New research suggests that tackling poverty among workers in global supply chains requires bigger structural changes than traditional compliance programs. Although international labor standards and certification schemes were designed to improve conditions, researchers found they can sometimes increase pressure on suppliers, leading to more temporary jobs, heavier workloads, and reduced benefits. The study highlights alternative approaches that have delivered stronger results in Africa. Examples include Nando’s PERi Farms, which supports chili farmers in Malawi, Mozambique, and Zimbabwe; Uganda-based coffee producer Mountain Harvest’s efforts to improve incomes and opportunities for workers; and South Africa’s Fair Trade in Tourism certification model, which combines living wage requirements with upskilling. Researchers say these initiatives succeed because they promote long-term partnerships, fairer pricing, and collaboration among businesses, workers, and local organizations. The findings suggest that achieving living wages requires shifting away from relentless cost-cutting and toward business models that prioritize sustainable livelihoods and equitable value distribution.
The Conversation