In search of a living wage
"Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing, medical care, necessary social services, and the right to security..." - United Nations Universal Declaration of Human Rights Article 25.1
What is a living wage?
Labour Behind the Label defines a living wage as one that enables workers to meet their needs for nutritious food and clean water, shelter, clothes, education, health care and transport, as well as providing a discretionary income. It should be enough to provide for the basic needs of workers and their families, to allow them to participate fully in society and live with dignity. It should take into account the cost of living, social security benefits and the standard of living of others nearby. Finally, it should be based on a standard working week, before overtime, and should apply after any deductions.
The most common response from companies to our inquiries about living wages was to point out that there is no universally agreed definition of a living wage. This is not entirely true. While some elements of our definition might be disputed, three are common across almost all definitions formulated by trade unions, campaigners, academics and companies. This consensus seems to be that a living wage should:
- Cover basic needs
- Include a small amount for savings or discretionary income
- Cater for dependents.
The following pages explain more about how and who decides what a living wage should be, what a living wage means to workers and what companies are (or more often not) doing to ensure workers in their supply chains are paid the wages they deserve.
