Enterprises involved in the Fair Wage process

Together with a general willingness to address wage issues along the supply chain (see the outcome of the Hong Kong Fair Wage conference in “Events”) a growing number of enterprises have asked for a full Fair Wage assessment process, which involves extensive interviews with managers and workers among their production units and suppliers. It is on the basis of such an assessment that a full picture can be drawn with regard to the wage practices of suppliers and thus along the brand’s production chain as a whole.

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First Fair Wage assessment carried out at PUMA

Following a request from PUMA’s CEO, a first Fair Wage assessment was carried out in June–September 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 on November 22–23 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 – notably through extensive workers’ surveys – in selected suppliers will be continued in the near future.