What is a living wage?
According to the Global Living Wage Coalition (GLWC), a living wage is the pay a worker should receive for a standard workweek to ensure they and their family can maintain a decent standard of living. Elements of a decent standard of living include food, water, housing, education, healthcare, transportation, clothing, and other essential needs, including provision for unexpected events. This wage will differ across regions as calculations are dependent on local costs of living.
It is important to understand the difference between a minimum wage and a living wage. A minimum wage is set by the government, and it is the lowest remuneration employers can legally pay their employees. In many parts of the world, the minimum wage remains well under a living wage.
Our progress so far.
Updated December 2024.
The 2024 Baptist World Aid Ethical Fashion Report found that 90% of brands reviewed did not pay workers a living wage at any stage of their supply chain.
We believe every worker has the right to fair compensation and a living wage. Bared Footwear has commenced work to implement living wages in our supply chain through our bimonthly Living Wage Audit Program.
We have worked in collaboration with Intertek, a global leader in auditing and quality assurance, to develop the Living Wage Audit Program, a first-of-its-kind program that takes a holistic, risk-based approach. This program involves quarterly audits on our major suppliers to ensure true transparency on workers’ wages, hours, and conditions. Our objective with this program is to ensure all workers in our supply chain receive a living wage.
Currently, 87.5% of tier 1 factory workers constructing Bared shoes are paid a living wage and 100% are paid above the legal minimum wage.
Why aren’t 100% of workers paid a living wage?
This statistic is not 100% primarily because we have not yet conducted living wage audits on some of our small niche suppliers, such as those that produce small quantities of accessories. Whilst these suppliers have not yet been audited by Bared, they have produced audit reports completed by recognised third-part providers within the last 12 months of onboarding. Bared does not engage with any supplier unless they have undergone a prior third-party audit from a recognised external auditor that meets our stringent standards.
The other 8.5% also accounts for possible freelance staff at these facilities not reviewed by the external auditors, so we avoid speaking in absolutes.
Why is Bared focussing on tier 1?
By focusing initially on Tier 1, we ensured that the foundational relationships and practices were solidified. This approach allows us to set a strong precedent and create a scalable model that can be extended to subsequent tiers in our supply chain.
Where we are heading.
Our next steps involve extending our Living Wage audits into Tier 2 suppliers - beginning with those that produce the most significant amount of our components. Each tier introduces a new set of challenges, from varying local regulations to differing operational practices. By methodically expanding our audit reach, we can address these challenges effectively and sustainably.
The Anker Method
At Bared, our definitions of living wages are informed by the Anker Method, which is a globally recognised approach to calculating a living wage based on thorough research and analysis. This method takes into account essential needs such as food, housing, healthcare, education, and other basic necessities, ensuring that wages are sufficient for a decent standard of living. We references resources published by the Global Living Wage Coalition.
