Labour Minute 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.

When wages go up, e.g. because of a rise in the legal minimum wage, or application of a CBA wage level or a living wage benchmark, the tool allows you to calculate the impact such increases have on the manufacturing (CMT or FOB) price of garments. The calculator enables suppliers and buyers to determine the cost of one minute of labour in a factory, taking into account factory-specific variables such as workforce composition, bonuses and insurance and actual overtime hours. This tool is an important step forward in ensuring brands’ purchasing practices related to pricing (CMT and FOB) support living wages.

Watch this space for more LMC Calculators currently in development.