages between workers and factory management and support the development of context-specific action plans.

Throughout implementation, FLA, WE, and the participating companies will regularly review progress, address implementation challenges, and identify opportunities to strengthen the integration of wage data into dialogue.

Where purchasing practices are identified through the dialogue process as contributing to wage-related challenges, company partners will consider and address those practices within their own operations and business relationships.

Fair Compensation Toolkit

FLA’s Fair Compensation Toolkit consists of two scalable living wage resources that show companies the gap between what workers earn and what they need. The online Wage Data Collection Tool can be deployed directly to supplier factories to generate standardized wage data. The companion Fair Compensation Dashboard allows companies to analyze average worker wages, measure those wages against living wage benchmarks from more than 30 countries, and track progress over time. The toolkit is available to all FLA members and as a subscription service to non-members.

WE Program

The WE Program operates in factories through a minimum two-year engagement model focused on strengthening dialogue between workers and management. Through facilitated workshops and ongoing engagement activities, WE’s field teams build workers’ awareness of their rights and negotiation skills, while supporting management in improving labor practices and grievance mechanisms. The program is designed as a dialogue-based alternative to traditional audit models.

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