Center for Corporate Auditing, Responsibility and Management policy Authoring/Global minimum wages policy

Global minimum wages policy

Introduction

Following a recommendation of the International Labour Organization this policy demands that all companies in the company's supply chain are required to implement minimum wages and to demand to pay at least minimum wages from all their employees and contractors, even in third party business relations and in private life. The demand for minimum wages is meant to compensate for the lack of global statutory minimum wages.

Corporate citizenship

1. The employer should aim to educate third parties about the policy and invite competitors and business associations to follow the example.

Co-determination

1. The employer must ensure that trade unions are invited to offer advice and their opinion on the basket of commodities, the process of determining minimum wages and the determined minimum wage(s).
2. The employer must offer all trade unions concerned to add their commentary to an annual report, which must subsequently be published with all copies of the report.

Continuing education

1. The employer must ensure the determined minimum wage is adequately communicated to all employees, subcontractors and the supply chain. All employees should be educated about the requirement of minimum wages annually.
2. The employer must ensure that employees are aware of the possibility of co-determination.
3. The employer must ensure that employees are aware that a failure to follow this policy in private life can be penalized, especially concerning cleaning staff and other household aids.

Co-regulation and public sphere

1. The employer must ensure that the determined minimum wage is publicly communicated, preferably by cooperating with a business association that determines and communicates the value of a basket of commodities.
2. The employer must ensure that an annual report about the basket of commodities, the process of determining the basket of commodities, the process of determining minimum wages and the determined minimum wage is made either by the employer or a business association and that the report correctly describes the processes and the implemented minimum wages.

Center for Corporate Auditing, Responsibility and Management policy Authoring