MN assists the ILO in developing better indicators for wage setting
On March 13 and 14, on behalf of the Platform Living Wage Financials, MN participated in a two-day expert consultation on indicators and methodologies for wage setting. This meeting was the first meeting of a project of the International Labor Organization (ILO) supported by the Ministry of Foreign Affairs of the Netherlands.
One part of the project focuses on developing indicators and methodologies that will strengthen the capacity of governments to set adequate minimum wage levels, whilst taking into account not only economic factors, but also workers’ basic needs. The project also includes a supply chain pillar, whose objectives closely relate to the core objectives of the Platform Living Wage Financials as it seeks to enhance the capacity of supply chain actors to achieve improvements in factory- or farm-level wages.
Enhanced understanding of supply chain conditions
MN was invited to participate in the expert consultation as a consequence of its work within the Platform Living Wage Financials and in recognition of MN’s leadership role in advancing the topic of living wage. In turn, the consultation has also enhanced MN’s own understanding of the different local situations in which its investee companies and their suppliers operate, and the real conditions faced by supply chain workers.
Food and agricultural sector
MN will also feed the outcomes of the expert consultation, which – besides addressing the garment and footwear sector – included an extensive discussion of human rights risks in the sourcing of bananas, coffee, and tea, into the Platform’s new living wage assessment methodologies aimed at the food and agricultural sector. As announced in early February, in 2019, the Platform is officially expanding its coverage to include the food and agricultural and food retail sectors within the scope of its engagement focus. Throughout March and April 2019, the coalition is conducting a broad stakeholder consultation on its living wage assessment methodology, which is now being adjusted to reflect the specific challenges faced by food producers and food retailers in enabling living wage. Alongside NN Investment Partners, MN is actively involved in designing the living wage assessment methodology aimed at food producing companies.
For more information about the Platform Living Wage Financials, see www.livingwage.nl.