European retailers unite to streamline living wage contributions in banana supply chains
"Better Together” initiative brings clarity and collaboration to voluntary payments aimed at closing living wage gaps
Leading European retailers have joined forces to simplify and align how voluntary contributions (VCs) are implemented across supply chains. Under the ‘Better Together’ collaboration, coordinated by IDH and GIZ, stakeholders from the banana sector - as well as European retailers - discussed and agreed on a unified approach to reduce confusion and ease the burden on suppliers and producers.
As part of their commitments to promote living wages in the banana sector, retailers from the Netherlands, Belgium, Germany and the UK identified voluntary contributions (additional payments made by retailers to help close living wage gaps), as the preferred tool to address wage shortfalls in the short term. However, different methods of calculating and distributing these payments have led to inefficiencies and frustration for suppliers and producers.
To address this, members of the 'Better Together' initiative group launched a structured, participatory process to align on 18 questions surrounding VC implementation. The process included pre-surveys, a joint online workshop, and a final vote, with a 70% consensus threshold set for agreement.
Outcomes
Alignment was reached on 13 of the 18 questions, paving the way for a practical implementation guideline that will be drafted by GIZ and IDH.
Retailers are expected to fully adopt the agreed solutions in 2026.
This joint effort marks a significant step toward more transparent, efficient and equitable practices in the banana industry – and sets a precedent for collaboration in other sectors.
A summary of the aligned questions can be found here.