Workers being paid a living wage is crucial to achieving a decent standard of living for all household members. Unfortunately, this is not the reality for many workers, particularly in the global south where those employed in various industries, such as cocoa and bananas, struggle to earn a livable income. This challenge is also prevalent in richer global north economies.
However, several major UK retailers, including Sainsbury’s, Marks & Spencer, Lidl GB, and the Co-Op, are taking steps to address this issue. Through an initiative by the IDH (Sustainable Trade Initiative), these retailers are working to calculate and narrow the living wage gap in their supply chains. The goal is to ensure that workers receive a living wage by the end of 2027, and similar initiatives are also underway in Belgium, Germany, and the Netherlands.
Amanda Penn, IDH UK retail commitment lead, emphasized the importance of retailers taking shared responsibility for enabling living wages to be paid. This involves implementing responsible procurement practices, paying suppliers fairly, and supporting capacity building on productivity, collective bargaining, and gender equality.
Sainsbury’s, in partnership with the Fairtrade organization, is aiming to make a living wage a reality for its banana workers in several countries. Every banana purchased from Sainsbury’s will contribute towards giving workers a living wage and supporting sustainable agricultural practices. The company is striving to fulfill its commitment to IDH ahead of the 2027 deadline.
Banana workers have historically faced challenges in earning a living wage due to the informal nature of the sector, lack of workers’ rights awareness, and poor working conditions. These workers are often among the most vulnerable in global trade, lacking basic protections enjoyed by workers in other sectors.
Sainsbury’s is the first retailer to pay the Fairtrade Living Wage Reference Price, ensuring that all workers on banana plantations can earn at least a gross living wage. By reviewing salaries and allocating the social premium, Fairtrade aims to positively impact workers in several countries and support producer organizations and farm practices.
A portion of the funds raised by Sainsbury’s will also go towards training banana workers in sustainable agricultural methods. This program aims to improve the livelihoods of small producers and address challenges such as soil health, water management, and environmental damage.
While these efforts have been praised by some, others such as Banana Link remain skeptical about the sustainability of the means used to transfer extra value to workers. While additional resources are being invested in workers’ wages, there are concerns about the long-term impact and the role of workers in negotiating changes that affect their wages.
In conclusion, the steps taken by retailers like Sainsbury’s to provide a living wage and support sustainable agricultural practices are commendable. However, ongoing collaboration and dialogue with stakeholders, particularly workers, will be essential in ensuring the long-term success and sustainability of these initiatives.
