Impact of the living wage gap 

People are forced to take multiple jobs simultaneously, leading to mental and physical exhaustion. Additionally, there are health problems due to stress, malnutrition, and inadequate access to health care.

There are many reasons why workers accept jobs where they do not earn enough. Unfortunately, poorly educated individuals are vulnerable in the job market and easily replaceable. They cannot afford to protest, especially when there are no unions to support them. Additionally, many countries have no adequate laws to protect workers. Gender wage disparities also play a role in this.

There are also many reasons why companies cannot or do not want to pay a living wage. For example, due to the constant pressure to reduce costs caused by intense global market competition. However, there are fortunately more and more good examples of companies that pay a living wage and see positive effects in their supply chains.

A living wage is a human right. Everyone should be able to earn a living wage. The minimum wage is too low in many countries and sectors, so workers do not earn enough. One company cannot solve this problem on its own. Collaboration within the supply chain is necessary. However, individual companies can take action. The six steps of due diligence are an important starting point.

Check the living wages of your production countries here:

https://wageindicator.org/salary/minimum-wage/minimum-wages-per-country

Module 5 provides insights into concrete measures to address sustainability challenges in the supply chain. Specifically for living wages, you can think about the following measures:

• It is essential to first understand whether workers in your supply chain receive a living wage or not. Various studies examine the difference between the minimum wage and a living wage.
• Discuss with your suppliers how you can contribute to better payment for the workers.
• Be a reliable trading partner and work on long-term relationships with your supplier. This stable relationship gives the supplier more certainty, enabling them to invest in their personnel.
• Join coalitions of companies and civil society organisations working towards a living wage.
• Assess the extent to which certification systems guarantee a living wage and invest in the systems that do so.