Brands need not fear competition law when raising wages, says Fair Wear
25/06/2015
It has teamed up with law firm Arnold & Porter to show raising wages collectively do not present a serious risk with regard to competition law.
“This legal guidance represents a huge step forward for all of us working on living wages for garment workers,” said Anne Lally, FWF’s adviser on living wages. “It ensures that we now know the rules of the game. And what’s clear is that there is a lot of space to manoeuvre.”
Garment brands that source from the same factory would need to collaborate to raise wages but brands are aware that discussing production costs could be perceived as colluding on price.
FWF director Erica van Doorn added: “If a living wage project involves any discussion of financial details – even if the total price paid to the factory by each brand is never mentioned – it is unlikely brands will participate. They cite competition law risks as a major impediment. We hope to turn this around by clearly guiding them in what they can and can´t mention while discussing production costs.”
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