New guidelines on voluntary contributions to help close living wage gaps in the banana sector

VCs are additional payments made by retailers and passed through suppliers to producers and workers to help reduce living wage gaps in the short term.

Different approaches to implementing VCs have created confusion and additional work for suppliers and producers. The guidelines aim to support a more consistent approach and were developed through an alignment process involving retailers, suppliers, producers and standard-setting organisations.

The document addresses 18 key questions covering the calculation, payment, distribution and verification of VCs. It provides practical guidance on approaches where stakeholder alignment was reached, alongside current practices and recommendations where alignment was not reached (see European retailers unite to streamline living wage contributions in banana supply chains).

Retailers, suppliers and producers are encouraged to follow the guidelines while recognising that VCs remain a short-term tool and should complement longer-term efforts on social dialogue, responsible purchasing practices and pricing mechanisms.

Read the guidelines here.