Living Wages
Collective bargaining & social dialogue LTP Group strongly believe in the freedom of association for all employees and support collective bargaining. All employees in LTP Group are represented by a work council or union. The purpose of the work councils is to uphold transparency, accountability and integrity within the organization and ensure that both employees and management have a dedicated forum to voice concerns and ensure timely and effective issue resolution within the organization. We want to foster an open and dialogic culture that drives constructive changes and gives employees and management a feeling of value-creating engagement. Living Wages A living wage is defined as the income necessary to provide workers and their families with the basic needs of life, such as food, clothing, housing, utilities, transport, health care & childcare. Due to the flexible nature of the term "needs", there is not one universally accepted measure of what a living wage is and as such it varies by location and household type. The living wage differs from the minimum wage, as the minimum wage can fail to meet the requirements for a basic needs of life. We therefore compare wages with both living wages and minimum wages. In LTP Group we calculate living wages based on location and household type. Each year a representative group of employees from each production site is surveyed to obtain information on their household expenses. Based on the survey results, a living wage is determined for each production site. Our production in Orlit and Belvit, Belarus, has ceased and are not included in the living wage analysis.
Our employees were asked to divide their monthly expenses into the following categories: food, housing incl. utilities, water if not included in utilities, household care products, healthcare, transport, education, clothing and phone expenses. The expenses were to be representative of a family of four; two adults working full time having two children. Previous years it has been assumed that families have 1.8 adults working, but looking at LTP group data only 1 % is working part time. As both adults contribute equally, the expenses are divided by 2 and thereby constitutes the living wage of each adult in the family.
LTP Garment Team, Hiking Challenge in Lithuania
40
Powered by FlippingBook