1 March 2023

UK retailers commit to close living wage gaps in international banana supply chains

Nine major retailers in the UK have joined forces to commit to a living wage for banana workers in their international supply chains. This initiative complements similar agreements in Belgian, Dutch and German markets.

1 March 2023, London, United Kingdom – UK retailers: Aldi, Asda, Co-op, Lidl GB, Marks and Spencer, Morrisons, Sainsbury’s, Tesco, and Waitrose, supported by IDH, are working with a collective goal to close the living wage gap within their banana supply chains by the end of 2027.

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A spotlight on bananas

Bananas are one of the most commonly sold fruit in supermarkets all over the world. British consumers enjoy over 8 billion of them each year. These bananas are mainly sourced from Central American, South American, and West African countries where data indicates workers are not always able to earn a living wage. Paying a living wage – equivalent to the volumes sourced - throughout international banana supply chains is also a pledge in similar retailer commitments based in Belgium, The Netherlands, and Germany. More consumer markets tackling this issue means increased leverage to create impact on a global scale.

What is a living wage?

A living wage ensures that, in a particular time and place, the pay received by a worker is sufficient to afford a decent standard of living for the worker and their family. Elements of a decent standard of living include access to food, water, housing, education, healthcare, transport, and other essential needs. As such, closing the gap between the current wage and the living wage improves a workers’ standard of living.

Making the commitment a reality

To bring this commitment to life, the retailers have agreed to work according to the IDH Roadmap on Living Wages and will calculate the living wage gap in their supply chains using tools like the IDH Salary Matrix. In addition to analyzing their individual company processes and procurement practices, the coalition members will work in partnership with other retail initiatives, suppliers, producers, and stakeholders like NGOs, certifiers, and trade unions to achieve their goals. The coalition will also work in close collaboration with relevant standard organizations such as Fairtrade and Rainforest Alliance to work towards living wages for workers.[quote index="2"/]

A call to action

The United Kingdom comprises four percent of global banana imports. The British coalition of retailers call upon retailers in other consumer markets to join them and the initiatives underway in Belgium, The Netherlands, and Germany to make living wages a reality for all banana workers.

About

IDH puts people, planet, and progress at the heart of trade by leveraging the power of markets to create better jobs, better incomes, a better environment, and gender equity for all. Headquartered in the Netherlands, IDH has approximately 400 employees globally, operating in 50 with over 1000 public and private partners. In the UK, IDH is currently working with partners in the banana, cocoa, floriculture, and tea sectors.