In line with the ILO, ACT believes that the social partners at national level – employers and trade unions – should be in the driving seat when it comes to identifying actions and measures that can contribute to sustainable and predictable real wage growth.
ACT is therefore supporting employers and trade unions in negotiating tailor-made solutions supported by the purchasing practices of global brands.
ACT is convinced that living wage benchmarks’, while providing important indicators, are often insufficient in addressing this complex subject. Since wages are intrinsically linked to competitiveness and purchasing prices, a holistic solution is needed to create a win-win solution for all supply chain actors – manufacturers, brands and workers.
As the International Labour Organisation (ILO) pointed out, living wage benchmarks or estimates, where they exist, should serve to inform – not replace – evidence-based social dialogue, including collective bargaining, and facilitate the setting of wages considered as adequate by the parties involved.
“Collective bargaining and/or statutory minimum wage fixing through tripartite social dialogue should be the proper modality for setting and adjusting wages” (ILO Meeting of Experts on Wage Policies.