European retailers from four countries are working together to implement living wages in their banana supply chains through an initiative known as ‘Better Together’, supported by the German Development Agency ...

In early February, however, two major European retailers made it clear that they would be forging their own way to implement living wages. Lidl Germany (who pulled out of the German retailer group some time ago but are included in the statement through UK and Belgian subsidiaries) and Sainsbury’s both made their own individual announcements on February 8th. Both opted to establish the payment of living wages through administering an additional premium (in the case of Sainsburys) or bonuses and cash payments (in the case of Lidl). Rejecting the trend of retailers working together to find holistic solutions to complex supply chain problems, they placed value on having made swift decisions to implement living wages ....

The push to implement living wages in banana supply chains is undeniably commendable, but when it comes to changing the lives of agricultural workers in the Global South, the situation is full of complexities for which there is no ‘quick fix’. Retailers have been squeezing the price they pay producers for bananas for years .... A holistic and joined-up approach is crucial.

Lidl Germany’s announcement shows that they have withdrawn from the other retailers not only in practice but also in principle ....Lidl Germany’s approach is top-down, lacking engagement with other supply chain actors and neglects the role of worker representatives and/or trade unions ..... it is a big ask [suppliers] to commit to long term increases to worker pay when Lidl – unlike Sainsbury’s – has made no accompanying commitments to signing longer term contracts.

Relying on the leadership of certifications schemes to verify the wages that workers are paid, and / or to administer a ‘living wage premium’ or ‘bonus’ scheme, puts more of the burden of doing the work of living wage implementation on producers ...

There are inherent issues with relying on auditors to certify standards on farms and plantations. Plantations are given advance warning of when audits will take place as standard practice. Temporary, informal and migrant workers can therefore be excluded from audits, sent to other parts of farms and plantations while it takes place. Pre-vetted workers can be told how to answer the auditor’s questions ...

By working with certification schemes and completely failing to collaborate with workers’ representatives or trade unions, Lidl’s .... approach undermines the power of independent workers unions to take a role in negotiating for improved wages and working conditions.

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