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Living wage for Bangladesh is 29442 Taka BDT in 2015

March 21, 2016

Asia floor wage for Bangladesh that is a living wage is 259 usd per month. Now minimum wage in Bangladesh for garments is 50 usd per month.

The solution – An Asia Floor Wage

The Asia Floor Wage proposes a wage for garment workers across Asia that would be enough for workers to live on.

Based on some common factors including the number of family members to be supported, the basic nutritional needs of a  worker and their dependents and their other basic needs including healthcare and education, the Asia Floor Wage is able to calculate the minimum amount needed to constitute a living wage.

The Asia Floor Wage is calculated in PPP$ –  Purchasing Power Parity $, which are an imaginary currency built on the consumption of goods and services by people, this currency allows us to compare the standard of living between countries, regardless of the national currency.

Currently the Asia Floor Wage is calculated to be PPP$ 725.

The Asia Floor Wage is different in each country’s national currency, but has the power to buy the same set of good and services in all countries.

For a breakdown of what the Asia Floor Wage is in local currency click here.

how calculated video

how calculated explanation

worker,her partner,two kids. Each kid is considered half the adult.
he Asia Floor Wage Alliance base their calculations on the following assumptions:

A worker needs to be able to support themselves and two other

“consumption units” (1 Consumption unit = 1 adult or 2 children)

An adult requires 3,000 calories a day to be able to carry out their work.

In Asia food costs account for half a workers monthly outgoings that is 50%
rest 40% towards housing,clothing,travel cost,kids education,health costs

Updated with 2015 calculations
The 2015 Asia Floor Wage figure is PPP$ 1021 [that is in USA, now it would be converted using Purchasing Power Parity].
Below is this calculation in local currency.
Bangladesh     29,442 Taka

The London Living Wage is currently £9.40 per hour.

world living wage map

Living wage links and calculation methods

Why Companies That Pay Above the Minimum Wage Come Out Ahead
This article is by Zeynep Ton, an adjunct associate professor of operations management at the MIT Sloan School of Management and the author of The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits.

The conventional wisdom in business is that bad jobs like this are necessary to keep prices low and profits high. If a low-cost retail chain were to pay its cashiers more, then it would either make less money or have to raise its prices. Implicit in this logic is the seemingly self-evident tradeoff between low prices and good jobs. But that is a false tradeoff. Even in highly competitive industries like low-cost retail, it is possible to pay employees decent wages and treat them well while giving customers the low prices they demand.

First, these companies consider their workforce not as a cost to be minimized but as a strategic asset. They invest in their employees with the expectation that they will get even more back in terms of labor productivity, customer service, cost-cutting, innovation, and flexibility during difficult times. Most businesses consider their high-level managers and skilled professionals to be strategic assets. But these companies see their front-line people that way, too.

Tedx talk
The Good Jobs Strategy: Zeynep Ton at TEDxCambridge 2013

Her webinar presentation

Her book
Full of surprising, counterintuitive insights, the book answers questions such as: How can offering fewer products increase customer sat­isfaction? Why would having more employees than you need reduce costs and boost profits? How can companies simultaneously standardize work and empower employees?

Almost one in four American working adults has a job that pays less than a living wage. Conven­tional wisdom says that’s how the world has to work. Bad jobs with low wages, minimal benefits, little training, and chaotic schedules are the only way companies can keep costs down and prices low. If companies were to offer better jobs, cus­tomers would have to pay more or companies would have to make less.

review on her book

last year titled “The Good Jobs Strategy” — her thesis comes out of research she did early in her academic career on supply chain management in the retail industry, focused especially on inventory management. What she and her fellow researchers discovered is that while most companies were very good at getting products from, say, China to their stores, it was a different story once the merchandise arrived. Sometimes a product stayed in the back room instead of making it to a shelf where a customer could buy it. Or it was in the wrong place. Special in-store promotions weren’t being executed a surprisingly high percentage of the time. She saw this pattern in company after company.

Unconvinced that this was the only approach, Ton decided to search for retail companies — the same kind of companies that needed low prices to succeed — that did things differently. Sure enough, she found some.

The two companies she talks about most frequently in this regard are a Spanish grocery chain called Mercadona and QuikTrip, a Tulsa, Okla.-based chain of convenience store/gas stations that competes with the likes of the 7-Eleven chain.

QuikTrip, an $11 billion company with 722 stores, is a prime example of what Ton means by “human-centered operations strategies.” Paying employees middle-class wages allows the company to get the most out of them. Employees are cross-trained so they can do different jobs. They can solve problems by themselves. They make merchandising decisions for their own stores. The ultimate result of the higher wages QuikTrip pays is that costs everywhere else in the operation go down. At QuikTrip, says Ton, products don’t remain in the back room, and in-store promotions always take place, as they’re supposed to.

