English

Supply Chain Innovation

Impact

 

The Fair Labor Association upholds fair compensation and living wage as a right held by all workers and believes that making progress on this issue is a priority. This report features three case studies on FLA members that improved working hours and workers’ wages through buyer, supplier, and worker engagement and collaboration. Each case study showcases a practical approach that, in all three instances, led to wages that exceed the estimated rate of inflation and applicable Global Living Wage Coalition living wage estimates in China and Vietnam.

The FLA Fair Compensation Strategy Status: Fair Compensation Blueprint report reflects accredited Participating Company and Participating Supplier compliance with the fair compensation blueprint requirement. The fair compensation blueprint is an action plan that prioritizes living wage progress based on wage data analysis. The requirement was met by 79 percent of percent of accredited affiliates. The FLA will ensure progress through accreditation annual evaluations.

The Fair Compensation Strategy Status: Wage Data Collection report reflects Participating Company and Participating Supplier compliance with wage data collection from a representative sample of their supply chain. Companies and suppliers were required to collect wage data from at least five percent of their supply chains in 2020. This requirement was completed by 90 percent of companies and suppliers. The FLA will ensure all companies and suppliers complete this requirement through the accreditation annual evaluations.

 

For the Fair Labor Association, 2019 was our 20th anniversary, and it provided an opportunity to reflect upon our roots and reaffirm our commitment to making a difference in workers’ lives. The progress made by FLA in 2019 is the result of the collective efforts of many individuals and organizations, and in many ways the culmination of two decades of large and small steps forward. Our achievements in labor rights are possible only with the determination

of our member companies, universities and colleges, and civil society organizations.

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:

For the Fair Labor Association, 2019 was our 20th anniversary, and it provided an opportunity to reflect upon our roots and reaffirm our commitment to making a difference in workers’ lives. The progress made by FLA in 2019 is the result of the collective efforts of many individuals and organizations, and in many ways the culmination of two decades of large and small steps forward. Our achievements in labor rights are possible only with the determination

of our member companies, universities and colleges, and civil society organizations.

"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.

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

H&M and Nike work with factory to improve management practices and conduct training for supervisors to prevent verbal harrassment of workers.