The idea behind the Asia Floor Wage is to create a basic living wage across Asian countries. This is to counteract the race to the bottom by companies like Primark, who put pressure not only on individual factories but also on the countries where the factory is located. If the factory owners do not lower their factory gate prices, which translates to lower wages, longer working hours, then the buyers simply source elsewhere. Factory competes against factory, country against country, profits go up, wages and working conditions go down, or in other words the classic race to the bottom.
The Asia Floor Wage Alliance, a large coalition of unions and labour organisations spread across Asia, is supported in the West by trade unions and NGOs and anti-sweatshop movements such as Labour Behind the Label and War on Want.
The Asia floor wage, ie a living wage, should provide sufficient for food costs and non-food costs of a standard family of 2 adults and 2 children. The wage should be earned during each country’s legal maximum working week, though not above 48 hours.
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Stitching a decent Wage across boarders
Primark – the high cost of cheap fashion
Keithpp's Blog 