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ACT

LIDL COMMITS ITSELF TO FAVOURING SUBSISTENCE WAGES FOR TEXTILE INDUSTRY WORKERS

As a large commercial company, Lidl has clothing and textiles manufactured all over the world. In the production countries of the textile industry, working conditions vary according to the legislation and socio-economic development of each country.

OUR COMMITTMENT TO THE ACT PROJECT

As from November 2019, Lidl, together with other companies on an international level, has joined the international initiative "Action, Collaboration, Transformation" (ACT) in order to promote subsistence wages for textile industry workers. ACT is currently active in Cambodia and negotiations are also ongoing with other producing countries. In this context, binding purchase volumes are established over time. These prevent the manufacturing companies from migrating to production countries with lower labour costs.

Joining ACT is in line with the objectives of the Code of Conduct that establishes binding requirements in terms of social and environmental standards for the contractual partners with whom Lidl collaborates internationally. The aim is to offer products produced in a responsible and environmentally friendly way to our customers. By joining ACT, Lidl is committed to improving living and working conditions in the producing countries, fulfilling its corporate diligence obligation.

"The participation of companies such as Lidl is particularly important due to the fact that Lidl has high purchasing volumes and a great influence on subcontractors in Asia. ACT members, improving their purchasing practices, are committed in the textile industry to asserting the human right to have a living wage and aim to support the necessary changes in this sector, since these are long-awaited changes"

Frank Hoffer, Executive Director Act

What is ACT

ACT is the first global commitment aimed at sectoral collective bargaining for the garment, textile and footwear industry in production countries. The initiative is committed to promoting living wages for workers in the sector, bringing together all relevant actors, including global brands, retailers, manufacturers and governments, who make their expertise available in order to achieve the goal. To ensure sustenance, a wage must cover the cost of living of the worker / close family member, provide sufficient financial resources and be accrued within normal working hours (without overtime).