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Fair Labor Association provides guidelines on living wage transparency

BTJ Desk Report
Fair Labor Association provides guidelines on living wage transparency

The Fair Labor Association (FLA) offered recommendations to assist fashion brands and retailers in achieving transparency in their latest report regarding the living wages paid to the workers in their worldwide supply chains.

According to media sources citing the FLA, corporations would be required to report on topics like the living wage and equitable remuneration under new mandatory due diligence regulations planned in both the US and the EU, combined with pressure from governments, NGOs, and shareholders.

Members of the nonprofit are already expected to gather and examine wage statistics, to have a plan to raise worker pay and to safeguard workers’ rights to just remuneration. The FLA promises to update its new guidance as legislative requirements and stakeholder expectations change, claiming that it will put its members on the path to living wage reporting and transparency.

The paper states that “FLA anticipates that mandatory human rights due diligence (mHRDD) and reporting legislation will include requirements for living wage reporting within the next three to five years.”

The group advises using its “Fair Compensation Toolkit,” which it claims gives businesses the instruments and direction they need to gather salary data.

It is advised that businesses report on the following until the precise requirements of upcoming new legislation, such as the New York Fashion Act and the EU Regulation on Corporate Sustainability Due Diligence, are known as living wage g, living wage goal progress, prevailing wage gap, poverty wage gap, collective bargaining agreements, and average bargained wage.

The FLA uses Puma’s 2021 Sustainability Report as an example of how fashion brands and retailers can show supply chain pay transparency. Puma claims that its report was the first to contain this information.


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