Living wage project
We conducted a study of the actual wage level at some of our factories to see how the workers’ wages compared to their expenses. We did the project in collaboration with the Fair Wages Network and the Ethical Trading Initiative Norway (ETI-N). The findings were satisfactory, and we will continue to do efforts to even out our production pressure (ref. Balancing out production).
It is important to distinguish between legal minimum wage and living wage. Norrøna checks that our manufacturers provide legal minimum wages to its workers, but it is sometimes difficult to know if this is a sufficient living wage. A living wage should cover the workers expenses. This is what we wanted to check with this project. We gained some important knowledge of the three facotries we assessed, and we learnt a lot more about the complexity of a living wage. It is difficult to establish the cost level as this will differ from region to region, and it depends on several other factors (family situation, children, etc.). We are working to secure a living wage througout our supply chain, but it can be challenging to get a good understanding of the issue. For specific initiatives please review the target related to moving production in to low season.
You can read more about the assessment in this resume of the project.
- The wage levels were established through a thorough qualitative (interviews of workers and management) and quantitative (surveys and threshold studies) methods. Two factories in Vietnam were studied and one in China.