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Fair Wage assessment followed by a remediation strategy at PUMA

This includes wage levels and their ability to provide a living wage and a decent market wage, but also their regular adjustment – to inflation and company performance. Other dimensions include pay systems and other wage practices at company level, for example, with regard to their legal compliance and so on.

A Fair Wage assessment was carried out in June–September 2010 encompassing 80 per cent of PUMA’s strategic suppliers. The exercise was aimed at better identifying the performance of each supplier – and thus of the brand as a whole – on the twelve key dimensions identified in the Fair Wage approach. This includes wage levels and their ability to provide a living wage and a decent market wage, but also their regular adjustment – to inflation and company performance. Other dimensions include pay systems and other wage practices at company level, for example, with regard to their legal compliance and so on.

The findings led to a better understanding of the areas in which improvements are rapidly needed, and for which PUMA could push and support its suppliers accordingly.
The results were presented at PUMA’s annual internal seminar organized at the end of 2010 and end 2011 in Banz, Germany. On this occasion, more transparency on wages was sought by stakeholders. Puma’s CEO emphasized his determination to make PUMA fully sustainable on wage issues in the future. Consequently, complementary field work on Fair Wages has continued in selected suppliers to extend the coverage of the Fair wage assessment.

Following this Fair Wage assessment that helped to identify wage areas where some improvements would be required, PUMA has decided to move to a second phase, the Fair Wage remediation strategy that will involve a series of activities at suppliers’ level. One of them will be a pilot project among few selected enterprises. This exercise will be carried out at the end of 2012 and in 2013.