As an ethical business, we are committed to supporting a living wage that reasonably meets the basic needs of our supply chain workers and their families.
To achieve this, as enshrined in our Code of Conduct for Manufacturers and Suppliers, our strategy combines coordinated action across the five key pillars outlined below.
At Inditex we believe that collective bargaining is vital to achieving real and sustainable progress on the provision of living wages. Our experience tells us that wage improvement is correlated to the promotion of worker rights and particularly their freedom of association. To this end, and against the backdrop of the framework agreement signed with IndustriALL Global Union we actively encourage workers' freedom of association and their right to hold free elections with the purpose of choosing their representatives.
Purchasing practices also have a direct impact on the wages earned by our suppliers' workers. As a result, we routinely train our buyer teams so that they factor sustainability criteria into their business decisions. In this manner we can help make sure our supply chain workers receive a living wage.
The analysis and continuous improvement of work methods within the Group translates into better working environments. We have observed that it is possible to achieve wage increases for workers without our suppliers and manufacturers having to incur higher costs. We also help build communication channels between employers and worker representatives as this creates mutual trust and mature industrial relations helping to increase wages across our production chain.
Inditex is part of the ACT (Action, Collaboration, Transformation) platform, an initiative between international brands and retailers, manufacturers and trade unions to address the issue of living wages in the textile and garment supply chain.
ACT's central premise is to create a forum for dialogue between employers and unions at the national level in order to achieve agreements on wages and other conditions that will apply accross the industry in key garment and textile sourcing countries. ACT is the first global framework on living wages in the garment sector that brings together all relevant parties; identifying the roles and responsibilities of each stakeholder group, and how, if taken together, they can support living wages can support living wages through a scaled, sustainable, industry-wide approach.
In addition, we publicly manifest our commitment to living wages and labour rights in all of our business communities. One noteworthy example is our support for the minimum wage negotiations in the garment industry in Cambodia and our support for the negotiations in Bangladesh.