This month, Lidl GB will introduce a new tool they say will help tackle wage disparities among banana plantation workers.
Already trialled in Germany, the new calculation done in conjunction with non-profit organisation IDH determines the gap between the living wage on the premium paid by Lidl. Suppliers can continually analyse the data to ensure that those gaps don’t grow and adjust them if needed.
Lidl says implementation will occur throughout the entire banana supply chain. A year ago, it said it would focus on this initiative as it aims to meet national standards in 2027.
“We recognise the importance of addressing wage disparities within our supply chain,” Richard Bourns, Chief Commercial Officer at Lidl GB, commented. “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.”
Lidl said it not only is sharing “learnings” from those trials with producers and suppliers but is also working with other supermarkets so they too can use this type of tool to change their practises. Using the tool is fairly simple once employees are trained.
“Initially, wage gaps between local living wages and actual wages paid to workers are identified by collecting and auditing supply chain data,” Lidl officials said. “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.”
Lidl has seen success in trials on the Banana Living Wage Project in Germany, where its stores only offer bananas that ensure the discounter’s premium has been paid so its proportion of the living wage gap is closed.
