Lidl GB has introduced a pioneering tool designed to calculate the premium paid to banana workers, ensuring fair compensation aligns with living wage standards. Initially trialled by Lidl Germany, this tool will be implemented across Lidl GB’s banana supply chain starting in September.

This unique mechanism assists suppliers in formulating action plans to bridge wage gaps. It defines the living wage gap as the discrepancy between a worker’s actual salary and the living wage benchmark—the essential income for a decent living standard in each region.

The tool gathers and verifies data on local living wages versus actual wages paid, determining the premium Lidl is responsible for. Suppliers can select how they compensate workers, with options like salary increases, bonuses, or service vouchers, pending validation.

Lidl proactively disseminates its insights to producers and suppliers, making the tool accessible to other supermarkets.

This development aligns with a collective pledge by nine UK retailers, including Lidl, to enhance living wages within banana supply chains, aiming to eliminate the wage gap by 2027—a target Lidl anticipates meeting early.

Lidl GB’s Chief Commercial Officer Richard Bourns commented on the initiative: “Addressing wage disparities is crucial within our supply chain. The launch of this tool not only demonstrates our commitment as a responsible retailer but also establishes progressive industry benchmarks. It’s a step towards ethical sourcing and, crucially, guarantees fair wages for banana plantation workers.”