The Ecuadorian banana sector is taking one step forward towards formalising compliance with national living wage policy by requesting the Ecuadorian Ministry of Labour to issue an “official living wage compliance certificate” to companies.
The Cluster Bananero y Platanero del Ecuador, follows up on the exchange of emails with representatives of European supermarkets, GIZ and IDH, which they have been having in the past weeks regarding the topic of living wage, and to inform them about the action they are taking on this topic.
"In Ecuador, it is a legal and constitutional requirement for employers to adhere to the 'salario digno' policy, which mandates the payment of a living wage to their workers for a standard 40-hour workweek. This policy is aimed at ensuring that the workers in the banana sector receive fair and dignified compensation for their labour, and it is a crucial step towards promoting decent work and improving the standard of living for workers."
In 2022, the living wage was set at $475/month in Ecuador by the Global Living Wage Coalition and Anker Living Wage Income Research Institute, while the total salary of a worker according to our legislation with all social benefits in 2022 was established with the overall salary for 2023 increased, and is currently established as follows:
Employee with more than one year of work: total $562.5
• Base salary: USD 450/month;
• The proportional of the fourteenth remuneration (monetary benefit established by law): USD 37.5/month;
• The proportional of the thirteenth remuneration (monetary benefit established by law): USD 37.5/month;
• The proportional amount of reserve funds (a monetary benefit established by law): USD 37.5/month.
The worker's income could increase according to voluntary benefits and other permanent mandatory variables offered by companies such as bonuses for performance or quality; profit share and benefits in kind, such as food and transportation.
According to the statement of the Ecuador banana cluster, while the banana sector already complies with the living wage policy as per law – and as confirmed by other independent audits such as the one by Rainforest Alliance – the living wage compliance certificate will provide official proof.
Farms which apply for such certificate will be subject to in-site inspections in order to verify the effective fulfillment of the obligation with respect to each worker. The document that, after inspection, establishes compliance with the labour obligation to pay a living wage, will be the order or resolution on file of the inspection process, issued by the labour inspector and addressed to the inspected company. Inspections will start in June and will cover the provinces of Guayas, El Oro, Los Ríos and others, where most of the banana plantations are located.
The official living wage compliance certificate will constitute a formal evidence of the sector’s longstanding conformity with the living wage policy, which should be used as a proof of compliance vis-à-vis living wage requirements under different European certification schemes.
We are convinced that this official tool will further prove the sector’s commitment and compliance to ensuring living wage for banana workers.
For more information:
Richard Salazar
Acorbanec
Tel: +593 9 89857025
Email: rsalazar@acorbanec.com
www.acorbanec.com
Jose Antonio Hidalgo,
AEBE
Tel: +593 96 402 9141
Email: communications@aebe.com.ec
www.aebe.com.ec