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Supply Chain Innovation

Impact

 

The FLA Fair Compensation strategy, launched in February 2015, is a multi-year project with three discrete phases, designed to help FLA-affiliated companies operationalize their Code of Conduct commitment to fair compensation, and provide clear and transparent mechanisms for the FLA to hold companies accountable.  The three phases of the workplan are:

The FLA’s vision is that workers in affiliate supply chains will earn compensation that is sufficient to meet their basic needs and have some discretionary income. The FLA’s 2020 Fair Compensation Strategy charts a path toward this goal. The 2020 plan includes an overview of the organizational commitment to fair compensation and includes the goals, tactics and timelines for these efforts. 

More than one billion people worldwide depend on agricultural work to make a living. Field production is exhausting work and often among the lowest paid, where legally required minimum wages – let alone living wages – far too often remain elusive.

The Fair Labor Association and Iyi Pamuk Uygulamalari Dernegi (Good Cotton Practices Association), a strategic partner of the Better Cotton Initiative in Turkey, in 2017 launched “Improving Employment Practices in the Turkish Cotton Sector—Toward Decent Working Condition in Cotton Farms in Şanlıurfa,” a project in partnership with seven global brands—adidas, Asos, IKEA Range and Supply, Inditex, Nike, Puma and PVH—sourcing apparel and other cotton products in Turkey.

"Among the success stories of 2016 recounted here, perhaps the most encouraging are those that describe the ways that our affiliates collaborate to achieve common goals -- building fair supply chains and solving systemic problems," writes FLA President Sharon Waxman notes in her introduction to the 2017 Annual Public Report.

In early 2015, the FLA took a major step toward realizing long-standing organizational and affiliate commitments to ensure that workers in global supply chains earn fair compensation for their labor, as required by the FLA Workplace Code of Conduct. At its February 2015 meeting, the FLA Board of Directors unanimously approved implementation of the organization’s new Fair Compensation Work Plan, which began with the introduction of a comprehensive wage-data collection effort as part of the FLA’s 2015 factory and farm assessment cycle.

In 2014, the FLA experienced a year of restructuring, renewed commitment, and program advancement, overseen by a former country director for the International Labour Organization (ILO), who returned to the ILO after helping return the organization to financial health and stability.   The Annual Public Report for 2014 demonstrates key ways the FLA advanced during this transitional year:

2013 was year of  transition and recalibration for the FLA.  While this report explains the challenges the FLA encountered in maintaining due diligence during 2013, it also reports the FLA's successes that year, such as the adoption of Principle 8 (covering responsible purchasing and production), the continued development of the Sustainable Compliance (SCI) methodology, and the implementation of a new fire-safety training program.   2013 culminated with the hiring of the new president of the FLA, Claudia Coenjaerts, who shares her vision for the future of the FLA as part of this report.

2012 was a year of tremendous growth for the Fair Labor Association, and the impact of its work could be felt at all corners of the world. Companies' efforts to promote and uphold FLA's labor standards in their product supply chains helped to improve conditions for workers everywhere - from farms in Cote d'Ivoire to electronics manufacturing facilities in China.

Towards Decent Working Conditions in Cotton Farms in Sanliurfa: A Lessons Learned Report

Acushnet Company works with supplier in Thailand to protect workers' rights to freedom of association following an FLA assessment.

Following an FLA assessment, VF Corporation works with supplier in El Salvador to ensure accurate compensation for overtime work.

adidas and Nike work with a Vietnamese apparel supplier to prevent forced labor, respect freedom of association, and protect the health and safety of the factory's 2,275 workers following an FLA assessment.

adidas and Forty Seven Brand work with supplier in Bangladesh to prevent discrimination against pregnant women following an FLA assessment.