Approach
As defined by the Fair Labor Association, a living wage means wages that are enough to meet the worker and their family’s basic needs and are sufficient to provide some discretionary income without overtime.1 The Fair Labor Association We recognize that living wages are unique to each local community and may vary by country.
Gildan-operated and finished product contractor facilities must have, at a minimum, written policies and procedures that uphold and respect Gildan’s Code of Conduct, human rights standards, and local labour laws with regards to compensation.
For more information on our living wage strategy, please refer to Our approach to wages.
Living wage monitoring
Gildan uses the Fair Labor Association’s (FLA) wage data collection tool to collect wage information in our manufacturing facilities and at selected contractors in Asia and the Americas. This tool automatically calculates the average net wage for workers across different occupations by adding basic wage, cash benefits, and in-kind benefits,2 Examples of in-kind benefits we offer in select countries includes free on-site medical clinics, vaccination and medicine programs, parental leave, financial assistance, subsidized meals, and free transportation. minus legal deductions. The calculation separates overtime pay from regular wages, as well as incentive and leave pay, to avoid skewing the overall compensation figures. The tool enables Gildan to see our factories’ net wage mapped to a wage ladder and compare it against existing living wage benchmarks and local wages.
Every year, we conduct wage revisions to ensure employees’ compensation is in line with local laws and aligned with market salary rates. In addition to conducting social compliance audits in Gildan-operated and contractor facilities, we regularly review and analyze information gathered from workers’ suggestion boxes and other grievance mechanisms to identify potential compensation issues. We also maintain an ongoing dialogue with employees and work collaboratively to prevent and mitigate risks of violations related to compensation.
Focusing on compensation practices in our supply chain
Through our social compliance audits in our finished product contractor facilities, we verify compliance with the Compensation Principle in our Code of Conduct, as well as all applicable national laws, regulations, and procedures concerning the payment of workers. We also cover topics such as equal pay for equal work and implementation of non-discriminatory compensation practices.
We expect our contractors to pay workers at least the legal minimum wage or the prevailing industry wage, whichever is higher, for regular working hours (not including overtime). Compensation for all voluntary overtime work is at the premium rate required by country law or by the local industry benchmark.
Through social compliance audits, we strive to ensure that wages – both regular and overtime – are paid within legally required time limits, that workers are compensated for all hours worked, and that workers are provided with a pay statement for each payment cycle.