Supply Chain Innovation

About this work

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: 
1. Taking Stock (2015 – 2016). This due diligence phase of the strategy helps the FLA and stakeholders fill a critical gap in our knowledge of actual compensation levels and introduces uniform calculation methods on compensation across factories and sourcing countries.
2. Learning and planning (2016 – 2017). This second phase begins with independent research on compensation practices led by the Cornell University School of Industrial and Labor Relations. This research includes examinations of buyer-supplier responses to rising labor costs, and the roles of sectoral or industrial bargaining and minimum-wage setting. These findings and other innovative work on supply-chain compensation issues will be presented in late 2016. 
3.  Making Change (2018 and beyond). Implementation of fair compensation strategies by companies will begin by January 2018.  Companies may implement strategies adopted during the learning and planning stage, devise their own, or otherwise demonstrate compliance with the fair compensation element of the FLA Workplace Code of Conduct.
The Fair Compensation plan adopted in February 2015 appears here. A December 2017 update on Fair Compensation Work Plan progress appears here

Latest Updates

2020 Fair Compensation Strategy

Publication date: 
Tuesday, April 7, 2020
Report type: 
Fair CompensationAbout
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.