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SIFAV

Sustainability Initiative Fruit and Vegetables

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Banana Retail Commitment
on Living Wage in the Netherlands

The first nation-wide commitment from retailers to close the living wage gap in the banana supply chain

Dutch supermarkets have joined forces to ensure a living wage for banana workers in the international production chain. Together, they aim to reduce the gap between the currently paid wages and the living wage for their entire banana assortment by at least 75% within five years.

Living Wage Gap

After a third year of data collection, covering wages for the calendar year 2021, the identified living wage gap is 14,96%, covering 86% of the volumes purchased by the Dutch retailers. The second year showed an average living wage gap of 10,7% for 75% of the volumes purchased by Dutch retailers. The first year showed an average living wage gap of 9% for 42% of the volumes purchased by Dutch retailers.

During the third year of this project, there was a substantial increase in the number of farms submitting a Salary Matrix compared to last year (332 vs. 217 for the second year and 117 for the first year).

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The goal of the supermarkets by 2025

The goal of supermarkets is, by 2025, to predominantly sell bananas that are sourced from plantations that pay a living wage to their workers

In the first phase (2019 until 2020) the supermarkets shall provide insight into the gap between the currently paid wages and the living wage throughout their entire production or supply chain.

From 2021 onwards they are aiming for a gradual reduction of the living wage gap by at least 10% per year.

By 2025, supermarkets will strive to have reduced the living wage gap by at least 75%.
The retailers can use the Salary Matrix, made available by IDH, to calculate the difference between the current wages and the living wage. By using the tool, they can analyze prevailing wages in the supplying locations of their total banana assortment. This will serve as the baseline from which future wages will be compared.

VIEW MORE ABOUT IDH BANANA COMMITMENT

Insights into the Living Wage Gap

During the first phase, the private sector parties involved provide insight into the gap between current wages and living wage benchmarks. The retailers and farms use the Salary Matrix, made available by IDH, to calculate this difference.

After a third year of data collection, covering wages for the calendar year 2021, the identified living wage gap is 14,96%, covering 86% of the volumes purchased by the Dutch retailers. The second year showed an average living wage gap of 10,% for 75% of the volumes purchased by Dutch retailers. The first year showed an average living wage gap of 9% for 42% of the volumes purchased by Dutch retailers.

During the third year of this project, there was a substantial increase in the number of farms submitting a Salary Matrix compared to last year (332 vs. 217 for the second year and 117 for the first year).