Kmart joins global collaboration on living wage
Kmart is committed to enhancing the voice, capabilities and quality of life of workers in its supply chain. As part of this commitment, Kmart recognises growing community interest in the topic of living wage.
Living wage is defined as the minimum income necessary for a person to meet their basic needs as well as that of his/her family, including some discretionary income. This is in contrast to the minimum wage, which is the lowest wage permitted legally within a country or sector.
In 2015, Kmart launched a research project to better understand the challenges and opportunities associated with achieving a living wage for factory workers as a first step in developing a long-term strategy.
A key finding from this research was the importance of partnerships. Sustainable improvements in wages cannot be achieved by individual brands and retailers working alone, and requires active industry collaboration and partnerships with trade unions and governments.
As a result, Kmart has joined an initiative called 'Action, Collaboration, Transformation' (ACT), a collaboration between international brands and retailers (including H&M, Inditex, C&A and Primark) manufacturers and trade unions to address the issue of living wages in the garment and textile industry.
ACT aims to improve wages in the industry by establishing industry collective bargaining, supported by world class manufacturing standards and responsible purchasing practices.
Along with its commitment to the ACT collaboration, Kmart are looking at other initiatives and partnerships to enhance transparency on wages and empower workers in our factories.