In addition to providing a benchmark for the Colombian coffee sector, the study results provide a living wage and living income benchmark for a pilot project being carried out by Verité in Colombia under the U.S. Department of Labor-funded Cooperation On Fair Free Equitable Employment (COFFEE) Project. The project, implemented in collaboration with RGC Coffee, is piloting cost-effective, alternative, and complementary compensation approaches to identify the most effective interventions that improve workers’ well-being while also providing benefits for farmers.

The study concluded that the data collected on cost of living is sufficiently similar across the two distinct coffee-growing regions of Antioquia and Huila, which validates the use of a single living wage and living income benchmark for both regions.  In fact, because the data was so similar across these two regions, the benchmarks will also likely be relevant for other nearby coffee-producing regions in Colombia. The report also revealed that the living wage in those regions is around 50% higher than the Colombian minimum wage.  However, although coffee harvesters may earn close to a living wage during the harvest season, many workers depend on the income generated during the harvest to support their families for the whole year. This is an important distinction for the coffee sector as only around 5% of coffee workers are permanent workers with access to social protection and benefits.

Quinn Kepes, a Senior Director at Verité, said, “It is extremely helpful to have both a living wage and living income estimate so that we can determine how close we are able to get workers to earning a living wage by implementing alternative and complementary compensation approaches in Colombia, while at the same time taking into account the fact that farmers need to earn a living income to survive and thrive. We are only going to be able to develop replicable and scalable models if they are mutually beneficial for workers and coffee producers alike, increasing workers’ incomes while at the least not creating additional costs for farmers who are already struggling with fluctuating coffee prices and external pressures such as rising fertilizer costs and climate change.”

The final living wage and living income study is available on the Global Living Wage Coalition’s webpage. The study was funded by Keurig Dr Pepper and greatly benefited from the support of RGC Coffee and the Cooperativa de Caficultores de Salgar for the fieldwork. The research was led by the Anker Research Institute, a founding member of the Global Living Wage Coalition, which develops living wage and living income estimates in geographies and sectors worldwide using standardized, high-quality, and cost-effective methods.

Richard Anker, co-director of the Anker Research Institute and co-creator of the Anker Methodology to measure living wage, emphasized, “It is essential that action programs aiming to raise wages have a living wage estimate that is accepted by all stakeholders, including workers and employers. Therefore, internationally comparable and transparent living wage estimates are required given the global nature of the supply chain for coffee and other products. This publicly available report, presented to and discussed with stakeholders, is essential for taking action and stimulating public discourse on wages in Colombia and the global coffee supply chain.”

To learn more about the COFFEE Project, including our Colombia pilot project and our open-source toolkit and online training modules that seek to help companies identify, address, and prevent labor issues in coffee supply chains, please visit the COFFEE Project webpage.

The post Anker Research Institute Releases Living Income and Living Wage Study for the Colombian Coffee Sector appeared first on Global Living Wage Coalition.

Around the world, women earn around 20% less than men earn, on average. While gender differences in education, skills, occupations, and working time explain some of this gender pay gap, a large part is due to discrimination. This is not only a violation of women’s human rights; it negatively affects a nation’s prospects for economic growth and social development. Women are disproportionately likely to be in low-paid work, which also has implications for efforts to guarantee a living wage.

The size of the gender pay gap, and its cause, varies from one workplace to the next. However, most analysis of gender pay gaps occurs at the country level or for broad categories, such as ‘agriculture’ and ‘manufacturing’. There is little information available on the size and causes of gender pay gaps in specific workplaces and sectors, including those linked to global brands and retailers. This makes it difficult, especially for employers, to design appropriate measures to close the gaps – if indeed a gap exists.

The Anker Research Institute’s new methodology addresses this by allowing in-depth analysis of gender pay gaps at the workplace and sector level. We use detailed payroll data to determine the size and direct causes of the gap and explore the root causes through interviews with workers, managers, and other stakeholders. We also assess the gender gap to a living wage, the results of which are sometimes quite surprising!

Our study in Colombia’s banana sector, supported by FAO, Fairtrade International, and Fairtrade Germany, assessed gender pay gaps at two banana companies in different regions of Colombia. Depending on the company, the types of pay considered, and the type and occupations of workers, the gender pay gap ranges between 8% and 20%. Importantly, we found that higher wages do not necessarily translate into smaller gender pay gaps. The implication is that if efforts to ensure workers earn a living wage are not gender-aware, they could inadvertently exacerbate gender inequality.

In the report, we highlight steps being taken by industry and trade unions in the Colombian banana sector to improve the gender balance and recommend further actions to close gender pay gaps. This includes training women in field activities, tackling gender stereotypes, promoting active participation in worker organizations, and clarifying the requirements of certification standards.

In the coming months, we will report on our Gender Pay Gap studies in other countries and continue to look for ways to scale up the measurement of gender pay gaps in global supply chains.

You can find the full study, “Gender Pay Gaps in the Colombian Banana Export Sector” (in English and Spanish), linked below and a recording of the study for the World Banana Forum here.

For more information, contact Sally Smith, Anker Research Institute Gender Lead, at inquiries@ankerinstitute.org  

Read the report in English: Gender Pay Gaps in the Colombian Banana Export Sector

Read the report in Spanish: Brechas Salariales de Género en el Sector Bananero Exportador de Colombia

The post New: First of Its Kind Study Explores Gender Pay Gaps in the Colombia Banana Export Sector appeared first on Global Living Wage Coalition.

The study assessed gender pay gaps at two banana companies in different regions of Colombia, one unionized, the other non-unionized. Depending on the company, the types of pay considered, and the type and occupations of workers, the gender pay gap ranges between 8% and 20%. Importantly, higher wages do not necessarily translate into smaller gender pay gaps. The gaps are mostly due to segregation of women into packing activities, as this prevents them from reaching the wage levels earned by men who work in the whole spectrum of activities on banana farms. Underlying this are a range of factors related not only to the context of each company but also to broader societal issues.

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The post Gender Pay Gap Stakeholder Meeting Highlights Preliminary Study Results appeared first on Global Living Wage Coalition.

The GLWC and Anker Research Institute are pleased to share two new living wage updates for the Caribbean coast of Colombia and the Dominican Republic. The new Living wage reports for the Caribbean coast of Colombia and the Dominican Republic update living wage estimates from 2018 and 2013, respectively, to account for changes in inflation, exchange rates, costs of living, and policy changes since the original reporting. Both of these reports estimate the wage a worker in these regions would need to receive each month to afford a basic but decent living for a family of four.

Read the reports:

Read the newest living wage update: Caribbean coast of Colombia

Read the newest living wage update: Dominican Republic

The post New Living Wage Updates: Colombia and Dominican Republic! appeared first on Global Living Wage Coalition.