Subgroup on Living Wage Tools and Methodologies

The Subgroup on Living Wage Methodologies and Tools serves as a forum for stakeholders to discuss the advancement of living wage standards and their practical application. The subgroup delves into the complexities surrounding the implementation of living wage methodologies in the banana industry. By analyzing the impacts and challenges associated with living wage methodologies, the subgroup aims to promote fair compensation practices and facilitate collaboration. 

Objectives 

  1. Ensure ongoing and effective multistakeholder dialogue to enhance existing Living Wage Methodologies. Seek consensus on implementing these methodologies in producer countries without adversely affecting national industries or producers' competitiveness in the global market, and without imposing extra costs.  
  2. Facilitate balanced and fair data collection processes benefiting all stakeholders, from producers to retailers. Establish robust mechanisms to gather feedback from producers on Living Wage Methodologies, data collection, and application processes. 
  3. Continue a multistakeholder discussion on numerous priority issues on Living Wage Methodologies in the banana industry. 

Activities 

  • Subgroup Meetings: Since its formation, the subgroup has held three meetings, centring discussions on improving Living Wage Methodologies and their application in producer countries through multistakeholder dialogue. They have also emphasized fair data collection processes and developed grievance mechanisms for effective feedback. 
  • Global Conference on Living Wages and Income (Rome, March 14, 2024): Members of the subgroup seized the opportunity to delve into critical topics such as ensuring effective meeting structures, developing timelines for fair value distribution, preventing inequality from Living Wage Benchmarks, and refining data collection for living wage methodologies. 
  • Anker Benchmarking Methodology: Upgrading and achieving consensus on the use of the methodology through collaboration with various stakeholders, including coalitions, producers, and governments. Facilitating discussions with key entities such as the Anker Research Institute and IDH's Salary Matrix to gather stakeholder feedback and assess potential improvements to existing methodologies. 

Subgroup topics of discussion 

  • Explore the array of Living Wage Methodologies in today's market and their influence on the global banana industry.   
  • Examine potential enhancements for Living Wage Methodologies and outline a timeline for their refinement.  
  • Investigate the implementation of Living Wage Methodologies in banana-producing nations and assess its impact on national banana industries, thereby reshaping the role of local producers in the global banana market.  
  • Delve into the methods used for data collection on Living Wages and propose strategies for enhancing and streamlining this process. 
  • Identify effective feedback mechanisms, particularly from stakeholders such as producers, to drive continuous improvement in methodologies and their application in banana-producing countries.