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THE FAIR WAGE LABEL DISTINCTION: WHAT IT STANDS FOR

The Fair Wage label is a distinctive sign of quality and of ethical values in the area of wage setting. It constitutes a guarantee that the company using the label is developing sustainable wage practices and that its employees benefit from a set of exemplary wage setting procedures.

Once a company successfully succeeds its certification process, the Fair Wage label can be incorporated in all the goods directly produced by this company. The company is also allowed to use the Fair Wage label for marketing purposes. The obtaining of the Fair Wage label is also publicized in the Fair Wage Network and all relevant communication channels.

It constitutes a powerful HR tool and can offer a clear competitive advantage in the market place.

A POWERFUL HR & SUSTAINABILITY TOOL

If you are serious about certain ethical values such as applying a fair wage policy for all your workers, and if you are also committed to continuously strengthen your company’s competitive advantage, then you should consider getting certified Fair Wage.

Being able to actually prove that you apply a fair wage policy for all your workers, and this without the need to publicly divulge confidential information and with a limited investment, you are well positioned to:

1: Recruit the best talents to develop your business

  • For most concerned workers who will feel reassured that their work is correctly compensated.
  • Among workers of your whole global supply chain alike because an ethical approach to compensation reflects a company’s overall approach to creating a positive environment.

2: Become better ranked on your sustainability strategy

  • Considering that wages increasingly represent one key criteria by rating agencies for ranking major brands, to be qualified as a fair wage employer will allow you to show that you are developing a solid and ethical wage policy that will help you keeping your business sustainable in the long term.

3: Attract more clients

  • Among those who consider an ethical company as a more reliable long-term business partner.
  • And among those sensitive to the issue of fair wage. This can be a vast opportunity given the fact that wages are the most important element of your human resources policy and thus key for sustainability.

WHO QUALIFIES

Any company or organization, public, semi-public or private, may apply for certification.

The candidate company is free to determine its proper salary policy as long as it is coherent, equitable and transparent among all its employees.

THE CERTIFICATION PROCESS

The process is split in two phases: a Fair Wage assessment composed of a management survey and a workers survey to measure their perception of the company’s wage policy, complemented by the collection of wage and employment data and a statistical evaluation of the company’s wage policy; interviews will be conducted to verify the company’s commitment to a fair wage policy and its implementation within its HR policy. The second phase consists in a Fair Wage analysis and reporting that will serve as the basis for the decision about certification.

Assessments and verification are entrusted to certification bodies. Do not hesitate to join other companies (like UNILEVER, IKEA, H&M and others) that have already placed ‘fair wage’ or ‘fair compensation’ of ‘fair living wage’ as a major pillar of their sustainability strategy.

Validity

Once these two phases have been concluded and all requirements have been met, the company will be certified for a three-year period and will obtain the Fair Wage label. During that period, the company has to undergo two monitoring assessments (audits) to ensure the company respects the recommendations for improvement set by the assessors.

In case of non-conformity

It is possible that the fair wage assessment process unveils incoherencies and highlights needs for improvements in the company’s wage policy.

If this is the case, the report of the scientific committee of the Fair Wage Network will identify a number of necessary elements to be improved and remediated, so that the company will know what needs to be done to improve its wage practices.

Having remediated the situation, the company can then apply again for certification.

CONFIDENTIALITY

A certification related to fair wage for all workers only functions in an environment of total trust and full confidentiality between parties involved.

The Fair wage Network has established all measures necessary to ensure trust and confidentiality.

Wage data communicated are made anonymous before being passed on for the statistical analysis.

The partners involved such as the Certification Bodies accredited by the Fair Wage Network base their business model and mode of operation on the code of integrity.

In addition, the Fair Wage Network has developed a unique platform, which encapsulates all confidential data in a confined and secure environment.

ACCESS TO UNIQUE DATA BASE ON LIVING WAGE AND PREVAILING WAGE

The application for certification gives to a company the opportunity to compare its wage levels (starting wage, average wage, for different categories of workers and different positions) to a unique database that contains all thresholds on the living wage and prevailing wages calculated by statistical offices, research institutes and non-governmental organizations around the world. It then leads to a very rich set of results that helps the company to assess its wage levels, identify root causes and put in place the necessary remediation steps.

Through its unique database that is kept up to date by permanent data collection by a group of researchers, the Fair Wage label is then the guarantee that the company will keep informed of market rates and maintain the highest standards in terms of wage policy. The Fair Wage certification also proves that salary wise your company’s management is fully committed to offer a Fair Wage to all its workers.

CERTIFIED COMPANIES

 

France/Switzerland  
E-JUST 2015-2017
Bangladesh  

Mawna Fashion

2016-2018

Universal Menswear

2017-2018

China  

Hangzhou Xinyi

2016-2018

Suzhou Wanli Knitting

2016-2018

Ricotex Industrial

2016-2018

Indonesia  

Kahatex Socks

2017-2018

Kahatex Garment

2017-2018