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But few companies have Unilever’s global reach. The consumer goods giant sells more than 400 brands in 190 countries and its products are used by 2.5 billion people.
Unilever said a living wage should allow workers to break the cycle of poverty. “It enables people to afford a decent standard of living, covering the basic needs of a family: food, water, shelter, education, health care, transportation, clothing; and includes provision for unforeseen events.” , he added.
Countries in Africa and South America, as well as others that supply Unilever with essential products, such as India, Malaysia and Indonesia, will be prioritized.
“It is important that this be done transparently [and] the living income and living income goals they set for themselves in different parts of the world are independently determined … and this is not something Unilever sets for itself or influences in any way ” , they told CNN Business.
Unilever currently requires its suppliers to pay a statutory minimum wage. Ingram said he will work with NGOs, suppliers, other companies and governments with the aim of establishing living wages for the countries where he operates.
“The heart of what we are trying to do is to bring about systemic change [and] broad enough that ideally sectors and governments institute living wages as a natural basis, ”said Ingram.
The cost of a living wage
Asked whether Unilever’s margins would be squeezed by its commitment to a living wage, Ingram said there would be a cost to the company and its suppliers, but it would be “sucked into the chain. of value ”and, in some cases, covered by helping more productive.
For example, the development of sustainable farming systems in poor countries could boost crop yields and increase farmers’ incomes. “We don’t know exactly what that gap and the cost will be, but what we are sure is that the consumer will not end up paying more,” he added.
But Fairtrade International said price must be “an integral part of any living wage commitment” to avoid negative impacts on producers and their workforce. “There is a correlation, for example, between very low wages on tea estates and consumer prices,” Wilbert Flinterman, senior adviser for workers’ rights and labor relations, told CNN Business.
“Completely closing the living wage gap will depend on the commitment and collaboration between the different actors in the supply chain – from producers to traders and retailers,” he said.
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