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Paying a living wage increases the final garment price by 1%
Deloitte Access Economics (DAE) was engaged by Oxfam Australia to provide analysis of Australia’s garment industry.
Oxfam commissioned DAE to answer two specific questions:
1. Current Factory Wages: What is the typical share of the overall price to Australian consumers of garments produced in global supply chains which is spent on factory worker wages?
2. Living Wages: How much would the overall cost of bringing a garment to Australian consumers increase if a living wage were instead paid to factory workers?
The answers were 4% and 1% respectively.
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