Lidl to launch industry-first tool to close living wage gap in banana supply chain
Lidl GB is is looking to help close the living wage gap in its banana supply chain through the launch of new processes and an industry-first analysis tool.
Already successfully trialled in Lidl Germany, the tool calculates the premium which is to be paid by the supermarket to close its proportion of the living wage gap for individual workers and plantations.
Developed in collaboration with not-for-profit organisation IDH, the mechanism is due to be rolled out in September across Lidl GB’s entire banana supply chain.
The tool enables suppliers to develop an action plan to close wage gaps, with regular analysis and annual adjustments. Initially, wage gaps between local living wages and actual wages paid to workers are identified by collecting and auditing supply chain data.
Suppliers are trained on the tool’s use, and once supply chain data has been validated, can choose their preferred method of payment to workers. These could range from increased salaries or bonuses to vouchers for local services such as supermarkets.
Richard Bourns, chief commercial officer at Lidl GB, said: “We recognise the importance of addressing wage disparities within our supply chain. Through the introduction of this innovative tool, we are not only fulfilling our obligations as a responsible retailer but also setting new and ambitious standards across the industry.
“It sets a precedent for ethical sourcing, but most importantly, helps ensure fair wages for workers on banana plantations.”
