Supermarket Lidl is to roll out the use of an analysis tool to tackle low wages among banana plantation workers in its supply chain.

The tool has been piloted by the firm in Germany and will launch in the UK in September.

It will apply to the “entire banana supply chain” and is the first mechanism of its kind for supermarkets to address supply chain wage disparities, according to the supermarket.

Sustainable trade not for profit IDH has been involved in developing the tool, which calculates a premium to be paid by the supermarket to close the living wage gap for plantation workers.

Additionally, by using the tool suppliers can develop an action plan to close wage gaps based on latest salary data.

“Initially, wage gaps between local living wages and actual wages paid to workers are identified by collecting and auditing supply chain data,” explains Lidl.

“Suppliers are trained on the tool and once supply chain data has been validated, can choose their preferred method of payment to workers, such as increased salaries, bonuses, or vouchers for local services like supermarkets.”

Lidl says it is “on track” to close the wage gap across its banana supply chain by 2027.

“We recognise the importance of addressing wage disparities within our supply chain,” said Lidl GB chief commercial officer Richard Bourns.

“Through the introduction of this innovative tool, we are not only fulfilling our obligations as a responsible retailer but also setting new and ambitious standards across the industry.

“It sets a precedent for ethical sourcing, but most importantly, helps ensure fair wages for workers on banana plantations.”

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