Labour Minute Costing: A tool for establishing living wage floors

This FWF report provides guidance to brands, factories and trade unions on the practical steps necessary to create wage floors in factories.  Based on real-world examples, the report covers three main topics:

  • How to calculate the total cost of bringing a factory’s lowest-paid workers up to any given living wage benchmark – e.g. creating a wage ‘floor’ in a factory.
  • How to incorporate the increase in wages into normal product costing systems, in a transparent and verifiable manner.
  • How to ensure that increased costs can be shared fairly among all of a factory’s customers, without violating EU competition law.

The report was written by by Doug Miller, Emeritus Professor of Worker Rights in Fashion at the University of Northumbria, and Klaus Hohenegger, director of Sourc!ng Solut!ons GmbH.  It is based in on pilot work conducted by FWF in Macedonia, with the support of CNV Internationaal.

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