Dive Brief:
- Nestle has agreed to pay a "living wage" to its contract workers in the UK and Ireland, providing a victory to labor activists in Europe.
- The move means pay hikes for the contract workers who comprise roughly 10% of Nestle's 8,000 workers in England and Ireland. The world's largest food company already pays a "living wage" to full-time workers.
- The "living wage," which is calculated to allow a worker to meet all their basic needs, varies from country to country, and within regions. Nestle's move will mean workers in London, for example, will earn $14.98 an hour.
Dive Insight:
Nestle's decision has no immediate impact on its U.S. operations. But that could change.
The push for a "living wage" has gained tremendous traction in recent weeks as a number of global corporations have announced plans to boost their pay standards in the U.S. The most recent example is IKEA. The Swedish furniture maker said last week it would raise pay for its U.S. workers by 17% to $10.76 an hour. The Gap rolled out its long-awaited plan to pay a living wage just days earlier.
Some of the lower-paying segments of the food industry -- particularly fast-food restaurants, meat processing, and produce harvesting -- have long faced activist pressure to increase wages. For a look at what it would cost to pay such workers a "living wage," check out the calculator created by the Massachusetts Institute of Technology.
