Lidl GB plans to launch a new tool this September that will close the living wage gap in its banana supply chain.
The tool and processes designed by Lidl will address wage disparities among banana plantation workers, the company noted.
It has been successfully tested in Lidl Germany and the rollout will include Lidl GB’s entire banana supply chain.
Developed in collaboration with IDH, a not-for-profit organisation advocating for sustainable trade, the tool calculates the premium which is to be paid by Lidl to close its proportion of the living wage gap for individual workers and plantations.
Richard Bourns, chief commercial officer of Lidl GB, commented, “We recognise the importance of addressing wage disparities within our supply chain.
“Through the introduction of this innovative tool, we are not only fulfilling our obligations as a responsible retailer but also setting new and ambitious standards across the industry. It sets a precedent for ethical sourcing, but most importantly, helps ensure fair wages for workers on banana plantations.”
Wage Gap
Regular analysis and annual adjustments using the tool enable suppliers to develop an action plan to close wage gaps.
Initially, wage gaps between local living wages and actual wages paid to workers are identified by collecting and auditing supply chain data.
Once supply chain data has been validated, suppliers can choose their preferred method of payment to workers, such as increased salaries, bonuses, or vouchers for local services like supermarkets.
The initiative comes a year after Lidl GB pledged to close the wage gap across its banana supply chain – a goal the retailer is on track to achieve ahead of the national 2027 target.
Lidl is providing other supermarkets access to the tool so they can adopt similar practices to standardise the mechanism, as well as share learnings with producers and suppliers.
