The supermarket chain's commitment to exclusively offering living wage bananas reinforces the belief that the future of banana trade must be centred on fairness and respect for labour rights.
The German supermarket chain Lidle, which has a presence in several European countries, will begin to offer exclusively living wage bananas in its UK stores, that is, bananas at prices that include recognition of the living wage paid to workers on banana farms in the producing countries that supply them with the fruit.
This was highlighted by the Banana Cluster of Ecuador.
The organization explained that the supermarket chain's commitment to exclusively offer living wage bananas reinforces the belief that the future of banana trade must be centered on equity and respect for labor rights. “In this context, Ecuador is a key partner for those seeking high-quality products that also reflect a serious commitment to the well-being of workers,” the Cluster reported.
She stated that Ecuador is already aligned with the highest standards in terms of living wages, by ensuring that wages in the Ecuadorian banana sector are above the living wage level determined by the Global Living Wage Coalition (GLWC). To ensure this, the Ecuadorian Ministry of Labor carries out verification processes on the compliance of employers' obligations in terms of wages in accordance with current laws and regulations.
In 2023, the monthly salary amount was set at US$525 for workers with less than one year of employment and at $562.50 for workers with more than one year of employment (which includes the reserve fund and tenths), while the Global Living Wage Coalition updated the figure for the living wage in Ecuador for that year to $489.
José Antonio Hidalgo, executive director of the Association of Banana Exporters of Ecuador (AEBE), explained that the living wage amount for 2023 is currently still in effect and that the next update will be at the end of 2024. “It is updated at the end of the year because they are for contracts that are negotiated from year to year,” he added.
“With all the benefits provided by law, we add up to around $562.50 for workers with less than a year of work experience and $525 (for those with) more than a year, not counting the other benefits that each of the companies has. Obviously, Ecuador surpasses what was designated by the coalition, which implies that Ecuador has no gap and complies with the living wage,” Hidalgo stressed.
He recalled that the summary report on the wage analysis of Ecuadorian banana plantation workers linked to the German market, carried out by GIZ, found that 99.36% of the workers involved in the analysis received a living wage. Of the 5,932 workers included in the wage analysis, the farms reported that an average of only 39 workers (0.66%) earned less than a living wage.
"The banana sector generates jobs for 250,000 people. Ecuador is the only country that meets this standard by mandate of law and the Constitution," the Cluster stressed in a statement.
For his part, the head of AEBE revealed that the vision of the Ecuadorian banana sector is to consolidate the position of “Ecuador premium living wage bananas” in the European market, which will highlight not only the excellence of the products, but also the social and economic effort involved in maintaining fair wages and decent working conditions throughout the sector, and he invited other actors in the chain to join this global movement for fair trade.
The Cluster is made up of AEBE, the Banana Marketing and Export Association of Ecuador (Acorbanec), the Regional Corporation of Banana Growers of Ecuador (Agroban), the Association of Banana Exporters and the Commission of Association of Small Producers with the participation of the associations: Fincas El Oro, Production and Life, Oro Verde, Asoproabacao, Tierra Fértil, San Miguel de Brasil, Asoguabo and Asoprorey.
LIVING WAGE BANANA
Hidalgo explained that the chain announced that it will begin a program to purchase bananas only from farms that meet the living wage requirement.
Meanwhile, the specialist media www.retail-insight-network.com reported that after a successful trial in Lidl Germany, the Living Wage Bananas tool will be launched in September throughout Lidl's banana supply chain in the United Kingdom. This mechanism, the first of its kind, developed in collaboration with IDH, a non-profit organization that advocates for sustainable trade, calculates the premium that Lidl must pay to compensate for its share of the difference in living wages for workers and plantations.
This tool, Lidl reported, allows suppliers to develop an action plan to close these wage gaps, with regular analysis and annual adjustments. Initially, wage differences between local living wages and actual wages paid are identified by collecting and auditing supply chain data.
I am complaining that a European supermarket is selling a kilogram of Ecuadorian and Latin American bananas for 0.88 euros, when the minimum price should be 1.85 euros.
“We recognise the importance of addressing pay disparities within our supply chain. By introducing this innovative tool, we are not only meeting our obligations as a responsible retailer, but also setting ambitious new standards across the industry,” said Richard Bourns, Lidl’s UK commercial director.
For his part, Hidalgo hopes that other European chains will join the initiative and use this point as a reference when searching for suppliers for next year, and that the majority of their bananas will be Ecuadorian. (I)
