Ethical Manufacturing

Living Wage

To understand the ethical dilemma in clothing manufacturing we need to first understand the difference between a living wage and a minimum wage.

A minimum wage is the legislated wage that workers must be paid by an employer in a particular country. A living wage is the minimum income required by a worker to cover the basic necessities of life in their country like feeding their family, affording housing, covering medical expenses, schooling, etc. The United Nations recognises a living wage as a human right.

In Australia, a minimum wage was established in 1907 and since then it is adjusted annually based on inflation to ensure that all Australian workers continue to be paid fairly. Australia is one a few countries in the world where the minimum wage is based on the cost of living and therefore Australian workers are required by law to be paid a living wage. It might interest you to know that Australia’s minimum wage, which is governed by the Fair Work Act, is the highest in the world.

Unfortunately, in countries where the majority of clothing manufacturing is done, the minimum wage is well below the living wage. Check out Labour Behind the Label to see how some of these countries minimum wages compare to a living wage. It might shock you!

Clothing manufacturing is labour intensive. Every piece of clothing you wear is hand sewn. This is why most clothing is manufactured in countries with very low minimum wages and where workers have limited rights. Workers are paid less than a living wage, often working long hours in poor conditions in order to make clothing more affordable. Ever wonder why you can buy a t-shirt for $6? It’s because it only cost $1-2 to make in countries with low minimum wages.

There are some great organisations that try to improve the rights of workers in countries with low minimum wages and poor work conditions, such as Fairtrade. These organisations offer certifications to manufactures that meet minimum requirements for their workers. You will often see brands claim they are ethical because they carry one of these certifications. While we admire these efforts, the reality is that the laws in the countries where they operate do not enforce living wages by law. This means the certification organisations cannot legally enforce any penalties should the manufacturer not live up to the requirements.

At Sharp Minds we want to make sure that the workers that make our t-shirts have rights and are paid a living wage by law. Our supply chain reflects our commitment to ethical manufacturing. This is one of the reasons why we believe that, by buying a t-shirt from us, you are helping change the world!