The Advantages Of A Living Wage

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Say you buy a t-shirt costing £29, do you know where that money goes? Astoundingly, only 18p will go towards the workers wage, that’s 0.6% of the money you paid. The rest of the money will go to retail, the brand, material costs, transport cost, intermediary, the factory owners and overhead costs. Did you know that was what you were paying for? If you did, would you have thought twice about whether to buy it or not? This shockingly low pay leads to workers not receiving a living wage, meaning that they cannot afford the basic necessities for everyday life. A living wage, by definition, means that the workers receive enough money to provide for themselves and their family. The United Nations Universal Declaration of Human Rights, Article …show more content…

This is because the legal minimum wage in garment-producing countries is far below the living wage, and the gap continues to grow as consumers demand cheaper clothing and the cost of living rises. The daily challenges for workers living in poverty is not limited to a lack of money. Other problems include a low calorific intake, limited access to health services, lack of social security, lack of decent housing, limited access to education and limited cultural and political life. One example of a country where the minimum wage falls far below the living wage is China, where the minimum wage is only £147.37 and the living wage is as much as £317.43. This means that workers would have great difficulty supporting their family and there would be no money left for …show more content…

They have calculated a living wage formula for Asia based on the assumptions that a worker is supporting themselves, as well as two adult dependants or one adult dependant and two to four children, that 50% of their wage goes towards food, that 40% goes to clothing, housing, travel costs, children’s education and health costs and that 10% goes towards discretionary income (i.e. entertainment, savings or pension). The Asia Floor Wage is calculated in PPP$(Purchasing Power Parity $) this is a hypothetic currency for World Banks based on peoples consumption of goods and services. This allows comparison of living standards across countries, regardless of currency. The AFW also carry out food basket research, this allows for a fair and relatively accurate living wage to be calculated. In order to reach a living wage, companies must include the principle of a living wage in their company policy, they must respect the freedom of association and work with unions and labour-rights groups. Companies have to publicly commit to a living wage bench mark, making it much harder for them to back down from it. It is important for companies to present a roadmap with a timeline for their payment of a living wage and to run programmes involving suppliers, trade unions and labour support groups as well as collaborating with stakeholders and acting transparently. There are different associations and

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