Living Wage Policy and Public Commitment
1. Executive Summary
Solapave is committed to ensuring that all employees in our operations receive a living wage. This policy outlines our public commitment, defines our approach to implementing living wages, and establishes measurable targets for achieving full compliance across our global operations.
2. Policy Statement
Solapave publicly commits to paying all employees in our owned operations a living wage. We recognize that a living wage is fundamental to decent work and is essential for employees to meet their basic needs and participate fully in society.
3. Definition of Living Wage
For the purpose of this policy, we define a living wage as:
"Remuneration received for a standard work week by a worker in a particular place sufficient to afford a decent standard of living for the worker and their family. Elements of a decent standard of living include food, water, housing, education, health care, transport, clothing, and other essential needs, including provision for unexpected events."
4. Scope
This policy applies to all full-time, part-time, and contract employees directly employed by Solapave in our owned operations globally.
5. Measurable Commitments and Targets
Solapave commits to the following measurable targets:
i. By the end of fiscal year 2024:
• 100% of employees in our owned operations will be paid at or above the calculated living wage for their location.
• We will publicly disclose the percentage of our workforce currently receiving a living wage, broken down by region.
ii. By the end of fiscal year 2025:
• We will implement a system to annually review and adjust wages to ensure they keep pace with changes in living costs.
iii. By the end of fiscal year 2026:
• We will extend our living wage commitment to key suppliers, with the goal of 50% of our tier 1 suppliers implementing a living wage policy.
6. Implementation Strategy
i. Living Wage Calculation:
• We will partner with recognised organisations such as the Global Living Wage Coalition or WageIndicator Foundation to determine location-specific living wage benchmarks.
• In locations where established benchmarks are not available, we will conduct our own studies using the Anker Methodology.
ii. Wage Gap Analysis:
• Conduct an annual analysis to identify any gaps between current wages and living wage benchmarks.
• Develop action plans to close identified gaps within specified timeframes.
iii. Budgetary Allocation:
• Allocate necessary funds in annual budgets to support wage increases required to meet living wage commitments.
iv. Training and Communication:
• Provide training to management on the importance of living wages and implementation strategies.
• Communicate our living wage commitment and progress to all employees.
v. Supplier Engagement:
• Develop guidance and support programs to assist suppliers in implementing living wage policies.
7. Monitoring and Reporting
i. Internal Monitoring:
• Conduct quarterly reviews of wage data to track progress towards living wage targets.
• Integrate living wage compliance into our internal audit processes.
ii. External Verification:
• Engage an independent third party to annually verify our living wage calculations and implementation.
iii. Public Reporting:
• Publish an annual Living Wage Report on our corporate website, detailing:
• Percentage of employees receiving a living wage, by region
• Living wage benchmarks used for each location
• Progress towards targets
• Challenges encountered and strategies for overcoming them
iv. Stakeholder Engagement:
• Regularly engage with employees, unions, and civil society organizations to gather feedback on our living wage implementation.
8. Governance
i. Board Oversight:
• The Compensation Committee of the Board of Directors will oversee the implementation of this policy.
ii. Executive Accountability:
• The Chief Human Resources Officer is responsible for the day-to-day implementation of this policy.
• Living wage targets will be included in relevant executive performance evaluations.
9. Continuous Improvement
We commit to continuously improving our approach to living wages by:
• Annually reviewing and updating this policy.
• Staying informed about evolving best practices in living wage implementation.
• Participating in industry initiatives and multi-stakeholder forums on living wages.
10. Public Commitment Communication
We will communicate our living wage commitment publicly through:
• Our corporate website.
• Annual sustainability reports.
• Investor communications.
• Employee handbooks and onboarding materials.
• Supplier Code of Conduct.
Solapave believes that paying a living wage is not only the right thing to do for our employees but also a sound business strategy that will enhance productivity, employee retention, and our reputation. This policy demonstrates our measurable commitment to making living wages a reality for all our employees.