FWF Best Practice: how Continental works toward living wages

Date: 06/08/2018

In January 2016, FWF brand Continental Clothing launched its new FAIR SHARE range of T-shirts and sweatshirts, which carries a small price premium to enhance workers’ wages. Continental received the 2016 FWF Best Practice Award for this inspiring project.

Thanks to a modest increase in the retail cost of the clothing produced at its supplier factory in India, Continental was able to raise the wages of the poorest workers by 50 percent. The British company took care to ensure that additional cost at the point of sale of 10p (0.14€) per T-shirt and 54p (0.71€) per hoody is passed on in its entirety to the workers, avoiding additional markups as the clothes move along the value chain.

In this Best Practice video (here you can find the long version), FWF follows Continental’s Mariusz Stojach as he visits the factory in Tirupur, talks to the workers about their needs and assesses the project with the NGO SAVE, a partner in the project. As he charts the history of the project, he discusses the challenges of increasing costs and the benefits of close cooperation with suppliers.

Since FAIR SHARE was launched, all workers at the factory in India receive a regular bonus, which has boosted their income, even if it still falls short of a proper Living Wage. The company now plans to extend the project further, to reach all levels of its supply chain.

 

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