January 2025
The setting of living wages requires reaching a balance between the needs of workers and economic factors. Almost a year ago, tripartite partners at the International Labour Organization (ILO) reached an historic agreement on the concept of living wages. In parallel, many initiatives have emerged in recent years around the world for the promotion of living wages. Social dialogue plays a key role in setting living wages, thereby advancing social justice and reducing poverty and inequality.
It is in this context that the Global Deal organised a webinar on ‘Social dialogue for the promotion of living wages’ on 22 January. Laying the ground for the discussion, the ILO and ITUC explained what a living wage is, and which principles should be followed when setting them, based on the recent ILO guidance from 2024. Through consultation with social partners, be it through wage-setting institutions or collective bargaining, an incremental progression from minimum wages to living wages should be achieved. The discussion then centred on the difference between minimum and living wages, the importance of social dialogue at the local level to set living wages that allow for a decent standard of living, and remaining challenges on the ground.
Global Deal partners shared their recent experiences promoting living wages. Michelin explained the process of establishing living wages for its employees through benchmarks – a process that took around four years and that was made possible thanks to strong support from Michelin leadership. Banana Link underlined how with the support of retailers, they are in the process of supporting the conclusion of a collective bargaining agreement promoting living wages in the banana industry in Côte d’Ivoire. ACT (Action, Collaboration, Transformation) showed how they have facilitated the first of their kind legally-binding brand agreements in support of collectively bargained wages in the Cambodian garment and textile sector.
The Global Deal’s Note on the Role of social dialogue in promoting living wages based on the Global Deal focus group in 2022-23, will be updated soon to include the latest developments.
In case you missed the webinar, you can watch the replay here.
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