One of the projects launched to promote the payment of living wages is the Living Wage Lab 1.0 (LWL 1.0) Partnership Initiative. This was completed in March 2023. In this first phase, the Partnership Initiative offered the participating Partnership members the opportunity to agree on what a living wage is and how to achieve it. The activities in Lab 1.0 included, among other things:  

• A review of their own purchasing practices 
• A presentation of tools for wage data collection and wage gap calculation 
• Training and education with companies and suppliers  
• Joint idea development by companies and producers for wage-increasing measures 

In the 2022 Annual Report, you can find more information on the first phase of the Living Wage Lab. 

Building on the experiences and approaches from the first phase, various preparatory meetings and discussions took place in the second half of 2023, both in the Strategy Circle and with the Partnership’s companies, to continue the Partnership Initiative as Living Wage Lab 2.0 (LWL 2.0). The aim of the Partnership Initiative LWL 2.0 is to reduce the gap between current wages and the targeted living wages for textile workers in supplier companies of participating Partnership members.  

In addition to the first phase, concrete measures are being implemented with suppliers in Bangladesh, India and Pakistan, such as capacity building for workers in the nominated factories to exercise their rights with regard to living wages, as well as measures to strengthen social dialog. At the same time, the participating Partnership companies are working together to develop strategies to close the wage gap and systematically integrate living wages into their purchasing processes. In addition to workshops, regular peer learning exchanges take place. The first kick-off for the Living Wage Lab 2.0 took place in February 2024. 

These members participated in the PI Living Wage Lab 2.0

Brands:
Bierbaum-Proenen, Chaps Merchandising, GREIFF Mode, Hugo Boss,  Hch. Kettelhack, KiK Textilien und Non-Food, Ortovox Sportartikel, Vaude Sport, Waschbär, 3FREUNDE

Civil Society:
INKOTA Netzwerk e.V., Fairtrade DE

Based on the experiences of the pilot project of the same name, the Partnership Initiative (PI) Organic Cotton was launched in India in September 2021. The aim of the PI is to help establish a fair, environmentally friendly and economically viable supply chain for organic cotton and to facilitate access to organic cotton for member companies. To this end, the Partnership Initiative supported 11,363 smallholder farmers in the states of Madhya Pradesh, Rajasthan, Odisha and Gujarat in India to switch to organic cotton cultivation in the 2022-2023 season. Accordingly, the smallholders received targeted agricultural training and access to GMO-free organic seed. In total, around 60,000 people have been supported so far, as the families consist of an average of six people. In the first season, almost 16,000 hectares of agricultural land could be farmed more sustainably in this way. In addition, training modules on “decent work” were developed and successfully piloted in the first workshops for multipliers in 2023. 

 In addition, the participating companies support the farmers through purchase agreements and premium payments. In the first year, 6,288 of the 11,363 smallholders supported received a market link and premium payment from the participating companies for the sale of their in-conversion cotton. As a result, their income per hectare increased by 48% compared to conventional cotton producers. The remaining farmers sold their cotton on the open market without paying a premium. As a result, 846 farmers left the project after the first season (2022-2023). This brings the number of farmers supported in the second year down to 10,517 cotton producers. It would therefore be very important for other Partnership members and, in particular, member companies, to participate in order to ensure market access and premium payments for more farmers. If you are interested, please contact the Secretariat. Further information on in-conversion cotton can be found in this article. 

These members participated in the PI Organic Cotton:

Brands:
ALDI Einkauf SE & Co. oHG, ALDI Süd KG, Brands Fashion GmbH, C&A Mode GmbH & Co. KG, Esprit Europe Services GmbH, Formesse GmbH & Co. KG, H&M Group, s.Oliver Bernd Freier GmbH & Co. KG, Tchibo GmbH

Civil Society:
Global Standard gemeinnützige GmbH (GOTS), Fairtrade Germany e.V.

Other cooperation partners: 
Organisation Organic Cotton Accelerator (OCA)

Responsible purchasing practices are an effective lever for positively influencing the working conditions of employees in supply chains. Among other things, they can promote living wages for workers and ensure better planning and economic sustainability among suppliers. With this in mind, companies from various multi-stakeholder initiatives, including some companies from the Textile Partnership, are committed to responsible purchasing practices within the Learning and Implementation Community (LIC). The aim of the LIC is to familiarise itself with the five principles and practices of the Common Framework for Responsible Purchasing Practices (CFRPP) and to integrate them into the purchasing practices of the participating members in order to ultimately improve them. Close cooperation between participating companies and their suppliers plays an important role in this.   

Since 2023, participation in the Learning and Implementation Community has been recognized as a Partnership Initiative within the framework of the Joint Action. Last year, the members of the entire Learning and Implementation Community worked on three of the five principles. Specifically, the participants are currently working on Principle 4 ‘Fair Payment Terms’. In addition to the meetings of the entire Learning and Implementation Community, mentoring sessions are held in the individual multi-stakeholder initiatives, including the Partnership members involved in the Community. At these meetings, the content conveyed at the main meetings is discussed again in depth and experiences and challenges are shared in the sense of peer learning, e.g. on planned or first implemented measures.  

 The Partnership Initiative was launched at the end of 2022, so 2023 was primarily characterized by the further development of the companies’ action plans and the exchange between the companies and their suppliers. 

These members participated in the PI Learning and Implementation Community

Brands:
ALDI Einkauf SE & Co. OHG, Kettelhack, KiK, Sympatex Technologies GmbH, Weitblick, Kaya & Kato (Green Button company)

Other cooperation partners: 
MSI Working Group for Responsible Purchasing Practices, GIZ Global Programme “Initiative for Global Solidarity“