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 (linked below). During the FLA's 2015 SCI factory assessment cycle, FLA staff tested the data-collection template, and the version linked here benefits from their feedback on its use.
All FLA-affiliated Participating Companies and Participating Suppliers are required to begin piloting the collection of compensation data in 2016, and are strongly encouraged to use the tools provided by the FLA. Taking stock of compensation levels and practices in supply chains will help company affiliates to:
- Introduce due diligence on fair compensation (beyond legal wage compliance) as of equal importance to other critical supply chain issues.
- Introduce a more uniform calculation of compensation across factories and sourcing countries.
- Analyze more uniformly the elements of compensation systems at the factory and country levels, and
- Put supplier compensation levels in the context of relevant benchmarks(to be provided by the FLA), and identify high-risk areas to better focus fair compensation planning.
The FLA has translated the data-collection tool into Chinese, Turkish, and Spanish; these versions of the tool, as well as the English-language original, are available by contacting [email protected].