Ton’s interest in the good jobs strategy is more than academic now; she has become a proselytizer, trying to spread the word that every company would be better served by this approach. “The assumed trade-off between low prices and good jobs is a fallacy,” she says. As we worry about where middle-class jobs are going to come from,

Home Depot is a well-known example. When former GE executive Robert Nardelli became CEO, at the end of 2000, he cut staffing levels and increased the percentage of part-timers to reduce costs and boost profits. Those moves achieved both goals immediately, but they eventually caused Home Depot’s excellent customer service—the company’s claim to fame and, arguably, primary source of competitive advantage—to suffer, customer satisfaction to plunge, and same-store sales growth to drop and even go negative in some years.

What happened to Home Depot is common. Many store managers at various retailers told me that the pressure to meet short-term performance targets led them to reduce employees even though they knew that the workers who remained would cut corners and make mistakes. And they suspected that this could hurt sales and profits. Indeed, my research suggests that understaffing retail stores amounts to a missed opportunity: In my analysis of data from 1999 through 2002 from more than 250 stores of Borders, a major bookstore chain at the time, I found that a one-standard-deviation increase in labor levels at a store increased profit margins by 10% over the course of a year. Research by Marshall Fisher, Serguei Netessine, and Jayanth Krishnan supports my findings: Their analysis of 17 months of data from a large retailer shows that for every $1 increase in payroll, a store could see a $4 to $28 increase in monthly sales.

Employees of these retailers have higher pay, fuller training, better benefits, and more-convenient schedules than their counterparts at the competition. Store employees earn about 40% more at Costco than at its largest competitor, Walmart’s Sam’s Club. At Trader Joe’s, the starting wage for a full-time employee is $40,000 to $60,000 per year, more than twice what some competitors offer. The wages and benefits at QuikTrip are so good that the chain has been named one of Fortune’s “100 Best Companies to Work For” every year since 2003. All of Mercadona’s employees are permanent, and more than 85% are salaried full-timers.

These model retailers make an effort to provide advancement opportunities. For example, about 98% of store managers at Costco and all store managers at Mercadona, QuikTrip, and Trader Joe’s are promoted from within, and many executives at these companies started out in the stores.

n addition to offering the lowest prices in their industries, these retailers also provide better customer service than their competitors. The University of Michigan’s American Customer Satisfaction Index ranks Costco as high as Nordstrom—a department store chain known for outstanding customer service—and consistently higher than Sam’s Club. Quik­Trip performs better than its competitors in evaluations by mystery shoppers. Customers get in and out of QuikTrip stores quickly because merchandise is always where it is supposed to be, and employees have been trained to ring up three customers per minute (often by not having to scan merchandise and by calculating change in their heads).

Eliminate waste in everything but staffing.

Retailers that invest in employees are by no means easygoing about what people do. Rather, they are obsessed with eliminating waste and improving efficiency. At Costco stores, products are shelved on pallets, which eliminates the need to unload and shelve them. At Trader Joe’s, many perishable products are sold already packaged instead of loose, which speeds up checkout. Costco and Trader Joe’s also work hard to eliminate waste in the supply chain—by, for example, purchasing most products directly from manufacturers and moving them to retail stores via their own highly efficient distribution centers.

QuikTrip and Mercadona apply world-class manufacturing practices to their store operations. Every in-store logistics process—from receiving merchandise to moving products within the store—is timed and standardized, and compliance with the standards is constantly monitored. Employee feedback is incorporated into process design and improvement. At QuikTrip, employees from every position regularly discuss problems and identify opportunities for improvement. At Mercadona, managers at headquarters in charge of specific processes routinely visit stores and talk to employees. The company also has field employees whose main job is to relay employee and customer feedback to purchasing and marketing departments.

In contrast to retailers that constantly strive to make do with fewer employees, retailers that operate in a virtuous cycle often err on the side of overstaffing. They want to make sure that employees are not too rushed to serve customers well and finish their logistics tasks. QuikTrip goes even further, maintaining a force of hundreds of employees who do not report to a specific store but are ready to fill in for people who get sick, take a vacation, or have an emergency.

Let employees make small decisions.

In most retail stores, merchandise planning is centralized and only managers can make decisions about product returns and customer complaints. But at companies that operate in a virtuous cycle, employees constantly make decisions. QuikTrip, Trader Joe’s, and Mercadona employees decide how many units of each item to order for their stores. How can large chains trust thousands of people to make inventory decisions? Every decision is small, corporate IT is designed to assist, and the decisions are monitored. Because empowering employees in these ways makes companies more responsive to local needs and preferences, it increases customer as well as employee satisfaction.

Actually you could read it in google books

Bangladesh living wage study by CPD


From → Money

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