AUT: Fw: [cleanclothes] Living wage methodology

["margaret" <margaret@xxxxxxxxxx>]

>> From: Clean Clothes Campaign <info@xxxxxxxxxxxxxxxx>
>> To: cleanclothes@xxxxxxxxx
>> Subject: [cleanclothes] Living wage methodology
>> Date: Tuesday, 1 December 1998 22:33
>>
>> Sweatshop watch has started a living wage mailing list. Anyone interested
>> to be on this list should send an e-mail to: <sweatwatch@xxxxxxx> This
>list
>> is intended to link organizations and activists interested in living wage
>> issues, particularly in the global garment and sports shoe industries. I
>> send here also an article form Sweatshop Watch about determining a living
>> wage methodology. They are very eager for imput on this.
>>
>> A WORKING LIVING WAGE METHODOLOGY
>>
>> Background
>>
>> Despite several steps forward in the effort to eliminate sweatshops,
>> companies have remained silent on the issue of wages-accepting the legal
>> minimum and prevailing industry wage as the standard, and leaving the
>vast
>> majority of low-wage workers in poverty and hunger. Payment of living
>> wages, which allow workers and their families to live in dignity, is
>> fundamental to
>> eliminating sweatshops. On July 17 - 19, 1998, a coalition of
>organizations
>> hosted the Living Wage Working Summit at the University of California at
>> Berkeley to increase our understanding of how to determine a living wage
>> and to develop coordinated strategies for winning a living wage in the
>> global garment and shoe industries. The Summit was hosted by the
>Institute for
>> International Studies, University of California at Berkeley; Sweatshop
>> Watch; Global Exchange; Asian Law Caucus; Asian Pacific American Legal
>> Center; Center for Labor Research and Education, Institute for Industrial
>> Relations, University of California at Berkeley; Center for Reflection,
>> Education and Action; Coalition for Humane Immigrant Rights of Los
>Angeles;
>> and Equal Rights Advocates. Over 50 participants attended the Summit,
>> including human rights groups, organized labor, worker organizations,
>> women's organizations, civil and immigrant rights organizations, student
>> groups, and academics from the U.S., Mexico, Canada, El Salvador,
>> Nicaragua, the Dominican Republic, Hong Kong and the Netherlands.
>>
>> A Working Living Wage Methodology
>>
>> One of the goals of the Summit was to increase understanding of how to
>> determine and calculate a global living wage. The following draft formula
>> arose out of discussions among participants in a working group during the
>> Summit. It is intended as the first step in developing a methodology that
>> will be tested over time and will assist in calculating 'living wage'
>> rates. The formula's premise is that a living wage is a "take home" or
>> "net" wage, earned during a country's legal maximum work week-but not
>more
>> than 48 hours. A living wage provides for the basic needs (housing,
>energy,
>> nutrition, clothing, health care, education, potable water, childcare,
>> transportation and savings) of an average family unit divided by the
>> average number of adult wage earners. The formula takes into account the
>> average number of adult wage earners in order to exclude child labor.
>>
>> Draft formula
>>
>> Take home wage (1) = (avarage family size (2)/avarge of adult wage
>earners)
>> x (Cost of nutriation + clothing + health care + educatoion + potable
>water
>> + child care + transportation (3)) + (housing + Energy (4)/ avarage of
>> adult wage earners) + Svings (10% of income)(5)
>>
>>
>>   1.The take home wage is based on the number of hours worked in a legal
>> working week (not exceeding 48 hours in one week). The take home wage is
>> the worker's weekly net wage (subtracting out union dues, taxes, etc.).
>>   2.The average family size is divided by the average number of adult
>wage
>> earners in a family. As noted below it has not yet been determined what
>> data would be used to quantify this analysis.
>>   3.This list of 'basic needs' was derived from a larger list that also
>> included: entertainment, vacation, paid family leave, retirement, life
>> insurance and personal liability insurance. This list is not definitive
>and
>> may vary depending on regional factors.
>>   4.The cost of housing and energy is divided by the average number of
>> adult wage earners. Housing and energy needs are considered to expand in
>> proportion to the number of wage earners in the household.
>>   5.A random factor of 10% has been included for savings in order to
>permit
>> workers to have some discretionary income and to allow workers to send
>> money home to their families.
>>
>> Issues for further research
>>
>> What data is available and should be used to calculate wage levels?
>> What is acceptable data? For example, the 1990 World Bank Poverty
>> Assessment of China constructs a food basket as an estimate based on 90%
>> rice, while the 1997 Bangladesh study includes a more diverse dietary
>mix.
>> Could one develop nutritional recommendations or parameters for reviewing
>> food baskets such as the National Home Surveys?
>> How old is too old for data? For example, the U.S. market basket is
>> constructed based on 1950s lifestyles.
>> What level of regionalization should be required for the factors in the
>> formula? For example, national family sizes vs. regional food basket
>costs.
>> Or should the same level of regionalization be applied to all factors?
>> Whose living standard should be used as the base for calculating wages?
>>
>> What are the principles that should be advocated by such a formula?
>> For how many persons should one wage provide for? For example, should it
>> advocate one (1) or more wage earners per family?
>> In determining wage levels, is it appropriate to calculate it to a more
>> optimistic 'what do we want' or realistic 'what can we get level'?
>> How and who determines what is a living wage?
>>
>> Implementation
>> What are reasonable criteria for consulting workers and community groups
>on
>> the content of the 'market basket'?
>> Can the formula be applied globally - does it require a separate study or
>> data for each country/region/factory?
>> How should wage disparities between different regions within a country or
>> between countries be addressed? For example, is it valid to compare wage
>> levels in Haiti and the U.S.?
>> How would an increase in wages affect the number and type of jobs
>provided
>> by multinational companies in that region?
>> How will increased wage levels affect the level of trade in that region
>or
>> country?
>>
>> We welcome feedback on this working methodology, as well as opportunities
>> to conduct research projects to further test this methodology. Please
>> contact us at sweatwatch@xxxxxxxxxxxx
>>
>>
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