Covid-19: Loss of jobs and wages

In this section, you will find guidance and information related to the loss of jobs and wages as a result of the Covid-19 pandemic.


Costing calculators

Fair Wear’s Labour Minute Costing Calculators allow brands and factories to ring-fence the labour cost based on a transparent methodology for costing/pricing of goods.

These costing calculators have been adapted to take into account the impact of Covid-19. The adaptation to the tool allows a factory to quantify the additional costs a factory has to meet in order the adapt to the corona crisis. Changes in terms of the workforce, overtime, additional overhead costs (such as transportation, disinfectants, face masks or plastic dividers), severance pay and loss in productivity due social distancing and time loss (e.g. because of workers queuing for temperature checking or washing) can be entered into the tool to allow for a new product calculation. Subsequently, a change in product price that take the new reality into account can be calculated as a basis for discussion with the buyer.

Access the tools for different countries and regions here.


Handbook: Covid-19 Lost wages and jobs series

The Fair Wear / ETI COVID Lost Wages and Jobs Series is a four-part webinar series, which lays out guidance for member brands to uphold their responsibilities to workers in their supply chains who are laid-off or facing reduced wages in the context of COVID. This document consolidates the slides from that 4-part webinar series. Where possible, we recommend brands use this as a complement to their participating in – or listening to –those webinars.

Download the handbook here.


Brand-supplier conversation framework

This proposed brand-supplier conversation framework helps facilitate ideas for an open, transparent conversation with suppliers – in order to collect the wage/job loss data brands require.

Download the document here.


A quick reference tool – in the event brands are unable to avoid cancelling an order (i.e. last resort cases)

Brands are responsible for the business agreements they make. If a change happens on the brand’s end, it is responsible for covering the costs associated with that alteration. While supplier relationships differ, here are some thoughts on the minimum costs your brand should cover in the event of unavoidable cancellation. In discussions of payments with suppliers, focus on ensuring workers’ wages are paid.

Download the reference tool here.