WAGES

We see supply chains as human chains. We want the people involved in manufacturing our products to be able to make a living from their work and achieve a decent standard of living. In contrast to minimum wages, which are usually set by law, living wages are based on the actual costs incurred. The factors housing, food and transport are included. In addition, a 10 % surcharge is planned for expenses such as education and health.

ANALYSING THE PROBLEM AND FURTHER ACTION

In reality, wages in most textile production countries are below the minimum subsistence level. In our annual CSR supplier interviews, we survey the amount of wages paid to employees on the clothing lines and the methodology used by the supplier to calculate the living wage. On this basis, we first analyse the wage gap, namely the difference between the wage paid and the calculated living wage.

We have also used various calculation tools to calculate the living wage for the regions in which our suppliers are based. As different tools delivered very different results in some cases, we decided to work with the data basis calculated by our suppliers. Depending on the supplier, the data was calculated using the Basic Need Wage method, internally conducted interviews, SAI and BSCI templates or the Anker method and assessed in independent audits (OEKO-TEX® STeP/GOTS) by independent third parties. Our wage gap analysis shows that, as a rule, well-trained employees receive a higher wage than the statutory minimum wage, whereas “helpers” consistently receive the statutory minimum wage. All suppliers pay voluntary benefits, some of which are extensive, such as free vegetables, free transport, bonuses and/or offer further training, medical care, kindergarten visits, etc. All these measures do not directly increase employees’ income but they do have a positive social effect.

SOLUTIONS THROUGH RESPONSIBLE PROCUREMENT AND SOCIAL COMMITMENT

Our strategy is to promote the payment of living wages through responsible procurement. In 2024, our strategic production partners are OEKO-TEX® MADE IN GREEN (OEKO-TEX® STeP) and/or GOTS certified. Both standards require the payment of wages that are sufficient for the basic needs of employees and their families (living wages). However, production partners will not be able to take the step from statutory minimum wages to living wages overnight. We are supporting the path towards this goal, for example, with the “Inflation compensation” project implemented in 2024. In this project, we have contributed directly to a higher income for the seamstresses and sewers of the Dibella clothing line at a Pakistani supplier.

As a further measure to promote living wages at raw material level, we have linked GOTS-certified textiles to the Fairtrade standard. This company has made a name for itself in particular through its fair pricing policy. Cotton farmers receive a minimum price for their cotton that covers the costs of sustainable production. A bonus is also paid, which is often channelled into projects for the village community. Our close co-operation with the Chetna Cooperative in India also enables us to carry out our own education and training projects locally. For the “Empowering girls through education” (School Equipment in Rasimetta, India – GoodTextiles Foundation ) school support project, which is being carried out via the GoodTextiles Foundation in the period from November 2024 to November 2026, Dibella provided 14, 840 euros. The project enables children to receive a good education, facilitating their path to a qualified career.