Gap

Responded to survey: yes, and sent replies to comments

MSI involvement: yes, Ethical Trading Initiative [what's this?]

Grade 3.5: Can offer concrete examples of steps to develop and implement a living wage methodology in the supplier base, with clear plans to move beyond pilot projects. [what's this?]

Summary

Not a bad response from Gap, which is planning work in five countries that goes most of the way to meeting our four pillars of a good project.

Position on living wages

As a member of the Ethical Trading Initiative (ETI) and Social Accountability International (SAI), we are committed to the principle that wages for a standard working week should meet the basic needs of factory workers and provide them with discretionary income.

Work so far on living wages

None specifically mentioned

Plans on living wages

Gap mentioned a number of areas, of which the most substantive and relevant part appeared to be its planned wages project. Working with long-term suppliers in five countries, it will research wages and productivity in this factory relevant to the local area and basic needs, then form a working group with representatives of management and workers to,

"develop quarterly plans to move the project forward. These plans will determine the best approach (or combination of approaches) to enhance wages through mechanisms that include the usage of the following: enhanced technology, innovation, increased productivity, better planning by brands, better planning by suppliers, appropriate price points, creative incentive systems, good industrial relations practices including freedom of association and collective bargaining, strategic operations, consolidated capacity utilization etc."

It intends to use a “credible third party” to conduct an impact assessment after this project (which it expects to last two years), produce a report, and then, “develop a strategy for phased roll out of the Wage Project to Gap Inc.’s strategic vendors on a global scale.”

Other significant information

Gap mentioned a number of other activities, including education within the company on purchasing practices and work with governments and suppliers to look at ways to mitigate the impact of the global food crisis.

Our comments

Gap's submission, including the depth of different tools that it intends to use to potentially raise wages, demonstrates its well-developed understanding of labour rights issues. This is one of the larger-scale wages projects, with comprehensive terms of reference. While these terms, based on the ETI pilot, are exactly what we’d want to see, the description of the project is not always as robust. Measured against our four pillars:

Trade unions and NGOs are involved in the design and implementation of the project. Other brands are not, but Gap will select factories where it buys more than 50% of the production.
Freedom of association, collective bargaining and worker participation are mentioned as ends and means of the project, with an explicit commitment to involving trade unions in the project.
Gap discusses its own purchasing practices in its response, and its wages project will consider “appropriate price points.”
The project terms of reference explicitly aim to ensure that, “all workers in participating factories are paid wages sufficient to meet their basic needs and provide discretionary income,” although the project description is mostly framed in terms of simply raising wages. Gap also says it will roll the project out to its “strategic vendors”.

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