Fair Labor Association (FLA) in its latest report has expressed the hope that living wage reporting requirements will be enacted as part of mandatory human rights due diligence (mHRDD) and reporting legislation in the next three to five years.
The report from Fair Labor Association (FLA) provides guidelines to help fashion brands and retailers achieve transparency on wages paid to workers in their global supply chains.
The FLA reported that new mandatory due diligence legislation is in the offing in the United States and the European Union due to pressure from various groups including NGOs, governments, and shareholders. The legislation would make it mandatory for the companies to report on issues like living wage and fair compensation.
The NGOs are already collecting and analyzing wage data, to prepare a blueprint to improve workers’ pay and uphold their rights to fair compensation. The FLA says its new guidance will set its members on the path towards living wage reporting and transparency — and ledges that it will be updated as legislative requirements and stakeholder expectations evolve.
The organization has prepared a ‘Fair Compensation Toolkit’ which provides companies with the tools and guidance they need to collect wage data. Until the exact requirements of pending new legislation, such as the New York Fashion Act and the EU Directive on Corporate Sustainability Due Diligence, are known it suggests that companies report on the FLA commended sportswear company Puma’s 2021 Sustainability Report, which was the first to include this data. It is a guide for other fashion brands and retailers to demonstrate transparency on supply chain pay.
FLA provides guidelines to achieve living wage transparency
