Oeko-Tex has published a blog post about a new study conducted by Alva-Louisa Rose of the School of Textiles and Design at the Herriot-Watt University as her master’s thesis. The paper named “Guidance for sustainability standards on supporting decent pay in certified facilities - a STeP by Oeko-Tex case study” clarifies the concept of a living wage. It provides an overview of its significance for future development in the context of the global textile and apparel industry.
The study confirmed that minimum wages do not prevent poverty in the workplace but contribute to the dramatic conditions of wage labor in the global textile and apparel supply chains. Therefore, a shift toward living wages linked to lasting global peace and a fundamental contribution to future development is needed. The study shows that living wage anchor benchmarks or anchor reference values provide credible estimates, are transparent, and provide internationally comparable benchmarks. This refutes claims by brands and governments that a lack of definition or methodology prevents the implementation of living wages. Furthermore, the study concludes that living wages are beneficial to both workers and companies. They have been shown to improve workers’ physical and mental health, productivity, worker engagement, social sustainability and corporate image. In addition, living wages reduce labor unrest and sick leave.
The study’s goal was to show how voluntary sustainability standards can support living wages in textile companies. The study found that certification is a valuable and fully integrated tool for monitoring supply chains, but it also has its limitations. Voluntary sustainability standards aim to fill the regulatory gap created by the lack of binding policies or enforcement strategies for international companies, but they cannot replace the need for legislation. Audits have been identified as a key process in certification schemes. However, according to the study, audits should only be considered a starting point that can provide an incentive; whether a company acts accordingly is not solely in the hands of the auditors. Therefore, it is important to keep in mind that even though the study showed that auditors could support living wages in textile factories, this is not the sole solution. The results of the study show that voluntary sustainability standards need to adapt their requirements and guidelines to support living wages in the textile and apparel industry, as auditors can only act within such a framework.
