Lidl is committed to fair wages in the textile industry
As a major buyer of clothing, textiles and footwear, Lidl takes seriously its responsibility to promoting decent working conditions in manufacturing countries, particularly in relation to promoting living wages.
In November 2019, Lidl became the first discount food retailer to become a member of the “Action, Collaboration, Transformation” (ACT) initiative. ACT is an agreement between global brands, retailers, trade unions and governments to achieve living wages for workers through the process of collective bargaining. Through ACT, retail and brand members commit to adapting their purchasing practices to ensure higher wages for workers.
ACT focusses on global supply chains, where a company like Lidl does not have the direct ability to set wages. On average, workers in these industries earn between 42% and 55% of what is understood to be the living wage benchmark, leaving them vulnerable to further rights violations, such as forced labour or child labour.
In order to achieve fair wages, Lidl, through its participation in ACT, ensures purchasing volumes within its textile supply chain are agreed for a fixed time-period, preventing manufacturers from moving production to countries with lower labour costs when the opportunity arises. In addition to this, Lidl commits to integrating the wage levels agreed through the collective bargaining process into its buying contracts, starting initially in the key sourcing countries of Cambodia, Myanmar, Bangladesh and Turkey.
Through its commitment to ACT, Lidl is taking concrete steps to improve conditions for workers in its global supply chains, fulfilling its promise to customers of responsible and sustainable sourcing.
"The involvement of companies like Lidl is particularly important, due to its high buying volumes and great influence on suppliers in Asia. ACT members want to work together to improve purchasing practices, thereby enforcing living wages in the clothing industry and striving for necessary change." Frank Hoffer, Executive Director ACT
Learn more about ACT here.