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Universal Declaration
of Human Rights
“Article 23: Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.”
Scope and approach
Read more on the progress we are making towards achieving our living wage goal and the actions we are planning to take next.
Wages could potentially negatively impact the livelihoods of 60,000 people: the workers, their partners and an average of two children.
Together with our key production partners and partners in decent work and living wage, such as IDH – The Sustainable Trade Initiative and Sedex, we aim to investigate whether a living wage is being paid by comparing wages and benefits against existing benchmarks, based on recognised and approved methodologies, such as the Full-Fledged Anker Methodology and the WageIndicator Typical Family Methodology. After which, we will work together to create the right conditions to ensure a living wage is paid by no later than 2030.
LC Packaging aims to enable all our Tier 1 key production partners to (continue to) pay their employees at least a living wage by 2030. Together, these partners represent just over 80% of our procurement spend (2021) and employ nearly 25,000 employees and contractors.
LC Packaging's own production facility in Bangladesh has been SA8000 certified since 2012 and was the first of its kind to pay its employees above living wage. Several production partners now have obtained a SA8000 certification and by far most of our production partners pay a living wage. We want to continue on this path.
A first basic risk assessment conducted shows that six key production partners – together employing 15,000 employees – are based in an area where the minimum wage is less than a living wage. Meaning 40% of our key production partners’ employees earn at least a living wage.
Lotte Mastwijk,
Head of Sustainability
“By enabling our key production partners to increase wages from a legal minimum wage to a living wage, we aim to eliminate ‘working poverty’ from our supply chain and improve the livelihoods of at least 15,000 families in developing countries.”
Every working person should be able to afford a decent standard of living for their family
Workers who earn a living wage can meet their own basic needs and those of their families, as well as put aside savings, and so are more likely to make their way out of poverty. They can work regular hours instead of excessively working overtime to make ends meet, and they can send their children to school instead of sending them to work.
Moreover, elements such as poor planning and forecasting are associated with lower wages, because they may lead to extra costs in terms of sampling, transportation and unexpected delays.
Together with our partners, we aim to create a healthy and durable environment where living wages can be introduced or maintained.
LC Packaging is committed to a fair compensation for all workers in our supply chain. Together with our key production partners in risk countries, we aim to identify wage gaps and achieve at least a living wage by 2030.
Research shows that difficulties paying wages and the capacity to increase wages are directly influenced by the prices set by buyers (ILO -ETI, 2019).
Background
wage
key production partners’ employees earn at least
a living wage.
Goal explanation
For one out of five workers worldwide, a job does not provide a way out of poverty for them and their families (ILO). In many countries a legal minimum wage does not allow for a decent standard of living. Still, most companies ask their suppliers to pay at least a minimum wage, rather than a living wage.
The United Nations Global Compact calls upon businesses to pay all their employees a living wage – regardless of their employment status – and to progressively extend the ambition to a fair compensation commitment for all workers in the supply chain.
Go Back
Read more on the progress we are making towards achieving our living wage goal and the actions we are planning to take next.
Wages could potentially negatively impact the livelihoods of 60,000 people: the workers, their partners and an average of two children.
Together with our key production partners and partners in decent work and living wage, such as IDH – The Sustainable Trade Initiative and Sedex, we aim to investigate whether a living wage is being paid by comparing wages and benefits against existing benchmarks, based on recognised and approved methodologies, such as the Full-Fledged Anker Methodology and the WageIndicator Typical Family Methodology. After which, we will work together to create the right conditions to ensure a living wage is paid by no later than 2030.
LC Packaging aims to enable all our Tier 1 key production partners to (continue to) pay their employees at least a living wage by 2030. Together, these partners represent just over 80% of our procurement spend (2021) and employ nearly 25,000 employees and contractors.
LC Packaging's own production facility in Bangladesh has been SA8000 certified since 2012 and was the first of its kind to pay its employees above living wage. Several production partners now have obtained a SA8000 certification and by far most of our production partners pay a living wage. We want to continue on this path.
A first basic risk assessment conducted shows that six key production partners – together employing 15,000 employees – are based in an area where the minimum wage is less than a living wage. Meaning 40% of our key production partners’ employees earn at least a living wage.
Scope and approach
Moreover, elements such as poor planning and forecasting are associated with lower wages, because they may lead to extra costs in terms of sampling, transportation and unexpected delays.
Together with our partners, we aim to create a healthy and durable environment where living wages can be introduced or maintained.
LC Packaging is committed to a fair compensation for all workers in our supply chain. Together with our key production partners in risk countries, we aim to identify wage gaps and achieve at least a living wage by 2030.
Research shows that difficulties paying wages and the capacity to increase wages are directly influenced by the prices set by buyers (ILO -ETI, 2019).
Goal explanation
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Workers who earn a living wage can meet their own basic needs and those of their families, as well as put aside savings, and so are more likely to make their way out of poverty. They can work regular hours instead of excessively working overtime to make ends meet, and they can send their children to school instead of sending them to work.
For one out of five workers worldwide, a job does not provide a way out of poverty for them and their families (ILO). In many countries a legal minimum wage does not allow for a decent standard of living. Still, most companies ask their suppliers to pay at least a minimum wage, rather than a living wage.
The United Nations Global Compact calls upon businesses to pay all their employees a living wage – regardless of their employment status – and to progressively extend the ambition to a fair compensation commitment for all workers in the supply chain.
Background
Every working person should be able to afford a decent standard of living for their family
wage